Ba Psychology

Introduction of
UNIT 1 INTRODUCTION OF Organisational Psychology
ORGANISATIONAL PSYCHOLOGY
Structure
1.0 Introduction
1.1 Objectives
1.2 What is an Organisation?
1.3 Organisational Metaphors
1.3.1 Organisations as Machines
1.3.2 rganisations as Organisms
1.3.3 Organisations as Brains
1.3.4 Organisations as Cultures
1.3.5 Organisations as Political Systems
1.3.6 Organisations as Psychic Prisons
1.3.7 Organisations as Flux and Transformation
1.3.8 Organisations as Instruments of Domination
1.4 What is Organisational Psychology?
1.5 Organisational Psychology and Organisational Behaviour
1.6 Scope of Organisational Psychology
1.6.1 Work Motivation
1.6.2 Job Satisfaction, Organisational Commitment, and Organisational Justice
1.6.3 Leadership
1.6.4 Group Behaviour
1.6.5 Work Stress
1.6.6 Organisational Culture and Development
1.6.7 Productive and Counterproductive Behaviour
1.6.8 Work-Life Balance
1.7 Let Us Sum Up
1.8 Unit End Questions
1.9 Glossary
1.10 Suggested Readings
1.11 Answers to Self Assessment Questions
1.0 INTRODUCTION
Organisations are an important part of our daily lives. Our society is made up of
many diverse kinds of organisations. To name just a few, there are industrial,
governmental, non-governmental, political, religious, educational, military, health,
and social organisations. Think about the number of organisations that directly
affect you: college, social groups, clubs, even family. Now think of the others
that affect you indirectly: the local public utilities (electricity company like BSES,
or local train services like Metro), the governmental agencies in your community,
the RWA (Resident Welfare Association) in your locality, hospitals, retail stores,
and so on. These organisations affect you, both in terms of the services received
and your health, safety, well-being. Our living standard, security, and even identity
depend upon the effectiveness of these organisations. 5
Organisational Psychology In the past century, there has been a phenomenal rise in the number, size, diversity,
and complexity of organisations. Given the growth of these organisations and
the pervasiveness of organisations in our lives, it is not surprising that
psychologists have devoted a great deal of effort in the study of organisations.
The field of organisational psychology is devoted to this.
In this unit, we will examine what an organisation is, critically examine the
various metaphors of conceptualising organisations, closely look at the field of
organisational psychology with a brief description of its historical development
in the twentieth century. We shall also analyze the scope of organisational
psychology, and examine the difference between organisational psychology and
organisational behaviour.
1.1 OBJECTIVES
After reading this unit you will be able to:
• Describe the characteristics of an organisation;
• Critically examine various metaphors for conceptualising an organisation;
• Describe the field of organisational psychology;
• Explain the scope of organisational psychology; and
• Differentiate between organisational psychology and organisational
behaviour.
1.2 WHAT IS AN ORGANISATION?

As you might recall, in course 13, Block 1, unit 1 (introduction to organisational
and industrial psychology), we defined an organisation as “a consciously
coordinated social unit, composed of two or more people, that functions on a
relatively continuous basis to achieve a common goal or set of goals” (Robbins,
1991, p. 4).
In the next section we will examine several ways of conceptualising an

organisation, but here we will use a simpler approach to illustrate that
organisations have the following five important features (Rollinson & Broadfield,
2002, p. 3):
1) Organisations are artifacts: Organisations are not natural entities like living
beings but are brought into existence by human beings.
2) Goal directed: As the above definition makes it amply clear, organisations
are created to serve some purpose. This however does not mean that everyone
in the organisation has a common goal, or even that everyone is aware of
and understands the organisational goals.
3) Social entities: According to the definition, organisations are ‘composed
of two or more people’ and as such are social entities.
4) Structured activity: In order to achieve the purpose or goals of an
organisation, it is required that human activity be deliberately structured
and coordinated in some way. Hence usually there are identifiable parts or
activities in an organisation.
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5) Nominal boundaries: Generally speaking, it is possible to identify nominal Introduction of
Organisational Psychology
boundaries for an organisation. This refers to consensus regarding who or
what is a part of the organisation and who or what belongs elsewhere. This
in no way means that the organisation is isolated from its outside (remember
the organisation as an open system?).
Activity
Think about the school or the college where you last studied as an organisation.
With references to the five characteristics of an organisation described above,
describe the ways in which it qualifies as an organisation. That is: Is it an artifact?
What do you think its goals are? List them. How many people are involved in
running the organisation? Can you list the key members? What might be its
structure and operating mechanisms? Try to identify its nominal boundaries?
1.3 ORGANISATIONAL METAPHORS

The definition of an organisation provide above is a very general one. There is
however, no single way of conceptualising an organisation. Rather, organisations
are complex social systems which can be defined and studied in a number of
different ways. A significant and useful approach to this has been provided by
Morgan (1986).
Through the use of eight different metaphors, Morgan has drawn attention to
those features of organisations that the user of the metaphor considers to be the
most important. According to him the use of metaphors allows for a better
understanding of the “many-sided character of organisational life” (Morgan, 1986,
p. 17). Let us now discuss each of these metaphors for conceptualising an
organisation.
1.3.1 Organisations as Machines

This suggests that organisations can be designed as if they are machines
constructed to do something specific, with orderly relations between clearly
defined parts. Viewing organisations as machines entails setting up a structure
of clearly defined activities linked by clear lines of communication, coordination,
and control, with set goals and objectives.
This metaphor is useful under conditions where machines work well: when the
environment is stable and protected, when the task is relatively straightforward,
and when precision is vital. Perhaps the best example is fast-food industry like
McDonalds. Such a mechanistic approach to organisation also has severe
limitations. Such organisations have great difficultly in adapting to change, and
can result in mindless bureaucracy. Another problem relates to human
consequences. People tend to be viewed as merely components of the total
machine, moulding them to fit the requirements of organisations, rather than
building the organisation around their strengths and potentials. This can have
dehumanizing effects upon employees, especially those at the lower levels of
the organisational hierarchy. Such a metaphor also tends to ignore the complexity
and diversity of motives that underlie human behaviour, and with the increasing
pace of social and economic change, the limitations have become more and more
obvious.
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Organisational Psychology 1.3.2 Organisations as Organisms
In sharp contrast to the static, mechanistic machine metaphor, organisations as
organism metaphor is based on a biological analogy that organisations, like
organisms are living entities. In the same way as biological organisms are in
constant interaction with their environments and must adapt to the changing
external environment to survive, organisations as open systems must achieve an
appropriate dynamic relationship with their environment. You would recall that
in Course 13, Block 1, Unit 3 (Industrial & Organisational Psychology as related
to other disciplines), we introduced the ‘open systems approach’ (Katz & Kahn,
1966) to conceptualise organisations.
The organism metaphor also accepts that all parts of an organisation are
interconnected and have to function in a way that contributes to the whole,
implicitly recognizing humans as an important organisational component. Open
systems also implies that an effective organisation is open to infinite possibilities;
therefore, management’s concern should be with achieving good fits among the
subsystems. Varied and creative approaches to management are essential.
A primary strength of the metaphor is its shift in focus from things to people as
a means to sustainable quality improvement. The biggest weakness lies in the
analogy itself: organisational shape and structure is actually more fragile and
dynamic than the structure of living organisms. The assumption that all the
component parts of an organisation have a unified, common purpose is indeed
an oversimplification.
1.3.3 Organisations as Brains

Organisations like brains are inventive and rational, and operate in a manner that
provides for flexibility and creativity. Like maps in the brain to outline which
part of the brain handles what, organisations too have a structure imposed on it
in the form of organisational charts. Using the literature from information
processing, cybernetics and self-correcting systems, and organisational learning,
Morgan compares organisations to holograms: systems where qualities of the
whole are enfolded in all the parts so that the system has an ability to self-organize
and regenerate itself on a continuous basis. He lists four principles to create a
‘hologram’ organisation:
i) Functional redundancy: a kind of excess capacity, not by adding spare

parts, but by adding extra functions to each of the operating parts. This can
create room for innovation and development to occur.
ii) Requisite variety: the internal diversity of any self-regulating system must
match the variety and complexity of its environment it is supposed to control.
iii) Minimum specifications: in addition to a capacity to evolve, systems also

need freedom to evolve, i.e. possess a certain degree of ‘space’ or autonomy
that allows appropriate innovation to occur.
iv) Build the ‘whole’ into all the ‘parts’: This may be accomplished by using
(a) the cultural codes binding an organisation together, (b) networked
intelligence, (c) design of organisational structures, and (d) designing of
work tasks using holistic teams and work roles.
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Such an organisation will have the ability of learning to learn: the ability not Introduction of
only to correct actions to goals, but also to question the goals if necessary. The
biggest strength of the brain metaphor is that it increases our understanding of
organisational learning and autonomy. The most serious weakness is that not
only will changes take a very long time to implement, but they also necessitate
huge changes in personal beliefs and values to implement it.
1.3.4 Organisations as Cultures

This metaphor sees organisations as complex cultural systems in which members
have common beliefs, ideologies, rituals, values and shared assumptions.
Organisational culture can be described as a socially constructed, unseen, and
unobservable force behind organisational activities. It provides organisational
members with a way of understanding and making sense of events and symbols.
It also is a powerful lever for guiding organisational behaviour by informally
approving or prohibiting some patterns of behaviour.
Perhaps you would agree that organisations have their own distinctive cultures
that may become obvious to an outsider as he walks in the company door- through
its dress code, language, behaviour, ceremonies. Such surface manifestations
are easier to decipher than deep seated basic assumptions. The biggest strength
of this metaphor is that it goes well beneath the surface to try to uncover some of
the less obvious features of organisations, and how it effects the behaviour of
organisational members. One limitation of this metaphor is that not only do
cultures differ in their strength, but also that everybody in the same organisation
doesn’t have the same set of cultural norms: there are ‘subcultures’ within cultures.
These differences and their behavioural outcomes give rise to the political systems
metaphor.
1.3.5 Organisations as Political Systems

Organisations are regarded as analogous to a political system composed of diverse
groups, each having their own aims and interests. When we see organisations as
political systems we draw parallels between how organisations are run and systems
of political rule. According to Morgan, business and politics cannot be kept apart.
This metaphor is useful because it recognizes the important role that power play,
competing interests, and conflict have in organisational life. It also recognizes
the complex nature of human behaviour in organisations. It has implications for
organisational change, as in order to work, the change must be supported by a
powerful person and coalitions.
The disadvantage of using this metaphor to the exclusion of others is that it can
lead to unnecessary development of complex Machiavellian strategies. This can
turn organisational life into a political war zone. The political metaphor also
neglects the idea that if circumstances are right, then there is also potential for
cooperation.
1.3.6 Organisations as Psychic Prisons

This views organisations as socially constructed realities based on unconscious
preoccupations of people in the organisation, with the notion that people can
actually become imprisoned or trapped by constructions of reality. The psychic
prison mentality exists when people begin to hold onto their preconceived notions
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Organisational Psychology and biases in order to handle anxiety and desire that eventually become their
reality.
For example, a phenomenon that restricts thinking is groupthink (Janis, 1972).

In groupthink, the members of a group develop shared illusions (about say
invulnerability and unanimity) as a result of self-affirming processes that produce
conformity. This creates a constructed reality with stereotyped views of out-
groups and beliefs in inherent morality of one’s own group. This leads to faulty
decision making with disastrous consequences for the organisation.
The psychic prison metaphor encourages us to dig below the surface to explore
the hidden meanings of our taken-for-granted worlds. The psychic prison
metaphor alerts us to pathologies that may accompany our ways of thinking and
encourages us to question the fundamental premises on which we enact
everyday. It is pointless talking about ‘learning organisations’ or creating desirable
organisational cultures if the human dimension is ignored.
1.3.7 Organisations as Flux and Transformation

The universe is in a constant state of flux, with accompanying characteristics of
both change and permanence. Organisations similarly can be seen as in a state of
flux and transformation. Instead of viewing the organisation as a separate system
that adapts to the environment, this metaphor allows us to look at organisations
as simply part of the whole environment, with a natural capacity to self-renew,
change and organize.
This metaphor is the only one that sheds some light on how change happens in a
turbulent world. This view believes that order naturally emerges out of chaos.
Although managers can nudge and shape progress, they cannot ever be in control
of change. Such a metaphor is limiting as unlike other metaphors, it does not
lead to an action plan to follow for change. Order emerges as you go along, and
can only be made sense of after the event. This can lead to a sense of powerlessness
that is disturbing, but probably realistic!
1.3.8 Organisations as Instruments of Domination

This metaphor addresses the ‘ugly face of organisational life’ (Morgan, 2006, p.
291). Organisations are often used as instruments of domination that further the
selfish interests of elites at the expense of others. Whether we are talking about
the military, a multinational corporation, or even a family business, we find
asymmetrical power relations that result in the majority working for the interests
of a minority. The problems of hazardous working conditions, industrial accidents,
occupational disease, practices and structures that promote workaholism, social
and mental stress are all examples of organisations as tools of domination.
This metaphor thus provides a useful counterweight to traditional organisational

theory, which has largely ignored values or ideological premises. One of the
major strengths of the domination metaphor is that it forces us to recognize that
domination may be intrinsic to the way we organize and not just an unintended
side effect.
These contrasting metaphors provide an interesting perspective on how to view

organisations. Metaphors play a paradoxical role: they are vital to understanding
and highlighting certain aspects of organisations, while at the same time they
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restrict understanding by ignoring others. Further, these metaphors are neither Introduction of
fixed categories nor are they mutually exclusive. Hence there can be no single
metaphor that gives an all-purpose point of view.
Self Assessment Questions

Answer the following questions:
1) When things are going well we say the organisation is running like a
‘well-oiled engine’; when they are not, then communication has ‘broken
down’ and ‘things need fixing’. The metaphor that this represents is:
(a) Psychic Prison (b) Cultures (c) Machines (d) Brains
2) The metaphor that is concerned with the relationship between
organisations and their environments and the ability to survive by being
adaptive is:
Psych(a) Brains (b) Organisms (c) Political Systems (d) Machines
3) People develop unconscious mechanisms, and construct realities, and
that these mechanisms and realities are reflected in organisations. Which
metaphor addresses this?
(a) Psychic Prison (b) Flux and Transformation (c) Political Systems
(d) Cultures
4) The organisational metaphor that recognizes conflict and competition
as everyday features of organisational life is:
(a) Psychic Prison (b) Flux and Transformation (c) Instruments of
Domination (d) Political Systems
1.4 WHAT IS ORGANISATIONAL PSYCHOLOGY?

As the above section illustrates, organisations are complex social systems that
may sometimes perform remarkably and sometimes fail miserably. Organisational
psychology is a field that seeks to facilitate a greater understanding of social
processes in organisations.
Organisational psychology may be defined as the “scientific study of individual

and group behaviour in formal organisational settings” (Jex, 2002, p. 2).
Organisational psychology not only uses a scientific approach, but is also
concerned with the application of scientific knowledge to enhance the
effectiveness of organisations- a goal that is potentially beneficial to all.
We have already discussed the historical development of the field of organisational

psychology in Course 13, Block 1, Unit 2 (historical perspective of organisational
and industrial psychology). Here, we shall briefly touch upon some major events
that shaped the field of organisational psychology in the twentieth century (Refer
Table 1). Historically, organisational psychology was slower to develop than the
industrial side of the field. Industrial psychology originated in the first half of
the twentieth century, applying basic psychological theories and principles to
the selection process during World War I. It soon extended beyond selection to
motivation, leadership, attitudes and job satisfaction, morale, training, and
performance management. From about the 1950s onwards, researchers from a
number of disciplines, particularly social psychology, began to take an interest
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Organisational Psychology in developing some scientific understanding of modern organisations (Cooper,
1991). The theories and research on interpersonal behaviour, group dynamics,
inter-group behaviour, and macro organisational issues formed the basis for
extending the field of industrial psychology to organisational psychology.
Table 1: A chronological summary of historical events in organisational

psychology (From Jex, 2002, p. 10)
Time Period Organisational Phenomena of Interest
Early 1990 Scientific management (Taylor); Organisational structure
(Weber)
1920s-1930s Hawthorne Studies; growth of unionisation
1940s-1950s World War II; Development of ‘human relations’ perspective;
Lewin conducts action research and undertakes work on group
dynamics
1960s-1970s Division 14 of APA is changed to ‘industrial/organisational
psychology’; Increasing attention to non traditional topics as
stress, work/family conflict, etc.
1980s-1990s Globalisation of the economy; Changing workforce
demographics; Redefining the notion of a ‘job’
As you might recall, the beginning of the field of I/O psychology can be traced
back to pioneers like Hugo Munsterberg, Walter Dill Scott, and Walter Bingham.
Most of the work at the time dealt with topics like selection and training, with
organisation-level issues largely ignored. Taylor (1911) applied his principles of
scientific management, including time-and-motion studies, piece-rate
compensation, and efficient design of jobs, to study production-related processes.
Another pioneer who contributed to the field of organisational psychology was
Max Weber, with his notion of bureaucracy as an organizing principle. He also
wrote extensively on topics like leadership, power, and norms at a time when
such topics were largely ignored by psychologists.
The one event that may be considered as the historical beginning of organisational
psychology was the Hawthorne Studies. These showed that workers did not
respond to the classical motivational approaches like economic rewards as
suggested by Taylor. Instead, individual, group and social processes played a
major role in shaping worker attitudes and behaviour. This triggered a human
relations movement in organisational psychology. Employees were no longer
considered as just another factor of production, but as individuals who liked to
be respected and whose contribution could help in meeting organisational goals.
Organisational psychology gained prominence after World War II, influenced by

the Hawthorne Studies and the work of researchers such as Muzafer Sheriff and
Kurt Lewin. It is difficult to imagine anyone having a greater impact on the field
of organisational psychology as Lewin. He conducted influential research on a
variety of topics, such as child development, the impact of social climates, and
leadership. He established the Research Center for Group Dynamics at M.I.T.
His ideas continue to influence the study of a number of areas in organisational
psychology such as leadership, motivation, group dynamics, and organisation
development. From the early 1970s into the 1980s, organisational psychology
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began to mature as a field of study. During the early 1970s, the name of Division Introduction of
14 of the American Psychological Association (APA) was formally changed from
‘Industrial Psychology’ to ‘Industrial and Organisational Psychology’. Another
important development during this time was the growing recognition that
behaviour in organisations is influenced by forces at the group and organisational
levels. Naturally, organisational psychologists began to focus on ‘nontraditional
topics’ such as work/family interface, organisational stress and health.
From the late 1980s to the present, a number of significant changes have taken
place both in our world of work and the world that we live in. Establishment of
free market economies post liberalisation, change in the demographic composition
of the workforce, cultural diversity, shift from a stable ‘job’ to more temporary,
project-based work, has greatly impacted the field of organisational psychology.
1.5 ORGANISATIONAL PSYCHOLOGY AND

ORGANISATIONAL BEHAVIOUR
A related sub-field of Industrial/Organisational psychology is organisational
behaviour. There are obvious similarities and not so obvious differences between
organisational psychology and organisational behaviour. The latter will be dealt
extensively in the next unit. Moorhead and Griffin (1995) define organisational
behaviour as “the study of human behaviour in organisational settings, the
interface between human behaviour and the organisation, and the organisation
itself” (p. 4). It is in the last part of the definition ‘the organisation itself’ that we
can see the difference between the two fields. Organisational behaviour is
concerned not only with individual level behaviour within organisations, but
also with macro-level processes, such as organisational strategy, structure and
change.
Organisational psychology is also interested in macro-level processes, but only

to the extent that it impacts individual behaviour. Herein lies the key difference:
organisational behaviour is more eclectic in its approach, drawing heavily form
a variety of disciplines like management, sociology, economics, anthropology,
labour relations, etc, while organisational psychology draws mainly from subfield
within psychology (Jex, 2002). Those who specialise in organisational behaviour
tend to deemphasize the individual approach and focus more on studying the
system in which individual behaviour occurs.
According to Smithers (1988), “Whereas industrial and organisational psychology

tends to move from the study of the individual to the organisation, organisational
behaviour movers from the organisation to the study of the individual” (p. 5).
Having said this, it is important to note that despite conceptual distinctions, the
work of these two specialties in the real world becomes quite similar.
1.6 SCOPE OF ORGANISATIONAL PSYCHOLOGY

Historically, organisational psychology developed later than industrial psychology
and had a distinct focus, although this distinction is largely artificial and many
topics cut across both areas. Today, the fields of industrial and organisational
psychology have combined into a relatively newer field of Industrial/
Organisational Psychology (I/O Psychology). The ‘industrial’ side of I/O
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Organisational Psychology psychology has its historical origins in research on individual differences,
assessment, and the prediction of performance. The ‘organisational’ side covers
group and inter-group issues. Figure 1 provides a comparison of the list of topics
that are typically of interest to those in the industrial and organisational sides of
the field. The topics listed on the industrial side are by and large associated with
the management of human resources in organisations; while the topics associated
with organisational side of the field are concerned with understanding and
predicting behaviour within organisational settings
Industrial/Organisational
Psychology
Industrial Side Organisational Side

Job Analysis Socialisation
Recruitment Motivation
Selection Work Stress
Compensation Leadership
Performance Appraisal Group Performance
Training Organisational
Development
Fig. 1: A comparison of topics associated with the industrial and organisational sides of
the field of I/O Psychology (From Jex, 2002, p. 4)
While industrial psychology is concerned with use of psychological measurement

to help organisations make the best use of their people; organisational psychology
uses broad psychological theories to diagnose and correct organisational problems.
Organisational psychology utilises scientifically-based psychological principles
and research methods to study a variety of topics important to understanding
human behaviour in many different types of organisations. Recent books on I/O
psychology (for instance, Cooper and Locke, 2000) have covered topics such as
leadership, leadership training and development, team effectiveness, job
satisfaction, the employment interview, performance appraisal, intelligence/
motivation/job performance, recruitment, goal setting, organisational justice, and
organisational stress.
Let us look at some of the topics covered in organisational psychology more

closely.
1.6.1 Work Motivation

Motivation is the force that energizes an individual to reach a goal. The
psychological study of motivation answers the question of why people do what
they do. Taylor’s introduction of the piece rate and the bank wiring room study
at Hawthorne are two examples of how complex worker motivation is. At the
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workplace, it is important for the manager to understand the needs and drives of Introduction of
subordinates and motivate them accordingly.
1.6.2 Job Satisfaction, Organisational Commitment, and

Organisational Justice
Job satisfaction, one of the most widely researched topics in organisational
psychology, reflects an employee’s overall assessment of his/her job. Job
satisfaction has theoretical and practical utility and has been linked to important
job outcomes including absenteeism, employee turnover, health, organisational
effectiveness, and attitudinal variables such as job involvement and organisational
commitment.
Commitment refers to (a) a belief in and acceptance of organisation’s goals and

values, (b) a willingness to exert considerable effort on behalf of the organisation,
and (c) a strong desire to remain a member of the organisation (Mowday, Porter,
& Steers, 1982). Two classes of variables: individual (such as age, tenure, marital
status, education etc) and organisational (for instance, task characteristics, pay,
supervision, social support, socialisation practices, etc) have been studied as
antecedents of organisational commitment.
Organisational justice, a more recent addition to the field of organisational

psychology, deals with the study of people’s perception of fairness in
organisations, both procedural and relational. Research shows that perceived
justice is associated with peoples’ feelings and reactions to organisations and
their authorities.
1.6.3 Leadership
Leadership is a process of influencing, supporting and motivating others to work
effectively towards achieving the organisation’s objectives or goal. Organisational
psychologists are particularly interested in leadership as it affects the job
performances and satisfaction of subordinates. Organisational psychology
literature also makes a distinction between leaders and managers. While managers
process administrative tasks that organize work environments, leaders conduct
those same tasks while also inspiring and motivating the workforce. Managers
cope with complexity, leaders cope with change.
1.6.4 Group behaviour

Group behaviour is the interaction between individuals of a collective such as an
organisation. The interactions serve to fulfill some need satisfaction of an
individual who is part of the collective and helps to provide a basis for his
interaction with specific members of the group. A specific area of research in
group behaviour is the dynamics of teams. It is increasingly being recognized
that a group of people working together can achieve much more than if the
individuals of the team were working on their own.
1.6.5 Work Stress

Workplace stress is stress that arises from an interaction between people and
their jobs. Research has focused on environmental, organisational, social and
individual stressors and their outcomes. The degree of stress experienced and
the ways in which a person reacts to it is also influenced by a number of factors
that are studied as moderator variables. 15
Organisational Psychology 1.6.6 Organisational Culture and Development
Organisational culture as a construct is a relatively recent addition to contemporary
organisational psychology literature. Culture refers to the commonly held and
relatively stable beliefs, attitudes and values that exist within the organisation
(Williams et al., 1993). Various forms of culture include rituals, ceremonies,
stories, language or jargon, logo and corporate jokes. Organisational culture has
been shown to have an impact on important organisational outcomes such as
performance, recruitment, retention, employee satisfaction, and employee well-
being.
Organisation development is an ongoing, systematic process to implement

effective change in an organisation. Psychologists in this area are focused on
understanding and managing organisational change to increase an organisation’s
effectiveness; the change may involve people, work procedures, or technology.
1.6.7 Productive and Counterproductive Behaviour

Productive behaviour is defined as employee behaviour that contributes positively
to the goals and objectives of an organisation. There are three common forms of
productive behavior in organisations: job performance, organisational citizenship
behavior (OCB), and innovation.
Counterproductive behaviour can be defined as employee behaviour that goes

against the goals of an organisation. These behaviours can be intentional or
unintentional and result from a wide range of underlying causes and motivations.
The forms of counterproductive behaviour that have been studied in organisational
psychology include ineffective job performance, absenteeism, job turnover, theft,
violence, substance abuse, and sexual harassment.
1.6.8 Work-Life Balance

The balance between work and all the other roles (such as family, personal
activities, leisure, community, religion, etc) exercised by a person is referred to
as work-life balance. An adequate work-family balance could lead to facilitation
of positive experiences in both the domains, and conversely, an imbalance could
lead to work-family conflict. Such conflict is bidirectional, i.e. spillover may
occur from work-to-family and from family-to-work. Research has focused on a
number of antecedents of work-family conflict, such as resources, work and
family demands, size and developmental stage of the family, gender, etc. The
consequences of work-family conflict could be many, such as absenteeism,
turnover intentions, career and job dissatisfaction, poor performance, depression,
somatic symptoms, unpleasant moods, and psychiatric disorders such as mood,
anxiety and substance dependence disorders.
As you would’ve seen from the list of topics we cover in organisational

psychology, not only are it interesting, it is crucial to individual and organisational
performance, and it directly affects the quality of people’s lives!
1.7 LET US SUM UP

In this unit, we have given an overview of organisations and the field of
organisational psychology. Organisations have five important distinguishing
16
features: they are artifacts; they are goal-directed; they are social entities; they Introduction of
involve structured activity; and they have nominal boundaries. There is no single
way of conceptualising an organisation. Rather, organisations are complex social
systems which can be understood using eight different metaphors (Morgan, 1986):
machines, organisms, brains, cultures, political systems, psychic prisons, flux
and transformation, and instruments of domination. These contrasting metaphors
aid the understanding of the complex nature of organisational life.
Organisational psychology may be defined as a scientific field that studies

individual and group behaviour in formal organisational settings. Historically,
organisational psychology was slower to develop than the industrial side of the
field. Today, the fields of industrial and organisational psychology have combined
into a relatively newer field of Industrial/Organisational Psychology (I/O
Psychology). The ‘industrial’ side is more individual-oriented, while
‘organisational’ side covers group and inter-group issues. Organisational
behaviour, in contrast, has an even more macro-focus focus, emphasizing the
system in which individual behaviour occurs. Some the topics that are addressed
in organisational psychology include motivation, job satisfaction, organisational
commitment, organisational justice, leadership, group behaviour, work stress,
organisational culture and development, productive and counterproductive
behaviour and work-life balance.
1.8 UNIT END QUESTIONS

1) Family is an organisation with its own unique problems of human behaviour.
Do you agree with this statement? Discuss.
2) Describe the various metaphors for conceptualising organisations. With the
help of an example of any organisation that you have been a part of, which
metaphor is most prevalent in your organisation. Discuss.
3) Define organisational psychology. Differentiate between the scope of
industrial and organisational psychology.
4) Briefly describe the topics studied in organisational psychology. Discuss
their relevance at the contemporary work place.
1.9 GLOSSARY
Bureaucracy : An organisational design, usually for large
organisations, having a clear hierarchy of authority
in which people are required to perform well-defined
jobs.
Cybernetics : Science of communications and control in living

beings and machines.
Metaphor : A figure of speech in which an implicit analogy is

made between two unlike objects that have something
in common (but not literally) in order to suggest a
similarity.
Open system : Is one where there is a relation of dependence

between the organisation and its surrounding
17
Organisational Psychology environment, such that the organisation receives
inputs, transforms these inputs in certain ways, and
returns outputs to their environments.
1.10 SUGGESTED READINGS

Jex, S.M. (2002). Organisational psychology: A scientist-practitioner approach.
New York: John Wiley.
Rollinson, D. & Broadfield, D. (2002). Organisational behaviour and analysis:

An integrated approach, 2nd Ed. New York: Prentice-Hall.
1.11 ANSWERS TO SELF ASSESSMENT

QUESTIONS
c) Machines
b) Organisms
a) Psychic Prison
d) Political Systems
18
Introduction of
UNIT 2 ORGANISATIONAL BEHAVIOUR, Organisational Psychology
DEFINITION AND IMPORTANCE
Structure
2.0 Introduction
2.1 Objectives
2.2 The Field of Organisational Behaviour
2.3 Definition of Organisational Behaviour
2.3.1 Systematic Study
2.3.2 Three Levels of Analysis: Individual, Group and Organisation
2.3.3 Basic and Application-Oriented
2.4 Goals of Organisational Behaviour
2.4.1 Describe
2.4.2 Understand
2.4.3 Predict
2.4.4 Control
2.5 Characteristics of the Field of OB Today
2.5.1 OB seeks the Betterment of Human Resources
2.5.2 OB uses a Contingency Approach
2.5.3 OB has a Multidisciplinary Focus
2.5.4 OB recognizes Organisations as Open Systems
2.5.5 OB adopts a Cross-Cultural Approach
2.6 Organisational Behaviour in the Indian Context
2.6.1 Replication
2.6.2 Disenchantment
2.6.3 Integration
2.7 Importance of Organisational Behaviour
2.8 Let Us Sum Up
2.10 Glossary
2.0 INTRODUCTION
Good companies understand how organisational behaviour affects an
organisation’s performance. Characteristics of the organisational system and
formal-informal dynamics at work are important environmental factors that
influence peoples’ behaviour. In order to both manage people as well as to
understand work behaviour, managers must continually upgrade their knowledge
about all aspects of their businesses, and especially the human side of the
enterprise. And this is where organisational behaviour (OB) comes in. The field
of organisational behaviour concerns itself with the study of the behaviour of
individuals and groups in the context of organisations.
19
Organisational Psychology In this unit, we will examine the field of organisational behaviour; we shall
critically examine its definition and goals. We will also shed some light on the
important characteristics of the field of OB today. We shall also present a brief
overview of OB in the Indian context, and lastly examine the importance of
organisational behaviour as a field.
2.1 OBJECTIVES
After reading this unit, you will be able to:
• Describe the field of organisational behaviour;
• Define what organisational behaviour is;
• Identify the goals of organisational behaviour;
• Explain the major characteristics of the field of organisational behaviour;
• Identify three phases in the development of OB in India; and
• Critically examine the importance of organisational behaviour.
2.2 THE FIELD OF ORGANISATIONAL

BEHAVIOUR
The field of OB concerns itself with the study of the behaviour of individuals
and groups in the context of organisations. The following equation provides a
fundamental basis for understanding OB (French, Kast, & Rosenzweig, 1985, p.
3):
Behaviour = f (P, E)
where P refers to personal characteristics and E represents the environment.

Human behaviour thus is a function of the individual’s personal characteristics
and the environmental context. Our personal characteristics are based on genetic
factors plus all the past learning experiences that have shaped who we are. We
bring these personal characteristics into the organisational situation, which in
turn, affects the way we think and act. Environmental context factors such as the
organisational structure, culture, nature of the job, management style, and so on
also have a direct influence on our behaviour.
2.3 DEFINITION OF ORGANISATIONAL

BEHAVIOUR
In the previous unit, we outlined the distinction between organisational
psychology and OB. Some critics have charged that that old wine (organisational
psychology) has merely been poured into a new bottle (organisational behaviour).
Nonetheless, it is certainly valid to say that the two cannot and must not be
equated. OB is concerned not only with individual level behaviour within
organisations, but also with macro-level processes, such as organisational strategy,
structure and change. There is little doubt that although OB does not portray the
whole of management (and neither does it intend to), OB has come into its own
as a field of study, research, and application.
20
Let us now formally define OB with the help of some definitions: Organisational Behaviour,
Definition and Importance
“The study of the structure, functioning and performance of organisations and
the behaviour of groups and individuals within them” (Pugh, 1971, p. 9)
“The field that seeks knowledge of behaviour in organisational settings by

systematically studying individual, group, and organisational processes”
(Greenberg & Baron, p. 6)
“A field of study that investigates the impact that individuals, groups, and structure
have on behaviour within organisations, for the purpose of applying such
knowledge toward improving an organisation’s effectiveness” (Robbins, Judge,
& Sanghi, 2009, p. 10)
It would be useful to describe three common key aspects of these definitions to

understand clearly what is meant by OB.
2.3.1 Systematic Study

OB seeks to develop a base of knowledge using a systematic, empirical and
research-oriented approach. A scientific approach is said to be a central defining
characteristic of modern OB. Human behaviour in organisations is complex and
often difficult to understand, and thus the relevance of the scientific approach.
As with any science, OB practitioners seek knowledge to describe, understand,
predict, and control behaviour in organisations. We shall discuss these goals in
detail in the next section.
OB is scientific because of the information and methodology it represents. Its

information results from inquiries carried out according to four scientific core
values: accuracy, objectivity, skepticism, and open-mindedness; and its methods
consist of the procedures involved in making such investigations.
Concepts and theories in OB invariably arise out of extensive research. It is

important to note that theories in OB are much more descriptive than prescriptive.
This means that although the subject provides information that gives us a better
understanding of human behaviour in organisations, no attempt is made to say
what the behaviour should be.
2.3.2 Three Levels of Analysis: Individual, Group and

Organisation
All the definitions of OB depict that the field focuses on behaviour at three
distinct levels of analysis:
Level 1: Individual. Where the focus is on processes/phenomenon such as values,

attitudes, beliefs, intelligence, motivation etc. that influence how people behave
as individuals.
Level 2: Group. This is more concerned with social and interpersonal aspects,
such as group dynamics and leadership.
Level 3: Organisation. The main concern here is the behaviour of an organisation

as a whole, for e.g. its culture, structure and processes.
21
• Individual Level
• Group Level
• Organisational Level
Fig. 1: Three Levels of Analysis used in Organisational Behaviour
The field of OB recognizes that all three levels of analysis must be used to
comprehend the complex dynamics of behaviour within organisations. For
example, in order to understand a process like job satisfaction, it is important to
delve into individual characteristics like one’s age, gender, education, etc., group
processes such as relations with supervisor and team members, and organisational
factors such as organisational culture, structure, etc.
2.3.3 Basic and Application- Oriented

The field of OB is both basic and applied in nature; basic in generating knowledge
(research) and applied in using that knowledge (practice). On one hand, it tries
to scientifically study individual and group behaviour in organisations; on the
other, it addresses the practical task of improving individual and organisational
performance and enhanced member satisfaction. OB applies the knowledge gained
about individuals, groups and organisations on behaviour to make organisations
work more effectively. OB can be understood as a “human tool for human benefit”
(Davis & Newstorm, 1989, p. 5).
OB, as a field of study, is more frequently taught to students of business and

management than to anyone else, and the intention is that those who want to
make their career in organisations should better understand the complexities of
human behaviour. OB can be very useful to practicing managers, whatever the
type of organisation. OB should help provide present and future managers (which
category do you fall in?) with a sounder understanding of the problems actually
encountered in managing and working with people. It should also help them
realise the alternative solutions available when confronted by human relations
problems within the organisation.
2.4 GOALS OF ORGANISATIONAL BEHAVIOUR

There are some goals of organisational behaviour which are as follows:
2.4.1 Describe
The first goal is to describe systematically (in an objective non-prescriptive
manner), often in minute detail, how people behave at work under a variety of
conditions.
22
2.4.2 Understand Organisational Behaviour,
A second goal is to understand why people behave as they do. Imagine how
frustrating it would be for managers if they could talk about behaviour of their
employees, but not understand the reasons behind those actions.
2.4.3 Predict
An important reason behind understanding behaviour is that it should help
managers to then predict behaviour in various situations. It is often said: ‘the
best predictor of future behaviour is past behaviour’. Armed with knowledge
about human behaviour in organisations, managers should, for example, be able
to predict which employees might be committed and productive or which ones
might be counterproductive. This would help them to take preventive actions.
2.4.4 Control
The final goal of OB is to control and develop human behaviour at work. Once
we know what happens, why it happens and what is likely to happen in the
future, we can exercise some control over it. Every organisation has specific
goals such as certain levels of profits, customer satisfaction, public responsibility,
and so on. It is the job of the management to mobilise and coordinate the human,
technical, economic and informational resources available for the purpose of
achieving such organisational goals. Managers need to be able to achieve such
goals through the actions they and their employees take, and organisational
behaviour can help managers meet these goals.
2.5 CHARACTERISTICS OF THE FIELD OF OB

TODAY
Now that you have some understanding of what is meant by OB and its goals, let
us turn our attention to some of the major characteristics of the field today
(Greenberg & Baron, 1995) .
2.5.1 OB seeks the Betterment of Human Resources

Consider this grim scenario from the early part of twentieth century: Factories
were huge, noisy, hot, and highly regimented-callous and brutal places to work.
Bosses demanded more and more of their employees, and treated them like
disposable machines, replacing those who quit or died from accidents with others
who waited outside the factory gates. The supply of labour was far greater than
its supply.
It is obvious from the above that managers back then held very negative views of
employees. This traditional view of management was termed Theory X by Douglas
McGregor (1960). This philosophy of management assumes that people are
inherently lazy, dislike work, and will avoid work if they can. As a result,
management needs to closely supervise workers and develop comprehensive
systems of control. Beliefs of this theory lead to mistrust, highly restrictive
supervision, and a punitive atmosphere.
Now contrast this with the present day scenario: Companies are going out of
their way to retain young talent, rushing to fulfill every wish of Generation Y-
23
Organisational Psychology from giving them training and developmental opportunities to even gifting them
ceiling fans for their homes (Ramnani, 2010). This sums up the Theory Y approach
to management that is more optimistic and paints a more positive picture than
Theory X (see Table 1 for a summary of differences between Theory X and
Theory Y). It is believed that work is as natural to employees as play. Given the
right conditions, employees will seek achievement and responsibility and will
work hard, without being pushed. Management’s job thus is to create those
conditions that make people want to perform as desired. McGregor thinks that
Theory Y managers are more likely than Theory X managers to develop the
climate of trust with employees that is required for human resource development.
This would include managers communicating openly with subordinates,
minimizing the difference between superior-subordinate relationships,
empowering subordinates and allowing them to participate in decision making.
Table 1: Comparison of assumptions of Theory X and Theory Y
Theory X assumes that the Theory Y assumes that the average

average person person
Dislikes work and tries to Has a psychological need to work, just as
avoid it play and rest
Has no ambition, avoids May be ambitious, self-motivated, and
responsibility and would rather seeks achievement and responsibility
follow than lead
Is selfish and does not Is self directed to meet his work objectives
particularly care about especially if personal goals and
organisational goals organisational goals may be aligned
Is gullible and not really bright Possesses the ability for creative problem
solving
Works only for money and Works for self-fulfillment
security
Theory Y approach is strongly associated with prompting the betterment of human

resources, and is clearly the perspective that prevails among those interested in
OB. The human resources approach prevalent in OB today is developmental. It
is concerned with the growth and development of people toward higher levels of
competency, creativity and fulfillment, with the recognition that people are the
central resources in any organisation and any society. Unlike the traditional
management approach of the 1900s which was directive and controlling, the
present approach to management is supportive. It helps employees become better,
more responsible persons, and tries to create a climate in which employees make
full use of their abilities. The manager’s primary role changes from control of
employees to active support of their growth and performance.

1) Analyze the following case study and tick mark the answer (True / False)
in the space provided:
Rekha Chawla, 26, attached to a Gurgaon based BPO, would travel to
work in a non-air-conditioned cab everyday. The extreme summer heat
24
Organisational Behaviour,
affected her temperament, which in turn had an effect on her dealing Definition and Importance
with customers. She was becoming cranky and rude. One day, she
decided to have a serious discussion over the issue with her manager.
Two months later she travels to office in air-conditioned comfort and
finds that her productivity has also increased.
a) Rekha is inherently lazy and wants to avoid work. (True/False).
b) The manager used a Theory Y approach to management. (True/False).
2.5.2 OB uses a Contingency Approach

Consider the following questions: What is the current inflation rate on India?
You can certainly answer this question (or at least find out the correct answer).
Now try this: What is the most effective way of designing the workplace? What
is the ‘one best way’ of performing a job? What is the most effective way to
design a machine to optimize safety? What is the most effective way of reducing
fatigue? It is perhaps possible to answer these questions. Traditional scientific
management, and more recently human engineering, seeks to find answers to
such questions.
Now consider these: What is the most effective way of motivating people? Is
money the best motivator for employees? Which style of leadership works best?
Although these questions are reasonable and vital to the functioning of
organisations and its workforce, can we answer these questions with a simple
‘yes/no’ or even a one line answer. The answer to most such questions is ‘It
depends’. There is no one best way when it comes to understanding such complex
phenomena. This is what happens when human factors take the centre stage in
our approach (instead of the workplace). When it comes to studying human
behaviour at the workplace, there are no simple answers.
Traditional management relied on principles to provide a ‘one best way’ of

managing. This ‘best way’ was applied regardless of the type of organisation,
situation or the kind of people involved. Principles of managing were considered
to be universal. No longer is there a best way. The contingency approach to OB
implies that different situations require different behavioural practices for
effectiveness. Behaviour in work settings is the complex result of many interacting
forces. As our knowledge of behaviour on the job becomes more and more
complex, it becomes more and more difficult to give straightforward answers (I
am not saying here that straight answers are desirable). Rather, it is usually
necessary to answer in phrases like, ‘If A, then B, under conditions X, Y and Z’.
Let us take the example of work stress to demonstrate the contingency approach.
Have you ever wondered why some individuals working in the same company
with the same boss find their jobs so stressful that they develop physiological
symptoms like say, hypertension; while others cope well with it and even appear
cheerful? People at the work place may face a number of stressors: environmental
(e.g. political, economic or social), organisational (structure, culture, politics),
immediate social context (relations with boss, work group, peers) and individual
(for e.g. role conflict). While these may be in part common to some, the degree
of stress experienced and the ways in which a person reacts to it is influenced by
a number of moderating variables, such as lifestyle, social support available,
cognitive appraisal of stressors, life events, biographic actors (like age, gender,
and so on), etc. All these together eventually determine what kind of outcomes- 25
Organisational Psychology physiological, psychological, cognitive, or behavioural- will the person show
and if at all he will develop any such outcomes.
Such an approach characterizes the field of OB. It may be quite frustrating for
newcomers in the field not to get simple answers. However to appreciate the role
of human factors at the workplace- which are complex, dynamic and not universal-
is to understand such an contingency approach to OB.
2.5.3 OB has a Multidisciplinary Focus

OB is a blended discipline that has grown out of contributions from a number of
disciplines. In fact, OB may be regarded as even more multidisciplinary than
organisational psychology. You may recall from unit 1 that organisational
behaviour is more eclectic in its approach, drawing heavily form a variety of
disciplines, while organisational psychology draws mainly from subfield within
psychology (Jex, 2002).
Among those that have contributed to the study of OB are psychology, social
psychology, sociology, engineering, anthropology, management, and even
medicine. Let us look at them one by one. Quite obviously, the biggest influence
on the field of OB comes from psychology, as psychology is primarily concerned
with studying and attempting to understand individual behaviour. If you recall
from Course 13, Block 1, Unit 1 (Introduction to Organisational & Industrial
Psychology), OB is regarded as one of the sub-filed of I/O psychology. In contrast
to industrial that focuses more on individual-level issues, organisational behavior
is more concerned with social and group influences. Social psychology has made
important contributions to our study of group behaviour, power and conflict.
Similarly, sociology, the study of society, has also made important contributions
to knowledge about group and intergroup dynamics in the study of OB.
Anthropology, with its even more macro focus on human beings, has contributed
to our understanding of organisational culture, organisational environment, and
differences among national cultures and its implications for work behaviour.
Engineering, in contrast, has made important contributions to our understanding
of design of work and organisational goal setting. Lastly, it might surprise you to
know that medicine, with its concern for both physical and psychological health,
has developed our understanding of industrial health and more recently,
occupational health and well-being.
2.5.4 OB recognizes Organisations as Open Systems

The field of OB pays a great deal of attention to the nature of organisations
themselves. In studying organisations, OB practitioners recognize that
organisations are not fixed, but dynamic and ever changing entities. In other
words, they recognize that organisations are open systems (Katz & Kahn, 1966).
The open systems approach to organisation (Refer Figure 2) assumes that

organisations operate in a self-sustaining manner, transforming inputs into outputs
in a continuous manner. Inputs consist of the human, informational, material,
and financial resources used by the organisation. These are transformed by the
organisation’s technology component. Once the transformation is complete, they
become outputs for customers, consumers and clients. Their actions (and others
in the external environment) in turn affect the organisation and the behaviour of
26
people at work. The output thus gets transformed back to input and the cycle Organisational Behaviour,
continues.
Fig. 1: Open Systems Approach
In an open system, the boundaries of an organisation are permeable to the external

environment (such as suppliers, customers, and governmental regulators). In
addition to an organisation’s external task environment, there are four internal
components:
Task: An organisation’s mission, purpose or goal for existing.

People: People, both individuals and groups, make up the internal social system
in the organisation. People are the living, thinking and feeling beings that created
the organisation and try to achieve the objectives and goals.
Technology: The technology imparts the physical and economic conditions within
which people work. It comprises the wide range of tools, knowledge, and/or
techniques used to transform the inputs into outputs.
Structure: Structure defines the formal relationship and use of people in the
organisation. It refers to the manner in which an organisation’s work is designed
and the different roles that people are given and how they relate to others. In
order to coordinate work effectively, it is imperative that people working in an
organisation are given different roles and they are related in some structural way
to others.
An important implication of the conception of organisations as open systems in

OB is the realisation that no social structure is self sufficient or self contained.
An organisation is certainly open to its larger external environment making its
nature very dynamic.
27
Organisational Psychology 2.5.5 OB adopts a Cross-Cultural Approach
As the business environment is becoming global or international, a cross-cultural
approach to the study of organisational behaviour is increasingly becoming crucial
for two main reasons:
There are potential benefits to be gained in performance terms. Each country has
its unique cultural characteristics which can provide sources of competitive
advantage, and in some situations may also become liabilities.
Workplace attitudes and behaviour between individuals and groups in different

cultural context varies. Cultural differences must be understood and managers
must be sensitive to them in order to be successful in a global economy. It follows
that the key concepts in the field of organisational behaviour may be influenced
by national cultures and we should thus re-evaluate models and theories when
applying them to other societies.
But first what is culture? Herskovits (1955) designated culture as the man-made
part of the environment. Culture is a multifaceted concept (Trompenaars &
Hampden-Turner, 1999), comprising an outer layer of artifacts and products (e.g.
language, climate, dress, food, etc), middle layer (expressed values, norms,
attitudes and behaviours), and a core layer that relates to the deepest assumptions
concerning people and nature held by a particular society (e.g. how people see
themselves, public versus private space, etc.).
Hofstede (1980) treated culture as the collective programming or software of the

human mind. His work is recognized as a significant landmark in cross-cultural
research and has important conclusions for organisational behaviour. Using an
extensive survey using 116,000 respondents from 72 countries who worked for
subsidiaries of IBM, Hofstede identified 4 main cultural dimensions:
Power distance is the acceptance of power hierarchy in institutions.
Uncertainty avoidance denotes the extent to which members of a society feel

threatened by uncertainties and ambiguous situations.
Individualism/Collectivism describes people to be individualists, taking care only

of themselves and their families. They are collectivists when they distinguish
between ingroup and outgroups and expect their ingroups (relatives, clans,
organisations) to look after them, in exchange for being loyal to them.
Masculinity/femininity perceives a society as being masculine when it values

assertiveness, acquisition of money and things, and feminine when quality of
life and caring for others are emphasized.
A fifth dimension, long term/short term orientation, added later (Hofstede, 2001)
refers to the fostering of virtues like perseverance and thrift, oriented towards
future rewards; as opposed to virtues related to the past and present, in particular,
respect for tradition, preservation of ‘face’ and fulfilling social obligations.
Further, Hofstede asserted that “not only organisations are culture bound; theories
about organisations are equally culture bound” (p. 378). For e.g., small power
distance cultures such as the United States may be more compatible with the
newly emerging flat structures and empowerment dimension of today’s
28
organisations. In contrast, in large power distance cultures like ours, one can Organisational Behaviour,
notice greater centralisation, hierarchical structures, visible signs of status
differences between various levels of the organisation, and even deference and
lording behaviour. These cultural dimensions alert us to recognize and understand
the impact of national culture for effective management of people, and the study
and understanding of workplace behaviour. A cross-cultural approach to OB is
thus recommended strongly.
2.6 ORGANISATIONAL BEHAVIOUR IN THE

INDIAN CONTEXT
OB made its first appearance in the Indian setting around the 1960s. The reviews
of literature (Khandwalla, 1988; Sinha, 2008) identified three phases in the
evolving nature of OB in India:
2.6.1 Replication
Initially, Indian studies replicated almost all Western theories, concepts and
methods showing their universal validity. Inconsistent findings were simply
brushed aside and attributed to lack of rigour in research design, improper
methodology, and so on. However, as the number of such inconsistent findings
kept increasing, Indian culture was brought in as an explanation. For e.g. Meade
(1967) replicated Lippitt and White’s study (1943) to demonstrate that because
Indian culture is authoritarian, authoritarian leader may be more effective than a
democratic one.
2.6.2 Disenchantment
As inconsistent findings kept mounting, Indian scholars began to get disenchanted
with Western theories and models. For instance, Maslow’s need hierarchy was
not found to hold true in Indian organisations. The two-factor theory given by
Herzberg also did not receive much support. Theory Y also did not seem to
characterize Indians because Indians view work as a duty to be performed for the
sake of one’s family (Sinha & Sinha, 1990). There consists a culture of aram
which roughly means rest and relaxation without (being) preceded by hard and
exhausting work (Sinha, 1985).
2.6.3 Integration
Gradually, an amalgamative approach emerged that attempted to integrate Western
and Indian contents and processes of organisational behaviour. This resulted in a
number of streams of OB that tended to get integrated in varying degrees.
Chakraborty (1991), for instance, enumerated some of the idealised Indian values
rooted in the ancient psycho-spiritual thoughts, such as ‘chitta-shuddhi
(purification of mind), self-discipline and self-restraint, etc. He suggested that
these psycho-spiritual values have a normative role in transforming work
organisations.
In contrast, some Western concepts were found to be relevant in the Indian context.
For instance, the psychoanalytic framework has been used to understand the
Indian psyche, culture, society and healing traditions (Kakar, 1978). In sum, OB
in India has attempted to identify the functional ideas of Western origin and
integrated them with indigenous ones.
29
2.7 IMPORTANCE OF ORGANISATIONAL
BEHAVIOUR
Contemporary organisations and their environments are characterized by change.
Changing times always pose a challenge for people and organisations. Too much
change may lead to chaos; too little change may be stifling and may cause
stagnation. Knowledge and understanding of OB during such dynamic times is
particularly important for those who manage or even aspire to manage. For such
people, a vital part of performing their roles effectively is understanding human
behaviour in an organisational context. Theories about OB help managers
understand how humans and organisations behave, help them make good business
decisions, and guide them about actions to take or refrain from taking.
In particular, knowledge of organisational behaviour equips managers to deal

with four critical challenges (Nelson & Quick, 2003):
1) increasing globalisation,
2) increasing diversity of organisational workforce,
3) continuing technological innovation with accompanying need for skill
enhancement,
4) demand for ethical behaviour at work.
The topics studied in OB involve managers and other employees that are
concerned with the efficient operation of an organisation in a rapidly changing
world. The scope of OB includes topics such as the formal and informal
organisation of the workplace, employee needs and motivation, leadership,
interpersonal relations and group dynamics, communication, the work
environment, organisational design, delegation of authority, change and change
management, creation of a harmonious climate for employee-employer relations,
conflict resolution, organisational development and effectiveness, organisational
health, stress and its management.
In addition to managers, all of us are also inevitably involved in organisations of

some sort throughout our lives. You may recall from unit 1 that in addition to
work organisations, our society is made up of many other kinds of organisations,
ranging from governmental, non-governmental, political, religious, educational,
military, health, and social organisations. Knowledge of organisational behaviour
is important as it helps us gain an understanding of how an organisation functions,
how it affects our behaviour, and how we, in turn, affect the behaviour of others.
To understand this context is part of understanding the world in which we live,
and this underlines the relevance of OB.
2.8 LET US SUM UP

In this unit, we have discussed a brief overview of the field of organisational
behaviour. The field of OB concerns itself with the study of the behaviour of
individuals and groups in the context of organisations. There are three key aspects
to defining organisational behaviour: (1) it uses a systematic, scientific and
research-oriented approach; (2) it focuses on behaviour at three distinct levels of
analysis, individual, group, and organisation; and (3) it is both basic and applied
30
in nature, basic in generating knowledge and applied in using that knowledge. Organisational Behaviour,
The field of OB has four goals: to describe, understand, predict and control
behaviour at the workplace.
Some of the major characteristics of the field today are: (1) OB seeks the
betterment of human resources using a Theory Y approach as opposed to the
traditional Theory X approach of management; (2) Instead of recommending a
‘one best way’ of managing, OB uses a contingency approach, implying that
different situations require different behavioural practices for effectiveness.; (3)
OB has a multidisciplinary focus, drawing from disciplines like psychology, social
psychology, sociology, engineering, anthropology, management, and medicine;
(4) OB recognizes organisations as open systems, constantly adapting to their
environments through a continuous inflow and outflow of energy through
permeable boundaries; and (5) OB adopts a cross-cultural approach, with the
recognition that we should re-evaluate models and theories when applying them
to other cultures.
Three phases have been identified in the evolving nature of OB in India:

replication of Western theories and concepts, (2) disenchantment with them, and
(3) integration of Western and Indian concepts of OB. OB is a particularly
important field in contemporary times for managers and others who are concerned
with the efficient operation of an organisation in a rapidly changing world.

1) Describe the field of organisational behaviour. What are the basic goals of
organisational behaviour?
2) Define organisational behaviour. Enumerate the major distinguishing
characteristics of the field of organisational behaviour.
3) Describe the phases in the development of OB in India with suitable
examples.
4) Contemporary man is man in organisations. Hence organisational behaviour
is a relevant field of study. Discuss.
2.10 GLOSSARY
Open system : A continuous inflow and outflow of energy
through permeable boundaries.
Organisational structure : The way in which individuals and groups are
arranged with respect to how roles, responsibilities
and power is delegated, controlled and
coordinated, and how information flows between
levels of management.
Technology : The technological aspect of an organisation
includes the buildings, machinery, equipment, and
tools used by the employees to make different
products.
Two-factor theory of : Postulates that certain factors in the workplace
motivation result in job satisfaction and motivation
31
Organisational Psychology (motivators like recognition, challenging work),
but if absent, do not lead to dissatisfaction but no
satisfaction. Conversely, there are other factors
(hygiene factors like fringe benefits) that do not
motivate if present, but, if absent, result in
demotivation.

Greenberg, J. & Baron, R.A. (2003). Behaviour in Organisations: Understanding
and managing the human side of work, 8th Ed. New Delhi: Prentice Hall of India
Robbins, S.P., Judge, T.A., & Sanghi, S. (2009). Organisational Behaviour, 13th
Ed. New Delhi: Pearson-Prentice Hall.
Sinha, J.B.P. (2008). Culture and organisational behaviour. New Delhi: Sage.

QUESTIONS
1) a) False and b) True
32
Organisational Behaviour,
UNIT 3 FUNDAMENTAL CONCEPTS IN Definition and Importance
ORGANISATIONAL BEHAVIOUR
Structure
3.0 Introduction
3.1 Objectives
3.2 The Nature of People
3.2.1 Individual Differences
3.2.2 Differences in Perceptions
3.2.3 A Whole Person
3.2.4 Motivated Behaviour
3.2.5 Value of the Person (Human Dignity)
3.3 The Nature of Organisations
3.3.1 Social Systems
3.3.2 Types of Organisations
3.4 Organisational Paradigm Shift
3.5 Organisational Outputs
3.6 Holistic Organisational Behaviour
3.7 Let Us Sum Up
3.9 Glossary
3.0 INTRODUCTION
Earlier you have read about the definition and importance of organisational
bahaviour. In the present unit we will discuss the fundamental concept in
organisation development. It covers the nature of people (i.e individual differences,
differences in perceptions, a whole person, motivated behaviour and value of the
person) and nature of organisation (i.e social systems and types of organisations).
3.1 OBJECTIVES
• Explain the fundamental concepts of organisational behaviour;
• Describe the five basic premises that the field of organisational behaviour
makes about people; and
• Describe the two key assumptions regarding the nature of organisations.
3.2 THE NATURE OF PEOPLE

Every field has certain fundamental concepts which guide its development and
in a sense, its past, present and future. These concepts do not lend themselves to
33
Organisational Psychology the question ‘But why?’ or ‘Why so?” These are something which have to be
accepted by those in the field and not questioned. They are the foundation stones
on which the entire edifice of the discipline is developed. Of course some of
such ‘fundamental’ concepts may prove to be inaccurate as in the case of ‘Sun
revolves around the Earth’. In physics, for example, ‘every action has an equal
and opposite reaction’, ‘the law of gravity’ are some fundamental concepts that
have stood the test of time. In a similar manner, the field of organisational
behaviour starts with a set of fundamental concepts (Davis & Newstorm, 1989)
with respect to (1) the nature of people; (2) the nature of organisation; and (3)
the result (Refer Figure 1).
Nature of
Organisations
Nature of People
Result (Holistic
Organisation
Behaviour)
Fig. 1: Basic Concepts in OB
Figure 1 shows overlapping relationships among the basic concepts in

organisational behaviour: nature of organisations, nature of people working in
the organisations, and the end result in the form of holistic organisation behaviour.
When all the fundamental concepts of organisational behaviour about organisation
and people are taken together, it provides a holistic concept of the subject. Holistic
organisation behaviour interprets people-organisation, relationships in terms of
the whole person, whole group, whole organisation, and the whole social system.
In order to understand the multiple factors that influence behaviour of people at
work, issues should be analyzed in terms of the total situation affecting them
rather than in terms of an isolated event or problem.
In this unit, we will examine the fundamental concepts of organisational behaviour
which are related to the people, the organisation, and the result.
With regard to people, there are five basic premises that the field of organisational
behaviour makes. Let us review them one by one.
3.2.1 Individual Differences

The idea of individual difference comes originally from psychology. Psychology,
as you know studies people at three levels of analysis, as articulately summed by
34 Murray and Kluckhohn (1953, p. 35) in their dictum:
“Every man is in certain respects Fundamental Concepts in
Organisational Behaviour
a) like all other men,
b) like some other men,
c) like no other man.
People do have much in common- we all are capable of loving, we all want to be
appreciated. Yet, whom, how or when we chose a love object may differ; what
we want to be appreciated for may again differ.
From the day of birth, each person is unique, and individual experiences after
birth accentuate these differences. Every individual in the world is different from
others. This is a fact also supported by science. Each person is different from all
others, probably in million ways, just as each person’s DNA profile (and
fingerprints) is different. This belief that each person is different from all others
has been termed the Law of Individual Differences.
Throughout history, human beings have been aware of individual differences

throughout history and have been attempting to apply this knowledge in various
domains. For instance:
Gender differences: hunters=men, gatherers=women
Intelligence differences: caste, education, etc.
Personality differences: occupations, job specialisations
The implications of individual differences at the place of work are manifold. In
fact, personnel psychology, the oldest and most traditional activities of I/O
psychologists was concerned with individual differences and hence dealt with
recruiting, selecting and evaluating personnel. When applied to management,
this implies that each individual will say, differ in their motivation level and will
also require different techniques of motivation. Can you imagine if everybody
was similar, how easy managing employees would be! Management would have
to simply come up with an across-the-board way of dealing with employees, and
everyone would be satisfied and productive.
3.2.2 Differences in Perceptions

Just as people differ from one another, similarly their perceptions too differ.
Individual members have different perceptions of the reality of the organisation.
Each member has limited organisational views or horizons based on factors such
as past experience, personalities, needs, demographics factors, biases, position,
hierarchical level, etc. The real organisation exists in the collective mind of all
organisational members.
Perception: The active and complex process through which we select, organize
and interpret information about the world around us is perception and this is
extremely valuable when it comes to explaining many different types of situations
faced in organisations. For example, assume you have applied for a job in an
organisation. Your prospective employer tries to make a judgment about you
(based on your resume and interview). Would you be committed or insincere? At
the same time, you are attempting to form your impressions about your prospective
boss and company? Will he be easy to work with? Will the work be interesting?
This in turn will influence your behaviour.
35
Organisational Psychology The process of perception is especially important to organisational behaviour. In
particular, social perception is very crucial in organisations. This process allows
people to make reasonably accurate judgments about other person’s state of mind,
emotions, and intentions. Socially competent people then use these inferences
about other people’s inner states to make good decisions about how to behave
socially in the context of organisations.
Three important applications of social perception for organisational functioning

are described briefly:
Employment interview: The impressions prospective employers form of us are

based on both verbal and nonverbal communication, including how we dress
and project ourselves.
Corporate image: Not only do candidates want to make a good impression on

prospective employers, but organisations too want to create a god impression on
people. An organisation’s overall impression on people, its corporate image,
greatly determines its ability to attract qualified job applicants.
Performance Appraisal: The formal evaluation of job performance of another-

performance appraisal- is perhaps the most obvious instance in which social
perception occurs. Although this process should be rational and objective, it is
far from so. For instance, research has shown that people judge as superior those
individuals who are similar to them.
3.2.3 A Whole Person

When studying organisational behaviour, it is imperative to remember that
organisations are dealing with a whole person, not just his knowledge, skills and
abilities (much as employers would like to!). An organisation not only hires a set
of hands of a worker but a complete person with all his strengths and limitations.
People do not enter organisations as blank slates, plain wax to be molded as per
organisational requirements. We all have attitudes, perceptions, and ways of
behaving shaped by our heredity and past experience. We also don’t ever become
totally immersed within the organisation; a substantial part of our lives remains
outside if we are to remain emotionally healthy.
With respect to one’s socio-cultural preferences and values, Khandelwal (2009)

concluded, “It is preposterous to assume that when employees arrive to work
they can or should leave at the point of entry their cultural baggage, and pick it
up at the end of the workday for use in their non-work life and activities” (p.
215). People function as total human beings. An employee’s home life is not
completely detached from his work life, and emotions cannot be separated from
cognitions. Research (for instance, Frone et al., 1992) has documented a
bidirectional spillover effect between work-family conflict such that spillover
may occur from work-to-family and from family-to-work. There is also recognition
that positive outcomes can accrue from participation in both work and family
roles as work-family facilitation. Similarly, studies have reported significant,
positive relationships between job satisfaction and life satisfaction, generally
ranging from .31 to .44 (e.g., Rode, 2004).
Imagine that a woman who has to care for her ailing father at home and nurse her
infant will be required to leave office early enough to pick up her child before
36
the day care center closes. She might also be distracted if an official meeting Fundamental Concepts in
begins late in the evening and might be checking her watch again and again.
This will impact her concentration and her working life. If the manager treats
her like a whole person, he may be able to empathize with her predicament and
take necessary corrective measures. If the whole person is developed, only then
will the benefits extend beyond the organisation to the entire society in which
the employee lives.
Recognizing this, many companies are using innovative techniques like ‘cafeteria-
style’ or flexible compensation systems (that allow employees to choose from a
variety of benefits offered by the company, such as dental plan, pension plan,
leave allowance, etc.) or flexible time working arrangements, and so on. Many
companies now offer facilities like crèches, gymnasiums etc. for their employees.
Google, for instance, offers perks like on site hair cuts, video games, and
swimming pools, massage rooms, and even allows its employees to bring their
pets to the office. Talk about being treated like a whole person!
3.2.4 Motivated Behaviour

Simply put, all behaviour is motivated. Although a few human activities occur
without motivation, nearly all conscious behaviour, particularly that at the
workplace, is motivated or caused. We are motivated to satisfy certain needs and
have skills and aspirations. Each of us tends to develop certain motivational
drives as a product of the cultural environment in which we live, and this affects
the way we view our jobs and approach our lives. In the case of needs, people are
motivated not by what we (or their managers) think they ought to have but by
what they themselves want. A manager’s job is to identify employees’ needs and
drives, and channel their behaviour towards task performance.
Managers can use two basic ways to motivate people: one, it can show them
how certain actions will lead to their need fulfillment (for instance, increasing
company sales will result in a good commission which in turn will satisfy self-
esteem needs). Two, managers can threaten decreased need fulfillment if they
engage in undesirable behaviours (for instance, if they do not increase company
sales, they may be fired, which in turn will threaten self-esteem and even security
needs). Undoubtedly, the first approach is a better one to motivate employees.
The role that motivation plays in creating productive organisations can be

illustrated with the help of the following equations (Davis & Newstorm, 1989):
Knowledge x skill= ability
Attitude x situation = motivation
Ability x motivation= performance
Performance x resources= organisational productivity
Thus, knowledge and one’s skill in applying it constitutes ability. Motivation
results from a person’s attitudes reacting in a specific situation. Motivation along
with ability together determines a person’s potential performance in any activity.
It is also reasonable to assume that if employees have been selected in
organisations after rigorous screening, their abilities will be nearly similar. What
makes the crucial difference in contributing to their performance is then their
motivations. Finally, performance coupled with resources (economic, material
37
Organisational Psychology and technical such as materials, tools, funds, etc.) results in organisational
productivity.
3.2.5 Value of the Person (Human Dignity)

This is more an ethical premise rather than a scientific one. It asserts that people
want and should be treated differently from other factors of production (land,
capital, labour), because they are of a higher order in the universe. For this reason,
they want to be treated with respect and dignity from their employers and society.
Every job, no matter how simple or menial, entitles the people who do it to
proper respect and recognition of their unique aspirations and abilities. The
concept of human dignity rejects the old notion of suing employees as merely
economic tools (recall McGregor’s Theory X, the management philosophy that
prevailed more than a hundred years ago!)
The metaphysical recognition that life has an overall purpose and that each
individual has an inner integrity underlines the importance of ethics. In order to
attract and retain valuable employees in an era in which good workers are
constantly required, ethical treatment is imperative. To succeed, organisation
must treat employees in an ethical fashion. Every Company is required to establish
codes of ethics, publicize statements of ethical values, provide ethics training,
reward employees for notable ethical behavior, publicize positive role models,
and set up internal procedures to handle misconduct.

Answer the following questions:
1) The nature of people is:
(a) Basic differences (b) Joint differences (c) Individual differences
(d) Family differences
2) Which one of the following premises about people is NOT held in the
field of organisational behaviour?
(a) Part person (b) Differences in perception (c) Human dignity
(d) Motivated behaviour
3.3 THE NATURE OF ORGANISATIONS

There are two key assumptions regarding the nature of organisations, that they
are social systems and that they are formed on the basis of mutual interest. Let us
discuss these two premises now.
3.3.1 Social Systems

Organisations are contrived social systems and not just a collectivity of
individuals. Organisations are created, maintained, and frequently disbanded by
people. Consequently their activities are governed by social and psychological
laws. They have social roles and status. Their behaviour is influenced by their
group as well as their individual drives. In fact, in organisations two types of
social systems exist side by side. One is the formal social system, and the other
is the informal social system. You may recollect the classic Hawthorne studies
where the norms imposed by the informal social system led to restriction of
38 output by group members in the bank wiring room study.
A social system is a complex set of human relationships interacting in many Fundamental Concepts in
ways. Within an organisation, the social system includes all the people in it and
their relationships to each other and to the outside world. Organisation
environment in a social system is dynamic. All parts of the system are
interdependent. The behaviour of one member impacts, either directly or
indirectly, the behaviour of others. Also, the social system does not have rigid
boundaries in that it exchanges goods, ideas, culture, etc. with the environment
around it. Thus, the organisation is influenced not only by other parts of the
organisation, but the society at large as well. All the employees who constitute
the organisation are members of the society from which they come. Any
organisation that has an inconsistent value system with the external society may
not last over a long period of time.
The idea of a social system provides a framework for analyzing organisational

behaviour issues. Individual factors are understood in conjunction with
interpersonal, group and intergroup relationships, and broader system-wide
characteristics.
3.3.2 Types of Organisation

There are different types of organisations and these are
• Short term / intercultural organisations
• Long term development organisations
• Conservation / environmental organisation
• Recruitment / placement organisation
• Relief / Emergency organisations
Short term intercultural organisations are ones that encourage responsible,
responsive international volunteering. It contains lists of questions to help the
person concerned to make use that they have thought about the issues raised and
that they know they are important. By signing it, the person concerned can show
that they support the principles that they set out.
The long term development organisation have their focus on empowering local
people and involves some kind of skills transfer, and require specific educational
or professional qualifications.
The conservation / environmental organisation is primarily concerned with

conservation and environmental work. They have been classified separately, as
there is an increasing number of organisations that works in this area whose
emphasis is slightly different to the intercultural exchanges. The term is used to
cover all organisations that list their primary activity as relating to conservation/
environmental work.
The recruitment /. Placement organisation is concerned with placements or

programmes but that are not themselves involved in organising or running
volunteer programmes. This category is used to cover organisations that match
volunteers with placements or programmes, but that are not themselves involved
in organising or running volunteer programmes. Such organisations may be for-
profit or not-for-profit, and may or may not charge a fee for their services.
39
Organisational Psychology Relief / Emergency organisations
The focus of this work is on emergency situations, which could arise as a result
of conflicts or natural disasters.
In addition to them above organisations are also formed and maintained on the
basis of some mutuality of interest among organisational members. Even the
definition of an organisation says that it is “a consciously coordinated social unit
composed of two or more people that functions on a relatively continuous basis
to achieve a common goal or set of goals” (Robbins, 1991, p. 4). Clearly then,
mutuality of interest between organisations and people is necessary.
Organisations need people and people in turn need organisations. People satisfy
their personal needs through organisation and organisations accomplish their
goals through people. Mutual interest provides a super ordinate goal that integrates
the efforts of individuals and groups, resulting in superior organisational
performance and effectiveness. It must be borne in mind that the organisational
and employee interests are deeply intertwined in such a way that if the interests
of one suffer, the interests of the other too will suffer. Both the employees and
the organisation can only prosper if they help each other to prosper.
3.4 ORGANISATIONAL PARADIGM SHIFT

From traditional hierarchic paradigm it shifts to flexible networks. For instance
from dependence to interdependence, from attendance to commitment, from
obedience to involvement and from impersonal to personal.
Current macro issues facing organisations include globalisation which includes

mergers and takeovers, banking and financial systems, competition and marketing.
Another macro issue facing organisation is the organisation design which includes
downsizing, re engineering and teams.
The third macro issue facing organisation includes empowering employees which
involves treating them as partners or associates, and not as employees. Another
issue under this is to care for the employees rather than keeping them at a distance
from self .
Here the personal side of the employee is important.
The fourth issue is speed in the sense that how fast the products and services can
be delivered to customers. In other words it is the customer driven system.
The fifth issue is the communication technology which involves instant
communication, a communication which will be flexible in terms of groups and
tasks and the downsizing of the organisation.
The two fundamental concepts in organisational behavior include that
organsiations are only as good as the quality of their managers. The key
competitive issues are the employee motivation, employee education, and Human
resources issues.
Organisation is defined as a social entity that is consciously coordinating to
achieve selected goals. The nature of organisations can be considered in terms of
social system, that is activities governed by social and psychological laws. The
40
internal environment of the organisation is forever changing and the organisation Fundamental Concepts in
needs people and people need organisations.
The definition of management is achieving organisational goals through and

with the efforts of others and helping others to achieve their goals . Management
may be considered successful if managers spend most of their time managing
the behavior or performance of others. Management is intensely interpersonal.
Management processes involve planning, organizing, leading and controlling.

Thus a basic management model would involve coordinating the behaviour of
individuals, groups and organisations. All these would eventually lead to
production, satisfaction and efficiency.
The modern management is a composite of models. This would include the

systems model, the process model, the contingency model and the effective
modern management model. For all these, the skills that managers need are (i)
interpersonal skills (ii) Technology skills (iii) conceptual skills.
The manger development process includes the training and experience,

organisational goals and characteristics which all lead to management skills such
as the core skills, administrative skills, interpersonal skills, personal skills and
conceptual skills. In turn these lead to better performance of managers which
tends towards a positive high performance and goal achieving environment.
How to get the manager empower the work force ? This is a question that needs
an answer. This can be done if managers are prepared to give up controls and
workers are prepared to accept responsibility on their part. Successful managers
are good behavioural scientists.
Organisational behavior provides the building blocks for advanced study in:
Leadership
• Performance management
• Strategic human resource management
• Organisational theory
• The manager and worker interface.
Organisational behavior is concerened with the following: (i) individual
differences (ii) fundamental consistencies (iii) intuition (iv) systematic survey.
Organisational Effectiveness is also a central concern of organisational behavior.

It is directed towards individual effectiveness, group effectiveness and
organisational effectiveness.
3.5 ORGANISATIONAL OUTPUTS

Just as people do not act without a reason, organisations also do not exist without
purposive activities. They must do something that result in various types of
outputs. For instance, organisations might develop a car, motorcycle, garment,
detergent, healthy patients, educated and informed students, or any other product
or service. No study of organisational behaviour can be complete without looking
at the issues of performance and output.
41
Organisational Psychology Most organisations try to be productive. Productivity is a ratio that compares
units of output with units of input. Although productivity is generally measured
in terms of economic inputs and outputs, but human and social inputs and outputs
are equally important. For example, if team building activities in an organisation’s
training program lead to a by-productive of more cohesive citizens even within
a community, a valuable social output has occurred.
Katz and Kahn (1978) have classified different types of organisations on the
basis of its primary activity:
Productive or economic: This is concerned with the creation of wealth, the

manufacture of goods, and the provision of services for the general public.
Maintenance: This, for instance, schools and other educational institutions,

concerned with the socialisation of people to fulfill roles in other organisations
and in society.
Adaptive: Research establishments, concerned with the pursuit of knowledge

and the development and testing of theory.
Managerial or political: Government departments or trade unions. These are

concerned with adjudication, coordination, and control of resources (both physical
and human) and other sub-systems.
Of course, such a distinction lacks refinement and not all organisations fit neatly
into one classification. For instance, most universities combine research with
teaching. The important thing to remember then is that organisations exist to
achieve some results.
In addition to short-term output, as organisational behaviourists, we are also

concerned with development processes. This implies building a better organisation
that allows individuals, groups, and the total organisation to maximize their
potentials and to improve performance over the long run.
3.6 HOLISTIC ORGANISATIONAL BEHAVIOUR

This refers to interpreting people and organisational relationship in terms of the
whole person, whole group, whole organisation and the whole system. When the
eight fundamental concepts of organisational behaviour are considered together,
they provide a holistic view of the subject of organisational behaviour. An across
the board view of people in organisation and a total situation focus rather than a
sample event or sample problem.
According to Davis and Newstorm (1989), “holistic organisational behaviour

interprets people organisation relationships in terms of the whole person, whole
group, whole organisation, and whole social system” (p. 13).
Because the subsystems of any organisation are interdependent, managers must

take a holistic view of the organisation in order to manage organisational
behaviour. A holistic view encompasses the culture and the dominant coalition,
as well as the people, tasks, structure, and information subsystems.
42
Basic approaches to organisational behavior consists of Fundamental Concepts in
• HR approach
• Contingency approach
• Productivity approach
• Systems approach.
The Human Relations approach is concerned with employee growth and
development and considers this as very important. As for contingency approach,
it is concerned with differing environments and goals that demand different
behaviours. Systems approach however is concerned with all parts of an
organisation which all interact with each other in a complex manner.
Organisational behavior requires a mixture of all the above four approaches
Let us see some of the major characteristics of organisational behavior and these
are given in the table below:
Major characteristics of organisational behaviour
3 Levels of Analysis Individual, Group and Organisation
Interdisciplinary Psychology, sociology, anthropology and
political science
Humanistic orientation Attitudes, perception, needs and
emotions
Performance orientation The ultimate goal of organisational
behavior is to improve, sustqain and
encourage effective performance
Recognition of external Technology, law, competition, economy
environment
Practical application Organisational behavior knowledge
mustn be useful to practicing managers
Organisations as social systems Relationship among individuals and
groups in organisations.
Createexpectations for the behavior of
individuals
Contingency approach There is no one best way, best depends
on the situation
Structure and process Both play key roles in understanding
organisationla behavior.
Let us now consider the relationship of organisational behavior to other closely
related disciplines. These are given in the table below.
Relationship of organisational behavior to other closely related disciplines
Theoretical OT (Organisational Theory) OB(Organisational
Behaviour
Application OD(Organisational P/HR (Personal / Human
Development) Resources.
43
Organisational Psychology In addition to the above, there is also a typical model of organisational behavior
and this is given in the table below.
A model of Organisational Behaviour

Management’s Organisational culture Leadership Quality of worklife
Communication
Philosophy Group dynamics Motivation
Values
Vision Outcomes
Goals Social environ Performance
Individual Satisfaction
Formal Informal
Orgn Orgn
Every organisation has a psychological and an economic contract. These two are
given in detail below in the boxes.
The psychological contract

Loyalty Job security
Creativity Expect (unwritten exchange) Fair treatment
Extra effort Rewarding relationships
Developmental opportunity
The Economic contract

Time Wages
Talent Expect (Written exchange) Hours
Energy Reasonable working condns
Organisational behavior is influenced by a large number of variables and these

are given in the box below.
Variables influencing individual behaviours

The person The environment
Skills Organisation
Abilities Work group
Personalities Behaviour Job
Perceptions Personal life
Attitudes
Values
Ethics
Organisational behavior as a contingency model

Universal / Contingency view
Universal view = Same managerial principles apply to every situation
44
Contingency view = Appropriate managerial action depends on the situation. Fundamental Concepts in
Major dependent variables in Organisational Behaviour: Determinants of
productivity, absenteeism, turnover, job satisfaction and citizenship
Major independent variables in organisational behavior: Determinants of

productivity, determinants of absenteeism, determinants of turnover, determinants
of job satisfaction and determinants of citizenship.
3.7 LET US SUM UP

In this unit, we have discussed some fundamental concepts in the field of
organisational behaviour. Every field of social science, or even physical science,
has a philosophical foundation of basic concepts that guide its development.
There are some certain philosophical concepts in organisational behaviour also.
These are related to the nature of people, the nature of the organisation, and the
result.
With regard to the nature of people, the field of organisational behaviour rests
on five basic premises: (1) each person in the world is individually different
from all others; (2) Peoples’ perceptions of other people and even work too differ,
and are determined by our past experiences, personalities, needs, demographics
factors, and biases; (3) organisations employ a whole person, rather than certain
characteristics, since people function as total human beings; (4) normally, human
behaviour is motivated, i.e. it has certain causes, and such motivation is essential
to the operation of organisations; and (5) People should be treated with respect
and dignity, no matter how menial the job might be, because human beings are
the highest creation of God.
With regard to the nature of organisations, the two key concepts are that (1)
organisations are social systems, with all parts of the system being interdependent
and subject to influence by any other part; and (2) the interests of organisations
and its people are mutually intertwined. People see organisations as a means to
help them reach their goals, while organisations need people to help reach
organisational objectives. Just as people do not act without a reason, organisations
also do not exist without purposive activities. The results of organisations
(generally measured in performance terms) make the study of organisational
behaviour complete. When all these fundamental concepts of organisational
behaviour are considered together, they provide a holistic view of the subject.
The field of organisational behaviour uses a systems approach, that is, it interprets
people-organisation relationships in terms of the whole person, whole group,
whole organisation, and whole social system.

1) Critically examine the fundamental concepts that form the basis of
organisational behaviour. Which concepts, in your opinion, are more
important than the others? Explain.
2) Discuss the implications of the assumptions regarding the nature of people
for managers.
45
Organisational Psychology 3) Consider the assumption of mutuality of interests between an organisation
and its people. Is it equally true for all organisations? Give examples where
this might and might not hold true.
3.9 GLOSSARY
Flexible time : A system of work which allows employees to start
and finish work between a flexible range of total
hours, as long as they work a fixed amount of
hours each day or week. For example, an employee
may be required to work eight hours a day, but
may start work at any time between 7 am and 9
am and finish work eight hours later, between 3
pm and 7 pm.
Social perception : The processes through which we use available

information to form impressions and understand
other people and groups of our social world, to
assess what they are like.
Super ordinate goal : These are goals that get people who have
individual goals (normally in opposition to each
other) to come together, cooperate and work
toward a common end result.

Davis, K. D. & Newstrom, J. W. (1989). Human behaviour at work:
Organisational Behaviour, 8th Ed. New Delhi: McGraw-Hill.
Mullins, L. J. (2005). Management and organisational behaviour, 7th Ed. New

Delhi: Prentice Hall.

QUESTIONS
c) Individual differences
a): Part person
46
Fundamental Concepts in
UNIT 4 DIFFERENT MODELS OF OB Organisational Behaviour
(AUTOCRATIC, CUSTODIAL,
SUPPORTIVE AND COLLEGIAL,
ETC.)
Structure
4.0 Introduction
4.1 Objectives
4.2 Models of Organisation
4.2.1 The Autocratic Model
4.2.2 The Custodial Model
4.2.3 The Supportive Model
4.2.4 The Collegial Model
4.3 Comparison of the Models of Organisational Behaviour
4.4 Conclusions about the Models
4.4.1 The Models Are, In Practice, Subject To Evolutionary Change
4.4.2 The Models Are Based On Incremental Values
4.4.3 The Models Are a Function of Prevailing Employee Needs
4.4.4 There Is a General Trend towards Newer Models
4.4.5 Contingent Use of All Models
4.5 Let Us Sum Up
4.7 Glossary
4.0 INTRODUCTION
As you already know by now, organisational behaviour is the study and application
of knowledge about how people, individuals, and groups act in organisations. It
does this by taking a system approach, that is, it interprets people-organisation
relationships in terms of the whole person, whole group, whole organisation,
and whole social system (as we saw in Unit 3). Its purpose is to build better
relationships by achieving human objectives, organisational objectives, and social
objectives. All these elements combine to build the model or framework that the
organisation operates from.
In contemporary times, managers confront many challenges and opportunities.

These challenges are the result of environmental changes occurring due to factors
such as globalisation, information technology, quality consciousness, workforce
diversity, and ethics. Organisational behaviour models help managers to face
these challenges and take appropriate actions.
The model that a manager holds depicts the assumptions that he or she makes
about people and influences his/her interpretation of events. Understanding of
such models therefore provides a powerful albeit unconscious guide to managerial 47
Organisational Psychology behaviour. These models are also helpful in understanding the context of the
manager-employee relationships. This includes how employees may respond to
the various orientations of managers, the general behavioural climate that prevails
in the manager-employees relationship, etc. Various models of organisational
behaviour have been postulated by several scholars, most notably Keith Davis
(1967). Many models of organisational behaviour have emerged during the last
100 years or so, and four of them are significant in contributing to our
understanding of frameworks that organisations operate out of. These are
Autocratic, Custodial, Supportive, and Collegial.
In this unit, we will discuss and critically examine the aforementioned models of
organisational behaviour, namely, autocratic, custodial, supportive, and collegial.
In the order mentioned above, the four models represent a historical evolution of
management thought and practice during the last 100 years or so. These models
show the evolution of the thinking and behavior on the part of both management
and managers. They also express the shift in the outlook of managers in viewing
their employees and the resultant organisational environment. Davis states that
managerial practices have been evolving from the autocratic model to a custodial
model and then to a supportive one. The autocratic model predominated about
75 years ago. In the 1920s and 1930s it yielded ground to the more successful
custodial model. In this generation, the supportive model has been the most
popular. In this unit, we shall also compare these four models along with their
various facets.
4.1 OBJECTIVES
• Describe the four models of organisational behaviour, viz. autocratic,
custodial, supportive, and collegial;
• Critically examine the four models of organisational behaviour; and
• Compare the various models of organisational behaviour.
4.2 MODELS OF ORGANISATION

There are different types of organisational behavior models and these are described
in this unit. Organisations differ in the quality of the systems they develop and
maintain and in the results they achieve. Varying results are substantially caused
by different models of organisational behavior. These models constitute the belief
system that dominates management’s thought and affects management’s actions
in each organisation. Therefore, it is highly important that managers recognize
the nature, significance, and effectiveness of their own models, as well as the
models of others around them, four models of organisation behaviour.
These are as follows:
1) Autocratic
2) Custodial
3) Supportive
4) Collegial
48 Let us take each of the models and discuss.

4.2.1 The Autocratic Model Different Models of OB
(Autocratic, Custodial,
Might is right” is the motto of the theory. It depends upon power. Those who are Supportive and Collegial,
Etc.
in command must have power to demand. Employees are to follow their boss.
Management thinks that employees are passive and resistant to organisational
needs. It is just like theory developed by McGregor. Under autocratic conditions
the employee orientation is obedience to a boss, not respect for a manager. The
psychological result for employee’s orientation is dependence on their boss, whose
power to hire, fire, etc., is almost absolute. The boss pays minimum wages because
minimum performance is given by employees. They are willing to give minimum
performance though sometimes reluctantly because they must satisfy subsistence
needs for themselves and their families.
The autocratic model has existed for thousands of years. During the Industrial
Revolution, it was the prominent model of organisational function. The managers
of this type of organisation operate mostly out of Mc Gregor’s Theory X. As you
might recall, this philosophy of management assumes that people are inherently
lazy, dislike work, and will avoid work if they can. As a result, management
needs to closely supervise workers and develop comprehensive systems of control.
Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive
atmosphere.
The model depends on power with a managerial orientation of authority- those

who are in power act autocratically. The message to employees is- ‘You do this,
or else’, meaning that employees who do not follow orders are penalised, often
severely. In an autocratic environment the managerial orientation is formal, official
authority. This authority is delegated by right of command over the people to it
applies. The employees in turn are oriented towards obedience to a boss, not
respect for a manager. The psychological result for employees is dependence on
their boss, whose power to hire, fire, and “perspire” them is almost absolute.
The employee need that is met is subsistence (for themselves and their families).
The boss pays minimum wages because minimum performance is given by
employees. Some employees give higher performance because of an internal
achievement drive, because they personally like the boss, because the boss is a
natural leader, or because of some other situational factor; but most of them give
only minimal performance.
When an autocratic model of organisational behaviour exists, the measure of an

employee’s morale is usually his compliance with rules and orders. Compliance
is “unprotesting assent without enthusiasm” (Hicks, 1971, p. 186). The compliant
employee takes his orders and does not talk back.
The autocratic model uses one way downward communication emanating from
the top down to the workers. Management believes that it knows best. Employees
are obligated to follow orders. Management does the thinking; employees have
to obey the directives. Under such conditions, the “worker’s role is obedience to
management” (Zastrow, 2009, p. 260).
Although modern writers have an inherent tendency to condemn this model, it is

actually very effective in some settings, for instance it works well especially in
times of an organisational crisis. Military organisations throughout the world are
based on this model. This view of work built great railroad systems, operated
49
Organisational Psychology giant steel mills, and produced the spectacular industrial civilisation in the United
States. It, however, also has a number of disadvantages. Workers are often in the
best position to identify shortcomings in the structure and technology of the
organisational system, but downward communication prevents feedback to
management. The model fails to generate commitment among workers to
accomplish organisational goals. Lastly, the model fails to motivate workers to
further develop their skills- skills that might even help the employer. It often has
disturbing side effects- employees feel insecure, frustrated, and may even have
feelings of aggression towards the management. Since employees could not vent
these feelings directly, sometimes they vented them on their families, friends
and neighbours, leading to the suffering of the entire community.
Large commercial organisations have moved away from hierarchical organisations

to models where there are relatively autonomous groups of front line staff,
supported by the technical staff and management. Control is exercised by the
users/consumers and their requirements, translated through information and
operational systems that highlight the degree to which consumer demand is being
successfully met. The demands of a ‘Just in Time’ system of production, for
example, provide the structure and discipline to front line staff formerly supplied
by hierarchical managers. The manager’s task in this case is to assess variances
in performance and ensure the system is integrated effectively. This thinning of
hierarchies and distributing of responsibility to front line teams has been termed
heterarchical where there are many nodes of power and responsibility. Another
version is provided by The Visa Company (jointly owned by its member banks)
which developed what its founder Dee Hock called a ‘chaordic’ organisation,
combining organisation and chaos. For social innovation, such models are
particularly applicable to large charities and to public services.
Many social ventures try and avoid strict hierarchical structures by remaining
small and by sub-dividing (like cells) or collaborating with other similar ventures.
Some have adopted a franchised model, to allow each unit to remain relatively
small, while benefitting from economies of scale for the group of ventures as a
whole. This is the basis for the expansion of Riverford organics, which franchises
distributors of its organic produce, while involving 12 sister farms in a co-
operative of regional producers. This structure was intentionally adopted by the
founder of Riverford, Guy Watson, to keep his venture small, and production
local. The resulting network now delivers 47,000 organic food boxes a week.
Different development stages of the innovation will require different forms and
styles of leadership and management. In the initial stages, leadership is that of a
pioneer. As the organisation develops, leadership needs to take on the skills of
adapting, listening and learning. Management is not only about the giving of
orders, but it is about seeding multiple centres of activity and initiative and
building forums to allow this mosaic of energy to interact, channelling debate
and tension into further innovation.
There is commonly a tension between the demands of continuing operations and

the venture’s ability to maintain innovation. The financial and managerial demands
of innovation may put pressure on existing business. There are different
management styles that may be appropriate for innovation and operations. Spin
offs are one way of managing this tension. Careful succession planning is another,
permitting the initial innovators to move on to the new tasks.
50
4.2.2 The Custodial Model Different Models of OB
Workers being managed under the autocratic model often feel insecurity and Supportive and Collegial,
Etc.
frustration. They may even show aggression towards their boss and their families
and neighbours. That is why progressive managers felt that there must be some
way to develop better employee relationships so that insecurity and frustration
could be dispelled. The custodial model provides for employees’ dependence on
organisation rather than dependence on their boss. The model emphasizes
economic reward, security, organisational dependence, and maintenance factors.
The custodial approach leads to employee dependence on the organisation. Rather
than being dependent on their boss for their weekly bread, employees now depend
on organisations for their security and welfare.
Employees working in a custodial environment become psychologically

preoccupied with their economic rewards and benefits . As a result of their
treatment, they are well maintained and contented. However, contentment does
not necessarily produce strong motivation. It may produce only passive
cooperation. The result tends to be that employees do not perform much more
effectively than under the old autocratic model.
As already mentioned, the managers using an autocratic model operate mostly

out of McGregor’s Theory X. The next three models, starting from the custodial
model, begin to build on McGregor’s Theory Y. The Theory Y approach to
management is more progressive and paints a more optimistic picture of
employees than Theory X. Managers holding the custodial model believe that if
the insecurities, frustrations, and aggressions of employees could be dispelled,
they might feel like working. Development of the custodial model was aided by
psychologists, industrial relations specialists, and economists.
The custodial model of organisational behaviour takes into consideration the

security needs of employees. A custodial environment gives a psychological
reassurance of economic rewards and benefits. The basis of this model is economic
resources with a managerial orientation toward money to pay wages and benefits.
Clearly, if an organisation does not have the wealth to provide pensions and pay
other benefits, it cannot follow a custodial approach.
A successful custodial approach depends on economic resources. Since

employees’ physical needs are already reasonably met, the employer looks to
security needs as a motivating force. To satisfy employees’ security needs, many
companies began to provide welfare programs, such as pension plans, child-care
centers at the workplace, health and life insurance.
However, researchers found that the custodial approach leads to employee

dependence on the organisation. Rather than being dependent on their boss for
their weekly bread, employees now depend on organisations for their security
and welfare. Employees working in a custodial environment become
psychologically preoccupied with their economic rewards and benefits.
Employees working under such a model tend to focus on economic rewards and
benefits. As a result of their treatment, they are certainly happier and more content
than under the autocratic model, but they do not have a high commitment in
helping the organisation meet its goals.
51
Organisational Psychology Contentment does not necessarily produce strong motivation; it may produce
only passive cooperation. This results in the employees producing substantially
below their capabilities. They are still not motivated enough to advance to higher
capacities. It is important to point out here that unlike cows, happy and contended
employees are not necessarily the most productive ones!
It is imperative to point out here that one great benefit of the custodial model
was that it brought security and satisfaction to workers, something that was a
welcome change from the times of managers holding the autocratic model. At
the same time, due to their contentment and passive cooperation, they cannot
even afford to quit.
4.2.3 The Supportive Model

The basic idea behind this theory is that leadership motivates the people to work
and not the power of money as in custodial model. Through leadership
management provides a climate to help employees grown and accomplish in the
interest of the organisation, the things of which rather than to simply support
employee benefit payments as in the custodial approach.
Under the supportive model, the workers feel a sense of participation and task
involvement in the organisation. The manager’s role is one of helping employee
solve their problems and accomplish their work. This model has been found to
be effective in affluent countries where workers are more concerned about their
higher level needs affiliation and esteem. This model has limited application
under Indian conditions because a vast majority of operative workers are more
concerned about their higher level needs affiliation and esteem.
The supportive model of organisational behaviour seeks to create supportive

work environment and motivate employees to perform well on their job. The
basis of this model is leadership with a managerial orientation of support. The
supportive model depends on leadership instead of power or money.
In fact, this model has its roots in Likert’s principle of supportive relationships:
“The leadership and other processes of the organisation must be such as to
ensure a maximum probability that in all interactions and all relationships with
the organisation each member will, in the light of his background, values, and
expectations, view the experience as supportive and one which builds and
maintains his sense of personal worth and importance” (Likert, 1961, p. 102-
103).
Through leadership, management provides a climate to help employees grow

and accomplish in the interests of the organisation the things of which they are
capable. Just as Theory Y philosophy, it is believed that work is as natural to
employees as play. Workers are not by nature passive and resistant to
organisational needs, but that they are made so by an inadequately supportive
climate at work. Given the right conditions, employees will seek achievement
and responsibility and will work hard, without being pushed. They will take
responsibility, develop a drive to contribute, and even try to improve themselves
if management will give them half a chance. Management orientation, therefore,
is to support the employee’s job performance rather than to simply support
employee benefit payments as in the custodial approach.
52
The employees in turn are oriented towards job performance and participation. Different Models of OB
The employee need that is met is status and recognition. Since management Supportive and Collegial,
supports employees in their work, the psychological result is a feeling of Etc.
participation and task involvement in the organisation. Employee may say “we”
instead of “they” when referring to their organisation. Employees are more
strongly motivated than by earlier models because of their status and recognition
needs are better met. The performance result is awakened drives for work.
The supportive model works well with both employees and managers, and has
been widely accepted at least in principle, though it is not easy to translate it into
practice. One advantage of this model as you can see is that, supportive behaviour
is not the kind of behaviour that requires money. It is a part of management’s
lifestyle at work, that reflects in the way that it deals with other people. This
model tends to be very effective particularly in developed nations because it
awakens employee drives toward a wide array of needs. It is less applicable in
developing nations like ours, because employees might still be trying to meet
their sustenance needs. As their needs for material rewards and security become
satisfied, employees here might also demand a more supportive approach, as has
already started to happen.
4.2.4 The Collegial Model

A useful extension of the supportive model is the Collegial model. The term
Collegial relates to a body of persons having a common purpose. The collegial
model, which embodies a term concept, first achieved widespread applications
in research laboratories and similar work environments. The collegial model
traditionally was used theory is based on the principle of mutual contribution by
employer and employees. Each employee should develop a feeling that he is a
part of the whole and contributing something to the whole and recognizes the
others contribution. Management is supported to be joint contribution and not
the boss.
The managerial orientation is toward teamwork. Management is the coach that

builds a better team. The employee response to this situation is responsibility
The collegial approach for the employee is self-discipline. In this kind of
environment employees normally feel some degree of fulfillment, worthwhile
contribution, and self actualisation, even though the amount may be modest in
some situations. This self-actualisation will lead to moderate enthusiasm in
performance.
The term ‘collegial’ literally means a body of people having a common purpose.
An extension of the supportive model, the collegial model relates to a body of
people working together cooperatively feeling a commitment to achieve a
common purpose. Some organisations, for e.g., most human service organisations
have a goal of creating a collegial atmosphere to facilitate achieving their purposes.
The basis of this model is partnership with a managerial orientation of teamwork.

Management is akin to the coach that builds a better team. Managers are seen as
joint contributors rather than as bosses. Since the management nurtures a feeling
of partnership with its employees, the employees feel themselves as an asset to
the organisation. They feel needed and useful. The employee’s response to this
situation is responsibility. They feel that managers are contributing also, so it is
easy to accept and respect their roles in their organisation. For example employees
53
Organisational Psychology produce quality work not because management tells them to do so or because
the supervisor will reprimand them or worse even fire them if they do not, but
because they feel inside themselves an obligation to provide others with high
quality. They also feel an obligation to uphold quality standards that will bring
credit to their jobs and company.
The psychological result of the collegial approach for the employee is self-
discipline. Feeling responsible, employees discipline themselves for performance
on the team much in a similar same way that the members of a football team
discipline themselves to training standards and the rules of the game.
The employee need that is met is self-actualisation. In this kind of environment

employees normally feel some degree of fulfillment, worthwhile contribution,
and self-actualisation, even though the amount may be modest in some situation.
The performance result is moderate enthusiasm. If the sense of partnership is
established, employees produce quality work and seek to cooperate with
coworkers, not because management directs them to do so, but because of their
internal obligation to produce high quality work.

Analyze the following case study and tick mark the correct answer:
1) Organisation XYZ Solutions was dealing with problems of employee
turnover, absenteeism, and stress related problems. A survey showed
that employees, a lot of them young mothers (many single) had huge
problems arranging for quality child care that lead to the above
mentioned problems. The company decided to subsidize an on-site day
care center, which very soon became filled to capacity. It required huge
economic investment from the Company- about Rs. 12, 40, 000 per
year- and created organisational dependence. This can be seen from a
comment made a young mother, “It would really take a mind-blowing
job offer from another company now for me to leave XYZ”.
Which model of organisational behaviour is operating in Organisation
XYZ Solutions?
(a) Autocratic (b) Custodial (c) Supportive (d) Collegial
2) Organisation ABC Electronics recently abolished the use of reversed
parking spaces for executives, as was the earlier practice. Now every
employee has an equal chance of finding a parking space close to the
workplace. It has eliminated the use of terms like ‘bosses’ and
‘subordinates’, feeling that such terms simply crate perceptions of
psychological distance between management and managers. It also
sponsors team building activities, such as river rafting trips in Rishikesh
and requires managers to spend a week or two annually working in
factory locations.
Which model of organisational behaviour is operating in Organisation
ABC Electronics?
(a) Autocratic (b) Custodial (c) Supportive (d) Collegial.
54
Different Models of OB
4.3 COMPARISON OF THE MODELS OF (Autocratic, Custodial,
Supportive and Collegial,
ORGANISATIONAL BEHAVIOUR Etc.
The following table (Davis, 1967) presents a comparison among the four models
of organisational behaviour with regard to its basis, the predominant managerial
orientation, the predominant employee orientation, psychological result for the
employee, the needs of the employees that are met, and the ultimate performance
result.
Table 1: Comparison among four models of organisational behaviour (from

Davis, 1967, p. 480)
Autocratic Custodial Supportive Collegial
Basis of Power Economic Leadership Partnership
model Resources
Managerial Authority Money Support Teamwork
orientation
Employee Obedience Security and Job Responsible
orientation benefits performance behaviour
Employee Dependence Dependence Participation Self-
psychological on boss on discipline
result organisation
Employee Subsistence Security Status and Self-
needs met recognition actualisation
Performance Minimum Passive Awakened Moderate
result cooperation drives enthusiasm
Activity
Consider an organisation where you now work or have worked in the past. Which
model of organisational behaviour does (did) your immediate supervisor follow?
Is (was) it the same as the top management’s model? Reflect on your experience.
4.4 CONCLUSIONS ABOUT THE MODELS

4.4.1 The Models Are, In Practice, Subject To Evolutionary
Change
As you would have probably understood by now, each of the four models
described in this unit have evolved over a period of time. The first model,
autocratic, had its roots in the industrial revolution. The managers of this type of
organisation operated mostly out of McGregor’s Theory X. The next three models
began to build on McGregor’s Theory Y. No one particular model is the
permanently ‘best’ one that will endure over the long run. Eventually the
supportive model may also fall to limited use. Even the collegial model should
not be thought as the last or best model, but the beginning of a new model or
paradigm. The primary challenge for management is to critically examine itself
and identify the model it is actually using and then assess its current effectiveness.
The manger thus has two key tasks- to acquire a new set of values as models
55
Organisational Psychology evolve over a period of time, and apply the behavioural skills that are consistent
with those values.
4.4.2 The Models Are Based On Incremental Values

Organisations behaviour models produce incremental as opposed to allocative
effects. Economic values with respect to allocation of scarce resources are
generally allocative- for e.g., if Organisation A has a fixed budget of Rs. 1 million
that must be shared amongst its four branches, it the first branch is allocated half
a million, no other branch can be allocated that much. This can be thought of as
similar to a zero-sum game, a situation in which a participant’s gain or loss is
exactly balanced by the losses or gains of the other participant(s). If the total
gains of the participants are added up, and the total losses are subtracted, they
will sum to zero.
In sharp contrast, human values such as growth, fulfillment or actualisation are

incremental. Incremental values are self-generated, being created within
individuals and groups as a result of their attitudes and lifestyles. In order to
build say, job satisfaction in department A, you do not have to take it from
department B. There is enough job satisfaction for everyone (in fact one
department’s job satisfaction may even help you to build up job satisfaction for
another department. Isn’t satisfaction contagious?)
4.4.3 The Models Are A Function Of Prevailing Employee

Needs
The four models presented in this unit are closely related to human needs. New
models have been developed to serve the different needs that became important
at the time. The autocratic model, for instance, reasonably serves subsistence
needs, but does not meet needs for security. The satisfaction of employees’ security
needs is addressed by the custodial model. Similarly the supportive model is an
effort to meet employees’ other needs, such as affiliation and esteem, which the
custodial model is unable to serve. Lastly, the collegial model makes an attempt
to satisfy employees’ self-actualisation needs.
It must however be kept in mind that emphasis on any one model of organisational
behaviour does not mean an automatic rejection of other models. It also does not
mean that other needs are not important. What it does mean is that employees
have progressed to a condition in which newer needs dominate. For instance,
adoption of a supportive approach does not mean abandonment of custodial
practices that serve security needs. It simply implies that employees’ subsistence
and security needs are reasonably met by a suitable structure and security system,
and that their esteem and/or affiliation needs are more important and need
addressing.
4.4.4 There is a General Trend towards Newer Models

As organisations today become more complex with rapid advances in computers
and management information systems, top managers cannot afford to be
authoritarian and use the autocratic model. In addition, as literacy, education and
professional orientation of employees grows; they are no longer readily motivated
toward creative tasks by the autocratic model. Keeping this in mind, it seems
that the trend toward the supportive and collegial models will continue.
56
An emerging model of organisation behavior is the system model. It is the result Different Models of OB
of a strong search for higher meaning at work by many of today’s employees, Supportive and Collegial,
who want more than just a paycheck and job security from their jobs. Since they Etc.
spend many hours of their day at work, they want a work context that is ethical,
infused with integrity and trust, and provides an opportunity to experience a
growing sense of community among coworkers. To accomplish this, managers
must increasingly demonstrate a sense of caring and compassion, being sensitive
to the needs of a diverse workforce with rapidly changing needs and complex
personal and family needs.
In response, many employees embrace the goal of organisational effectiveness,

and reorganize the mutuality of company-employee obligations in a system
viewpoint. They experience a sense of psychological ownership for the
organisation and its product and services. They go beyond the self-discipline of
the collegial approach until they reach a state of self-motivation, in which they
take responsibility for their own goals and actions. As a result, the employee
needs that are met are wide-ranging but often include the highest-order needs
(e.g., social, status, esteem, autonomy, and self actualisation).
Because it provides employees an opportunity to meet these needs through their

work as well as understand the organisation’s perspectives, this new model can
engender employees’ passion and commitment to organisational goals. They are
inspired and they genuinely believe in the usefulness and viability of their system
for the common good.
4.4.5 Contingent Use of All Models

Although there are four clear separate models, almost no organisation operates
exclusively in one. There will usually be a predominate one, with one or more
areas over-lapping in the other models. Although one model may be used at any
one point in time, some appropriate uses will remain for other models. Some
jobs may require routine, low-skilled, highly programmed work that will provide
mostly material rewards and security (autocratic and custodial conditions). Other
jobs will be unprogrammed, intellectual and unstructured, requiring team work
and self-motivation. They generally respond to the supportive and collegial
approaches.
You might be wondering at this juncture: “Which model is the ‘best’ one?” This
question is actually incorrect. A better question ‘which model should be applied
in order to obtain the highest productivity’ is also not that obvious. It depends on
the task to be completed and on employee needs and expectations. For e.g., the
autocratic model works well in military operations, where quick decisions are
needed to respond to rapidly changing crises, but it does not work well in say
NGOs where employees expect collegial approach.
4.5 LET US SUM UP

Organisations differ in the quality of organisational behaviour that they develop.
These differences are substantially caused by various models of organisational
behaviour that influence the management’s thought in each organisation. Models
of organisational behaviour help the managers to adopt organisational practices
that best suit their requirements.
57
Organisational Psychology In this unit, we presented and critically examined four models of organisational
behaviour, namely, autocratic, custodial, supportive, and collegial. In the order
mentioned above, these models show the evolution of the thinking and behaviour
on the part of both management and managers. They also express the shift in the
outlook of managers in viewing their employees and the resultant organisational
environment.
The autocratic model is based on power. Under this model, the person who holds
power has the authority to demand work form his/her employees. It is based on
the assumption that work can only be extracted by means of pushing, directing,
and persuading the employees. In the custodial model, the emphasis is on
providing job security (and fringe benefits that strengthen employees confidence
in security) to the employees. The supportive model emphasizes leadership rather
than power or money. It enhances the relationships between the employer and
employees. In the collegial model, employees are self-disciplined, self-satisfied,
and have specific goals which motivate them to improve their performance.
Models of organisational behaviour not only differ from organisation to

organisation, but may also differ from department to department within an
organisation. The point is that one model of organisational behaviour is not an
adequate label to describe all that happens in an organisation.
The evolving nature of models of organisational behavior makes it very clear

that change is the normal condition of these models. As our understanding of
human behaviour changes or as new social and organisational conditions evolve,
our organisational behavior models are also likely to change.

1) Examine the trends in the models of organisational behaviour as they have
developed over time. Examine why the trends have moved in the direction
that it has.
2) Is the autocratic model the least useful in contemporary times? Examine the
situations where it might be especially appropriate to use.
3) Is the collegial model the ‘best’ to use with all employees? Discuss.
4) Outline the similarities and differences among the four models of
4.7 GLOSSARY
Downward Communication : A flow of information from the top of the
organisational management hierarchy,
from the superiors to the subordinates.
Self-actualisation : The desire for self-fulfillment, the desire

to become more and more what one is, to
become everything that one is capable of
becoming, and ultimately the full
realisation of one’s potential.
58
Zero-sum : A competitive situation which involves a Different Models of OB
constant sum where the benefits and losses Supportive and Collegial,
to all players sum to the same value of Etc.
money (or utility). For e.g., cutting a cake
is zero- or constant-sum, because taking a
larger piece reduces the amount of cake
available for others.

Davis, K. D. & Newstrom, J. W. (1989). Human behaviour at work:
Organisational Behaviour, 8th Ed. New Delhi: McGraw-Hill.
Zastrow, C. (2009). The practice of social work: A comprehensive work text, 9th
Ed. California: Brooks/Cole.

QUESTIONS
1) b: Custodial
2) d: Collegial
REFERENCES
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61
Job Satisfaction
UNIT 1 JOB SATISFACTION
Structure
1.0 Introduction
1.1 Objectives
1.2 Nature of Job Satisfaction
1.2.1 History of Job Satisfaction
1.2.2 Meaning of Job Satisfaction
1.2.3 Global and Facet Satisfaction
1.2.4 Intrinsic and Extrinsic Satisfaction
1.3 Measurement of Job Satisfaction
1.4 Antecedents of Job Satisfaction
1.4.1 Personal Characteristics
1.4.2 Work Situation Characteristics
1.5 Outcomes of Job Satisfaction
1.5.1 Job Performance
1.5.2 Withdrawal Behaviours
1.5.3 Workplace Deviance
1.5.4 Safety Performance
1.5.5 Customer Satisfaction
1.5.6 Life Satisfaction
1.6 Let Us Sum Up
1.8 Glossary
1.9 Suggested Readings and References
1.0 INTRODUCTION
Job satisfaction is the degree to which individuals like their jobs. Some people
enjoy work and find it to be a central part of life. Others hate to work and do so
only because they must. This job attitude has been the subject of extensive research
in the domain of industrial-organisational psychology and organisational
behaviour. A thorough account of the meaning, causes and consequences of this
important employee attitude will be presented in this unit. First, the nature of job
satisfaction will be discussed highlighting its historical antecedents, meaning
and dimensions. Second, some major assessment techniques will be discussed.
Third, an account of the antecedents or predictors of job satisfaction will be put
forth. Finally, the outcomes of job satisfaction will be examined.
1.1 OBJECTIVES
• Explain the meaning of job satisfaction;
• Describe the various measures of job satisfaction;
• Give an account of the antecedents of job satisfaction; and
• Analyse the consequences of job satisfaction. 5
Personality and Attitudes in
Organisational Behaviour 1.2 NATURE OF JOB SATISFACTION
Job satisfaction is the most frequently measured organisational variable in both
research and applied settings. There are multiple reasons for interest in this work
attitude. First, organisations and researchers are interested in simply assessing
the current state of employee job satisfaction. They are often concerned with
employee well-being and psychological health, and some form of job satisfaction
measurement is therefore included in employee opinion surveys. Second,
understanding the influences on job satisfaction is important for improving
organisational functioning. Significant lines of research have therefore focused
on the role of personal, work-related and organisational variables in job
satisfaction. Third, job satisfaction has important implications for work outcomes
within an organisation. Interest has thus been in the empirical examination of job
satisfaction and its relationship with such outcomes as performance, withdrawal
behaviours, organisational citizenship behaviours and other work behaviours.
1.2.1 History of Job Satisfaction

For almost one hundred years, employee job satisfaction has been targeted by
research. The origin of these studies dates back to at least 1911, when Taylor
began to study employees and their job duties to develop better ways to train
workers. By 1927, the study of employee’s positive or negative reaction to their
jobs had fully begun to take hold when Elton Mayo first studied the effect of
lighting at the Western Electric Hawthorne Works in Chicago. These studies
showed that lighting had little connection to worker productivity, creating the
fundamental groundwork for future studies that asked about other factors that
may have an impact on employees. The Hawthorne Studies continued until 1932,
and in the five-year interval, the research widened to include factors such as
temperature, fatigue, breaks, and working hours. Mayo’s work may seem
marginally relevant to job satisfaction today, but he discovered that the mere act
of studying workers and providing them with more attention increased their
motivation and productivity. Mayo had stumbled upon the essence of human
motivation, marking a new era of humanistic job satisfaction research, and
revolutionising the research and theories of job satisfaction.
1.2.2 Meaning of Job Satisfaction

In the past hundred years, job satisfaction has been given various definitions by
organisational behaviour scholars and researchers. The most-used research
definition of job satisfaction is by Locke (1976), who defined it as “a pleasurable
or positive emotional state resulting from the appraisal of one’s job or job
experiences”. Cook et al. (1981) defined job satisfaction as “an attitude which
manifests itself in evaluation of the job and of the employing organisation as
contributing suitably to the attainment of one’s personal objectives”. More
recently, Lambert, Barton, and Hogan (1999) defined the term as “the fulfillment
or gratification of certain needs that are associated with one’s work.” Spector
(1997) defines it as “the extent to which people like (satisfaction) or dislike
(dissatisfaction) their jobs”.
Some important characteristics emerge out of these definitions:
1) Job satisfaction is an emotional response to a job situation. As such it cannot
be seen, it can only be inferred.
6
2) Job satisfaction is the extent to which the working environment meets the Job Satisfaction
needs and expectations of employees. It is a result of employees’ perception
of how well their job provides outcomes that are viewed as important.
3) Job satisfaction is an evaluation of the job and of the organisation that shows
up in significant work behaviours such as productivity, absenteeism, turnover,
workplace deviance, organisational citizenship and so forth.
Job satisfaction can thus be understood as an important job attitude. As an attitude,
it has three elements: affective, cognitive and behavioural. The affective
component is the emotional response to the job situation and is reflected in the
statement “I feel good about my job”. The cognitive element is the appraisal on
the extent to which the job fulfills important needs associated with one’s work.
It is illustrated in the statement “My job helps me to achieve my goals”. The
behavioural component is the intention to engage in specific behaviours as
manifested in productivity, absenteeism, turnover and forms of organisational
citizenship. It is reflected in the statement “I want to give my best on the job”.
Although viewing job satisfaction as made of three components is helpful in

understanding its complexity, the term as it is generally used, essentially refers
to the affect part of the three components. Thus the statement “I like my job”
best exemplifies job satisfaction and signifies that it is primarily an individual’s
affective reaction to a particular job that results from the person’s comparison of
actual outcomes with those that are desired, anticipated, or deserved.
1.2.3 Global and Facet Satisfaction

Researchers and practitioners are often interested in studying global job
satisfaction to assess an overall state of employee morale. However, examination
of facet conditions is also considered useful for a critical understanding of
employee satisfaction. Thus job satisfaction can be considered as either global
or facet satisfaction.
Global satisfaction is defined as a general feeling that individuals hold about

their job. It is an overall affective reaction based on all characteristics of the job
and the work environment. Facet satisfaction, on the other hand, is defined as
the feelings about or affective responses to particular job aspects. It is a
constellation of attitudes about various facets of a job. Smith, Kendall and Hulin
(1969) have suggested that facet satisfaction is reflected in five characteristics of
a job:
1) The work itself: The extent to which the job provides the individual with
interesting tasks, opportunities for learning, and the chance to accept
responsibility.
2) Pay: The adequacy and perceived equity of financial remuneration.
3) Promotion opportunities: The chance for further advancements in the
hierarchy.
4) Supervision: The abilities of the supervisor to provide technical assistance
and behavioural support.
5) Coworkers: The degree to which fellow workers are technically proficient
and socially supportive.
7
Personality and Attitudes in 1.2.4 Extrinsic and Intrinsic Satisfaction
Overall job satisfaction is actually a combination of intrinsic and extrinsic job
satisfaction. Intrinsic job satisfaction is seen when workers consider only the
kind of work they do, the tasks that make up the job. Extrinsic job satisfaction is
demonstrated when workers consider the conditions of work, such as their pay,
coworkers, and supervisor.
The intrinsic elements of job satisfaction that arise from the nature of the work
itself have been described in the literature as “motivators” (Herzberg et al., 1959).
They include the specific nature of the work, recognition, achievement, and the
possibility of growth, advancement, and responsibility. Herzberg suggested that
the true job satisfaction derives from the factors intrinsic to the job. The extrinsic
elements, on the other hand, have been described as “hygienes” (Herzberg et al.,
1959) and are measured as extrinsic job satisfaction. They include salary, benefits,
and institutional environment and they tend to influence job dissatisfaction.
1.3 MEASUREMENT OF JOB SATISFACTION

Measuring job satisfaction is difficult, for it is an abstract personal cognition
that exists only in an individual’s mind. Nonetheless, numerous techniques to
measure the construct have been devised that can be broadly classified as indirect
and direct techniques. Indirect measurement of an employee’s job satisfaction
can be obtained from data that a company regularly collects like absenteeism,
turnover and theft rates. It can also be seen in terms of its relationships with
other key factors, such as general well-being, psychological health, stress
experienced at work and working conditions.
Direct measurement involves asking employees how satisfied they are with their
job, through interviews or questionnaires. Most researchers opt for in-depth survey
questionnaires as they are easily distributed, have less room for bias, have
increased likelihood of confidentiality, and require much less time and money
than one-on-one interviews. These questionnaires are usually based on the Likert
technique wherein respondents are asked to indicate their response on a rating
scale. Ratings on individual items are then summated to obtain a summary
satisfaction score.
Using the summated rating technique, reliable and valid measures of both facet
and global job satisfaction have been developed. Typical scales used for facet
job satisfaction include:
i) The Job Descriptive Index (JDI),
ii) The Minnesota Satisfaction Questionnaire (MSQ) and
iii) The Job Satisfaction Survey (JSS).
Measures used for assessing global satisfaction include:
i) The Job Satisfaction Index (JSI) and
ii) The Job in General Scale (JIGS).
The Job Descriptive Index (Smith, Kendall, & Hulin, 1969) has probably been
the most popular facet scale among organisational researchers. It measures one’s
satisfaction in five facets: pay, promotions and promotion opportunities,
8
coworkers, supervision, and the work itself. The scale contains 72 items with Job Satisfaction
either 9 or 18 items per subscale. Each item is an evaluative adjective or short
phrase that is descriptive of the job. Participants answer either yes, no, or can’t
decide (indicated by ‘?’) in response to each item. A value is then calculated for
each facet based upon a respondents’ reply on the items for each facet. The JDI
is considered the best choice when survey participants are not good readers or
attempt to finish the questionnaire quickly.
The Minnesota Satisfaction Questionnaire (Weiss, Dawes, England, &

Lofquist, 1967) is another satisfaction scale that has been very popular among
researchers. It assesses employee’s job satisfaction on 20 facets of work. Subjects
are asked to indicate their level of satisfaction using a five-point scale for each
item on the measure. The scale has two forms. The long form has 100 questions
with five items from each facet and the short form has 20 questions with one
item from each facet. Most researchers who use the short form combine all items
into a single total score, or compute extrinsic and intrinsic satisfaction subscales
from the subset of items.
The Job Satisfaction Survey (Spector, 1997) measures nine facets of job
satisfaction, as well as overall satisfaction. The nine facets include: pay,
promotion, supervision, fringe benefits, contingent rewards, operating conditions,
coworkers, nature of work and communication. The scale contains 36 items and
uses a summated rating scale format. Each of the nine face subscales contain
four items, and a total satisfaction score can be computed all of the items.
The Job Satisfaction Index (Brayfield & Rothe, 1951) measures overall job
satisfaction when all aspects of the job are considered. It consists of 18 items
with responses ranging from 1 (strongly disagree) to 5 (strongly agree). Although
several of these items have become obsolete because the BRI was established in
1951, the instrument still has been very reliable and correlates highly with other
job satisfaction measures.
The Job in General Scale is an 18-item measure of global job satisfaction. It

was developed in the early 1990’s to provide an overall evaluation of how
employees feel about their jobs, complementing the Job Descriptive Index
diagnostics on specific facets of employee job satisfaction. It is more general,
more evaluative, and uses a longer time perspective than the JDI. As a result, it
has been found to consistently correlate more highly with such global measures
as intention to leave, life satisfaction, identification with the work organisation,
and trust in management.

1) Examine the significance of job satisfaction as an organisational variable.
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9
Organisational Behaviour 2) Discuss the historical antecedents to the study of job satisfaction.
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3) Explain the meaning of the concept of job satisfaction.
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4) Describe the important assessment techniques of job satisfaction.
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1.4 ANTECEDENTS OF JOB SATISFACTION

Various studies have examined the antecedents or predictors of job satisfaction.
Two distinct models of job satisfaction are apparent in these studies. The first
model focuses on personal characteristics such as age, years of service, gender,
occupational rank, educational level, personality and cultural factors. The second
model places emphasis on the individual’s work situation including the nature
of the work, pay, promotional opportunities, supervisor, work group and working
conditions. The two sets of variables are discussed in the following sections.

Age and years of experience – In general, research on age and tenure differences
in job satisfaction suggest that older and more experienced workers are more
satisfied with their jobs than are younger and less experienced workers (e.g.,
Wright and Hamilton, 1978; Janson and Martin, 1982). This relationship holds
true for blue-collar and white-collar employees and for men and women. Several
explanations have been put forward for this relationship. First, it is attributed to
the more realistic job expectations of older employees owing to age and maturity.
Second, it is reasoned that age and experience usually bring increased confidence,
responsibility and sense of accomplishment thus contributing to higher levels of
satisfaction. Third, there is an indication that older people may actually have
“better” or more highly rewarded jobs.
10
Gender – Research evidence on gender differences in job satisfaction is Job Satisfaction
inconsistent and contradictory. In general, women are paid less than men, their
opportunities for promotion are fewer and they believe that they have to work
harder than men to receive comparable rewards. These differences manifest in
their satisfaction with their jobs. Thus gender relates to job satisfaction only to
the extent that other factors vary with gender.
Occupational level – The level at which individuals work within an organisation

has some influence on their satisfaction. In general, executives express more
positive job attitudes than do first-line supervisors, who, in turn, are usually
more satisfied than their subordinates are. Higher-level jobs offer greater
opportunities for growth, challenge, autonomy and responsibility. Thus,
employees’ job satisfaction tends to increase with each level within the
organisational hierarchy.
Education – Educational level is found to be related to job satisfaction. While

some researchers have found positive relationships between education levels
and job satisfaction, others have found a slight negative correlation, especially
for higher levels of education. The explanation is that better-educated persons
have higher expectations and believe that their work should provide greater
responsibility and fulfillment. Many jobs however do not satisfy these
expectations resulting in lower levels of satisfaction. However, evidence on this
relationship is still inconclusive.
Personality – Research on positive and negative affectivity, the “Big Five”

personality attributes and core self evaluations indicate that personality variables
are related to job satisfaction and that they are partly heritable. Firstly, it has
been shown that persons high in positive affectivity are happier in their work
than those who are high on negative affectivity. While positive affectivity is
described by high energy, enthusiasm and pleasurable engagement, negative
affectivity is characterised by distress, unpleasurable engagement and nervousness
(Heller, 2002). Secondly, evidence suggests that people high on extraversion,
agreeableness and conscientiousness (dimensions of the “Big Five”) report higher
levels of job satisfaction than those who are low on these dimensions. Finally,
core self-evaluation (Judge & Bono, 2001; Judge, Locke, Durham, & Kluger,
1998) has been found to correlate with employee job satisfaction. Core self-
evaluation has four facets: self - esteem, generalised self-efficacy, locus of control,
and emotional stability (low neuroticism). Research evidence found that these
personality factors measured in childhood showed a direct relationship to job
satisfaction some 30 years later. Those scoring high on esteem and efficacy, low
on neuroticism and having an internal locus of control, as measured in their
childhood, showed significantly higher job satisfaction in their middle adult years.
Cultural factors – Cross-cultural research on job satisfaction suggests that

employees in Western cultures have higher levels of job satisfaction than those
in Eastern cultures. It is reasoned that individuals in Eastern cultures value
negative emotions while those in Western cultures emphasise positive emotions
and individual happiness. Evidence also indicates that among the Asian countries,
employees in India are happier with their work environment, teamwork,
supervision and training at the workplace.
11
Personality and Attitudes in 1.4.2 Work Situation Characteristics
The work itself – Of all the major situational influences on job satisfaction, the
nature of the work itself best predicts overall job satisfaction, as well as other
important outcomes like employee retention (Judge & Church, 2000). When
employees were asked to evaluate different facets of their job such as supervision,
pay, promotion opportunities, co-workers, and so forth, the content of the work
– including job challenge, autonomy, variety, and scope, together called as
“intrinsic job characteristics”– emerged as the most important job facet. It was
found that interesting and challenging work, work that is not boring and a job
that provides status; were some of the most important ingredients of a satisfying
job. Thomas & Tymon (1997) suggested that when employees feel their work is
meaningful and that they are responsible for their outcomes, they show higher
levels of effort and attention to doing tasks well. Similarly, Cappelli (2000)
highlighted the importance of intrinsic rewards when participants rated interesting
work, open communications, and opportunities for advancement as the top three
things they desire in their jobs.
Pay – Wages and salaries represent a significant, but complex, multidimensional

factor in job satisfaction. Employees often view pay as a reflection of how
management view their contribution to the organisation and thus influences the
satisfaction they derive from their job. However, more important than actual
pay, it is the perceived equity or fairness of one’s pay that has been found to be
related to job satisfaction. As long as people feel their pay is fair, they can express
relatively high satisfaction with it, at least within broader limits.
Promotions – Promotional opportunities have a significant impact on job

satisfaction. However, since promotions take on different forms, they seem to
have a varying effect on job satisfaction. For example, individuals who are
promoted on the basis of seniority often experience job satisfaction but not as
much as those who are promoted on the basis of performance. Additionally, a
promotion with a 10% salary rise is typically not as satisfying as one with a 20%
salary rise. These differences help explain why executive promotions may be
more satisfying than promotions that occur at the lower level of organisations.
Supervision – The nature of supervision provided can also have a significant

impact on job satisfaction. Studies have shown that employees who have positive
interactions with supervisors are generally more satisfied at work (Bruce and
Blackburn, 1992). Positive interactions tend to include constructive feedback,
effective communication, and a focus on quality rather than quantity (Schroffel,
1999). Positive supervisory relationships are also those that treat the employees
with respect, that promote staff cohesion but allow for individual thinking, and
that fulfill employee’s functional and interpersonal needs. Supervision is a
complex variable however, and it is unrealistic to assume that job satisfaction
can be guaranteed as long as supervisors interact positively with their employees.
Individual personality characteristics may, for example, affect the employee’s
needs and management expectations. For example, Schroffel (1999) suggests
that employees who have more experience desire less supervision and employees
with less experience prefer more supervision. Also, studies have shown that
organisational setting can affect the employee’s desired supervisory relationship.
In chaotic, ambiguous, or otherwise unstructured job settings, employees tend to
prefer more structured supervision. Conversely, in jobs where tasks are clearly
12
defined and workers are well trained, a less structured supervisory style is preferred Job Satisfaction
(House and Mitchell, 1974).
Work group – The importance of co-worker social support has been investigated
for decades. As far back as the Hawthorne Studies of the 1920’s, research has
shown that workers who belong to a social group and have friendships on the
job tend to be more satisfied (Maynard, 1986). Maynard suggests further that
employees who lack social support at work experience more stress, have less
coping techniques, and are generally less satisfied. Fellow employees can satisfy
many social needs, and sympathetic and supportive co-workers can increase job
satisfaction. Co-workers are also vital for evaluating the equity and fairness of
one’s pay and work requirements, and social needs studies have shown that co-
worker job satisfaction can influence one’s own job satisfaction.
Working conditions – Working conditions have a modest effect on job satisfaction.

If the working conditions are good (e.g. clean, attractive surroundings), the
employees will find it easier to carry out their jobs. If the working conditions are
poor (e.g. hot, noisy surroundings), they will find it more difficult to get things
done.
1) Examine the personal characteristics that influence job satisfaction.
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2) Discuss the importance of intrinsic work variables in job satisfaction.
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3) Describe the role of pay and promotions in promoting job satisfaction.
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4) Explain the influence of supervisor and co-workers on an employee’s
job satisfaction.
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13
Organisational Behaviour 1.5 OUTCOMES OF JOB SATISFACTION
The extent to which employees like or dislike their jobs has important
consequences for workplace conduct. Feelings of satisfaction or dissatisfaction
with one’s job can be a predictor of productivity, organisational citizenship,
withdrawal and other work behaviours. A useful theoretical model to organise
and understand the consequences of job dissatisfaction is the exit-voice-loyalty-
neglect (EVLN) model). The model identifies four ways in which employees
respond to dissatisfaction:
• Exit – The exit response refers to leaving the organisation, transferring to
another work unit or at least trying to make these exits.
• Voice – The voice response involves actively attempting to change, rather
than escape from, dissatisfying conditions. It can be a constructive response,
such as recommending ways for management to improve the situation, or it
can be more confrontational, such as filing formal grievances. In the extreme,
some employees might engage in counterproductive behaviours to get
attention and force changes in the organisation.
• Loyalty – The loyalty response includes optimistically waiting for
improvement and trusting the organisation and its management to resolve
the problem.
• Neglect – The neglect response involves passively ignoring or withdrawing
effort and allowing conditions to worsen. Chronic absenteeism and lateness,
reduced work effort, reduced attention to quality and increased error rate
are some of the neglect responses.
Of the four responses to dissatisfaction, the one that will be used by an employee
depends on the availability of alternative employment, degree of organisational
commitment, employee’s personality and past experiences with the organisation.
With poor job prospects and a high degree of commitment to the organisation,
employees are less likely to use exit. Highly conscientious people are less likely
to engage in neglect and more likely to use voice. Finally, employees who were
unsuccessful with voice in the past are more likely to engage in exit or neglect
when experiencing dissatisfaction in the future.
Although this framework is helpful in presenting the possible consequences of

job satisfaction, it is quite general. More specific outcomes of job satisfaction
and dissatisfaction will be discussed in the following sections.
1.5.1 Job Performance

The notion that a “happy worker is a productive worker” has long been examined
by organisational behaviour researchers. Most of the early reviews of research
literature suggested a weak relationship between job satisfaction and performance,
with an average statistical correlation of only .17 across different occupations.
However, in a more recent and comprehensive review of 301 studies, Judge,
Thoresen, Bono, and Patton (2001) found that when the correlations are
appropriately corrected (for sampling and measurement errors), the average
correlation between job satisfaction and job performance is a higher .30. Thus,
contrary to earlier reviews, it does appear that job satisfaction can predict
performance though only to a moderate extent.
14
There are several factors that seem to weaken and modify the impact of job Job Satisfaction
satisfaction on performance. First, the relationship between satisfaction and
performance is moderated by job complexity, such that for high-complexity jobs,
the correlation between satisfaction and performance is higher (ñ=.52) than for
jobs of low to moderate complexity (ñ=.29). In less complex jobs like assembly
line work, employees have little control over or opportunity for variations in
performance. Because of these limits in job output, job satisfaction is not strongly
related to performance. However, in complex jobs where employees have more
freedom to perform their work, the job satisfaction-performance relationship is
stronger.
Second, job satisfaction predicts performance only when performance is linked

to valued rewards. If people receive valued rewards and perceive them to be
equitable, they will be satisfied and this is likely to result in greater performance
effort. However, because many organisations do not always reward good
performance directly, the relationship between satisfaction and performance is
not strong.
Third, there are many factors that determine performance such as working
conditions, task structure, previous experience, task abilities, requisite skills etc.
In many cases, the effects of these factors may be more important than job
satisfaction in predicting performance. For instance, even when employees love
their jobs, if they lack specific skills to perform a task at hand, they won’t be able
to do their best work.
Fourth, recent evidence indicates that satisfaction may not necessarily reflect in
individual performance improvement as measured by standard forms of
performance. However, it does correlate highly with important organisational
citizenship behaviours, the voluntary acts of co-operation that go beyond formal
job requirements. These discretionary forms of behaviour include helping one’s
coworkers, tolerating temporary conveniences and so forth that contribute to the
smooth functioning of the organisation. Employees’ job satisfaction thus leads
to greater citizenship behaviours that contribute to organisational-level
improvement.
Fifth, job satisfaction is a general attitude that may not predict specific behaviours.
In fact, job dissatisfaction can lead to a variety of outcomes rather than lower job
performance. Some employees may continue to work productively while they
complain, look for another job or patiently wait for the problem to be fixed.
Finally, there is still considerable debate on the direction of the relationship

between job satisfaction and performance. In some cases, job satisfaction results
from good performance rather than vice versa. This applies more when the
performance of an entire organisation is taken into account.
1.5.2 Withdrawal Behaviours

Withdrawal behaviours constitute such actions as chronic absenteeism and
voluntary turnover that enable employees to escape from adverse organisational
situations. Although voluntary turnover is permanent, while absenteeism is a
short-term reaction, both are ways of withdrawing from dissatisfying jobs.
Numerous studies have shown that dissatisfied employees are more likely to
quit their jobs or be absent than satisfied employees (e.g., Hackett & Guion, 15
Personality and Attitudes in 1985; Kohler & Mathieu, 1993). Job satisfaction shows correlations in the range
of –.25 with turnover and absenteeism suggesting its inverse relationship with
these behaviours. However, there are a number of moderating variables that lessen
the impact of this relationship.
First, job tenure and organisational commitment have been found to lessen the
effects of dissatisfaction among employees. It has been found that the greater the
length of service and commitment to the organisation, the less likely the person
will leave the job.
Second, the relationship between turnover and satisfaction is moderated by the

employee’s level of performance (Spencer and Steers, 1981). Specifically, level
of satisfaction is less important in predicting turnover for superior performers as
compared to poor performers. Regardless of the level of satisfaction, superior
employees are more likely to remain with the organisation as they get pay raises,
praise, recognition, increased promotional opportunities, and so forth as
organisations make considerable efforts to retain them. On the other hand,
organisations make few attempts to retain poor performers and thus their decision
to remain with the organisation is better predicted by their level of satisfaction.
Third, economic conditions and expectations about alternative employment

opportunities influence turnover and absenteeism rates. When people perceive
that the economic climate is poor and job prospects are low, they are less likely
to quit their job. Also, when a company is in the process of laying off workers,
absenteeism rates decline.
Fourth, irrespective of the level of satisfaction, absenteeism may be influenced

by an organisational climate that seems to condone it. Higher absenteeism rates
among workers are expected in organisations that provide liberal leave benefits
and that are tolerant of absences from work. (Markham & McKee, 1995).
1.5.3 Workplace Deviance

Job dissatisfaction predicts a lot of specific behaviours, including unionisation
attempts, substance abuse, stealing at work, undue socialising and tardiness.
Researchers argue that these behaviours are indicators of a broader syndrome
that can be termed as workplace deviance counterproductive behaviour or
antisocial behaviour. Robinson and Bennett (1995) defined workplace deviance
as “voluntary behaviour of organisational members that violates significant
organisational norms, and in so doing, threatens the well-being of the organisation
and/or its members”. They used the multidimensional scaling technique to classify
workplace deviances into two types: organisational deviance and interpersonal
deviance (when the deviance is directed at members of the organisation). The
first type, organisational deviance refers to deviant behaviours targeting the
organisation such as theft, sabotage, being late to work or leaving early,
withdrawing effort from work or taking extended breaks. The second type,
interpersonal deviance refers to deviant acts toward co-workers, supervisors,
and subordinates in the workplace. They may include such behaviours as making
fun of others, acting rudely, arguing, or engaging in physical aggression. Both
are destructive and lead to unfavorable outcomes.
Evidence indicates that workers who are dissatisfied with their jobs “get even”
by engaging in deviant, counter-productive behaviours. However, it is important
16
to note that while job satisfaction is an important predictor of workplace deviance, Job Satisfaction
other factors may also be involved. Research evidence has suggested that deviant
behaviour may be an outcome of perceived injustice (Fox, Spector, & Miles,
2001), negative affectivity (Skarlicki, Folger, & Tesluk, 1999) and hostile
attributions (Douglas & Martinko, 2001). Some variables, however, would
moderate the relationship such as self- control, agreeableness and job autonomy.
1.5.4 Safety Performance

Accidents and injuries at work are a serious matter – both for employees who are
hurt and their organisations. Attempts have therefore been made to examine the
potential causes of accidents and to reduce workplace injuries. A critical notion
that has emerged from research is that employee attitudes and their job-related
stress are significantly related to the occurrence of accidents, health and job
safety. These studies have found that job satisfaction is a significant predictor of
lower accident rates and that employee job satisfaction is as important as
eliminating physical hazards in the workplace to promote job safety. It has been
demonstrated that in organisations using the so-called high-performance work
systems, not only are employees satisfied, but they also perform their jobs very
safely (Barling, Kelloway, & Iverson, 2003). These organisations offer employees
opportunities to participate in decision-making, provide incentives for them to
do so, and emphasise opportunities to develop skills. These practices enhance
employees’ satisfaction with their job and reduce workplace injuries.
1.5.5 Customer Satisfaction

Management of service organisations is especially concerned with pleasing
customers. Customer satisfaction thus represents an important goal of such
organisations that can probably be achieved with a happy workforce. Research
evidence indeed suggests that job satisfaction has a positive effect on customer
satisfaction. There are two main reasons for this relationship. First, satisfied
employees are more likely to be friendly, upbeat and responsive. This naturally
evokes positive emotions and appreciation from customers. Second, satisfied
employees are less likely to quit their jobs, so they have better knowledge and
skills to serve clients. Lower turnover also gives customers the same employees
to serve them, so there is more consistent service. There is also some evidence
that customers build their loyalty to specific employees, not to the organisation,
so keeping turnover low tends to build customer loyalty (Chesbrough & Teece,
1998).
1.5.6 Life Satisfaction

The interplay between job and life satisfaction is an emerging area of study.
Researchers have speculated that there are three possible forms of the relationship
between job satisfaction and life satisfaction: (1) spillover, where job experiences
spill over into non-work life and vice versa; (2) segmentation, where job and life
experiences are separated and have little to do with one another; and (3)
compensation, where an individual seeks to compensate for a dissatisfying job
by seeking fulfillment and happiness in his or her non-work life and vice versa.
Judge and Watanabe (1994) argued that these different models may exist for
different individuals and were able to classify individuals into the three groups.
In their sample, they found that 68% were the spillover group, 20% in the
segmentation group, and 12% in the compensation group. Thus, the spillover
17
Personality and Attitudes in model, whereby job satisfaction spills into life satisfaction and vice versa, appears
to characterise most employees.
Consistent with the spillover model, research suggests that the relationship
between job and life satisfaction is reciprocal—job satisfaction does affect life
satisfaction, but life satisfaction also affects job satisfaction (Judge & Watanabe,
1994). Also in support of a spillover model for job and life satisfaction, research
literature shows a consistent relationship between job satisfaction and depression
(Thomas & Ganster, 1995). This research suggests that dissatisfaction resulting
from one’s job can spill over into one’s psychological well-being.
Based on research, it can thus be concluded that for many people, their job
satisfaction is a result, in part, of spillover of their life satisfaction. At the same
time, employees’ job satisfaction can spill over into their life satisfaction and
well-being.
1) Summarise the effects of job dissatisfaction using the EVLN model.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Describe the relationship between job satisfaction and job performance.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) Examine the effect of job dissatisfaction on employee withdrawal and
deviant behaviours.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
4) Discuss the role of job satisfaction in safety performance.
...............................................................................................................
...............................................................................................................
...............................................................................................................
18 ...............................................................................................................
Job Satisfaction
5) Explain the relationship between job satisfaction and customer
satisfaction.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
6) Examine the spillover model on the relationship between job satisfaction
and life satisfaction.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
1.6 LET US SUM UP

Job satisfaction is an important attitudinal variable both in organisational research
and in applied settings. It is understood as an individual’s affective reaction to
his/her job and can be studied as global or facet satisfaction. Numerous measures
of assessing job satisfaction have been developed. There are several predictors
of job satisfaction including both personal and work situation characteristics. It
has several important consequences reflected in its relationship with job
performance, withdrawal behaviours, workplace deviance, customer satisfaction
and life satisfaction.

1) Describe the significance of job satisfaction as an organisational variable.
What are the important preludes to the study of job satisfaction?
2) What is the meaning of the concept of job satisfaction? Discuss the different
ways in which job satisfaction can be classified and understood.
3) Discuss some important assessment techniques of job satisfaction.
4) What are some important personal variables that influence job satisfaction?
Quoting relevant research, discuss their role in understanding individual
differences in job satisfaction.
5) Describe the work situation characteristics that affect job satisfaction.
6) Explain the EVLN model on the consequences of job dissatisfaction.
7) Describe the outcomes of job satisfaction.
19
Organisational Behaviour 1.8 GLOSSARY
Job satisfaction : Individual’s affective reaction to a particular job
that results from a comparison of actual outcomes
with those that are desired, anticipated or deserved.
Global satisfaction : An overall affective reaction based on all
characteristics of the job and the work environment.
Facet satisfaction : Affective response to specific aspects of the job.
EVLN model : The model describing four consequences of job
dissatisfaction: exit, voice, loyalty and neglect.
Organisational citizenship: Voluntary acts of cooperation that go beyond an
employee’s formal job duties.
Voluntary turnover : A form of employee turnover in which an
individual voluntarily resigns from his or her job.
Absenteeism : Habitual failure to appear for work or other regular
duty.
Workplace deviance : Voluntary behaviour of organisational members
that violates significant organisational norms and
that threatens the well-being of the organisation
and/or its members.
Spillover model : The model that describes a reciprocal relationship
between job satisfaction and life satisfaction.
1.9 SUGGESTED READINGS AND REFERENCES

Luthans, F. (1995). Organisational Behaviour (7th ed.). New Delhi: McGraw-
Hill, Inc.
Schultz, D.P., & Schultz, S.E. (2002). Psychology and Work Today: An
Introduction to Industrial and Organisational Psychology (8th ed.). Delhi: Pearson
Education
References
Barling, J., Kelloway, E.K., & Iverson, R.D. (2003). High-quality work, job
satisfaction, and occupational injuries. Journal of Applied Psychology, 88(2),
276-283.
Brayfield, A. H., & Rothe, H. F. (1951). An index of job satisfaction. Journal of
Applied Psychology, 35, 307–311.
Bruce, W.M., Blackburn, J.W. (1992), Balancing Job Satisfaction and
Performance: A Guide for Human Resource Professionals, Connecticut, CT:
Quorum Books.
Cappelli, P. (2000). A market driven approach to retaining talent. Harvard
Business Review, 78(1), 103-111.
Chesbrough, H. W., & Teece, D. J. (1996). When is Virtual Virtuous? Organising
20 for Innovation. Harvard Business Review, 74, 65-73.
Cook, J. D., Hepworth, S. J., Wall, T.D., & Warr, P.B. (1981) Experience of Job Satisfaction
Work: A Compendium and Review of 249 Measures and Their Use. San
Francisco: Academic Press
Douglas, S. C. & Martinko, M. J. (2001). Exploring the role of individual
differences in the prediction of workplace aggression. Journal of Applied
Psychology, 86(4), 547-559.
Fox, S., Spector, P. E. & Miles, D. (2001). Counterproductive work behaviour

(CWB) in response to job stresssors and organisational justice: Some mediator
and moderator tests for autonomy and emotions. Journal of Vocational Behaviour,
59(3), 291-309.
Hackett, R.D. and Guion, R.M. (1985). A re-evaluation of the absenteeism -job
satisfaction relationship. Organisational Behaviour and Human Decision
Processes, 35, 340-381.
Heller, D. J. (2002). The confounding role of personality and trait affectivity in
the relationship between job and life satisfaction. Journal of Organisational
Behaviour, 815- 835.
Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work
(2nd ed.). New York: John Wiley & Sons.
House, R.J., & Mitchell, T.R. (1974). Path-goal theory of leadership. Journal of
Contemporary Business, 3, l-97.
Janson, P., & Martin, J. K. (1982). Job satisfaction and age: A test of two views.
Social Forces, 60(4), 1089-1102.
Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits—
self-esteem, generalised self-efficacy, locus of control, and emotional stability—
with job satisfaction and job performance: A meta-analysis. Journal of Applied
Psychology, 86, 80-92.
Judge, T. A., & Church, A. H. (2000). Job satisfaction: Research and practice. In
C. L. Cooper & E. A. Locke (Eds.), Industrial and organisational psychology:
Linking theory with practice (pp. 166-198). Oxford, UK: Blackwell.
Judge, T. A., Locke, E. A., Durham, C. C., & Kluger, A. N. (1998). Dispositional
effects on job and life satisfaction: The role of core evaluations. Journal of Applied
Psychology, 83, 17–34.
Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job
satisfaction-job performance relationship: A qualitative and quantitative review.
Psychological Bulletin, 127, 376-407.
Judge, T. A., & Watanabe, S. (1994). Individual differences in the nature of the
relationship between job and life satisfaction. Journal of Occupational and
Organisational Psychology, 67, 101-107.
Kohler, S. S., & Mathieu, J. E. (1993). An examination of the relationship between
affective reactions, work perceptions, individual resource characteristics, and
multiple absence criteria. Journal of Organisational Behaviour, 14, 515-530.
Lambert, E., Barton, S., & Hogan, N. (1999). The missing link between job
satisfaction and correctional staff behaviour: The issue of organisational
commitment. American Journal of Criminal Justice, 24, 95-116.
21
Personality and Attitudes in Locke, E. A. (1976). The nature and causes of job satisfaction. In M. D. Dunnette
(Ed.), Handbook of industrial and organisational psychology (pp. 1297-1343).
Chicago: Rand McNally.
Markham, S. & McKee (1995). Group absence behaviour and standards: A
multilevel analysis. Academy of Management Journal, 38, 1174-1190.
Maynard, M. (1986). Measuring work and support network satisfaction. Journal
of Employment Counseling, March, 9-19.
Robinson, S. L., & Bennett, R. J. (1995). A typology of deviant workplace
behaviours: A multidimensional scaling study. Academy of Management Journal,
38(2), 555-572.
Schroffel, A. (1999). How does clinical supervision affect job satisfaction? The
Clinical Supervisor, 18, 91-105.
Skarlicki, D. P., Folger, R., & Tesluk, P. (1999). Personality as a moderator in the
relationship between fairness and retaliation. Academy of Management Journal,
42(1), 100-108.
Smith, P.C., Kendall, L.M., & C.L. Hulin, C.L. (1969). The Measurement of
Satisfaction in Work and Retirement: A Strategy for the Study of Attitudes.
Spector, P. E. (1997). Job satisfaction: Application, assessment, causes, and
consequences. Thousand Oaks, CA: Sage.
Spencer, D. G., & Steers, R. M. (1981). Performance as a moderator of the job
satisfaction-turnover relationship. Journal of Applied Psychology, 66, 511-514
Thomas, L. T., & Ganster, D. C. (1995). Impact of family-supportive work
variables on work-family conflict and strain: A control perspective. Journal of
Applied Psychology, 80, 6-15.
Thomas, K.W., & Tymon,W. G., Jr. (1997). Bridging the motivation gap in total
quality management. Quality Management Journal, 4(2), 80-96.
Weiss D. J., Dawis, R. V., England, G. W., & Lofquist, L. H. (1967). Manual for
the Minnesota satisfaction questionnaire. Minneapolis, MN.
Wright, J. D., & Hamilton, R.F. (1978). Work satisfaction and age: some evidence
for the ‘job change’ hypothesis. Social Forces, 56, 1140-58.
22
Job Satisfaction
UNIT 2 WORK MOTIVATION
Structure
2.0 Introduction
2.1 Objectives
2.2 Meaning of Work
2.3 Nature of Work Motivation
2.3.1 Defining Work Motivation
2.3.2 Characteristics of Work Motivation
2.3.3 Process of Motivation
2.3.4 Relationship Between Motivation and Performance
2.3.5 General Model of Work Motivation
2.4 Classification Of Motives at Work
2.4.1 Primary and Secondary Motives
2.4.2 Extrinsic and Intrinsic Motivation
2.5 Developments in Motivation Theory
2.6 Importance of Motivation in Organisations
2.7 Let Us Sum Up
2.9 Glossary
2.0 INTRODUCTION
Motivation has long been the topic of interest for both managers and organisational
researchers. There are two primary reasons for this continued interest. First,
motivation is an integral part of the performance equation at all levels. It is
therefore an important topic to be understood for pragmatic reasons. Second,
motivation is seen as the fundamental building block in the development of
useful theories of effective management practice. It is indeed an important topic
in many subfields in the study of management including leadership, managerial
ethics, decision making and organisational change. It is not surprising, therefore,
that this topic has received a lot of attention and generated many approaches
toward understanding it.
This unit is devoted to the understanding of the nature of work motivation. Various
developments in motivation theory are also highlighted in this unit.
2.1 OBJECTIVES
• Explain the meaning of work and present its functions for an individual;
• Describe the concept of motivation;
• Elucidate a conceptual model of work motivation;
• Explain the main types of motives at work; and
• Analyse the developments in motivation theory. 23
Organisational Behaviour 2.2 MEANING OF WORK
Work has been defined variously by authors and researchers from several streams.
A broad definition that encompasses conceptualisations of work across social
and behavioural sciences has been offered by Budd & Bhave (2010). He defined
work as a purposeful human activity involving physical or mental exertion that
is not undertaken solely for pleasure and that has economic value. The first part
of this definition (“purposeful human activity”) distinguishes work from the
broader realm of all human effort. The second part (“not undertaken solely for
pleasure”) separates work from leisure, while allowing for work to be pleasurable
and thereby recognising that there can sometimes be a nebulous boundary between
work and leisure. The final part (“that has economic value”) allows work to be
more encompassing than paid employment by also including unpaid caring for
others, self-employment, subsistence farming, casual work in the informal sector,
and other activities outside the standard boundaries of paid jobs and career
aspirations.
Work and its related motivational variables have also been defined from the
point of view of the worker. Roe (1956) described work as the main focus of an
individual’s activities and thoughts. Lofquist and Dawis (1969) defined work as
a focal point for the development of one’s way of life, and a vehicle for one’s
total adjustment throughout life. These two definitions emphasise the impact of
work on individual lives.
Work as a human activity serves several important functions for an individual:

• Economic function – Work provides goods and services, either directly
through self-production or indirectly through earned income. Mainstream
economic thought highlights this function by conceptualising work as an
abstract quantity of productive effort that has tradable economic value. It is
seen as something that individuals do in order to earn income and maximise
their individual or household utility.
• Social relation function – Work consists of human interactions that are
experienced in and shaped by social networks, norms and power relations.
It thus serves a social relation function by allowing individuals to seek
approval, status, sociability, and power. These needs may be met in the
context of the structural features of employment relation such as formal
policies, rules, and routines (Thompson & Newsome, 2004) or informal
elements operating in the work environment such as organisational culture
(Knights & Willmott, 1989).
• Personal fulfillment function – The nature of one’s work – such as the job
tasks, rewards, relations with co-workers, and supervision – can affect one’s
cognitive and affective states. Ideally, work is a source of personal fulfillment
and psychological well-being because it can satisfy human needs for
achievement, mastery, self-esteem, and self-worth (Turner, Barling, &
Zacharatos, 2002). But lousy work – work with mindless repetition, abusive
co-workers or bosses, excessive physical or mental demands, or other factors
– can have negative psychological consequences.
• Identity function – Since work is such a major part of many people’s lives,
it can be conceptualised as a source of identity, that is, understanding and
24
meaning (Leidner, 2006). This can occur on several levels. The personal Work Motivation
identity dimension focuses on stable and consistent attributes and traits that
an individual sees as making him or herself unique (Turner & Onorato,
1999). This can contain biographical information, including descriptors
related to one’s work. The social identity approach focuses on how
individuals further construct their identities by categorising themselves into
various groups (Hogg, 2006). This might include one’s occupation, employer,
and other work-related group constructs. The interactionist approach suggests
that individuals create identities through social interactions with others
(McCall & Simmons, 1966). From this perspective, the social roles attached
to occupations and careers are a major source of our self-presentation and
identity during our adult years (Hughes, 1971).
2.3 NATURE OF WORK MOTIVATION

The study of motivation is concerned with why people behave in a certain way.
The basic underlying question is ‘why do people do what they do?’ An important
problem in the study of motivation is accounting for purposiveness of behaviour.
The term motivation derives from the Latin word movere which means ‘to move’.
Taken literally, motivation is the process of arousing movement but the term
ordinarily applies to the arousal of one kind of movement – behaviour. However,
the study of motivation is not restricted to the process of evoking behaviour, but
it also includes an analysis of the conditions which sustain activity and which
regulate its patterning. It is also concerned with why people choose a particular
course of action in preference to others, and why they continue with a chosen
action, often over a long period, and in the face of difficulties and problems.
2.3.1 Defining Work Motivation

In an attempt to understand the concept of motivation and highlight its complexity,
several definitions have been offered. Atkinson (1964) defines motivation as
“the contemporary (immediate) influence on direction, vigour, and persistence
of action”, while Vroom (1964) defines it as “a process governing choice made
by persons among alternative forms of voluntary activity”. Campbell and Pritchard
(1976) suggest that “motivation has to do with a set of independent/ dependent
variable relationships that explain the direction, amplitude, and persistence of
an individual’s behaviour, holding constant the effects of aptitude, skill, and
understanding of the task, and the constraints operating in the environment”.
Kanfer (1990) describes motivation as “a set of psychological processes involved
with the arousal, direction, intensity, and persistence of voluntary actions that
are goal directed”.
All definitions appear to have four common denominators which may be said to
characterise the phenomenon of motivation. That is, when we discuss motivation,
we are primarily concerned with:
1) Activation of behaviour – It has to do with the drive or energy behind our
actions and is demonstrated by the arousal of goal-directed behaviour.
2) Direction of behaviour – It is concerned with the paths people choose toward
meeting their goals and is seen by the regulation of behaviour toward specific
goals.
25
Personality and Attitudes in 3) Persistence of behaviour – It has to do with continued efforts in the
achievement of goals often in the face of obstacles and is demonstrated by
sustained activity over a period of time.
4) Intensity of behaviour – It is concerned with the extent of effort put in to
achieve a goal and is seen in the concentration and vigour that goes into
pursuing the goal.
A definition of work motivation that covers these denominators is presented by
Katzell and Thompson (1990) who defines it as a “broad construct pertaining to
the conditions and processes that account for arousal, direction, magnitude, and
maintenance of effort in a person’s job”. Pinder (1998) defined work motivation
as “a set of energetic forces that originate both within as well as beyond an
individual’s being, to initiate work-related behaviours, and to determine its form,
direction, intensity, and duration”. There are two noteworthy features of this
definition. First, motivation is identified as an energising force – it is what induces
action in employees. Second, this force has implications for the form, direction,
intensity, and duration of behaviour. That is, it explains what employees are
motivated to accomplish, how they will attempt to accomplish it, how hard they
will work to do so, and when they will stop.
More recently, Robbins (2005) defines work motivation as “the willingness to

exert high levels of effort towards organisational goals, conditioned by the effort’s
ability to satisfy some individual needs”. Three key elements can be seen in this
definition: effort, organisational goals, and needs. The effort element is a measure
of intensity or drive. A motivated person tries hard. But high levels of effort are
unlikely to lead to favourable job performance unless the effort is channeled in a
direction that benefits the organisation. Therefore, one must consider the quality
of the effort as well as its intensity. Effort that is directed toward, and is consistent
with, organisational goals is the kind of effort that managers and organisations
should be seeking. Finally, motivation is a need-satisfying process. A need refers
to some internal state that makes certain outcomes appear attractive. An unsatisfied
need creates tension that stimulates drives within an individual. These drives
lead to a search behaviour to find particular goals that, if attained, will satisfy the
need and reduce the tension. When the individuals’ needs are compatible with
the organisation’s goals, they may exert high levels of effort that are beneficial
for the organisation.
Work motivation is thus concerned with factors that energise, channel, sustain
and amplify work performance toward organisational goals. Gaps between
motivation and performance exist whenever people avoid starting something
new, resist doing something familiar, stop doing something important and switch
their attention to a less valued task, or refuse to “work smart” on a new challenge
and instead use old, familiar but inadequate solutions to solve a new problem
(Clark, 1998).
2.3.2 Characteristics of Work Motivation

From a review of motivational definitions, several characteristics of work
motivation can be identified:
1) Motivation is an individual psychological phenomenon that allows for a
person’s uniqueness to be demonstrated at the workplace.
26
2) It is assumed to be under the person’s control. Behaviours that are influenced Work Motivation
by motivation, such as effort expended, are seen as purposive rather than
random.
3) The direction of a person’s behaviour toward organisational goals is
determined by work motivation.
4) It describes concerted effort often in the face of obstacles until the goal is
accomplished.
5) It leads individuals to invest greater cognitive effort to enhance both the
quality and quantity of work performance.
6) It is distinct from performance; other factors besides motivation (e.g., ability
and task difficulty) influence performance.
7) It is multifaceted. People may have several different motives operating at
once. Sometimes, these motives may conflict with one another.
2.3.3 Process of Motivation

Motivation as a process starts with a physiological or psychological deficiency
or need that activates behaviour or a drive that is aimed at a goal or incentive.
Thus motivation consists of three interacting and interdependent elements:
1) Needs – Needs are created whenever there is a physiological or psychological

imbalance. For example, a need exists when cells in the body are deprived
of food and water or when a person is deprived of friends and other
companions. Although psychological needs may be based on a deficiency,
sometimes they are not. For example, an individual with a strong need to
get ahead may have a history of consistent success.
2) Drives – Drives are set up to alleviate needs. They are action-oriented and
provide an energising thrust toward achieving a certain goal or accomplishing
a certain task. Needs for food and water are translated into the hunger and
thirst drives, and the need for friends becomes a drive for affiliation.
3) Incentives – Incentive is anything that can mitigate a need and decrease the
intensity of the drive. Thus attaining an incentive tends to restore
physiological or psychological balance and reduces the drive. Eating food,
drinking water and obtaining friends will tend to restore the balance and
reduce the corresponding drives. Food, water and friends are the incentives
in these examples.
2.3.4 Relationship Between Motivation and Performance

While motivation and performance are related, motivation is just one of the
several possible determinants of job performance. The MARS model describes
four factors that directly influence employee’s behaviour and performance –
motivation, ability, role perceptions and situational factors. The model shows
that these four factors have a combined effect on individual performance. If any
factor weakens, employee performance will decrease. For example, enthusiastic
salespeople (motivation) who understand their job duties (role perceptions) and
have sufficient resources (situational factors) will not perform their jobs as well
if they lack sufficient knowledge and sales skill (ability).
27
Organisational Behaviour Situational factors
Motivation
Behaviour and results

Ability (Performance)
Role
perceptions
Fig. 2.1: MARS Model of Individual Behaviour and Results
The model thus depicts that successful performance involves the co-operation
of motivation and ability in clear and supportive work environments. Motivation
only leads us to use our knowledge and skills and apply them effectively to work
tasks. Without adequate knowledge, clear role perceptions and a supportive
environment, motivation alone does not increase performance. Thus adequate
motivation is a necessary, but not sufficient for effective performance.
2.3.5 General Model of Work Motivation

A general model of work motivation is summarised in Figure 2.2. The model
states that internal needs create drives that are affected by one’s environment.
The drives encourage motivated employees to put in effort. However, results
occur only when motivated employees are provided with the opportunity (such
as proper training) to perform and the resources (such as proper tools) to do so.
The presence of goals and the awareness of incentives to satisfy one’s needs are
also powerful motivational factors leading to the release of effort. The level of
effort put in (motivation) then influences performance together with ability or
the knowledge and skills required in performing the task. When an employee is
productive and the organisation takes note of it, rewards will be distributed. If
those rewards are appropriate in nature, timing and distribution, the employee’s
original needs and drives are satisfied. At that time, new needs may emerge and
the cycle will begin again.
Environment Opportunity and resources
Needs Drives Effort Performance Rewards
Goals and Ability

incentives
Need satisfaction
Fig. 2.2: General model of work motivation

28
Work Motivation
1) Explain the meaning of work. What functions does work serve for an
individual?
...............................................................................................................
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...............................................................................................................
...............................................................................................................
2) What is motivation? Describe the three elements in the process of
motivation with suitable examples.
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3) Define work motivation. Describe its characteristics.
...............................................................................................................
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4) Explain the relationship between motivation and performance using
the MARS model.
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5) Illustrate the general model of work motivation.
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29
Organisational Behaviour 2.4 CLASSIFICATION OF MOTIVES AT WORK
The various needs and motives can be categorised in a number of ways – for
example, the division into primary and secondary motives; or into extrinsic and
intrinsic motivation.
2.4.1 Primary and Secondary Motives

Primary motives are unlearned, physiological needs that include hunger, thirst,
sleep, sex, avoidance of pain and maintenance of body temperature. These needs
arise from the basic requirements of life and are important for survival of the
human race. They are, therefore, virtually universal, but they vary in intensity
from one person to another. For example, a child may need more sleep than an
older person. These needs may also be conditioned by social practice. If it is
customary to eat three meals a day, then a person tends to become hungry at
three times of the day, even though two meals might just be adequate. Similarly,
if a coffee hour is introduced at work, coffee drinking may become a satisfying
habit as well as a social need.
Secondary motives are learned, social motives that arise as a result of interaction
with other people and develop as people mature. Included in this category are
affiliation – desire to associate with others; recognition – need for frequent tangible
proof that one is getting ahead; status – need to have a high rank in society,
power – need to control and influence others; achievement – drive to accomplish
something, autonomy – drive for independence; security and safety – desire to
be secure; and defensiveness – desire to defend oneself from blame, criticism,
ridicule and censure. Secondary needs are strongly conditioned by experience,
vary in type and intensity among people, and are subject to change across time
within any individual. These needs cannot usually be isolated and work in
combination to influence behaviour. Nearly all action that management takes
will affect secondary needs; therefore managerial plans should consider the effect
of any proposed action on the secondary needs of employees.
2.4.2 Extrinsic and Intrinsic Motivation

Extrinsic motivation is related to tangible rewards such as salary and fringe
benefits, promotion, contract of service, the work environment and conditions
of work. Individuals are extrinsically motivated when they engage in work in
order to obtain some goal that is apart from the work itself. Extrinsic motivation
thus requires an instrumentality between the activity and some separable
consequences such as tangible or verbal rewards, so that satisfaction comes not
from the activity itself but rather from the extrinsic consequences to which the
activity leads.
Intrinsic motivation is related to psychological rewards such as the opportunity

to use one’s ability, a sense of challenge and achievement, receiving appreciation,
positive recognition and being treated in a caring and considerate manner.
Individuals are intrinsically motivated when they seek enjoyment, interest,
satisfaction of curiosity, self-expression, or personal challenge in the work.
Intrinsic motivation thus involves people doing an activity because they find it
interesting and derive spontaneous satisfaction from the activity itself. One
psychological view suggests that very high levels of intrinsic motivation are
30
marked by such strong interest and involvement in the work, and by such a Work Motivation
perfect match of task complexity with skill level, that people experience some
kind of psychological “flow”, a sense of merging with the activity they are doing
(Csikszentmihalyi,1975).
Ken Thomas model of intrinsic motivation proposes that intrinsic motivation is

achieved when people experience feelings of:
• Choice – ability to select activities and to perform in ways that seem
appropriate.
• Competence – accomplishment felt in skillfully performing task activities.
• Meaningfulness – opportunity to pursue a worthy task purpose.
• Progress – feeling that one is making significant advancement in achieving
the task’s purpose.
Deci and his colleagues proposed that intrinsic motivation occurs when
individuals feel both self-determined and competent in their work (Deci, 1975;
Deci & Ryan, 1985). According to these theorists, people will feel competent if
they obtain feedback that indicates progress in their work, or suggests ways in
which they can increase their competence. This model also suggests that extrinsic
motivation works in opposition to intrinsic motivation. Extrinsic motivation takes
place when individuals feel driven by something outside of the work itself such
as promised rewards or incentives. In general, these theorists suggest that, when
strong extrinsic motivators are put to work, intrinsic motivation will decline.

1) Distinguish between primary and secondary motives using suitable
examples.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) What is the difference between extrinsic and intrinsic motivation?
Describe the conditions under which people are likely to experience
intrinsic motivation.
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31
Organisational Behaviour 2.5 DEVELOPMENTS IN MOTIVATION THEORY
The earliest approaches to understanding human motivation date from the time
of the Greek philosophers and focus on the concept of hedonism as a principle
driving force in behaviour. Individuals were seen as focusing their efforts on
seeking pleasure and avoiding pain. Toward the end of the nineteenth century,
the issue of motivation began to migrate from the realm of philosophy to the
newly emerging science of psychology. Behavioural scientists began searching
for empirically based models to explain motivation. Among these early models
were instinct theories, such as those proposed by James, Freud, and McDougall.
Instead of viewing behaviour as highly rational, these theorists argued that much
behaviour resulted from instincts. James identified a list of such instincts that
included locomotion, curiosity, sociability, fear, jealousy, and sympathy.
Drive and reinforcement models

Beginning around the 1920s, however, as increased limitations of the theory
began to emerge, instinct theories began to be replaced by models based on drive
or reinforcement. Led by such psychologists as Thorndike, Woodworth, and Hull,
drive theorists introduced the concept of learning in motivated behaviour and
posited that decisions concerning present or future behaviours are largely
influenced by the consequences of rewards associated with past behaviour. Allport
(1954) referred to this as hedonism of the past. Past actions that led to positive
outcomes would tend to be repeated, whereas past actions that led to negative
outcomes would tend to diminish. Thorndike (1911) referred to this as the law of
effect, while Hull (1943) suggested that effort or motivation was largely
determined by drive × habit. Skinner (1953) and others later built on these
principles with the introduction of operant conditioning (referred to by some as
reinforcement theories), arguing that, over time, individuals learn contingent
relationships between actions and their consequences and that these contingencies
guide future behaviour. Reinforcement models continue to thrive today as
explanatory vehicles for understanding work motivation and job performance.
Scientific management
While psychologists were focusing on instincts and drives, managers were
focusing on more pragmatic issues. A key development here was the work of
Frederick Taylor and his colleagues in the scientific management movement.
Coming from an industrial engineering background, Taylor (1911), along with
many of his associates, focused his attention on the inefficiencies of factory
production in an increasingly industrialised age. These colleagues proposed new
and sophisticated wage incentive models to motivate workers that relied on a
combination of job training, pay-for-performance incentive systems, improved
employee selection techniques, and job redesign. While Taylor and his associates
saw scientific management as an economic, workers soon came to dislike Taylor’s
approach as they were only given boring, repetitive tasks to carry out and were
being treated little better than human machines. Firms could also afford to lay
off workers as productivity levels increased. This led to an increase in strikes
and other forms of unionisation efforts by dissatisfied workers.
Human relations movement

In the 1930’s, the human relations movement started gaining momentum with
32 social scientists and managers beginning to consider the role of social influences
on behaviour. Best noted among these research endeavors is Elton Mayo’s (1933) Work Motivation
work. Mayo conducted a series of experiments at the Hawthorne factory of the
Western Electric Company in Chicago. He isolated two groups of women workers
and studied the effect on their productivity levels of changing factors such as
lighting and working conditions. He expected to see productivity levels decline
as lighting or other conditions became progressively worse. What he actually
discovered surprised him: whatever the change in lighting or working conditions,
the productivity levels of the workers improved or remained the same. From this
Mayo concluded that workers are best motivated by better communication
between managers and workers, greater manager involvement in employees
working lives and working in groups or teams. The role of group dynamics and
the need to view employees as complex beings with multiple motivational
influences were thus recognised as powerful influences on performance. Bendix
(1956) summarised the principle contribution of this human relations movement
by observing that the “failure to treat workers as human beings came to be regarded
as the cause of low morale, poor craftsmanship, unresponsiveness, and confusion”.
McGregor (1960) later built on this in his classic early work, ‘The Human Side
of Enterprise’.
Need-based content models

By the 1950s, several new models of work motivation emerged, which collectively
have been referred to as content theories, since their principal aim was to identify
factors associated with motivation. Included here is work by Maslow, McClelland,
Herzberg and Alderfer. Herzberg’s work introduced the field to the role of job
design – specifically, job enrichment – as a key factor in work motivation and
job attitudes. In subsequent work, Hackman and Oldham (1976) and others have
extended this line of research as it relates to work design, motivation, and job
performance, while others, including Deci (1975), have articulated theories
focusing specifically on task-based intrinsic versus extrinsic factors in motivation
(e.g., self-determination theory).
Process-oriented theories
Beginning in the mid 1960s, a new approach to the study of work motivation
emerged, which focused on delineating the processes underlying work motivation.
Process theories contrast sharply with the earlier content theories, which focused
on identifying factors associated with motivation in a relatively static environment.
Process theorists view work motivation from a dynamic perspective and look
for causal relationships across time and events as they relate to human behaviour
in the workplace. Central to the process theory genre is a series of cognitive
theories of motivation that collectively attempt to understand the thought
processes that people go through in determining how to behave in the workplace.
The best known of cognitive theories is expectancy theory formulated by Victor
Vroom, expanded later by Porter and Lawler.
In addition to expectancy theory, a number of other important cognitive process

theories have been developed since the 1960s, each with its own focus. Adams,
for example, introduced equity theory to explain how employees respond both
cognitively and behaviourally to perceived unfairness in the workplace. Goal-
setting theory also emerged in the late 1960s, as researchers began to discover
that the simple act of specifying targets for behaviour enhanced task performance.
33
Personality and Attitudes in Recent developments in work motivation
Many of the ideas emerging from the 1960s and 1970s have been extended and
further developed to reflect an expanded pool of research findings and more
sophisticated research methods. Researchers have made great strides in conceptual
developments and empirical work focusing on social learning theory, goal-setting
theory, job design, reward systems, punishment, procedural justice, innovation
and creativity, and cross-cultural influences on work behaviour.
2.6 IMPORTANCE OF MOTIVATION IN

ORGANISATIONS
Employee motivation is essential to the success of any organisation, big or small.
In the modern workplace, human resources are valued above all others. Motivated
employees are productive, happy and committed. The spin-off of this includes
reduced employee turnover, results-driven employees, company loyalty and
workplace harmony.
Motivation is very important for an organisation because of the following benefits

it provides:
1) Increased productivity and improved employee performance – Perhaps

the most significant impact of increased employee motivation is that of
increased productivity. A motivated workforce is essential, as it inevitably
drives the profitability of the organisation. Research has shown that
motivation is a key determinant of job performance and that a poorly
motivated force is costly in terms of excessive staff turnover, higher expenses,
negative morale, increased cost of operations and increased use of
managements’ time.
2) Stability of workforce – If management neglects to educate and motivate

their employees, they will inevitably become dissatisfied or disenchanted
with their job. Disenchantment in the workplace leads to absenteeism,
turnover, sick leave, strikes, grievances and even accidents. A motivated
workforce alleviates disenchantment felt by employees and improves these
factors.
3) Positive workplace culture – Motivation leads to an optimistic and

challenging attitude at the work place. It instills a positive attitude among
employees during challenging times. There is also more adaptability and
creativity during periods of amendments. Motivation thus creates a
workplace and culture of high achievers.
4) Better teamwork – Motivation encourages teamwork among employees.

The more motivated the employees are, the more empowered the team is.
The more is the team work and individual employee contribution, the more
profitable and successful is the organisation.
5) Workplace harmony – A motivated workforce leads to greater

understanding, acceptance, commitment to implementation, understanding
of objectives and decision making between management and employees. It
thus promotes harmony at the workplace.
34
Work Motivation
1) Discuss the scientific management approach.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Examine the role of Hawthorne studies in understanding and motivating
employees.
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...............................................................................................................
3) Describe and compare the need-based and process approaches to work
motivation.
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4) Why do you think motivating employees is an important consideration
for organisations?
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2.7 LET US SUM UP

Work is an important activity in an individual’s life that serves not only economic,
but also social relation, personal fulfillment and identity functions for an
individual. Motivation at work is valuable as it serves to arouse, direct, maintain
and intensify effort toward specific goals. Motivation can be understood as an
inner directing force that influences people’s willingness to work toward
organisational goals. As a process, it is initiated when there is an internal need
that drives an individual toward actions directed at obtaining incentives.
35
Personality and Attitudes in Motivation at the workplace is a complex process of needs and drives, and
awareness of goals and incentives that motivate employees to exert effort.
However, results occur only when motivated employees are provided with the
opportunity to perform and when they have the resources and the ability to do
so. When an employee is productive and the organisation takes note of it, rewards
are distributed that result in the satisfaction of employee’s original needs and
drives.
There are several motives that can be classified as either primary or secondary.
Primary motives are unlearned physiological motives that are related to the
survival of the human species. Secondary motives are learned social motives
that vary greatly in their presence and strength across individuals. Motives can
also be classified as extrinsic or intrinsic. Extrinsic motivation requires an
instrumentality between the activity and some separable consequences such as
tangible or verbal rewards, so that satisfaction comes not from the activity itself
but rather from the extrinsic consequences to which the activity leads. Intrinsic
motivation, on the other hand, involves people doing an activity because they
find it interesting and derive spontaneous satisfaction from the activity itself.
Developments in motivation theory can be traced back to Greek philosophers,

though its scientific understanding began only when instinct approaches were
propounded. While the concept of instincts highlighted the biological basis of
motivation, the drive and reinforcement models emphasised that motives were
primarily learned. Interest in motivation for improving work efficiency can be
attributed to Taylor’s scientific management. As opposed to the economic view
of man inherent in scientific management, human relations movement brought
to notice the human side to organisations. Later, content models built on human
needs as important elements in work motivation while process theories examined
the dynamic processes that underlie human behaviour at the workplace. Together,
the several approaches contribute to a better understanding of work motivation.
Motivation is important to organisations because it leads to enhanced employee

performance that translates into greater organisational productivity. It also
promotes stability of the work force, a positive work culture, better teamwork
and enhanced workplace harmony.

1) Describe the meaning of work. How does work contribute to an individual’s
life?
2) Explain the concept of motivation by quoting suitable definitions.
3) What is work motivation? Describe some of its important characteristics.
4) Illustrate the MARS model to describe the relationship between motivation
and performance.
5) Examine the general model of work motivation.
6) Trace the developments in motivation theory.
7) Discuss the importance of motivation in organisations.
36
Work Motivation
2.9 GLOSSARY
Work : Human activity involving physical or mental
exertion that is not undertaken solely for pleasure
and that has economic value.
Motivation : Psychological process governing the arousal,
direction, intensity, and persistence of voluntary
actions that are goal directed.
Work motivation : Process that accounts for arousal, direction,
magnitude, and maintenance of effort in a person’s
job.
Need : Physiological or psychological deficiency that
creates a state of tension and imbalance.
Drive : Tension that provides an energising thrust toward
achieving a certain goal or accomplishing a certain
task.
Incentive : Anything that can mitigate a need and decrease
the intensity of the drive.
Primary motives : Unlearned physiological needs that arise from the
basic requirements of life and that are important
for the survival of human race.
Secondary motives : Learned social motives that arise as a result of
interaction with other people and that develop as
people mature.
Extrinsic motivation : Motivation promoted by factors external to the
individual and unrelated to the task being
performed.
Intrinsic motivation : Internal desire to perform a particular task because
it is enjoyable.
Hedonism : The doctrine holding that behaviour is motivated
by the desire for pleasure and the avoidance of
pain.

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39
Organisational Behaviour UNIT 3 CONTENT THEORIES, PROCESS
THEORIES AND SCHEDULES OF
REINFORCEMENT
Structure
3.0 Introduction
3.1 Objectives
3.2 Theories of Motivation
3.3 Content Theories
3.3.1 Maslow’s Hierarchy of Needs
3.3.2 Alderfer’s ERG Theory
3.3.3 Herzberg’s Motivator-Hygiene Theory
3.3.4 McClelland’s Learned Needs Theory
3.3.5 Job Characteristics Model
3.4 Process Theories
3.4.1 Vroom’s Expectancy Theory
3.4.2 Equity Theory
3.4.3 Goal-setting Theory
3.5 Reinforcement Theory
3.6 Let Us Sum Up
3.8 Glossary
3.0 INTRODUCTION
The broad rubric of motivation and motivation theory is one of the most frequently
studied and written-about topics in the organisational sciences, and is considered
one of the most important areas of study in the field of organisational behaviour.
Despite the magnitude of the effort that has been devoted to the study of
motivation, there is no single theory of motivation that is universally accepted.
The lack of a unified theory of motivation reflects both the complexity of the
construct and the diverse backgrounds and aims of those who study it. This unit
is devoted to the understanding of the various theories of motivation and their
application to the management context.
3.1 OBJECTIVES
• Explain the content theories of motivation and evaluate their applicability;
• Describe the expectancy theory and its key tenets to motivating employees;
• Define equity theory and its implications for managers;
• Explain goal-setting theory; and
• Describe reinforcement theory and illustrate schedules of reinforcement.
40
Content Theories Process
3.2 THEORIES OF MOTIVATION Theories and Schedules of
Reinforcement
There are many competing theories which attempt to explain the nature of
motivation. These theories center on three different aspects of motivation: the
individual’s predisposition, the cognitive process, and the consequences deriving
from the individual’s action. Based on these aspects, there are three types of
theories of motivation:
• Content theories – These theories are concerned with identifying people’s

needs and their relative strengths, and the goals they pursue in order to
satisfy these needs.
• Process theories – These theories are concerned more with how behaviour
is initiated, directed and sustained and attempt to identify the relationship
among the dynamic variables, which make up motivation.
• Reinforcement theory (outcome theories) – This theory seeks to explain

what types of consequences motivate different people to work. It focuses
on how environment teaches us to alter our behaviours so that we maximise
positive consequences and minimise adverse consequences.
3.3 CONTENT THEORIES

Content (or need) theories of motivation focus on factors internal to the individual
that energise and direct behaviour. In general, such theories regard motivation as
the product of internal drives that compel an individual to act or move toward
the satisfaction of individual needs. Major content theories of motivation are
Maslow’s hierarchy of needs, Alderfer’s ERG theory, Herzberg’s motivator-
hygiene theory, and McClelland’s learned needs or three-needs theory.
3.3.1 Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs theory (1954) proposes that humans are motivated
by multiple needs and that these needs exist in a hierarchical order. Maslow
identified five general types of motivating needs:
• Physiological needs: These are the most basic human physical needs,
including food, water, and other conditions necessary for survival. In the
organisational setting, these are reflected in the needs for pleasant working
conditions and salary.
• Safety needs: These are the needs for a safe and secure physical and
emotional environment and freedom from threats and emotional distress. In
an organisational workplace, safety needs reflect the needs for safe jobs,
fringe benefits and job security.
• Social needs: These needs reflect the desire to be accepted by one’s peers,
have friendships, be loved, and be part of a group. In the organisation, these
needs influence the desire for good relationships with coworkers and
supervisors and participation in a work group.
• Esteem needs: These needs relate to the desire for a positive self-image and
to receive attention, recognition, and appreciation from others. Within an
41
Personality and Attitudes in organisation, esteem needs reflect a motivation for recognition, an increase
in responsibility, high status, and credit for contributions to the organisation.
• Self-actualisation needs: These represent the need for self-fulfillment, which

is the highest need category. They concern developing one’s full potential,
increasing one’s competence, and becoming a better person. Self-
actualisation needs can be met in the organisation by providing people with
opportunities for growth, creativity, advancement and achievement.
Maslow suggested that a substantially satisfied need no longer motivates; it is

the lowest level of ungratified need in the hierarchy that motivates behaviour;
and lower-level needs (physiological and safety needs) must be met before upper-
level needs (social, esteem and self-actualisation) can be motivational. Thus,
individuals must have safe working conditions, adequate pay to take care of
one’s self and one’s family, and job security before they will be motivated by
increased job responsibilities, status, and challenging work assignments.
Because of the ease of its application, Maslow’s theory has received wide
recognition, particularly among praticising managers. However, the theory has
received little research support and has been criticized on the following grounds:
1) While Maslow viewed satisfaction as the main motivational outcome of

behaviour, job satisfaction does not necessarily lead to improved work
performance.
2) Gratification of one need does not necessarily lead to increased motivation

to satisfy the next higher level need. Some people can be very hungry and
yet strive to fulfill their social needs; others can self-actualise while working
in a risky environment.
3) There are individual differences in the order in which needs are activated.
Also, needs change more rapidly than what Maslow stated.
Despite criticisms, the theory made significant contributions to the study of work
motivation. First, the model brought a more holistic perspective by introducing
the notion that needs are related to one another. Second, Maslow’s focus on
higher-order need highlighted the role of social dynamics in human motivation.
Third, the theory brought a more positive perspective of employee motivation
by paying attention to strengths and not just deficiencies.
3.3.2 Alderfer’s ERG Theory

The ERG theory is an extension of Maslow’s hierarchy of needs. Alderfer (1972)
suggested that needs could be classified into three categories, rather than five.
These three types of needs are existence, relatedness, and growth. These needs
encompass the needs proposed by Maslow and they can be satisfied within the
work environment.
• Existence needs are concerned with physical survival and include the needs
for food, water, shelter and physical safety. Organisations can satisfy these
needs through pay, fringe benefits, a safe working environment and job security.
• Relatedness needs involve interactions with other people and the associated
satisfaction in terms of emotional support, respect, recognition and
42
belongingness. These needs can be satisfied on the job by developing Content Theories Process
Theories and Schedules of
interpersonal relationships with co-workers and mentors and off the job by Reinforcement
having family and friends.
• Growth needs are those related to the attainment of one’s potential. These
needs can be satisfied by using our skills and abilities to the fullest. A job
can satisfy growth needs if it involves challenge, autonomy and creativity.
The ERG theory differs from the hierarchy of needs in several ways:
1) The ERG model does not assume a rigorous progression from one level to
the other. Instead, it accepts the likelihood that all three levels might be
active at any time – or even that just one of the higher levels might be
active.
2) It suggests that if an individual is continually unable to meet upper-level

needs, the person will regress and return to the lower-level needs and then
progress again. For example, if employees cannot find emotional support
or recognition on the job (relatedness needs), they may demand higher pay
or better health coverage (existence needs) as compensation for failing to
satisfy the other needs.
3) The model proposes that growth needs are not only unlimited but are actually
awakened each time some satisfaction is attained. Thus while Maslow
suggested that a satisfied need no longer motivates us, ERG model predicts
that a satisfied need may actually increase its strength. For example, if a job
provides a great deal of challenge and creativity, our growth needs might
become stronger, leading us to seek greater challenges at work.
3.3.3 Herzberg’s Motivator-Hygiene Theory

On the basis of research with engineers and accountants, Frederick Herzberg
(1966) developed the motivator-hygiene theory. He asked his subjects to think
about the times they felt especially good or bad about their jobs. Tabulating the
reported good and bad feelings, Herzberg concluded that there are two sets of
needs: the hygiene needs, which produce job dissatisfaction and the motivator
needs, which produce job satisfaction. Taken together, the hygiene factors and
motivators are known as Herzberg’s two-factor theory of motivation.
Hygiene factors (lower needs) are factors which ‘surround the job’ rather than
the job itself; they are related to job context. These involve features of the work
environment such as company policy, supervision, interpersonal relations,
working conditions and salary and benefits. The hygiene factors dissatisfy
employees when they are absent. However, their presence brings employees only
to a neutral state and by themselves, they are not strongly motivating. For example,
a worker will only turn up to work if a business has provided a reasonable level
of pay and safe working conditions but these factors will not make him work
harder at his job once he is there.
The motivator needs (higher needs) motivate employees to high job performance
and promote satisfaction. These needs are internal to the work itself; they are
allied to job content, and include factors such as achievement, responsibility,
recognition, growth, advancement and recognition. The motivator factors operate
43
Personality and Attitudes in to build motivation, but their absence is not strongly dissatisfying. These are the
characteristics that people find intrinsically rewarding and serve as strongly
motivating factors.
Although Herzberg’s theory is a popular explanation of work motivation, it has

been criticized on the following grounds:
1) It is not universally applicable, because it was based on and applies best to

managerial, professional and upper-level white-collar employees.
2) The model appears to reduce the motivational importance of pay, status and
relations with others, since these are maintenance factors.
3) The model is limited by its self-report methodology. The appearance of two

factors could very well be an outcome of people’s tendencies to take credit
themselves when things are going well and to blame the extrinsic
environment for failure.
4) The model makes no absolute distinction between the effects of the two
major factors but outlines only general tendencies. This has limited
applicability and no significant predictive outcomes for productivity.
Regardless of the criticisms, Herzberg has contributed substantially to the study

of work motivation. He extended Maslow’s need hierarchy concept and made it
more applicable to work motivation. He also drew attention to the importance of
job content factors in work motivation, which previously had been neglected
and often overlooked. The job design technique of job enrichment is also one of
Herzberg’s contributions. Overall, Herzberg added much to the better
understanding of job content factors, but fell short of a comprehensive theory of
work motivation.
3.3.4 McClelland’s Learned Needs Theory

McClelland’s theory (1971) suggests that needs are amplified or suppressed
through self-concept, social norms, and past experience. Therefore, needs can
be “learned”. Three of the primary needs in this theory are as follows:
• Need for achievement (nAch) – The desire to excel, to achieve in relation

to a set of standards and to purse and attain goals.
• Need for affiliation (nAff) – The desire for friendly and close interpersonal
relationships.
• Need for power (nPow) – The desire to control one’s environment and to
influence others.
People with a strong need for achievement want to accomplish reasonably
challenging goals through their own effort. They prefer tasks with a moderate
degree of risk and those that provide immediate and precise feedback information
on progress toward a goal. High achievers find accomplishment of a task to be
intrinsically satisfying; they do not expect or necessarily desire the accompanying
material rewards. Also, when high achievers select a goal, they tend to be totally
preoccupied with the task until it is successfully completed. They tend to be
realistic about their abilities and tend to persist in their efforts to accomplish
goals.
44
People with a strong need for affiliation try to project a favourable image of Content Theories Process
themselves. They tend to actively support others and try to smooth out workplace Reinforcement
conflicts. High nAff employees generally work well in coordinating roles to
mediate conflicts, and in sales positions where the main task is cultivating long-
term relations. However, they tend to be less effective at allocating scarce
resources and making other decisions that potentially generate conflict.
People with a high need for power want to exercise control over others and are
concerned about maintaining their leadership positions. They frequently rely on
persuasive communication, make more suggestions in meetings and tend to
publicly evaluate situations more frequently. McClelland pointed out that there
are two types of nPow. Those who enjoy their power for its own sake and use it
to advance personal interest have personalised power. Others have a high need
for socialised power because they desire power as a means to help others.
An extensive amount of research done on the theory makes several predictions
about the relationship between needs and job performance:
1) When jobs have a high degree of personal responsibility and feedback and
an intermediate degree of risk, high achievers are strongly motivated. High
achievers, for example, are successful in entrepreneurial activities such as
running their own businesses and managing self-contained units within large
organisations.
2) High achievers do not necessarily make good mangers. People with a high
achievement need are interested in how well they do personally and not in
influencing others to do well. Typically, high achievers make excellent
salespersons but seldom good sales managers.
3) People with low need for affiliation tend to do better in decision-making
positions because their choices and actions are not biased by a personal
need for approval.
4) A high power motive is related to managerial effectiveness. Power-motivated
people make excellent managers especially when they have a high need for
socialised rather than personalised power.
3.3.5 Job Characteristics Model

The job characteristics model (Hackman & Oldham, 1976) proposes that
motivation, satisfaction, performance quality, and withdrawal behaviours such
as absenteeism and turnover are a function of three critical psychological states:
experienced meaningfulness, responsibility for outcomes, and knowledge of
results. Experienced meaningfulness is thought to be determined by three core
job characteristics: skill variety (being challenged to use a variety of one’s
capabilities), task identity (completing a whole, identifiable piece of work from
start to finish), and task significance (having an impact on other people inside or
outside the organisation). Experienced responsibility is thought to be shaped by
the job characteristic of autonomy (freedom and discretion about when and how
to complete the work), and experienced knowledge of results is shaped by the
job characteristic of feedback (information from completing the work itself about
one’s progress and effectiveness). Thus, from a motivational standpoint, well-
designed jobs are those that incorporate high levels of the five core job dimensions.
When people perform such jobs, they should feel highly motivated, perform
high-quality work, be highly satisfied with their jobs, be absent infrequently and
be unlikely to resign from their jobs. 45
Organisational Behaviour Core job Critical Affective outcomes
dimensions psychological states
Skill variety Experienced

Task identity meaningfulness
Task significance
Autonomy Experienced Internal work

responsibility motivation
Job feedback Knowledge of results
Growth need strength
Fig 3.1: The Job Characteristics Model
To assess the relationship between core job dimensions and motivation, a

questionnaire known as the Job Diagnostic Survey (JDS) has been developed.
Based on responses to the JDS, an index known as the motivating potential
score (MPS) is computed as follows:
Skill variety + Task identity + Task significance× Autonomy × Feedback

MPS = ————————————————————————————
3
The MPS is a summary index of a job’s potential for motivating people. The
higher the score for a given job, the greater the likelihood of experiencing positive
outcomes specified by the model. These effects are, however, moderated by
individual differences in growth need strength, such that employees who value
learning and development are more responsive to both the enriched job
characteristics and the critical psychological states, as well as by knowledge,
skill, and autonomy in the work context.
1) Present the three main categories of theories in the area of work
motivation.
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46
Content Theories Process
2) Critically evaluate Maslow’s need hierarchy. Relate it to Alderfer’s ERG Theories and Schedules of
model. Reinforcement
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3) Describe Herzberg’s two-factor theory. Evaluate its contribution to the
study of work motivation.
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4) Examine McClelland’s learned needs theory. What are some of the
research predictions made from the theory?
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5) Explain and evaluate the job characteristics model.
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3.4 PROCESS THEORIES

Process (or cognitive) theories of motivation focus on conscious human decision
processes as an explanation of motivation. The process theories are concerned
with determining how individual behaviour is energised, directed, and maintained
in the specifically willed and self-directed human cognitive processes. Process
theories of motivation are based on early cognitive theories, which posit that
behaviour is the result of conscious decision-making processes. The major process
theories of motivation are expectancy theory, equity theory, goal-setting theory,
and reinforcement theory. 47
Personality and Attitudes in 3.4.1 Vroom’s Expectancy Theory
Vroom (1964) suggested that motivation is a product of three factors: expectancy,
one’s estimate that effort will lead to successful performance; instrumentality,
one’s estimate that performance will result in certain outcomes or rewards; and
valence, the extent to which expected outcomes are attractive or unattractive.
This relationship is stated in the following formula:
Expectancy × Instrumentality × Valence = Motivation
Expectancy: Expectancy is the strength of belief that one’s work-related effort

will result in a given level of performance. For example, a person selling insurance
policies may know from experience that volume of sales is directly related to the
number of sales calls made. Expectancies are stated as probabilities and range
from 0.0 to 1.0. In some situations, employees may believe that they can
unquestionably accomplish the task (p =1.0). In other situations, they expect that
even their highest level of effort will not result in the desired performance level
(p = 0.0). Normally, employee estimates of expectancy lie somewhere between
the two extremes.
Instrumentality: Instrumentality represents the employee’s belief that a specific

performance level will lead to specific outcomes or rewards. This belief is stated
as a probability ranging from 0.0 to 1.0. Thus if an employee sees that promotions
are usually based on performance data, instrumentality will be rated high.
However, if the basis for such decisions is unclear or managerial favouritism is
suspected, a low instrumentality estimate will be made.
Valence: Valence refers to the strength of a person’s preference for receiving a

reward. It is the anticipated satisfaction or dissatisfaction that an individual feels
toward an outcome. It ranges from positive to negative. Outcomes have a positive
valence when they are consistent with our values and satisfy our needs; they
have a negative valence when they oppose our values and inhibit need fulfillment.
Valence for a reward is unique to each employee and is thus a reflection of
individual differences. For example, if an individual has a strong need for social
interaction, working alone from home will have a strong negative valence. On
the other hand, if a person prefers solitary activities and has a high desire to
excel, working away from home with opportunities for career advancement may
have a strong positive valence.
Expectancy theory claims that motivation is a multiplicative function of all three

components. This means that for an individual to be highly motivated, all three
components of the expectancy model must be high. It also implies that if any one
of these three components is zero, the overall level of motivation will be zero.
So, for example, even if an employee believes that her effort will result in
performance, which will result in reward, motivation will be zero if the valence
of the reward she expects to receive is zero.
Porter and Lawler (1968) published an extension of the Vroom expectancy model,
which is known as the Porter-Lawler expectancy model. The basic premise of
the model is the same as Vroom’s. But it extends the model by stating that
motivation alone does not predict successful performance. It is a function of two
other factors:
48
1) Skills and abilities – Motivation alone cannot ensure successful performance Content Theories Process
of a task. The employee should also have the abilities and skills required to Reinforcement
successfully perform the task.
2) Role perceptions – The employee should have a clear perception of his role
in the organisation and an accurate knowledge of the job requirements. This
will enable him to focus his efforts on accomplishing the assigned tasks.
Thus although the basic premise of the model is the same as for Vroom’s model,
it is more complex.
Managerial implications of expectancy theory

The expectancy model is a valuable tool for helping managers design a
motivational climate that will stimulate appropriate employee behaviour. It
provides clear guidelines for increasing employee motivation by altering
expectancies, instrumentalities and outcome valences. These are discussed below:
1) Increasing effort-performance expectancies – Effort-performance
expectancies can be increased by training employees to do jobs more
effectively, by providing sufficient time and resources, by giving supportive
feedback and by following employees’ suggestions about ways to change
their jobs. Selecting people with required skills and knowledge, matching
employees to jobs and communicating tasks required for the job are also an
important part of this process.
2) Increasing performance-outcome instrumentalities – The most obvious
way to improve outcome expectancies is to measure performance accurately
and distribute more valued rewards to those with higher job performance.
However, in addition to a having a high performance-based reward system,
companies need to regularly communicate the system through examples,
anecdotes and public ceremonies, and clearly demonstrate the link between
valued rewards and performance.
3) Increasing outcome valences – Performance outcomes influence work effort
only when those outcomes are valued by employees. This implies that
companies must develop individualised reward systems so that employees
who perform well are offered a choice of rewards. Incentive systems that
allow employees to choose from a menu of available alternatives like a pay
raise, additional vacation days, improved insurance benefits or daycare
facilities may serve to increase the satisfaction with the rewards that they
receive. There are also performance outcomes that have negative valences
that reduce the effectiveness of existing reward systems. For example, when
there is peer pressure to perform at the minimum standard, formal rewards
may not serve as motivators. Companies must therefore minimise the
presence of such counter-valent outcomes.
Evaluation of expectancy theory

Expectancy theory remains one of the better theories for predicting work effort
and motivation. It has been applied to a wide variety of studies, such as predicting
student motivation to participate in teaching evaluations, using a decision support
system, leaving the organisation and engaging in organisational citizenship
behaviours. However, the theory seems to ignore the role of emotion in employee
behaviour.
49
Personality and Attitudes in 3.4.2 Equity Theory
Equity theory (Adams, 1963) suggests that individuals engage in social
comparison by comparing their efforts and rewards with those of relevant others.
The perception of individuals about the fairness of their rewards relative to others
influences their level of motivation. Equity exists when individuals perceive
that the ratio of efforts to rewards is the same for them as it is for others to whom
they compare themselves. Inequity exists when individuals perceive that the ratio
of efforts to rewards is different for them than it is for others to whom they
compare themselves. There are two types of inequity—under-reward and over-
reward. Under-reward occurs when a person believes that she puts in more effort
than another, yet receives the same reward, or puts in the same effort as another
for a lesser reward. For instance, if an employee works longer hours than her
coworker, yet they receive the same salary, the employee would perceive inequity
in the form of under-reward. Conversely, with over-reward, a person will feel
that his efforts to rewards ratio is higher than another person’s, such that he is
getting more for putting in the same effort, or getting the same reward even with
less effort.
The theory suggests that there are four possible referents for comparison:
• Self-inside: The employee compares his experiences in the present position
with the experiences of those holding a similar position in the same
organisation.
• Self-outside: The employee compares his experiences in the present position
with the experiences of those holding a similar position in another
organisation.
• Other-inside: The employee compares his experience in the present position
with the experience of another individual or group of individuals holding a
different position but belonging to the same organisation.
• Other-outside: The employee compares his experiences in the present
position with that of another individual or group of individuals holding a
different position and belonging to a different organisation.
Whatever be the source of referent comparison, individuals are motivated to
reduce perceived inequity and may attempt to reduce inequity in various ways:
• Change the inputs – A person may change his or her level of effort; an
employee who feels under-rewarded is likely to work less hard.
• Change the outcomes – A person may try to change his or her rewards, such
as by asking for a raise or making unauthorised use of company resources.
• Change the comparison other’s inputs – A person may change the
behaviour of the reference person, perhaps by encouraging that person to
put forth more effort.
• Change the comparison other’s outcomes – A person may change the
outcome of the reference person perhaps by asking the boss to stop giving
favourable treatment to him/her.
• Change the comparison other – A person experiencing inequity may change
the reference person and compare him or herself to a different person to
assess equity.
50
• Change one’s perception – A person may believe that the co-worker is Content Theories Process
doing more or that the higher outcomes that the other receives are no better Reinforcement
that his/hers.
• Leave the field – A person may avoid thinking about the inequity by keeping
away from the office, moving to another department or quitting the job.
While research suggests that under-reward motivates individuals to resolve the
inequity, research also indicates that the same is not true for over-reward.
Individuals who are over-rewarded often engage in cognitive dissonance,
convincing themselves that their efforts and rewards are equal to another’s.
Evidence also reveals that some employees decrease their motivation and effort,
others increase it and still other show no change in response to over-reward
inequity. One approach to resolving these conflicting findings has involved
understanding individual differences in equity sensitivity. Huseman, Hatfield,
and Miles (1987) proposed that employees can be classified into one of three
categories of equity preferences:
• Benevolent (preferring a lower outcome/input ratio than comparison others)
• Equity sensitive (preferring an equal outcome/input ratio to comparison
others)
• Entitled (preferring a higher outcome/input ratio than comparison others)
Accordingly, under-reward inequity leads to higher motivation among benevolent
employees than equity sensitive and entitled employees. While benevolent
employees are willing to work hard even when they receive lower outcomes
than others, equity sensitive and entitled employees find this distressing.
Managerial implications of equity theory

Equity theory has important implications for ways of motivating people. The
three key one are discussed below:
1) Avoiding underpayment – Companies that attempt to save money by
reducing employees’ salaries may find that employees respond in different
ways to settle scores. For example, they may steal, shave a few minutes off
their work, or otherwise withhold production. In extreme cases, they may
go on strike. Thus making people feel underpaid is an unwise decision and
ineffective managerial practice.
2) Avoiding overpayment – Overpaying employees to motivate them is also
an ineffective strategy mainly for two reasons: (a) Increases in performance
in response to overpayment inequity is only temporary. As time goes on,
people begin to believe that they actually deserve the higher pay they are
getting and drop their level of work down to normal. (b) Overpaying one
employee implies that other are being underpaid. When the majority of
employees feel underpaid, they will lower their performance resulting in a
net decrease in productivity and widespread dissatisfaction.
3) Being open and honest with employees – Openness and honesty about
pay is critical because it helps employees understand the basis of their pay.
This, in turn, leads to trust in their company, motivating them to put forth
the effort required to excel.
51
Personality and Attitudes in Evaluation of equity theory
Equity theory has been widely studied and is quite successful in predicting various
situations involving feelings of workplace injustice. However it has a few
limitations. First, the theory doesn’t identify the inputs or outcomes that are
most valuable and the comparison other against which evaluation is made. Second,
it assumes that people are individualistic, rational and selfish. However, people
are social creatures who share goals with other members and commit themselves
to the norms of the group. Third, the theory accounts for only distributive justice
in the workplace. Experts now believe that procedural justice is equally important
that has been overlooked in the theory.
4.4.3 Goal-Setting Theory

The goal-setting theory was developed primarily by Locke and Latham (1990).
It posits that people will be motivated to the extent to which they accept specific,
challenging goals and receive feedback that indicates their progress toward goal
achievement. The basic components of goal-setting theory are:
• Goal acceptance – Effective goals need to be accepted by employees. Goals
that are not personally accepted will have little capacity to guide behaviour.
A powerful method of obtaining acceptance is to allow employees to
participate in the goal-setting process. Communicating the purpose and
necessity of the goal also ensures greater commitment to the goal.
• Specificity – Specific goals often involve clear, measurable quantitative
targets for improvement in the behaviour of interest. Research indicates
that specific performance goals are much more effective than those in which
a person is told to “do your best.”
• Challenge – Challenging goals are difficult but not impossible to attain.
They cause people to raise the intensity and persistence of their work effort
and fulfill a person’s achievement and self-actualisation needs when they
are met. Empirical research supports the proposition that goals that are
challenging are more motivational than goals that are relatively easy to
achieve.
• Feedback – Feedback is any information that people receive about the
consequences of their behaviour. It is central to goal-setting because it
communicates what behaviours are appropriate or necessary in a particular
situation. An effective feedback is specific, relevant, timely, credible and
sufficiently frequent.
Goal-setting promotes superior performance by (1) increasing one’s persistence

of effort (2) regulating one’s effort toward effective work behaviours (3) directing
one’s attention to the assigned roles and tasks, and (4) encouraging the
development of goal attainment strategies or action plans.
Managerial implications of goal-setting theory

Goal setting theory implies that managers must assign specific, challenging goals;
make sure workers truly accept organisational goals; and provide frequent, specific
performance-related feedback. A systematic way of using goal-setting is with a
management by objectives program. Management by objective (MBO)
emphasises participatively set goals that are tangible, verifiable and measurable.
52
It emphasises four aspects: goal specificity, participation in decision-making, an Content Theories Process
explicit time period and performance feedback. Reinforcement
Evaluation of goal-setting theory

Goal-setting theory has been supported by research conducted over 40 years
suggesting that it is a valuable source of insight into how goal-setting process
works. However, there is evidence that goals have a more substantial effect on
performance when tasks are simple, well-learned and independent. Also, the
theory appears to be culture-bound. It is well adapted to Western nations because
its key components align well with individualistic cultures.

1) Examine Vroom’s expectancy theory. Discuss the managerial
implications of the theory.
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2) What are the important propositions made by equity theory? Describe
the notion of equity sensitivity that explains conflicting research findings
on over-reward inequity.
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3) What are the major elements of goal-setting as a motivational tool?
Evaluate its contribution to management practice.
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3.5 REINFORCEMENT THEORY

Reinforcement theory seeks to explain what types of consequences motivate
different people to work. Traditionally, it can be traced to the work of the
pioneering behaviourist B.F. Skinner (1953). It posits that behaviour depends on
its consequences. Behaviour that is accompanied by favourable consequences is
53
Personality and Attitudes in likely to continue, while behaviour that is followed by unfavourable consequences
is not likely to be repeated. Based on this principle, reinforcement theory describes
four contingency methods of shaping behaviour:
1) Positive reinforcement – It occurs when behaviour is followed by a
favourable consequence that encourages the repetition of that behaviour.
For example, a supervisor may praise the employee for a job well done. In
this case, praise serves as a positive reinforcer that strengthens high-quality
work. Other common positive reinforcers are recognition, promotion,
money, approval, fringe benefits etc.
2) Negative reinforcement – It occurs when behaviour is accompanied by the
removal of an unfavourable consequence that results in strengthening of
that behaviour. For example, an employee may work till late at the office to
revise a sales presentation to prevent being rebuked by the boss next morning.
In this example, rebuking serves as a negative reinforcer that encourages
avoidance behaviour.
3) Punishment – It occurs when the administration of an unfavourable
consequence discourages certain behaviour. Giving an employee a two-day
suspension from work without pay for showing up drunk is an example of
punishment.
4) Extinction – It occurs when the target behaviour decreases because no
reinforcement follows it. For example, research suggests that when mangers
stop congratulating employees for their good performance, that performance
tends to decline.
Schedules of Reinforcement
The effects of reinforcement depend heavily on the schedule according to which
reinforcers are delivered. The two major types of reinforcement schedules are
continuous and intermittent. A continuous reinforcement schedule reinforces the
desired behaviour each and every time it is demonstrated. For example, to
reinforce punctuality in an employee with a history of tardiness, the manager
might compliment the employee whenever he is punctual.
With intermittent or partial reinforcement, on the other hand, not every instance
of the desirable behaviour is reinforced, but reinforcement is given often enough
to make the behaviour worth repeating. Intermittent partial schedules are
distinguished by whether they are based on time (interval) or number of
behavioural events (ratio), and whether that interval or ratio is fixed or variable.
The two dimensions result in four classes of intermittent schedules:
1) Fixed interval schedule – Reinforcement is given after uniform time
intervals. For example, being paid the salary on a monthly basis.
2) Fixed ratio schedule – Reinforcement is given after a fixed number of
responses. For example, being paid on a piece work basis or being given a
day off after serving a specific number of customers.
3) Variable interval schedule – Reinforcement is given after varying time
intervals. For example, randomly timed unannounced visits to a company
office by the audit staff or getting promotions after undefined time intervals.
54
4) Variable ratio schedule – Reinforcement is given after a varying Content Theories Process
(unpredictable) number of responses. For example, making a variable number Reinforcement
of calls to a potential customer for securing a sale.
Continuous reinforcement produces rapid learning for newly emitted, unstable

or low-frequency responses. However, continuously reinforced responses
extinguish more rapidly because the shift to no reinforcement is sudden and
easier to perceive. Intermittent reinforcement, on the other hand, produces
behaviour that is learned more slowly but is more resistant to extinction. It is
therefore more appropriate for stable or high-frequency responses. Further, among
the intermittent schedules, the variable ones tend to lead to higher performance
and produce a rapid rate of responding than fixed schedules. Variable schedules
are also more resistant to extinction. Thus the best way to promote fast learning
and high resistance to extinction is to begin reinforcing a desired behaviour on a
continuous schedule until the behaviour is well established and then shift to a
variable intermittent schedule that is gradually made more demanding.
Managerial implications of reinforcement theory

Reinforcement concepts have been applied in the managerial setting using
organisational behaviour modification (OB Mod). The typical OB Mod program
follows a five-step problem-solving model:
1) Identify critical behaviours – Everything that an employee does is not

equally important in terms of performance outcomes. It is therefore important
to identify critical behaviours that make a significant impact on the
employee’s job performance.
2) Develop baseline data – It requires that the manager determines the number
of times the identified behaviour is occurring under present conditions.
3) Identify behavioural consequences – It involves performing a functional
analysis to identify the behavioural contingencies or consequences of
performance. It tells the manager the antecedent cues that emit the behaviour
and the consequences that are currently maintaining it.
4) Develop and implement an intervention strategy – It involves
implementing an appropriate intervention strategy that will entail changing
some elements of performance-reward linkage with the goal of making high-
level performance more rewarding.
5) Evaluate performance improvement – It requires that the observed
behavioural change be evaluated to ensure that learning had taken place.
A number of organisations have used OB Mod to improve employee productivity;
to reduce errors, absenteeism, tardiness and accident rates; and to improve
friendliness toward customers.
Evaluation of reinforcement theory

Although the effectiveness of reinforcements in the form of rewards and
punishments has a lot of support in the literature, the theory has been criticized
for overlooking thoughts and feelings that are evoked by environmental stimuli.
The theory assumes that it is not necessary to study needs or cognitive processes
to understand motivation, but that it is only necessary to examine the consequences
55
Personality and Attitudes in of behaviour. However, increasing research on cognitive processes has challenged
this basic assumption of the theory.

1) Quoting suitable examples, describe the various contingency procedures
used to shape behaviour.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) What are the various schedules of reinforcement? Describe the
effectiveness of the schedules in shaping behaviour.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) What are the implications of reinforcement theory for management
practice?
...............................................................................................................
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...............................................................................................................
...............................................................................................................
...............................................................................................................
3.6 LET US SUM UP

There are several popular approaches to the study of work motivation. Content
theories given by Maslow, Alderfer, Herzberg and McClelland attempt to identify
specific content factors in the individual or in the job environment that motivate
employees. Although such a content approach is easy to understand and can be
readily translated into practice, there is very little research support for these
models’ theoretical basis and predictability. However, the job characteristic model
is supported by some research and represents an extension of the content theories
to the job design approach.
The process theories provide a much sounder theoretical explanation of work

motivation. Vroom’s expectancy model explains the important cognitive variables
and how they relate to one another in the complex process of work motivation.
Equity theory explains how people respond when they are inequitably treated.
56
Goal setting theory describes the process of motivating employees by the Content Theories Process
establishment of performance objectives and clarification of role perceptions. Reinforcement
Reinforcement theory highlights the consequences of one’s actions and how these
consequences influence motivated behaviour in future. Several types of
procedures are described that can be delivered according to varying schedules.
Together, the three sets of theories contribute much to the understanding of the
complex process of work motivation. The theories also suggest applied principles
to be used in management settings for motivating employees and improving
performance effectiveness.

1) Describe the three major categories of motivation theories.
2) Explain Maslow’s theory of motivation. Compare it with Alderfer’s ERG
model and Herzberg’s two-factor theory.
3) Discuss the motivators and hygiene factors in Herzberg’s two-factor theory.
How has the theory contributed to the understanding of motivation in the
workplace?
4) Describe the three-need classification given by McClelland.
5) Present the job characteristic model. What is MPS?
6) Explain the three variables in Vroom’s expectancy model. Highlight some
of the important implications of the theory for management practice.
7) Discuss equity theory. Present the critical examination of the theory.
8) What is goal-setting theory? How does it contribute to the understanding of
work motivation?
9) Describe reinforcement theory. Present the types and schedules of
reinforcement.
3.8 GLOSSARY
Self-actualisation : Highest need category in Maslow’s need hierarchy
that concerns developing one’s full potential,
increasing one’s competence, and becoming a better
person.
Need for achievement : A learned need in which people want to accomplish
reasonably challenging goals and desire
unambiguous feedback and recognition for their
success.
Need for affiliation : A learned need in which people seek approval from
others, conform to their wishes and expectations, and
avoid conflict and confrontation.
Need for power : A learned need in which people want to control their
environment, including people and material
resources, to benefit either themselves (personalised
power) or others (socialised power).
57
Personality and Attitudes in Skill variety : The extent to which employees must use different
skills and talents to perform tasks within their job.
Task identity : The degree to which a job requires completion of a
whole or identifiable piece of work.
Task significance : The degree to which one’s job has a substantial
impact on the organisation and/or larger society.
Autonomy : The degree to which a job gives employees the
freedom, independence, and discretion to schedule
their work and determine the procedures used in
completing it.
Feedback : Information that people receive about the
consequences of their behaviour.
Expectancy : The individual’s belief that work-related effort will
result in a given level of performance.
Instrumentality : The individual’s belief that a specific performance
level will lead to specific outcomes or rewards.
Valence : The anticipated satisfaction or dissatisfaction that
an individual feels toward an outcome.
Self-efficacy : The individual’s belief that he or she can successfully
complete a particular task.

Luthans, F. (1995). Organisational Behaviour (7th Ed.). New Delhi: Tata McGraw-
Hill.
McShane, S.L., Glinow, M.A.N., & Sharma, R.R. (2008). Organisational
Behaviour (4th Ed.). New Delhi: Tata McGraw-Hill.
Newstorm, J.W., & Davis, K. (2002).Organisational Behaviour: Human
Behaviour at Work. New Delhi: Tata McGraw-Hill.
Robbins, S.P., Judge, T.A., & Sanghi, S. (2009). Organisational Behaviour. Delhi:
Person Education.
References
Adams, S. J. (1963). Towards an understanding of inequity. Journal of Abnormal
and Social Psychology, 67, 422–436.
Alderfer, C. P. (1972). Existence, relatedness, and growth. New York: Free Press.
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of
work: Test of a theory. Organisational Behaviour and Human Performance, 16,
250–279.
Herzberg, F. (1966). Work and the nature of man. Cleveland: World Publishing.
Huseman, R.C.., Hatfield, J. D., & Miles, E. W. (1987). A new perspective on
equity theory: The equity sensitivity construct. Academy of Management Review,
58 12(2), 222-234.
Locke, E. A., & Latham, G. P. (1990). A Theory of Goal Setting and Task Content Theories Process
Performance. Englewood Cliffs, NJ: Prentice-Hall. Reinforcement
Maslow, A. H. (1954). Motivation and Personality. New York: Harper & Row.
McClelland, D. C. (1971). Assessing Human Motivation. New York: General
Learning Press.
Porter, L. W., & Lawler, E. E. (1968). Managerial Attitudes and Performance.
Homewood, IL: Irwin.
Skinner, B. F. (1953). Science and Human Behaviour. New York: Macmillan.
Vroom, V. H. (1964). Work and Motivation. New York: Wiley.
59
Organisational Behaviour UNIT 4 ORGANISATIONAL COMMITMENT
Structure
4.0 Introduction
4.1 Objectives
4.2 Commitment and Related Aspects
4.3 Nature of Organisational Commitment
4.3.1 Defining Organisational Commitment
4.3.2 Components of Organisational Commitment
4.3.3 Organisational Commitment and Job Satisfaction
4.4 Atecedents of Organisational Commitment
4.4.2 Work Situation and Organisational Characteristics
4.4.3 Work Experiences
4.5 Outcomes of Organisational Commitment
4.6 Building Organisational Commitment
4.7 Let Us Sum Up
4.9 Glossary
4.0 INTRODUCTION
Organisational commitment has received significant attention in the studies of
workplace. This is due to the general recognition that this variable can be the
major determinant of organisational performance and effectiveness. When
employees are dissatisfied at work, they are less committed and will look for
other opportunities to quit. If opportunities are unavailable, they may emotionally
or mentally withdraw from the organisation. Thus, organisational commitment
is an important attitude in assessing employees’ overall contribution to the
organisation.
This unit is devoted to the understanding of the nature, determinants, and

consequences of organisational commitment. Various means of securing
organisational commitment are also highlighted in this unit.
4.1 OBJECTIVES
• Define organisational commitment and its component types.
• Explain the difference between organisational commitment and job
satisfaction.
• Give an account of the determinants of organisational commitment.
• Understand the consequences of organisational commitment.
• Present ways of promoting organisational commitment.
60
Organisational
4.2 COMMITMENT AND RELATED ASPECTS Commitment
In a broad sense of the word, “commitment” can be defined as an obligation,

agreement, or pledge to someone or something in the future. One can be
committed to a friend, romantic partner, team, school, job or, as is the focus of
this unit, to one’s organisation. Understanding what commitment is, what leads
to a sense of commitment, and what those committed feelings can predict, has
been of great interest to both researchers and employers over the last several
decades. Recognising the ways in which employers can foster a sense of
commitment among their employees, and knowing what the behavioural results
of that commitment will be, can create a more efficient and productive workplace.
Worker commitment has been defined and measured in over twenty five ways
(Morrow & McElroy, 1986). Some researchers, such as Blau (1989), have looked
at career commitment, measuring an employee’s commitment to the specific
occupation, with items that look like, “this is the ideal profession for a life’s
work.” Becker, Billings, Eveleth and Gilbert (1996) have examined and measured
an employee’s commitment to his/her supervisor within the organisation. Other
types of work commitment that have been measured include job attachment,
career salience, organisational commitment, work ethics, as well as numerous
others. With such an abundance of constructs, Morrow (1983) suggested that
there was much redundancy among the many models. Rather, she proposed five
predominant types of work commitment – the intrinsic value of one’s work,
commitment to one’s career or profession, commitment to one’s particular daily
job, an employee’s commitment to his/her organisation, and commitment to
one’s union.
Among these models, organisational commitment has received significant

attention. Unlike scales measuring, for example, an employee’s commitment to
a particular supervisor, which is relatively narrow in focus, organisational
commitment is a broad construct. Additionally, unlike several of the other forms
of commitment that have been measured, such as career commitment, which
focuses more on individual differences, organisational commitment is centered
on behavioural outcomes. For these reasons, commitment to one’s organisation
has been a popular subject of research over the past several decades. It offers
insight into the psychological bases of commitment, while also providing valuable
knowledge about worker behaviour to employers.
4.3 NATURE OF ORGANISATIONAL

COMMITMENT
As discussed in the previous section, organisational commitment is of
considerable interest to organisational psychologists because of two primary
reasons:
1) It is a broad attitudinal construct. It is theory-based, holds significant
integrative potential, and is more manageable than other forms of
organisational attitudes.
2) It is significantly related to favourable organisational outcomes. At the
individual level of analysis, commitment predicts important employee
61
Personality and Attitudes in behaviours such as staff turnover, absenteeism, organisational citizenship
or extra-role behaviours, and performance (Allen & Meyer, 1996; Mathieu
& Zajac, 1990; Steers, 1977). Furthermore, when aggregated to the
organisational subunit level, high levels of commitment are associated with
elevated levels of customer satisfaction and sales achievement (e.g., Gelade
& Young, 2005).
4.3.1 Defining Organisational Commitment

Organisational commitment is defined as an individual’s feelings about the
organisation as a whole. It is the psychological bond that an employee has with
an organisation and has been found to be related to goal and value congruence,
behavioural investments in the organisation, and allegiance to the organisation.
Over the years, two basic approaches have been used to study organisational
commitment: attitudinal (Allen & Meyer, 1990; Mowday, Steers & Porter, 1979)
and behavioural (Becker, 1960). In the attitudinal approach, organisational
commitment is viewed as a positive individual orientation toward the organisation.
It is defined as “an affective attachment to the goals and values of the organisation,
and to the organisation for its own sake, apart from its purely instrumental worth”
(Buchanan, 1974). According to Porter et al. (1974) organisational commitment
is the relative strength of an individual’s identification with and involvement in
a particular organisation. According to Mowday, Steers and Porter (1979),
organisational commitment represents a state in which an individual identifies
with a particular organisation and its goals and wishes to maintain membership
in order to facilitate these goals. These authors describe three components of
commitment:
1) A strong belief in and acceptance of the organisation’s goals and values.
2) A willingness to exert considerable effort on behalf of the organisation.
3) A strong desire to maintain membership in the organisation.
The commitment-related behaviour approach focuses on a behavioural pattern
guided by internalised normative pressures to act in ways that meet organisational
goals and interest (Wiener, 1982). Wiener and Gechman (1977) argued that the
pattern of behaviour resulting from commitment should possess the following
characteristics: (1) it should reflect personal sacrifices made for the sake of the
organisation; (2) it should show persistence – that is, the behaviours should not
depend primarily on environmental controls such as reinforcements or
punishment, and (3) it should indicate a personal preoccupation with the
organisation, such as devoting a great deal of personal time to organisation-
related actions and thoughts. Thus according to the behaviourists, organisational
commitment is demonstrated by “overt manifestations of commitment” (Mowday,
Steers, & Porter, 1979) to the organisation such as extra-role behaviours that
link employees to their respective institution.
In essence, organisational commitment can be viewed as follows:

1) Willingness of an individual to identify with and the desire not to leave an
organisation for selfish interest or marginal gains;
2) Desire to contribute to the effectiveness of an organisation;
62
3) Willingness to make personal sacrifice, to perform beyond normal Organisational
Commitment
expectations and to endure difficult times with an organisation;
4) Belief in and acceptance of organisation’s values and goals.
4.3.2 Components of Organisational Commitment

O’Reilly and Chatman (1986) conceptualised organisational commitment as a
psychological attachment and developed a model in which three dimensions of
organisational commitment were described: internalisation, identification, and
compliance. Internalisation measures the extent to which the employee feels
they share the same mission and values as the organisation. Identification describes
the employee’s desire to affiliate with their organisation without accepting the
organisation’s values as his/her own. Compliance describes an employee who
accepts the organisation’s values for his/her own personal gain, but does not
internalise or hold any of those same values. Although this model represents the
first attempt to understand the multi-dimensional nature of organisational
commitment, it is not very popular.
The model of organisational commitment proposed by Meyer and Allen (1991)

is the most popular and comprehensively validated multidimensional model.
Three components are contained in Meyer and Allen’s (1991) organisational
commitment model: affective, continuance, and normative. Affective commitment
is a feeling of emotional attachment demonstrated in the statement, “I work here
because the people are great and the work is fun.” Continuance commitment is a
feeling that the costs of leaving are too high or it is too much trouble to go
somewhere else. For example, “I’d leave if I knew I could get another job that
paid as much.” Normative commitment is a feeling of obligation. For example,
“I work here because they hired me when I needed a job so I owe it to them.” The
three components are now described in greater detail.
Affective commitment refers to the employees’ perceptions of their emotional

attachment to or identification and involvement with their organisation and its
goals. It results from and is induced by an individual and organisational value
congruency. As a result, it becomes almost natural for the individual to become
emotionally attached to and enjoy continuing membership in the organisation
(O’Reily & Chatman, 1986, Meyer & Allen, 1984). Steers (1977) identified
factors which help create intrinsically rewarding situations for employees to be
antecedents of affective commitment. These factors include such job
characteristics as task significance, autonomy, identity, skills variety and feedback
concerning employee job performance, perceived organisational support or
dependence (the feeling that the organisation considers what is in the best interest
of employees when making decisions that affect employment conditions and
work environment), and the degree that employees are involved in the goal-
setting and decision-making processes.
Continuance commitment refers to employees’ perceptions of the costs

associated with leaving the organisation. It is the willingness to remain in an
organisation because of personal nontransferable investments in the form of close
working relationships with coworkers, retirement investments and career
investments, acquired job skills which are unique to a particular organisation,
years of employment in a particular organisation, involvement in the community
in which the employer is located, and other benefits that make it too costly for
63
Personality and Attitudes in one to leave and seek employment elsewhere. Meyer and Allen (1974) explain
that if employees share continuance commitment with the employer, it makes it
very difficult for them to leave the organisation.
Normative commitment refers to employees’ perceptions of their obligation to

their organisation. Such a feeling of obligation often results from what Wiener
(1982) characterised as “generalised value of loyalty and duty.” This is an almost
natural predisposition to be loyal and committed to institutions such as family,
marriage, country, religion and employment organisation as a result of
socialisation in a culture that places a premium on loyalty and devotion to
institutions. This view of commitment holds that an individual demonstrates
commitment behaviour solely because she or he believes it is the moral and right
thing to do. This feeling of moral obligation is measured by the extent to which
a person feels that he or she should be loyal to his or her organisation, make
personal sacrifice to help it out and not criticize it.
Meyer, Allen, & Smith (1993) say that the three types of commitment are a
psychological state “that either characterises the employee’s relationship with
the organisation or has the implications to affect whether the employee will
continue with the organisation”. Meyer et al. (1993) further state that employees
with a strong affective commitment will remain with an organisation because
they want to, those with a strong continuance commitment remain because they
have to, and those with a normative commitment remain because they feel that
they ought to. Meyer & Allen (1997) define a committed employee as being one
who “stays with an organisation, attends work regularly, puts in a full day and
more, protects corporate assets, and believes in the organisational goals”. This
employee positively contributes to the organisation because of its commitment
to the organisation.
In arguing for their framework, Meyer & Allen (1991) contended that affective,
continuance, and normative commitment were components rather than types
because employees could have varying degrees of all three. For example, one
employee might feel both a strong attachment to an organisation and a sense of
obligation to remain. A second employee might enjoy working for the organisation
but also recognise that leaving would be very difficult from an economic
standpoint. Finally, a third employee might experience a considerable degree of
desire, need, and obligation to remain with the current employer (Meyer & Allen,
1997). Even though the authors present this argument, they stress that these
three classifications of commitment are conceptually and empirically separable.
In support of the three-pronged classification, researchers have clarified the unique
antecedents and outcomes related to each type. Reliable measures of the three
types of commitment have also been developed and validated.
4.3.3 Organisational Commitment and Job Satisfaction

Differences between commitment and job satisfaction are seen in several ways:
1) Job satisfaction is a response to a specific job or facet of the job while
commitment is more of a global response to an organisation. Job satisfaction
can thus be viewed as a micro work attitude while organisational commitment
is more macro in its orientation of the individual to the organisation.
64
2) Job satisfaction implies an affective response to one’s job as opposed to Organisational
Commitment
organisational commitment that refers to the strength of employee
identification to the entire organisation. Therefore, organisational
commitment tends to be more consistent than job satisfaction over time.
Although day-to-day events in the workplace may affect an employee’s level
of job satisfaction, such transitory events do not significantly alter his or
her attachment to the overall organisation (Mowday et al., 1982).
3) Job satisfaction reflects immediate affective reactions to the job and job
facets (Locke, 1976). Thus, it forms soon after organisational entry. On the
other hand, due to its macro orientation, organisational commitment is
thought to develop more slowly, and after the individual possesses a firm
understanding of not only the job and job facets but also of organisational
goals and values, performance expectations and their consequences, and
the implications of maintaining membership in the organisation (Mowday
et al., 1982). Consequently, commitment is seen as forming and stabilising
sometime after organisational entry.
4) Job satisfaction and organisational commitment differ in the ways they
contribute to work behaviours, especially turnover. Job satisfaction tends to
be correlated with turnover intention, whereas organisational commitment
shows stronger correlation with actual turnover.
4.4 ANTECEDENTS OF ORGANISATIONAL

COMMITMENT
Organisational commitment is related to three antecedent categories: personal
variables, work situation and organisational characteristics, and work experiences.
Age, gender, organisational tenure, educational level, and personal attributes are
examples of personal variables. Job and role characteristics contain career
mobility, job challenge, job level, role conflict, role ambiguity, level of autonomy
and working hours. Finally, social involvement, personal importance and
formalisation are structural factors.

Research has shown that commitment is related to personal characteristics such
as age, length of service in a particular organisation, gender, marital status,
employee’s level of education and personality attributes.
Age and Tenure: Research shows age and tenure to be positively correlated with
commitment. According to Meyer and Allen (1997), as people get older and
remain in their organisations, they may develop an emotional attachment with
the organisation that makes it difficult to switch jobs. It may also be because
older workers or those with longer organisational tenure accumulate more ‘‘side
bets,’’ such as pension plans and other benefits (Meyer & Allen, 1984) that make
them more committed to stay with the organisation. Older people are also more
likely to be committed probably because alternative employment opportunities
diminish for them or because commitment may be a successful strategy in getting
along. Meyer and Allen (1997) also suggest that the results of a positive
relationship between tenure and organisational commitment might be a simple
reflection of the fact that uncommitted employees leave an organisation, and
only those with a high commitment remain. 65
Personality and Attitudes in Gender: Earlier research reported that women were more committed than men
(Mathieu & Zajac, 1990). More recent studies, however, found no relationship
between gender and organisational commitment (Van der Velde, Bossink, &
Jansen, 2003).
Marital Status: Marital status has emerged as a consistent predictor of

organisational commitment. Findings reported by Hrebiniak and Alutto (1972),
John and Taylor (1999), and Tsui, Leung, Cheung, Mok, and Ho (1994) indicate
that married people were more committed to their organisation than unmarried
people. Married people have greater financial burdens and family responsibilities
and need more stability and security in their jobs. Therefore, they are likely to be
more committed to their current organisation than their unmarried counterparts.
Education: Level of education has been found to have a negative relationship

with organisational commitment (Steers, 1977). Higher education is associated
with lower commitment, perhaps because educated people have expectations
the organisation cannot meet or are more committed to professions (their
occupational community) than to organisations. It may also be that alternative
work opportunities are greater for people with higher education. People with
low levels of education, on the other hand, generally have more difficulty changing
jobs and therefore show a greater commitment to their organisations.
Personal attributes: Several personal attributes are related to commitment, among

them are work-oriented life interests, achievement motivation, and a sense of
competence. These kinds of relationships support the notion of exchange between
the employee and his organisation.
4.4.2 Work Situation and Organisational Characteristics

Commitment has been found to be related to such work characteristics as task
autonomy, feedback and job challenge, promotion opportunities, training and
mentoring opportunities, and supportive and considerate leadership. Finally,
research studies have revealed that commitment is influenced by perceptions of
organisational justice.
Job and role characteristics: Concerning job and role characteristics, both career
mobility (Bhagat & Chassie, 1981) and job challenge (Kirchmeyer, 1995) are
found to be positively correlated with organisational commitment. Further, role
conflict, role overload and role ambiguity have a negative correlation with
organisational commitment (e.g. Mayer and Schoorman, 1998). The level of
autonomy in the work place is found to be very important as autonomy is
significantly positively related to organisational commitment (e.g. Hall et al.,
1970). Thus organisations have a greater chance of retaining their employees if
they offer them interesting, challenging, unambiguous, and clearly-defined jobs
and those that give them a sense of accomplishment.
Promotion Opportunities: Policies and practices concerning the movement of
employees, particularly upward movement, once they are in the organisation
tend to affect their commitment. For example, Gaertner and Nollen (1989) found
that commitment was greater among employees who had been promoted and
that it was also positively related to employees’ perceptions that the company
had a policy of promoting from within. Such a policy might be perceived by
employees as evidence of organisational support, which in turn instills a greater
66 commitment to the organisation.
Training Opportunities: Although commitment might not be the intended or at Organisational
Commitment
least the most obvious objective of training, it can nevertheless be influenced in
the process. The provision of training and development sends a message to the
employees that the organisation cares about them and supports them, and this is
likely to lead to increased organisation commitment. Several studies have shown
that training and education activities not only develop and improve employees’
skills and abilities, but also enhance their commitment to the organisation (Bartlett,
2001). Bartlett’s (2001) study of nurses in public U.S. hospitals demonstrated
that employee attitudes toward training, such as perceived access to training,
social support for training, motivation to learn, and perceived benefits of training
were highly associated with organisational commitment. Meyer and Allen (1997)
concluded that commitment can be impacted by training experience and affect
employees’ motivation for future training.
Job Security: Research studies have found job security to be positively related to
organisational commitment (Yousef, 1998). The existence of job security is likely
to bolster employees’ perceptions of organisational support which would help to
foster organisational commitment. Thus, there is a positive relationship between
job security and organisation commitment.
Leadership behaviours: DeCotiis & Summers (1987) found that when employees
were treated with consideration, they displayed greater levels of commitment.
Bycio, Hackett, & Allen (1995) reported positive correlations between the
leadership behaviours of charisma, intellectual stimulation, individualised
consideration, and contingent reward and affective, continuance, and normative
commitment.
Organisational justice: There are two important dimensions of organisational

justice: procedural justice and distributive justice. Distributive justice refers to
the perceived fairness of the amounts of compensation employees receive, whereas
procedural justice refers to the perceived fairness of the means used to determine
those amounts (Folger & Konovsky, 1989). Research indicates that both
distributive justice and procedural justice are related to organisational commitment
(McFarlin & Sweeney, 1992). Although both dimensions of organisational justice
are important and have been linked to commitment, research evidence suggests
that procedural justice is a better predictor of employee commitment to the
organisation than distributive justice. Distributive justice, however, is a better
predictor of personal outcomes such as pay satisfaction. One reason for this
could be that use of fair procedures in decision making provides evidence of a
genuine caring and concern on the part of the organisation for the well being of
employees (Lind & Tyler, 1988). This in turn motivates the employees to continue
their association with their current organisation.
Organisational support: Perceived organisational support is defined as “the extent

to which employees perceive that the organisation values their contribution and
cares about their wellbeing” (Eisenberger, Fasolo, & Davis-LaMastro, 1990).
Researchers have discovered a positive relationship between perceived
organisational support and affective organisational commitment (Meyer & Allen,
1997). Employees exchange commitment to the organisation for greater care,
concern, and support from the organisation.
67
Personality and Attitudes in Organisational culture: Recent studies point to the importance of organisational
culture in predicting organisational commitment. Organisational culture refers
to a complex pattern of assumptions, beliefs and values that guide the behaviour
of individuals in organisations (Schein, 1996). Lok and Crawford (2001) found
that innovative organisational culture, characterised by a willingness to experiment
and innovate was a strong predictor of organisational commitment Hatton et al.
(1999) indicated that greater employee commitment was associated with cultures
that were more tolerant, staff-oriented, achievement oriented, innovative, and
rewarding. Furthermore, organisational cultures that foster staff empowerment
and trust in management have been linked to higher organisational commitment
(Laschinger et al., 2001). It is reasoned that organisational culture influences
employees’ sense of engagement, identification and belonging and such
sentiments seem to have an impact on commitment.
Working Conditions: Good working conditions such as clean, attractive

surroundings enable employees to perform their work smoothly and thus are
likely to have a positive impact on organisational commitment. Research by
Painter and Akroyd (1998) found that the general working conditions were
significantly related to organisational commitment.
Type of work sector: Research has found that government employees have higher
levels of continuance commitment than other sectors (Perry, 1997; Meyer &
Allen, 1997). This is due to the antecedents of public service motivation. Because
public sector employees in the past have high levels of commitment to the
organisation and its goals because it is argued that they are a different type of
employee, with strong ethics as well as job security (Perry, 1997). Lio (1995)
states “facing today’s difficult times, many public employees appreciate the
relatively secure job situation associated with public employment and consider
it a major reason for their organisational commitment”.
4.4.3 Work Experiences

The extent of job involvement, level of job satisfaction and the degree of trust
are some of the important work experiences that influence an employee’s
commitment to his/her organisation.
Job Involvement: Job involvement concerns an individual’s ego involvement

with the job–that is, the degree to which an individual’s self esteem is affected
by his/her work performance (Lodahl & Kejner, 1965). Several studies have
revealed a significant positive relationship between organisational commitment
and job involvement. One explanation for this could be that for employees with
a high level of job involvement, the job is important to one’s self image. These
high-involvement employees identify with, and care about, their jobs and are
thus less likely to quit their jobs.
Job satisfaction: Although there is certainly a chicken-and-egg debate over issues

regarding the relationship between job satisfaction and organisational
commitment, several researchers have made the case that job satisfaction is a
predictor of organisational commitment (Porter, Steers, Mowday, & Boulian,
1974).
Trust: Trust refers to the person’s degree of confidence in the words and actions
of another. Trust in organisational authorities has been shown to influence a
68
variety of subordinate’s work attitudes and behaviour (Brockner et al., 1997). Organisational
Commitment
When trust levels are high, employees are supportive of, or committed to,
authorities and the institutions that the authorities represent. Brockner et al. (1997)
report that trust has a positive effect on employee commitment. In a similar vein,
Dirks and Ferrin’s (2002) research findings demonstrate a substantial relationship
between trust in leadership and organisation commitment.

1) Examine the personal characteristics that influence organisational
commitment.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Discuss the role of promotional and training opportunities in determining
employee commitment.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) Examine organisational culture as an antecedent to organisational
commitment.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
4) How do employee perceptions of organisational justice influence their
commitment?
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
5) Discuss the ways in which work experiences affect organisational
commitment.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
69
Organisational Behaviour 4.5 CONSEQUENCES OF ORGANISATIONAL
COMMITMENT
In general, organisational commitment is considered a useful measure of
organisational effectiveness (Steers, 1977). In particular, “organisational
commitment is a “multidimensional construct” (Morrow, 1993) that has the
potential to predict organisational outcomes such as performance, turnover,
absenteeism, tenure, and organisational goals” (Meyer & Allen, 1997).
Meta analyses indicate that commitment is negatively related to turnover (Cooper-

Hakim & Viswesvaran, 2005), absenteeism (Farrell & Stamm, 1988), and
counterproductive behaviour (Dalal, 2005) and positively related to job
satisfaction (Cooper-Hakim & Viswesvaran, 2005), motivation (Mathieu & Zajac,
1990), and organisational citizenship behaviours (Riketta, 2002). Moreover,
research studies have provided evidence of a positive correlation between
organisational commitment and job performance (e.g., Meyer, Paunonen, Gellatly,
Goffin, & Jackson, 1989). Low commitment has also been associated with low
levels of morale (DeCottis & Summers, 1987) and decreased measures of altruism
and compliance (Schappe, 1998). Finally, non-committed employees may describe
the organisation in negative terms to outsiders thereby inhibiting the organisation’s
ability to recruit high-quality employees (Mowday, Porter, & Steers, 1982). These
findings have important implications for both organisation theory and the practice
of management.
In general, affective commitment seems more strongly related to organisational

outcomes such as performance and turnover than the other two commitment
dimensions. One study found that affective commitment was a significant
predictor of various outcomes (perceptions of task characteristics, career
satisfaction and intention to leave) in 72% of the cases, compared with only
36% in normative commitment and 7% for continuance commitment. Research
further suggests that employees with high levels of continuance commitment
have lower performance ratings and less likely to engage in organisational
citizenship behaviours. Furthermore, unionised employees with high continuance
commitment are more likely to use formal grievances, whereas employees with
high affective commitment engage in more constructive problem solving when
employee-employer relations turn sour.
However, it is important to note that too much of affective commitment can also
have negative consequences for an organisation. One concern is the organisational
loyalty reduces turnover, which may limit the organisation’s opportunity to hire
new employees with different knowledge and fresh perspectives. Another concern
is that loyalty results in conformity, which can undermine creativity and ethical
conduct.
4.6 BUILDING ORGANISATIONAL COMMITMENT

Increasing employees’ organisational commitment is a major challenge in today’s
world primarily because there is an intense competition among organisations in
recruiting and retaining a highly skilled workforce. There have also been drastic
changes in the labour market since the past two decades, including increased
globalisation, frequent mergers, and organisational restructuring that are
70
contributing to employee job insecurity and the rapid growth of a temporary Organisational
Commitment
workforce. Further, to cope with the uncertainty of the labour market, employees
are devoting more attention to aspects of their lives outside of their organisations
in which they believe that they have more control. For all of these reasons,
strengthening employees’ organisational commitment is increasingly becoming
difficult. Nonetheless, there are ways in which organisational commitment can
be promoted that are discussed below:
Justice and support – Affective commitment is higher in organisations that fulfill

their obligations to employees and abide by humanitarian values such as fairness,
courtesy, forgiveness, and moral integrity. When organisations have a
comprehensive grievance procedure and provide for extensive two-way
communications, they tend to foster commitment among its employees. Thus
employers that support employee well-being tend to cultivate higher levels of
loyalty in return.
Shared interests – Commitment tends to be higher in organisations that align

their interests with those of their employees. Many companies introduce profit-
sharing plans – that is, incentive plans in which employees receive bonuses in
proportion to the company’s profitability. Such plans are often quite effective in
enhancing organisational commitment, especially when they are perceived to be
administered fairly. By letting employees share in the company’s profitability,
they are more likely to see their own interest as consistent with those of their
company. And when these interests are aligned, commitment tends to be high.
Trust – Trust refers to positive expectations one person has toward another in
situations involving risk. Trust means putting faith in the other person or group.
It is also a reciprocal activity: to receive trust, one must demonstrate trust.
Employees identify with and feel obliged to work for an organisation only when
they trust its leaders. This explains why layoffs are one of the greatest blows to
employee loyalty – by reducing job security, companies reduce the trust employees
have in their employers and the employment relationship.
Organisational comprehension – Commitment is strengthened when employees

understand the company, including its past, present and future. Thus loyalty tends
to increase with open and rapid communication to and from corporate leaders,
as well as with opportunities to interact with co-workers across the organisation.
Employee involvement – Employee involvement increases affective commitment

by strengthening the employee’s social identity with the organisation. Employees
feel that they are part of the organisation when they take part in decisions that
guide the organisation’s future. They also feel involved when they get to perform
a wide variety of tasks and enjoy considerable autonomy in doing them. Therefore
programs designed to provide job challenge, enrichment and empowerment helps
to increase employee commitment to the organisation.
Training and development – Training and development of employees not only

helps them grow and sharpen their skills, it also ensures employees’ commitment
and retains the best talent in the organisation. Thus programs designed to develop
cross-functional skills and to facilitate mobility within the organisation, foster
employees’ bond with the organisation by reinforcing the organisation’s concern
with the development of the individual.
71
Organisational Behaviour Self Assessment Questions
1) Describe the consequences of organisational commitment.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Discuss the ways of building employee commitment to the organisation.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
4.7 LET US SUM UP

Organisational commitment is an important attitudinal variable in organisational
research and applied settings. It is believed to be a multi-dimensional construct
with affective, continuance and normative components. There are several factors
that influence employees’ organisational commitment including personal
variables, work situation and organisational factors, and work experiences.
Organisational commitment is an important attitude as it influences important
outcomes both for the employee and the organisation.

1) Describe the significance of organisational commitment as an organisational
variable.
2) Explain the meaning of organisational commitment. Describe the components
of commitment using Meyer & Allen’s multidimensional model.
3) Distinguish between organisational commitment and job satisfaction.
4) Examine the personal characteristics that influence an employee’s
commitment to his/her organisation.
5) Describe the work situation and organisational factors that have an impact
on organisational commitment.
6) Give an account of the outcomes of organisational commitment.
7) What steps can an organisation take to ensure that employees stay committed
to them?
72
Organisational
4.9 GLOSSARY Commitment
Organisational commitment : The psychological bond that an employee has

with an organisation that has been found to
be related to goal and value congruence,
behavioural investments in the organisation,
and allegiance to the organisation.
Affective commitment : Employees’ perceptions of their emotional
attachment to or identification and
involvement with their organisation and its
goals.
Continuance commitment : Employees’ perceptions of the costs associated
with leaving the organisation.
Normative commitment : Employees’ perceptions of their obligation to
their organisation.
Job satisfaction : Affective response to one’s job.
Distributive justice : Perceived fairness of the amounts of
compensation employees receive.
Procedural justice : Perceived fairness of the means used to
determine the amounts of compensation
employees receive.
Organisational support : Extent to which employees perceive that the
organisation values their contribution and
cares about their wellbeing.
Organisational culture : Complex pattern of assumptions, beliefs and
values that guide the behaviour of individuals
in organisations.
Trust : Positive expectations one person has toward
another in situations involving risk.
Profit-sharing plans : Incentive plans in which employees receive
bonuses in proportion to the company’s
profitability.

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77
Definition of Leadership
UNIT 1 DEFINITION OF LEADERSHIP AND and Importance of Team
Building
IMPORTANCE OF TEAM BUILDING
Structure
1.0 Introduction
1.1 Objectives
1.2 Definition of Leadership
1.3 Classification of Leadership
1.3.1 Executive Appointed Leadership
1.3.2 Leadership Appointed by the Group
1.3.3 Self -Appointed Leader
1.3.4 Intellectual Leadership
1.3.5 Artistic Leadership
1.3.6 Executive Leadership
1.3.7 Authoritarian Leadership
1.3.8 Democratic Leadership
1.3.9 Institutional Leadership
1.3.10 Dominant Leader
1.3.11 Expert Leader
1.3.12 Persuasive Leader
1.4 Factors of Leadership
1.4.1 Leader
1.4.2 Followers
1.4.3 Communication
1.4.4 Situation
1.5 Characteristics of Leadership
1.5.1 Interpersonal Skills
1.5.2 Communication Skills
1.5.3 Values
1.5.4 Organisational Consciousness
1.5.5 Confidence
1.5.6 Flexibility
1.5.7 Creative Skills
1.5.8 Achieving Results
1.6 Tasks of Leadership
1.7 Approaches of Leadership
1.7.1 The Trait Approach
1.7.2 The Authoritarian Approach
1.7.3 Likert System Approach
1.7.4 Managerial Grid Approach
1.7.5 Path Goal Approach
1.7.6 Contingency Approach
1.7.7 Continuum Approach
1.8 Team and Team Building
1.9 Twelve Cs for Team Building
5
Leadership and Team 1.9.1 Clear Expectations
Building
1.9.2 Context
1.9.3 Commitment
1.9.4 Competence
1.9.5 Charter
1.9.6 Control
1.9.7 Collaboration
1.9.8 Communication
1.9.9 Creative Innovations
1.9.10 Consequences
1.9.11 Coordination
1.9.12 Cultural Change
1.10 Development of a Team
1.11 Let Us Sum Up
1.0 INTRODUCTION
This unit covers the leadership and team building. We start with definition of
leadership and importance of team building. This is followed by classification of
leadership which consists of executive appointed leadership, leadership appointed
by the group, self appointed leader etc. Then we also deal with democratic,
authoritarian and institutional leaderships. Then we take up the various factors
constituting leadership and within this we discuss the leader, followers,
communication and situations. Then we take up characteristics of leadership
within which we discuss the interpersonal skills, communication skills, values,
organisational consciousness etc. Then we take up the tasks of leadership within
which we deal with confidence, flexibility, creative skills, achieving results etc.
This is followed by approach of leadership and this is discussed in terms of the
trait approach, authoritarian approach, Likert system approach, managerial grid
approach etc. Then we present the team definition and team building aspects and
present 12 Cs for team building.
1.1 OBJECTIVES
After completing this unit you will be able to:
• Define leadership;
• Understand the types of leadership;
• Describe the approaches to leadership;
• Explain the tasks of leadership; and
• Describe the team and team building.
1.2 DEFINITION OF LEADERSHIP

What is leadership? A simple definition of leadership is that leadership is the art
of motivating a group of people to act towards achieving a common goal.
6
This definition of leadership captures the leadership essentials of inspiration and Definition of Leadership
and Importance of Team
preparation. Effective leadership is based upon ideas, but will not happen unless Building
those ideas can be communicated to others in a way that engages them.
Put even more simply, the leader is the inspiration and director of the action. He
is the person in the group that possesses the combination of personality and
leadership skills that makes others want to follow his direction.
In business, leadership is welded to performance. Those who are viewed as

effective leaders are those who increase their company’s bottom lines.
Leadership is a process by which a person influences others to accomplish an

objective and directs the organization in a way that makes it more cohesive and
coherent.
Leaders carry out this process by applying their leadership knowledge and skills.
This is called Process Leadership. However, we know that we have traits that
can influence our actions. This is called Trait Leadership in that it was once
common to believe that leaders were born rather than made.
Peter Drucker defined leader as someone who has followers. To gain followers
requires influence but does not exclude the lack of integrity in achieving this.
Indeed, it can be argued that several of the world’s greatest leaders have lacked
integrity and have adopted values that would not be shared by many people
today.
In the 21 Irrefutable Laws of Leadership, John Maxwell sums up his definition
of leadership as “leadership is influence - nothing more, nothing less.” This moves
beyond the position defining the leader, to looking at the ability of the leader to
influence others, that is, both those who would consider themselves followers,
and those outside that circle. Indirectly, it also builds in leadership character,
since without maintaining integrity and trustworthiness, the capability to influence
will disappear.
Warren Bennis’ definition of leadership is focused much more on the individual
capability of the leader. He defined leadership as a function of knowing oneself,
having a vision that is well communicated, building trust among colleagues, and
taking effective action to realize one’s own leadership potential.
Leadership is the art of influencing others to direct their will, abilities and efforts
to the achievement of leader’s goals. In the context of organizations, leadership
lies in influencing individual and group effort toward the optimum achievement
of organizational objectives.
Leadership focuses on “people” aspect of management and is based on the
assumption that organizational effectiveness significantly depends on their
motivation, effort and abilities. The human relations movement, beginning with
the Hawthorne studies in early thirties, focused on the important role of employee
motivation and group norms of organizational success. This led to the recognition
of leadership effectiveness as an important determinant of organizational
effectiveness.
It is the manager in his leadership role who has to stimulate and inspire the
employees to contribute willingly and cooperatively to the optimum achievement
7
Leadership and Team of organizational goals. In this context, one important term we can use, i.e.,
Building
team. Generally, team members support one another. They offer suggestions and
give feedback to other members. They may disagree but work to resolve
differences and reach consensus. Each and every member of the team trust and
support other members.
Any one who acts as a model to others is often called a “leader”. Leadership is
attribute of that person who is an ideal for the other members of the group.
Leadership is the behaviour that affects the behaviour of other people, more than
their behaviour affects that of the leader. In fact we can say that in every group
every member bears some relation to the others and all of them influence and
affect each other. Leader leads, suggests, orders and also guides. Other people
follow him. We can say that leadership and domination are not the same meaning.
According to MacIver and Page Leadership is the capacity to persuade or to

direct man that comes from personal qualities apart from office. It indicates the
difference between leadership and office. An individual does not become a leader
only by occupying an office which carries responsibility. It is a matter of secondary
importance that his important office is of assistance to him in his endeavour to
become a leader. Leadership depends upon the individual qualities of the person
and not the office that he holds. Leadership is the term which denotes the
behaviour or functions of the leader. The leader affects the individual in such a
way they surrender themselves and follow his dictates.
According to Pigors, “Leadership is a process of control in which by the

assumption of superiority a person or group regulates the activities of others for
purposes of his own choosing.” Considering this, we can further say that the
characteristics of leadership are as follows:
1) Leader is the total ideal of the followers.
2) Leader is shown regard.
3) Leader and the followers influence each other.
4) Leader’s order is a command.
5) Leader controls the other member of the group.
6) Leader determines the group’s conduct.
7) Leader is a respected and revered person.
1.3 CLASSIFICATION OF LEADERSHIP

To know about leadership more we need to understand about the bases of
leadership. We can classify leadership on the basis of origin, viz., (i) executive
appointed leadership (ii) leader appointed by the group (iii) self appointed leader.
These are being presented below.
1.3.1 Executive Appointed Leadership

The person is appointed by the executive and the leadership stems from the
office or post to which the person is appointed by the executive. The class of
government officers is of this type.
8
1.3.2 Leader Appointed By the Group Definition of Leadership
These leaders are elected by the group. Public leaders of panchayats, local groups, Building
the Lok Sabha and Rajya Sabha are elected by the group.
1.3.3 Self-Appointed Leader

There are some leaders whose authority derives neither from the executive nor
the group because it is not vested in them by these groups. They advance because
of their individual qualities and having attained the central position, lead the
people. They are recognized as such because of their qualities.
Besides the above, we can classify leadership on the basis of some purpose.
Different groups make efforts for the achievement of different aims in their
respective individual spheres. The individuals who appear to be most resourceful
in the attainment of any purpose and a qualified person are accepted as leader.
We can classify this into two categories, viz., (i) intellectual leadership and (ii)
artistic leadership and (iii) exective leadership.
1.3.4 Intellectual Leadership

This leadership is in the intellectual field. In the field of philosophy, science etc.
the greatest thinkers can be said as intellectual leaders because they show the
way and the others follow them.
1.3.5 Artistic Leadership

This leadership is in the field of art, only the great artists can provide the
leadership.
1.3.6 Executive Leadership

This type of leadership is in the sphere of administration, it is the authoritative
personality who becomes the leader.
Also leadership can be on the basis of nature, viz., (i) authoritarian leader (ii)
democratic leader (iii) institutional leader (iv) dominant leader (v) expert leader
(vi) persuasive leader
1.3.7 Authoritarian Leadership

The authoritarian leader is an individual who likes to assert his authority. He
does not consult any one in taking decisions and leads by creating fear into the
hearts of his followers and subordinates. He keeps all his authority in his hands
and appoints reliable subordinates at crucial position. Leader of this kind is an
officer and an authoritarian. He prefers to issue orders and punishes who disobey
him.
1.3.8 Democratic Leadership

This type of leader is of a democratic mould in his thoughts, modes of action and
conduct. He takes advice from every one and is always anxious to enlist the
cooperation of any one who is willing to give it. His leadership is based upon
sympathy, belief and affection. He does not call himself a leader and neither
does he take all the authority into his own hands.
9
Leadership and Team 1.3.9 Institutional Leadership
Building
There are some individuals who occupy the highest post. His orders are
appreciated and implemented because of the authority vested in his chair. The
institutional leader is not leader but the officiating head.
1.3.10 Dominant Leader

The leader is so called because he maintains a relation of authority and dominance
with his followers or subordinates. He does not rule over them. However
successful he may appear because of his power and authority.
1.3.11 Expert Leadership

A Leader of this type does not put any premium on maintaining social contact
with their followers, understanding them or even knowing their thoughts. People
come to them for advice from time to time, respect their opinions.
Expert leaders are experts, and should not be considered as leaders. The basis of
their contact with their followers and subordinates is their special ability and
efficiency.
1.3.12 Persuasive Leadership

The persuasive leaders win the heart of their followers and do their best to maintain
the closest social contact with them. These are the real leaders. It is only this
kind of individual who really exhibits all the qualities of leadership.
The overall picture reveals a variety of leadership style and their characteristics
which we have to know about leadership. In can context of organizational setting
only three major leadership style we can discuss here. These are autocratic,
democratic and lassiez-faire leadership style and each of which have some
significant features.
Salient Features of Autocratic/Authoritarian/Production Centered leadership
• Exercises close supervision.
• Makes most decision himself.
• Emphasizes on production.
• Permits little or no initiative to subordinates.
• Gives detailed instructions and directions.
• Subordinates’ suggestions and ideas are not allowed.
• Authority oriented.
Salient features of Democratic/ Employee centered leadership
• Delegate authority and responsibility.
• Manages through objectives.
• Permits initiative and responsibility.
• Seeks and encourages employees’ suggestions.
• Participative decision-making.
• Emphasizes production as well as employee satisfaction.
10
Laissez-Faire leadership Definition of Leadership
• Emphasizes neither production, nor employee satisfaction. Building
• It is directionless.
• Employees are left to drifting.
Transformational leadership
Besides this, there is another type of leadership, named transformational
leadership. It is defined as leadership that goes beyond normal expectations by
inspiring new ways of thinking, stimulating learning experiences and transmitting
a sense of mission. These leaders are sometimes called super leaders. They act in
such a way that it is possible to transform average organization into exceptional
organization.
1.4 FACTORS OF LEADERSHIP

1.4.1 Leader
The leader must have an honest understanding of who he is, what he knows, and
what he can do. Also, note that it is the followers, not the leader or someone else
who determines if the leader is successful. If they do not trust or lack confidence
in their leader, then they will be uninspired. To be successful the leader must
convince his followers, that he is worthy of being followed.
1.4.2 Followers
Different people require different styles of leadership. For example, a new hire
requires more supervision than an experienced employee. A person who lacks
motivation requires a different approach than one with a high degree of motivation.
The leader must therefore know his people. The fundamental starting point is
having a good understanding of human nature, such as needs, emotions, and
motivation. The leader must know his employees and their attributes.
1.4.3 Communication
The leader leads through two way communication. He has to set the example
and xcommunicate to them that he would not ask them to perform anything that
he would not be willing to do. What and how the leader communicates either
builds or harms the relationship between the leader and his employees.
1.4.4 Situation
All situations are different. What one does in one situation will not always work
in another. The leader must use his judgment to decide the best course of action
and the leadership style needed for each situation. For example, the leader may
need to confront an employee for inappropriate behavior, but if the confrontation
is too late or too early, too harsh or too weak, then the results may prove ineffective.
Also note that the situation normally has a greater effect on a leader’s action
than his or her traits. This is because while traits may have an impressive stability
over a period of time, they have little consistency across situations. This is why
a number of leadership scholars think the Process Theory of Leadership is a
more accurate than the Trait Theory of Leadership.
11
Leadership and Team Various forces will affect these four factors. Examples of forces are the leader’s
Building
relationship with his seniors, the skill of his followers, the informal leaders within
his organization, and how his organization is organized.
1.5 CHARACTERISTICS OF LEADERSHIP

Leadership characteristics are an interesting topic because some people wonder
if they possess these characteristics without completely understanding what they
might be. In other words, we have people trying to figure out if they are leaders,
but they do not really understand what defines a leader. Let us take a close look
at some of the characteristics of a leader.
Characteristics of a Leader
Listed below are eight leadership characteristics
1.5.1 Interpersonal Skills
The first leadership characteristic is the interpersonal skills. Leaders that have
earned the trust and respect of their followers can use this trust to move the
organization towards the achievements of its goal. These leaders are able to use
their interpersonal skills to work through difficult relationships, and keep the
peace in their departments. These individuals are good at listening as well as
providing constructive feedback.
1.5.2 Communication Skills

Leaders demonstrating communication skills are both good speakers and
listeners. Through their words they can help keep the workforce motivated and
committed. They also listen to their followers, and ask questions when they want
to make sure they have a good understanding of what is being expressed.
1.5.3 Values
Leaders must also value the diversity of a workforce, and understand that a diverse
group of employees will bring a broader perspective to the organization. They
will treat followers with the respect they deserve, and do not display favoritism.
They operate with a high level of ethics, which becomes an example for others
to follow.
1.5.4 Organizational Consciousness

Leadership characteristics sometimes go beyond personal traits, and touch on
areas such as organizational consciousness or knowledge. These are leaders that
understand what the organization wants to achieve, and know how it can be
accomplished. They create networks within the organization to help their groups
get work done, and are just as adept at breaking down organizational barriers to
progress.
1.5.5 Confidence
Leaders need to carry themselves with confidence, and should not be afraid to
take ownership for both popular and unpopular decisions. They must be able to
learn from criticisms, and be often acutely aware of their own shortcomings.
Confident leaders are able to maintain a calm demeanor even during emergencies,
12 and this can be contagious when it needs to be.
1.5.6 Flexibility Definition of Leadership
Another important characteristic of leaders are their ability to remain flexible, Building
and adapt their leadership style to meet the demands of the current work
environment. They must be able to work with others to meet organizational goals,
and shift focus as necessary.
1.5.7 Creativity Skills

Leaders demonstrating creativity skills are able to develop innovative solutions
to old problems. The diversity they build in their organizations helps them to
develop more comprehensive answers to routine questions. Creative leaders are
able to translate technical information into solutions that are understood by
everyone.
1.5.8 Achieving Results

Leaders just do not set the example for others to follow. They also play a big role
in achieving the goals of the organization. Through their leadership skills, they
maintain a high level of performance in their organizations, and they are able to
help keep their workforce motivated even when faced with a seemingly impossible
situation.
Since they have a deep understanding of what an organization needs to

accomplish, they are able to quickly identify and solve the important objectives
of an organization.
Leadership is much more complex than merely earning a high-status position in

a company, and the ability to order people to do things. It is a participative journey
that the leader must be willing to walk with others. It is a skill that’s acquired
over a lifetime, and these characteristics are something we can practice about
every day of our life. A great leader is one who learns from his mistakes
1.6 TASKS OF LEADERSHIP

The principal tasks of leadership are presented below:
1) To recognize that people differ in their motivational pattern.
2) To gain an understanding of group dynamics.
3) To create an environment that produces convergence of individual goals
and organizational goals.
4) To stimulate and inspire employees as individuals and group members to
make their optimum contribution to organizational efficiency and
effectiveness.
5) To make sense of changing environment, interpret it to employees and redirect
their efforts to adapt to changing situation.
1.7 APPROACHES OF LEADERSHIP

The main approaches of leadership are:
1) The trait approach.
2) Approaches based on the use of authority. 13
Leadership and Team 3) Likert’s approach.
Building
4) The managerial grid approach.
5) The path-goal approach.
6) The contingency approach.
7) The continuum approach.
Let us discuss these aspects one by one below.
1.7.1 The Trait Approach

The trait approach aims at identifying some unique qualities that would distinguish
more effective managers from less effective managers.
1.7.2 The Use of Authority Approach

One approach classified managers as democratic, authoritarian and lassiez-faire.
The Ohio State University studies identified leadership on two orthogonal
dimensions, viz., consideration and initiation. The University of Michigan studies
distinguished between production oriented and employee oriented leaders on a
simple dimension.
1.7.3 Likert System Approach

There are mainly four types of approach. System I is Exploitative Authoritarian
system, System II is Benevolent Authoritative system, System III is Consultative
and System IV is Participative group leadership. The system IV is most effective
for employee need satisfaction as well as optimum organizational performance.
1.7.4 Managerial Grid Approach

Leadership style in on a grid with 9-point on the horizontal axis and 9-point on
vertical axis. Horizontal axis indicates “Concern for production” and vertical
axis indicates “ concern for people”.
We can say 1, 1 leadership style is impoverished management with minimum

concern for production and minimum concern for people; 9,1 style leader indicates
maximum concern for production and minimum concern for people. We can
further say that 1,9 style indicates minimum concern for production and maximum
concern for people. 9,9 style is most effective because it indicates maximum
concern for production and maximum concern for people. In this context it can
be said that 5,5 style is recognized as mid-of-the-road style.
1.7.5 Path-Goal Approach

Leader’s effectiveness depends on his ability to provide opportunities for
employee need satisfaction and make need satisfaction contingent on performance
effectiveness.
1.7.6 Contingency Approach

There are mainly two kinds of behaviour – (i) task-oriented and (ii) people and
interpersonal-oriented. What kind of leader will succeed depends on the three
situations mainly:
• Leader’s personal relationship with group members.
14
• Formal authority of the leader and Definition of Leadership
• Degree of task structure. Building
Task oriented leaders will be effective when situation is very favourable or very
unfavourable. In intermediate situations, people and inter-personal oriented leader
will be effective.
1.7.7 Continuum Approach

There are mainly seven types of leader’s behaviour on a continuum. At one end
of the continuum, the leader has almost full freedom to make decision and at the
other end subordinate group has it. In the middle, both have equal freedom when
leader presents tentative decisions subject to change after non-manager input.
Mainly the choice of leadership style depends on the situation. On the other
hand, manager consider three following factors, viz.,
• forces within himself,
• forces in the subordinate and
• forces in the situation.
An organization may choose any approach considering the above mentioned
leadership approaches.
1.8 TEAM AND TEAM BUILDING

When group interaction is necessary to job performance, team building can be
used to foster team spirit, cooperation and commitment to group success. Some
special features we can say about team:
Performance includes individual efforts and collective work products which are
the result of joint and coordinated attempts.
1) Indication of shared leadership roles.
2) Indication of individual and mutual accountability.
3) Encourages open-ended active, problem-solving meeting.
4) Complementary by nature.
5) Indication of positive action.
6) Discusses, decides and does real work together.
7) Indication of trust among the group members.
8) Each and every member of the team supports one another willingly.
9) If disagreement happens, still team members work to resolve differences
and reach consensus.
10) Team members offer suggestions and give feed-back to other members.
11) Actually teams create the potential for an organization to generate greater
outputs.
People in every workplace talk about building the team, working as a team, and
my team, but few understand how to create the experience of team work or how
to develop an effective team. Belonging to a team, in the broadest sense, is a
result of feeling part of something larger than one’s self. It has a lot to do with
one’s understanding of the mission or objectives of the concerned organization.
15
Leadership and Team In a team oriented environment, the individuals contribute to the overall success
Building
of the organization. Every employee works with fellow members of the
organization to produce these results. Even though an individual employee may
have a specific job function and he belongs to a specific department, such persons
are unified with other organization members to accomplish the overall objectives.
The bigger picture drives management’s actions and the manager’s function exists
to serve the bigger picture.
One needs to differentiate this overall sense of teamwork from the task of
developing an effective intact team that is formed to accomplish a specific goal.
People confuse the two team building objectives. This is why so many team
building seminars, meetings, retreats and activities are deemed failures by their
participants. Leaders fail to define the team they want to build. Developing an
overall sense of team work is different from building an effective, focused work
team when the management considers team building approaches.
1.9 TWELVE CS FOR TEAM BUILDING

Executives, managers and organization staff members universally explore ways
to improve business results and profitability. Many view team-based, horizontal,
organization structures as the best design for involving all employees in creating
business success.
No matter what one calls the team-based improvement effort, whether it is

continuous improvement, total quality, lean manufacturing or self directed work
teams, it is clearly evident that the management are striving to improve results
for customers. Few organizations, however, are totally pleased with the results
and their team improvement efforts produce. If the team improvement efforts
are not living up to one’s expectations, this self diagnosing checklist may tell
you why. Successful team building, that creates effective, focused work teams,
requires attention to each of the following.
1.9.1 Clear Expectations

Has executive leadership clearly communicated its expectations for the team’s
performance and expected outcomes? Do team members understand why the
team was created? Is the organization demonstrating constancy of purpose in
supporting the team with resources of people, time and money? Does the work
of the team receive sufficient emphasis as a priority in terms of the time,
discussion, attention and interest directed its way by executive leaders?
1.9.2 Context
Do team members understand why they are participating on the team? Do they
understand how the strategy of using teams will help the organization attain its
communicated business goals? Can team members define their team’s importance
to the accomplishment of corporate goals? Does the team understand where its
work fits in the total context of the organization’s goals, principles, vision and
values?
1.9.3 Commitment
Do team members want to participate on the team? Do team members feel the
16 team mission is important? Are members committed to accomplishing the team
mission and expected outcomes? Do team members perceive their service as Definition of Leadership
valuable to the organization and to their own careers? Do team members anticipate Building
recognition for their contributions? Do team members expect their skills to grow
and develop on the team? Are team members excited and challenged by the team
opportunity?
1.9.4 Competence
Does the team feel that it has the appropriate people participating? (As an example,
in a process improvement, is each step of the process represented on the team?)
Does the team feel that its members have the knowledge, skill and capability to
address the issues for which the team was formed? If not, does the team have
access to the help it needs? Does the team feel it has the resources, strategies and
support needed to accomplish its mission?
1.9.5 Charter
Has the team taken its assigned area of responsibility and designed its own
mission, vision and strategies to accomplish the mission. Has the team defined
and communicated its goals; its anticipated outcomes and contributions; its
timelines; and how it will measure both the outcomes of its work and the process
the team followed to accomplish their task? Does the leadership team or other
coordinating group support what the team has designed?
1.9.6 Control
Does the team have enough freedom and empowerment to feel the ownership
necessary to accomplish its charter? At the same time, do team members clearly
understand their boundaries? How far may members go in pursuit of solutions?
Are limitations (i.e. monetary and time resources) defined at the beginning of
the project before the team experiences barriers and rework?
Is the team’s reporting relationship and accountability understood by all members
of the organization? Has the organization defined the team’s authority? To make
recommendations? To implement its plan? Is there a defined review process so
both the team and the organization are consistently aligned in direction and
purpose? Do team members hold each other accountable for project timelines,
commitments and results? Does the organization have a plan to increase
opportunities for self-management among organization members?
1.9.7 Collaboration
Does the team understand team and group process? Do members understand the
stages of group development? Are team members working together effectively
interpersonally? Do all team members understand the roles and responsibilities
of team members? team leaders? team recorders? Can the team approach problem
solving, process improvement, goal setting and measurement jointly? Do team
members cooperate to accomplish the team charter? Has the team established
group norms or rules of conduct in areas such as conflict resolution, consensus
decision making and meeting management? Is the team using an appropriate
strategy to accomplish its action plan?
1.9.8 Communication
Are teams members clear about the priority of their tasks? Is there an established
method for the teams to give feedback and receive honest performance feedback?
17
Leadership and Team Does the organization provide important business information regularly? Do the
Building
teams understand the complete context for their existence? Do team members
communicate clearly and honestly with each other? Do team members bring
diverse opinions to the table? Are necessary conflicts raised and addressed?
1.9.9 Creative Innovation

Is the organization really interested in change? Does it value creative thinking,
unique solutions, and new ideas? Does it reward people who take reasonable
risks to make improvements? Or does it reward the people who fit in and maintain
the status quo? Does it provide the training, education, access to books and films,
and field trips necessary to stimulate new thinking?
1.9.10 Consequences
Do team members feel responsible and accountable for team achievements? Are
rewards and recognition supplied when teams are successful? Is reasonable risk
respected and encouraged in the organization? Do team members fear reprisal?
Do team members spend their time finger pointing rather than resolving problems?
Is the organization designing reward systems that recognize both team and
individual performance? Is the organization planning to share gains and increased
profitability with team and individual contributors? Can contributors see their
impact on increased organization success?
1.9.11 Coordination
Are teams coordinated by a central leadership team that assists the groups to
obtain what they need for success? Have priorities and resource allocation been
planned across departments? Do teams understand the concept of the internal
customer—the next process, anyone to whom they provide a product or a service?
Are cross-functional and multi-department teams common and working together
effectively? Is the organization developing a customer-focused process-focused
orientation and moving away from traditional departmental thinking?

Does the organization recognize that the team-based, collaborative, empowering,
enabling organizational culture of the future is different than the traditional,
hierarchical organization it may currently be? Is the organization planning to or
in the process of changing how it rewards, recognizes, appraises, hires, develops,
plans with, motivates and manages the people it employs?
Does the organization plan to use failures for learning and support reasonable
risk? Does the organization recognize that the more it can change its climate to
support teams, the more it will receive in pay back from the work of the teams?
1.10 DEVELOPMENT OF A TEAM

We know that in each and every step of our common activity we require to
develop a team so that performance level will be increased and effective one
considering the existing scenario of the activity. The significant points in this
context we can mention here are as follows:
1) Have to create a balanced set of roles.
18
2) Have to develop communication and process awareness. Definition of Leadership
3) Have to understand team preferences. Building
4) Have to establish review mechanism.

5) Have to develop facilitation skills for effective meetings.
6) Have to confront issues and problems.
7) Have to manage stress.
8) Have to define team goal.
9) Have to take decisions based on consensus.
10) Have to implement shared leadership and create equality of contribution.
According to, Richard Beckhard, team building efforts typically have one or
more of the following goals:
• To set team goals and priorities.
• To analyze or allocate the work performed.
• To examine the way the group is working, i.e., to examine processes such as
norms, decision-making and communications.
• To examine relationships among the people doing the work.
According to Moorhead and Griffin, team building precedes in much the same
manner as other change processes: identification of the problem, data gathering,
diagnosis, planning, implementing and evaluation. Its distinguishing feature is
group participation at each step in the process. A permanent team is generally
composed of members from several departments or work units who meet regularly
for the purpose of resolving problems of a common interest. Permanent team is
similar to a task force and in fact, it has been known to remain in place for
several years.
1.11 LET US SUM UP

Managers generally use the formal position and power of their jobs to influence
subordinates. On the other hand, leaders use social processes. Thus a person
may be a both a manager and a leader. A formal leader is one who is appointed
but an informal leader emerges from the work group. A successful leader may
have the trait characteristics, like, adaptable to the situation, cooperative,
persistent, tolerant of stress, decisive, alert to the social environment, ambitious
and achievement-oriented, energetic, self-confident, energetic and willing to
assume responsibility. For the proper development of an organization appropriate
leadership style and characteristics of the leader as well as suitable team work is
necessary. Undoubtedly, team should have suitable goals, spirit, cooperation and
commitment to group success. To build a team a process should be followed
appropriately.

1) What do you mean by the term leadership?
2) What is the difference between autocratic and democratic leadership style?
19
Leadership and Team 3) What is managerial grid approach?
Building
4) What do you mean by the term ‘team’?
5) How can you develop a team?
6) What is team building?
7) Is there any relationship between leadership and team? –Discuss.
8) Discuss the properties of team

Fred Luthans, (1998). Organizational Behaviour, International Eighth edition,
Irwin McGraw Hill.
Robbins, S.P. (1994). Organizational Behaviour, concepts, controversies and

applications, 6th edition, N.J. Prentice Hall.
Schultz, D.P. and Schultz, S.E.(1990). Psychology and Industry today, An

introduction to industrial and organizational psychology, 5th edition, NY.
McMillon.
20
Definition of Leadership
UNIT 2 CHANGE MANAGEMENT and Importance of Team
Building
Structure
2.0 Introduction
2.1 Objectives
2.2 Important Aspects about Management
2.2.1 Definition of Management
2.3 Approaches of Management
2.4 Nature of Management
2.4.1 Management: An Economic Resource
2.4.2 Management: A System of Authority
2.4.3 Management: A Class Team or Group
2.4.4 Management: Science or Art
2.4.5 Management: A Profession
2.5 Management Principles
2.6 The Management Functions
2.6.1 Planning
2.6.2 Organising
2.6.3 Staffing
2.6.4 Directing
2.6.5 Coordinating
2.6.6 Control
2.7 Change Management
2.8 Issues about Change Management
2.8.1 Responsibility for Managing Change
2.8.2 Change Must Involve the People
2.8.3 Change Management Principles
2.8.4 John Kotter’s Eight Steps to Successful Change
2.8.5 Organisation Change, Training and Learning
2.8.6 Organisational Change, Training and Development and Motivation
2.9 Consent to Change
2.9.1 Fact 1
2.9.2 Fact 2
2.9.3 Fact 3
2.10 Five Basic Principles and How to Apply Them for Change
2.10.1 Principle 1
2.10.2 Principle 2
2.10.3 Principle 3
2.10.4 Principle 4
2.10.5 Principle 5
2.11 Psychological Contract and People Organizational Relationship
2.11.1 Psychological Contract
2.11.2 The People Organizational Relationship
2.12 Let Us Sum Up
2.14 Suggested Readings 21
Leadership and Team
Building 2.0 INTRODUCTION
In this unit we will be discussing about change management. To understand
change management we need to know first all about management. Thus we start
this unit giving details about important aspects related to management. Then we
define management,. This is followed by approaches of management. Then we
take up nature of management under which we discuss management an economic
resource, a system of authority, a class team or group.
We also consider management as an art and as a science. Finally we consider

management as a profession. This is followed by management principles followed
by elucidating the management functions which includes planning, organizing,
stffing, directing, coordinating and controlling. In the following section we deal
with change management, its definition etc. This is followed by issues related to
change management that includes responsibility for managing change, how to
involve people so as to make the changes effective. Then we elucidate the change
management principles and the eight steps to successful change. Then we discuss
how organsiational change training and learning and motivation contribute to
change in the organization. It is then pointed out as to how people normally
would not consent to change and hence what are all to be done in order to get
people consent to change and these are given in facts 1,2 and 3. Then we delineate
the 5 basic principles of change and how to apply the same to effect change in an
organization. Finally we discuss the psychological contract and people
organizational relationship.
2.1 OBJECTIVES
• Explain the concept of management;
• Describe the characteristics of management;
• Elucidate the approaches to management;
• Explain the management functions;
• Define change management
• Elucidate the principles of change management
• Describe psychological contract and people-organization relationship; and
• Analyse change management and principles of change management.
2.2 IMPORTANT ASPECTS ABOUT MANAGEMENT

Human beings, from the very beginning of their existence on this planet, have
engaged themselves in activities, which have provided them better way of living.
When the people found it difficult to perform various activities alone, they sought
cooperation of others which later on took the shape of the organization. With the
technological innovation, greater degree of specialization and division of labour
were needed which also resulted in the large number of individuals working
together and getting the collective objectives through their integrated efforts.
However, in this process an agency to integrate these efforts was needed and that
gave rise to management.
22
Management is the integrating force in all kinds of organized activity. It is not Change Management
unique to business organizations but common to all kinds of social organizations.
Management is the social process of planning, organizing, staffing, directing,
coordinating and controlling for the determination and achievement of
organizational objectives in a dynamic environment.
2.2.1 Definition of Management

There are various definitions about managent, which are as given below:
1) Management is the function of executive leadership everywhere.
2) Management is the process of getting things done through the agency of a
community. The functions of management are the handling of a community
with a view to fulfilling the purposes for which it exists.
3) Management is a technique by means of which the purposes and objectives
of a particular human group are determined, clarified and affected.
4) The six essential functions of management are planning, organizing,
directing, staffing, coordinating and controlling.
5) Management embraces all duties and functions that pertain to the initiation
of an enterprise, its financing, the establishment of all major policies.
6) Management entails the coordination of human effort and material resources
toward the achievement of organizational objectives.
7) Management is the art of directing and inspiring people.
8) Management is the complex of the continuous, coordinated activities by
means of which any undertaking or any administration or other service,
public or private, is conducted.
9) Management is the art of getting things done through the efforts of other
people.
10) Management is the art and science of organizing and directing human effort
applied to control the forces and utilize the materials of nature for the benefit
of man.
2.3 APPROACHES OF MANAGEMENT

The three approaches in which management can be defined are as follows:
i) Management as a field of study: It includes principles, techniques, functions
and problems.
ii) Management as a team or class of people: It includes individuals who
perform the managerial activities in the organization and the actions
performed by them which come under managerial activities.
iii) Management as a process: In studying the management process, various
managerial activities takes as a basis for defining management are two ways
of identifying managerial activities. One is inductive and other is deductive.
Inductive method means management is what manager does. Under
deductive method we can classify total activities of the organization as
managerial or non-managerial or operative. 23
Leadership and Team
Building 2.4 NATURE OF MANAGEMENT
The concept of management is universal. The nature we can analyze in the context
of it being
i) an economic resource,
ii) a system of authority,
iii) a class of team,
iv) a science or art and
v) a profession.
2.4.1 Management: An Economic Resource

There are five factors of production, viz., land, labour, capital, management and
entrepreneur. These various factors are classified as human and non-human factors
in organization.
2.4.2 Management: A System of Authority

Management is a system of authority. A system can be defined as a set of things
can be defined as a set of things connected or interrelated and interdependent so
as to form a complex unity. The authority may be defined as the legal right to
command others to act or not to act in a prescribed manner.
2.4.3 Management: A Class, Team or Group

Here we refer management as individuals or group of individuals occupying
managerial positions and performing managerial functions. These are
i) paternal or family management,
ii) political management and
iii) professional management.
2.4.4 Management: Science or Art

It is said that management is the oldest of art and the youngest of science. It is a
science because it evolves and uses certain principle. It is an art because it requires
continuous practice to get the desired result in the best way.
2.4.5 Management: A Profession

Management is a comparatively new field of knowledge and has been developed
as a result of rapid industrialization. It is increasingly being treated as a profession
because of the need for acquiring management skills to solve the complex problem
of the organization.
2.5 MANAGEMENT PRINCIPLES

Management has been defined as science, though an inexact science. It means
that managerial functions are based on certain principles. Principles are a
fundamental truth which establishes cause and effect relationship of a function
and theory is a systematic grouping of inter-related principles. The significant
points in this context we can mention are as follows:
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• To increase efficiency. Change Management
• To crystallize the nature of management.

• To carry on researches.
• To attain social objectives.
2.6 THE MANAGEMENT FUNCTIONS

The main functions are planning, organizing, staffing, directing, coordinating
and controlling.
2.6.1 Planning
Planning is the most fundamental and the most pervasive of all the managerial
functions. It includes:
o determination of long and short-range objectives,
o development of strategies and courses of actions for the achievement of
these objectives and
o formulation of policies, procedures, rules etc. for the implementation of
strategies and plans.
2.6.2 Organizing
Organizing involves
o identification of activities required for the achievement of objectives and
implementation of plans,
o grouping of activities so as to create self-contained jobs,
o assignment of jobs to employees,
o delegation of authority and
o establishment of coordinating relationships.
Organizing process results in a structure of the organization. It comprises
organizational positions, accompanying tasks and responsibilities and a network
of roles and authority-responsibility relationships.
2.6.3 Staffing
Staffing process comprises of
• man-power planning,
• recruitment,
• selection, induction and orientation,
• transfer, promotion and termination and
• employee training and development.
2.6.4 Directing
It is the function of leading the employees to perform efficiently and effectively
and contribute their optimum to the achievement of organizational goals. It
includes the sub-function of leadership, motivation and communication.
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Leadership and Team 2.6.5 Coordinating
Building
Coordinating is the integrating function. It is the process of tying together all the
parts of the organization so that they all pull in the direction of organizational
goals.
It includes the following sub-function:
o keeping authority and responsibility relationships clearly defined,
o unity of direction,
o unity of command,
o effective communication and effective leadership.
2.6.6 Control
Control involves:
o measurement of performance against predetermined goals,
o identification of deviation from these goals and
o corrective action to rectify deviation.
Management performs all these functions in interaction with its environment. In
the course of performing these functions, it is influenced by as well as it influences
its environment.
Management theory and principles have universal applicability to all kinds of

organizations, operating in differing socio-cultural environments.
They are transferable from developed to underdeveloped countries. Without

people there can be no organization and no meaningful activity.
Organizations can only achieve their aims and objectives through the coordinated
efforts of other members. It is the job of management to get things done through
other people. This involve the effective management of human resources.
It is people who are being managed and people should be considered in human
terms. Human behaviour is the end result of a multiplicity of influences, many
of which are hard to identify, so they need to be measured scientifically under
experimental control.
2.7 CHANGE MANAGEMENT

Change management is a structured approach to transitioning individuals, teams
as well as organizations from current state to a desired future state. In this context
we can consider organizational change.
The important types of organizational change are mainly,
i) strategic changes,
ii) technological changes,
iii) structural changes, and
iv) change the attitudes and behaviours of personnel.
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An effective change management plan needs to address all the dimensions of Change Management
change. Organizations consist of people who are united by a common purpose.
To meet the objectives of the organization, a structure is created, maintained and
used.
Generally, there are three levels of organizations, viz.,
• strategic,
• managerial and
• operating.
At the strategic level, policies are formulated, goals are set and objectives are
formed. Strategies are also designed to achieve the objectives taking into
consideration the environmental influences on the organization. At the
management level the programs regarding the procurement and allocation of all
types of resources are formulated to achieve the strategies and formulated to
achieve the strategic and objectives. At the operating level, the programs are
implemented, i.e., the actual operations are carried out in the process of day to
day activities in order to carry out the strategies and achieve the objectives. Human
resources have a plus value in that they can convert the disorganized resources
into a useful, productive organization. For smooth running of the organization
and also for organizational development, effective management is desirable.
2.8 ISSUES ABOUT CHANGE MANAGEMENT

Change management entails thoughtful planning and sensitive implementation,
and above all, consultation with, and involvement of, the people affected by the
changes. If change is forced on people normally problems arise. Change must be
realistic, achievable and measurable. These aspects are especially relevant to
managing personal change. Before starting organizational change, the manager
should ask self what is it one wants to achieve with this change, why, and how
will we know that the change has been achieved? Also the other question to be
asked is who are affected by this change, and how will they react to it? And
whether the amount of change being visualized could be achieved by the
organisation and what parts of the change would the organisation need help with?
These aspects also relate strongly to the management of personal as well as
organizational change.
Change should not be sold to people as a way of accelerating ‘agreement’ and

implementation. ‘Selling’ change to people is not a sustainable strategy for
success, unless the aim of the organisation is to face problems at some time in
the future when when least expected.
Instead, change needs to be understood and managed in a way that people can
cope effectively with it. Change can be unsettling, so the manager logically needs
to be a settling influence.
It is important to find out if people affected by the change agree with, or at least
understand, the need for change, and have a chance to decide how the change
will be managed, and to be involved in the planning and implementation of the
change. For this, face to face communication must be used, so that sensitive
aspects of organisational change management could be handled effectively. The
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Leadership and Team managers in the organization must be encouraged to communicate face-to-face
Building
with their people when one has to manage an organizational change. Email and
written notices are extremely weak at conveying and developing understanding.
Where there is a need to make a change quickly, probe the reasons and ask the
question if the urgency is real. Will the effects of agreeing a more sensible time-
frame really be more disastrous than presiding over a disastrous change? Quick
change prevents proper consultation and involvement, which leads to difficulties
that take time to resolve.
For complex changes, the organization must ensure that they augment this change
with consultative communications so as to make the people agree and gain support
for the reasons for the change. Involving and informing people also creates
opportunities for others to participate in planning and implementing the changes,
which lightens the burden, spreads the organizational load, and creates a sense
of ownership and familiarity among the people affected.
For organizational change that entails new actions, objectives and processes for
a group or team of people, the organization must use workshops to achieve
understanding, involvement, plans, measurable aims, actions and commitment.
The management team should be encouraged to use workshops with their people
too if they are helping them to manage the change.
The organization should even apply these principles to very tough change like
making people redundant, closures and integrating merged or acquired
organizations. Bad news needs even more careful management than routine
change. Hiding behind memos and middle managers will make matters worse.
Consulting with people, and helping them to understand does not weaken the
management’s position, rather it would strengthen it. Leaders who fail to consult
and involve their people in managing bad news are perceived as weak and lacking
in integrity. If the management must treat people with humanity and respect and
they will reciprocate.
It must be remembered that the chief insecurity of most staff is change itself.
Senior managers and directors responsible for managing organizational change
do not, as a rule, fear change. They generally thrive on it. So the management
must remember that its people do not relish change, and they find it deeply
disturbing and threatening. The people’s fear of change is as great as one’s own
fear of failure.
2.8.1 Responsibility for Managing Change

The employee does not have a responsibility to manage change. The responsibility
of the employee is actually to do their best, which is different for every person
and depends on a wide variety of factors (health, maturity, stability, experience,
personality, motivation, etc). Responsibility for managing change is with
management and executives of the organization They must manage the change
in a way that employees can cope with it.
The manager has a responsibility to facilitate and enable change. The

management must help people to understand reasons, aims, and ways of
responding positively according to employees’ own situations and capabilities.
Increasingly the manager’s role is to interpret, communicate and enable He should
not instruct and impose, which nobody really responds to well.
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2.8.2 Change Must Involve the People Change Management
In other words, change must not be imposed on people. If people are not
approaching their tasks or the organization effectively, then the organization has
the wrong mindset, not the people. Change such as new structures, policies,
targets, acquisitions, disposals, re-locations, etc., all create new systems and
environments, which need to be explained to people as early as possible, so that
people’s involvement in validating and refining the changes themselves can be
obtained.
Whenever an organization imposes new things on people there will be difficulties.

Participation, involvement and open, early, full communication are the important
factors.
Staff surveys are a helpful way to repair damage and mistrust among staff,
provided the management allows people to complete them anonymously, and
publish and act on the findings.
Management training, empathy and facilitative capability are priority areas -

managers are crucial to the change process - they must enable and facilitate, not
merely convey and implement policy from above, which does not work.
Change cannot be imposed. In fact people and teams need to be empowered to

find their own solutions and responses, with facilitation and support from
managers, and tolerance and compassion from the leaders and executives.
Management and leadership style and behaviour are more important than clever
process and policy. Employees need to be able to trust the organization.
The leader must agree and work with these ideas, or change is likely to be very
painful, and the best people will be lost in the process.
2.8.3 Change Management Principles

1) At all times involve and agree support from people within system (system =
environment, processes, culture, relationships, behaviours, etc., whether
personal or organisational).
2) Understand where the organisation is at the moment.
3) Understand where the management wants to be, when, why, and what the
measures will be for having got there.
4) Plan development towards above No.3 in appropriate achievable measurable
stages.
5) Communicate, involve, enable and facilitate involvement from people, as
early and openly and as fully as is possible.
There are mainly ten principles of change management. These are as follows:
• Address the human side systematically.
• Start at the top.
• Involve every layer.
• Make the formal case.
• Create ownership.
29
Leadership and Team • Communicate the message.
Building
• Assess the cultural landscape.
• Address culture explicitly.
• Prepare for the unexpected.
• Speak to the individual.
Actually change management grew from the recognition that organizations are
composed of people and the behaviour of people make up the outputs of an
organization.
2.8.4 John P Kotter’s ‘Eight Steps to Successful Change’

American John P Kotter (b 1947) is a Harvard Business School professor and
leading thinker and author on organizational change management. Each stage
acknowledges a key principle identified by Kotter relating to people’s response
and approach to change, in which people see, feel and then change.
Kotter’s eight step change model can be summarized as:
1) Increase urgency - inspire people to move, make objectives real and relevant.
2) Build the guiding team - get the right people in place with the right emotional
commitment, and the right mix of skills and levels.
3) Get the vision right - get the team to establish a simple vision and strategy,
focus on emotional and creative aspects necessary to drive service and
efficiency.
4) Communicate for buy-in - Involve as many people as possible,
communicate the essentials, simply, and to appeal and respond to people’s
needs. De-clutter communications - make technology work for you rather
than against.
5) Empower action - Remove obstacles, enable constructive feedback and
lots of support from leaders - reward and recognise progress and
achievements.
6) Create short-term wins - Set aims that are easy to achieve - in bite-size
chunks. Manageable numbers of initiatives. Finish current stages before
starting new ones.
7) Don’t let up - Foster and encourage determination and persistence - ongoing
change - encourage ongoing progress reporting - highlight achieved and
future milestones.
8) Make change stick - Reinforce the value of successful change via
recruitment, promotion, new change leaders. Weave change into culture.
2.8.5 Organizational Change, Training and Learning

Here are some modern principles for organizational change management and
effective employee training and development. These principles are for forward
thinking emotionally mature organizations, who value integrity above results,
and people above profit.
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Do you train or do you facilitate learning? There is a big difference: Change Management
• ‘Training’ implies putting skills into people, when actually we should be

developing people from the inside out, beyond skills, ie., facilitating
learning.
• So focus on facilitating learning, not imposing training.
• Emotional maturity, integrity, and compassion are more important than
skills and processes. If you are in any doubt, analyse the root causes of your
organization’s successes and your failures - they will never be skills and
processes.
• Enable and encourage the development of the person - in any way that you
can.
• Give people choice - we all learn in different ways, and we all have our
own strengths and potential, waiting to be fulfilled.
Talk about learning, not training. Focus on the person, from the inside out,
not the outside in; and offer opportunities for people to develop as people in as
many ways you can.
2.8.6 Organizational Change, Training and Development and

‘Motivation’
Conventional organizational change, which typically encompasses training and
development, and ‘motivation’, mostly fails, because people look at things in a
different way.
Bosses and organizations still tend to think that people whom are managed and
employed and paid to do a job should do what they’re told to do. We are
conditioned from an early age to believe that the way to teach and train, and to
motivate people towards changing what they do, is to tell them, or persuade
them. From our experiences at school we are conditioned to believe that skills,
knowledge, and expectations are imposed on or ‘put into’ people by teachers,
and later, by managers and bosses in the workplace.
But just because the boss says so, doesn’t make it so. People today have a different
perspective. Imposing new skills and change on people doesn’t work because:
• It assumes that people’s personal aims and wishes and needs are completely
aligned with those of the organization, or that there is no need for such
alignment, and
• It assumes that people want, and can assimilate into their lives, given all
their other priorities, the type of development or change that the organization
deems appropriate for them.
2.9 CONSENT TO CHANGE

It is not easy to get the employees consent to change. Instead, organizations,
managers, bosses and business owners would do better to think first about
exploring ways to align the aims of the business with the needs of their people.
The following facts must be kept in mind.
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Leadership and Team 2.9.1 Fact 1
Building
People will never align with bad aims. Executive greed, exploitation,
environmental damage, inequality, betrayal, false promises are transparent for
all decent persons to see.
Re-assess and realign the organization’s aims, beliefs, integrity - all of it - with
those of people’s. Then they might begin to be interested in helping with new
skills and change, etc.
2.9.2 Fact 2
People can’t just drop everything and ‘change’, or learn new skills, just because
the management says so. Even if they want to change and learn new skills, they
have a whole range of issues that keep them fully occupied for most of their
waking hours
The reason why consulting with people is rather a good idea is that it saves the
management from itself and from its own wrong assumptions. Consulting with
people does not mean that the management hands over the organization to them.
Consulting with people gives the management and workers a chance to understand
the implications and feasibility of what the management thinks needs doing.
And aside from this, consulting with people, and helping them to see things
from both sides generally throws up some very good ideas for doing things better
than the management could have dreamt of by itself. It helps the management
you to see from both sides too.
2.9.3 Fact 3
Organizations commonly say they do not have time to reassess and realign their
aims and values, etc., or do not have time to consult with people properly, because
the organization is on the edge of a crisis.
Organizations get into crisis because they ignore facts one and two. Ignoring
these facts again will only deepen the crisis.
Crisis is no excuse for compromising integrity. Crisis is the best reason to realign
management aims and consult with people. Crisis is indicative of wake up and
change the organization and its purpose and not change the people. When an
organization is in crisis, the people are almost always okay.
So, whatever way one looks at the organizational change, one is deceiving oneself
that one can come up with a plan for change and then simply tell or persuade
people to implement it.
Instead, they must start by looking at their organization’s aims and values and
purposes. What does the organization actually seek to do? Whom does the
organization benefit? And whom does it exploit? Who are the winners, and who
are the losers? Does the organization have real integrity? Is the management
proud of the consequences and implications of what their organization does?
Will the management be remembered for the good that they did? And what do
people in the organization say to themselves about the way they are managing
change?
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Change Management
2.10 FIVE BASIC PRINCIPLES AND HOW TO APPLY
THEM FOR CHANGE
Change management is a basic skill in which most leaders and managers need to
be competent. There are very few working environments where change
management is not important.
When leaders or managers are planning to manage change, there are five key
principles that need to be kept in mind:
1) Different people react differently to change
2) Everyone has fundamental needs that have to be met
3) Change often involves a loss, and people go through the “loss curve”
4) Expectations need to be managed realistically
5) Fears have to be dealt with
Here are some tips to apply the above principles when managing change:
1) Give people information. That is they have to be open and honest about the
facts, but at the same time need not give overoptimistic speculation. It is
important to meet their openness needs, but in a way that does not set
unrealistic expectations.
2) For large groups, the management must produce a communication strategy

that ensures information is disseminated efficiently and comprehensively
to everyone. It must be ensured tha the grapevine does not take over. For
example the management must tell everyone at the same time. However,
follow this up with individual interviews to produce a personal strategy for
dealing with the change. This helps to recognise and deal appropriately with
the individual reaction to change.
3) People should be given choices to make, and the management must be honest
about the possible consequences of those choices. They must be given enough
time to express their views, and support their decision making, providing
coaching, counselling or information as appropriate, to help them through
the losses.
4) Where the change involves a loss, the management must identify what will
or might replace that loss. The loss is easier to cope with if there is something
to replace it. This will help assuage potential fears.
5) Where it is possible to do so, the individuals must be given an opportunity

to express their concerns and provide reassurances. This would help assuage
potential fears.
6) The management should keep observing good management practice, such

as making time for informal discussion and feedback (even though the
pressure might seem that it is reasonable to let such things slip. During
difficult change such practices are even more important.
Where management is embarking on a large change programmes, the change

programme should be treated as a project. That means the management should
33
Leadership and Team apply all the rig ours of project management to the change process. In other
Building
words, produce plans, allocate resources, appoint a steering board and/or project
sponsor etc.. The five principles above should form part of the project objectives.
When leaders or managers are planning to manage change, there are five key
principles that need to be kept in mind:
2.10.1 Principle 1
Different people react differently to change
The stability and change can be considered on a continuum with stability at one
extreme and change at another extreme.
Different people have different preferences for where they like to be on this
spectrum. Some people like to be at the stability end of the spectrum. They like
things to be the way they have always been. Other people like to be at the change
end of the spectrum. Such persons are always looking for something different
and new.
Problems arise when the individual’s preferences differ from the situation they
find themselves in. That is, if:
• a stability-oriented person finds that circumstances are changing quite rapidly,
or
• a change-oriented person finds that everything is the same and there is nothing
new
In these situations, the individuals involved can experience:
• strong disatisfaction
• stress
• negative attitudes towards individuals with preferences at the other end of
the spectrum (eg: distrust, dislike)
• resistance (to change, or to the status quo)
• intense emotions
• loss of rational judgement
People tend to resist, therefore, approaches on other parts of the spectrum than
where they themselves prefer to be.
2.10.2 Principle 2
Everyone has fundamental needs that have to be met
A famous psychologist called Will Schutz identified three basic needs that people
have in interpersonal relations. These basic needs are also of fundamental
importance in people’s reaction to change:
• The need for control
• The need for inclusion
• The need for openness

34
Whilst the need for these can vary between people, in any change process there Change Management
is always some degree of need for control over one’s environment/destiny, some
degree of need to be included in the process of forming the change that is taking
place, and some degree of need for managers/leaders to be open with their
information.
If a change programme fails to meet the control, inclusion and openness needs
of the individuals affected by it then that programme is likely to encounter a
range of negative reactions, ranging from ambivalence through resistance to
outright opposition.
2.10.3 Principle 3
Change often involves a loss, and people go through the “loss curve”
The relevance of the “loss curve” to a change management programme depends
on the nature and extent of the loss. If someone is promoted to a more senior
position, the ‘loss’ of the former position is rarely an issue because it has been
replaced by something better. But if someone is made redundant with little
prospect of getting a new job, there are many losses (income, security, working
relationships) that can have a devastating effect.
There are many variations of the “loss curve”. One is known as “Sarah” - that is,
the individual experiences (in this order):
• S-hock
• A-nger
• R-ejection
• A-cceptance
• H-ealing
The common factors amongst all “loss curves” are:
1) that there can be an initial period where the change does not sink in. For
example, feelings may be kept high by the individual convincing themselves
that the change is not going to happen.
2) that when the loss is realised, the individual hits a deep low. The depth of
this ‘low’ is deepened if the loss is sudden/unexpected.
3) that the period of adjustment to the new situation can be very uncomfortable
and take a long time. In the case of bereavement, the period of adjustment
can be as long as two years.
2.10.4 Principle 4
Expectations need to be managed realistically
The relationship between expectations and reality is very important. One can see
this in customer relations, as for example, if a supplier fails to meet expectations
then the customer is unhappy, and if the supplier exceeds expectations then the
customer is happy.
To some extent the same principle applies to staff and change. If their expectations
are not met, they are unhappy. If their expectations are exceeded, they are happy.
35
Leadership and Team Sometimes, enforced change inevitably involves the failure to meet expectations.
Building
That is there had been an expectation of job security, which has now been taken
away.
What leaders/managers have to do, however, is make sure they don’t aggravate
the situation by making promises that can not or will not be kept. Expectations
have to be set at a realistic level, and then exceeded.
2.10.5 Principle 5
Fears have to be dealt with
In times of significant change rational thought does not seem to function. This
means that people often fear the worst, that is they fear far more than the worst,
because their subconscious minds suddenly become illogical and see irrational
consequences. Given below are a few examples of this type of situation.
1) Our company is reducing staff, which means...
2) They will make people redundant, and...
3) I’ll be the first to be kicked out, and...
4) I’ll have no hope of getting another job, and...
5) I won’t be able to pay the mortgage, so...
6) I’ll lose the house, so...
7) My family won’t have anywhere to live, and...
8) My wife won’t be able to cope, so...
9) She’ll leave me, and...
10) I’ll be so disgraced the children won’t speak to me ever again.
Such fears need to be addressed, by helping people to recognise that most people
who are made redundant find a better job with better pay and have a huge lump
sum in their pocket. Or, where appropriate, by explaining how the reductions in
staff numbers are going to be achieved (by natural wastage or voluntary
redundancy)
2.11 PSYCHOLOGICAL CONTRACT AND PEOPLE

ORGANIZATIONAL RELATIONSHIP
Many problems in the people organizational relationship arise not so much from
what management does, but the manner in which it is done.
Often, it is not so much the intent but the manner of implementation that is the
root cause of staff unrest and dissatisfaction.
Accordingly, how managers exercise the responsibility for, and duties of,
management is important.
Management should, therefore, endeavour to create the right balance among the
inter-related elements which make up the total organization. So, attention should
be given on psychological contract and the people organization relationship.
36
2.11.1 Psychological Contract Change Management
The psychological contract covers a range of expectation of rights and privileges,

duties and obligations, which do not form part of a formal agreement but still
have an important influence on people’s behaviour.
The psychological contract is a useful concept in examining the socialization of
new members of staff to the organization. Early orientations or inductions about
the contractual obligations have a major effect on an individual’s subsequent
career in organization, and influence job satisfaction, attitude and level of
productivity. The nature and extent of individual’s expectations vary so widely
that it is not possible to finalize an exhaustive list with all inclusive variables.
The employer must :
• provide safe and hygienic working conditions,
• make every possible effort to provide job security,
• attempt to provide challenging and satisfying jobs,
• allow staff genuine participation in decisions which affect them,
• provide opportunity for personal development and carrier progression,
• treat members or staff with respect and
• demonstrate an understanding and considerate attitude towards personal
problems of staff.
On the other hand, the organizations also have some expectations :
The organizational expectations show also wide variations in their requirements
and conflicting areas with employee expectations. The important points in this
context we can mention here are the following:
• achieving organizational goals,
• sufficient involvement, commitment and initiative,
• requiring high interest towards role and responsibility,
• specific task performance effectively (with loyalty),
• having high regards to policies, rules and procedure,
• having high responsiveness to leadership, and
• having high interest for the viability of the organization.
2.11.2 The People Organization Relationship

The classical schools of management were mainly concerned with managing
organizing without caring much about the human factors or people participating
in “man-machine” system of production. Findings of Hawthorne experiments
made management cautious about the importance of human factors. Practically,
Hawthorne effect on increasing production rate laid down the foundations of
human relations approach in industrial management where a harmonious
interpersonal relation in work supervision was given priority attention.
Human relations could not think of any dynamic organization life without lively
people in organizational set up. Of course, there are certain shortcomings in
putting exclusive importance on the classical human relations approach in public
and private sector undertakings with equal emphasis.
37
Leadership and Team Acknowledging the importance of human factor, organizational life was studied
Building
in terms of the relationship between technical and social variables within the
system. Where, changes in our part, technical or social, would affect other parts
and thus the whole system.
Thus, the socio-cultural system is concerned with the interactions between the
psychological and social factors and the needs and demands of the human part of
the organization and its befitting structural and technological requirements. Thus,
due importance was given on effective decision-making and communication
processes. There is a need for cooperative action in organizations.
People’s ability to communicate and their commitment and contribution to the
achievement of a common purpose, were necessary for the existence of a
cooperative system. Without proper infrastructure, democratic leadership style
can not grow to achieve finally the goals of industrial democracy where:
• the role, responsibility and dignity of each people is duly respected and
recognized,
• cooperation is the core spirit of team work and
• continuous learning opportunities are available for human resource
development and for conflict resolution.
Modern organizations are composed of competing sub-groups and work teams
with their own loyalties, goals and leaders are working for a common cause – the
viability of the organization by overcoming conflicts. This view is widely
acceptable and trade unions get legitimate access to intervene into an increasing
range of managerial prerogative areas.
2.12 LET US SUM UP

Effective management is at the heart of organizational development and improved
performance and the contribution to economic and social needs of society. The
quality of management is one of the most important factors in the success of any
organization. There is continual need for managerial development to ensure the
development of both present and future managers. Manager can be seen to draw
plans, set-up goals and objectives and subsequent actions. Manager organizes
the program of job analysis, decision-making and forms work groups and controls
human relationship in supervisory practices. Besides this, managers motivate
and trains work group and leads the group (teams) and identify the needs of both
people and organization. In the present scenario, manager also conducts
performance evaluation of the staff and self. Finally we can say that manager’s
role are mainly interpersonal, informational and decisional, on the other hand,
behaviour styles are mainly authoritative, benevolent authoritative, consultative
and participative style. The process of management development should be related
to the nature, objectives and requirements of the organization as a whole. An
essential feature of management development is performance review – related
to knowledge acquired, skills developed and qualification and experience of the
people concerned. An effective system of performance review will help to identify
individual strength and weaknesses, potential for promotion and training and
development needs. It provides also a framework for measuring results, identifying
training needs, personal career planning, agreeing objectives and standards of
performance and organizational succession planning. All these are under the
38 category of change management.
Change Management
1) What do you mean by the term change management?
2) What is management?
3) Write in brief about psychological contract and people-organizational
relationship.
4) What are the principles of change management?
5) Briefly discuss about management functions.
6) What is nature of management?
7) Elucidate the functions of management.

Irwin McGraw Hill.
Robbins, S.P. (1994). Organizational behaviour, concepts, controversies and


McMillon.
39
Leadership and Team
Building UNIT 3 TEAM MANAGEMENT
Structure
3.0 Introduction
3.1 Objectives
3.2 Definition and Nature of Team
3.3 Twelve (12) Cs for Team Building
3.3.1 Clear expectations
3.3.2 Context
3.3.3 Commitment
3.3.4 Competence
3.3.5 Charter
3.3.6 Control
3.3.7 Collaboration
3.3.8 Communication
3.3.9 Creative innovation
3.3.10 Consequences
3.3.11 Coordination
3.4 Methods to Make Team Work Happen
3.5 Methods to Create Effective Team
3.5.1 Setting Ground Rule
3.5.2 Creating a Team Mission Statement
3.5.3 Team Building and Successful Teams
3.6 Steps for Effective Training Approach for Team
3.7 Techniques for Training Team
3.8 Organisational Culture, Structure and Team Management
3.9 Modern Concept
3.10 Let Us Sum Up
3.12 Glossary
3.0 INTRODUCTION
In this unit we will be dealing with team management. We start with definition
and nature of Team as such. Then we discuss how to build a team and 12 Cs, for
team building. This consists of clear expectations, context, commitment,
competence, charter, control etc. Then we discuss the methods used to make the
team work take place, and we also delineate the typical methods to create effective
team. It is pointed out that in order to make an effective team it is important to
use certain techniques such as setting ground rule, creating a team mission
statement and how to use team building techniques for creating successful teams.
Then we take up steps for effective training approach for team and make them a
efficient team to work together, and provide the various techniques forf the same.
40
Then we deal with the organizational culture, structure and team management Team Management
and present the modern concept in regard to team management.
3.1 OBJECTIVES
• Define team;
• Describe the nature of the team;
• Explain team building;
• Elucidate the 12 Cs of team building;
• Explain how to create an effective team;
• Delineate the characteristics of an effective team;
• Describe organizational culture, structure and team management; and
• Analyse the modern concept of team management.
3.2 DEFINITION AND NATURE OF TEAM

A group of people with a full set of complementary skills required to complete a
task, job, or project. Team members
1) Operate with a high degree of interdependence,
2) Share authority and responsibility for self-management,
3) Are accountable for the collective performance, and
4) Work toward a common goal and shared rewards(s).
Another definition is that a team is any group of people organized to work together
interdependently and cooperatively to meet the needs of their customers by
accomplishing a purpose and goals. Teams are created for both long term and
short term interaction. A product development team, an executive leadership
team, and a departmental team are long lasting planning and operational groups.
Short term teams might include a team to develop an employee on boarding
process, a team to plan the annual company party, or a team to respond to a
specific customer problem or complaint. Three common types of teams include
functional or departmental, cross-functional, and self-managing.
Functional or departmental teams: Groups of people from the same work
area or department who meet on a regular basis to analyze customer needs, solve
problems, provide members with support, promote continuous improvement,
and share information.
Cross-functional teams: Groups of people who are pulled together from across
departments or job functions to deal with a specific product, issue, customer,
problem, or to improve a particular process.
Self-managing teams: Groups of people who gradually assume responsibility
for self-direction in all aspects of work.
A team becomes more than just a collection of people when a strong sense of
mutual commitment creates synergy, thus generating performance greater than
the sum of the performance of its individual members. 41
Leadership and Team People in every workplace talk about building the team, working as a team, and
Building
my team, but few understand how to create the experience of team work or how
to develop an effective team. Belonging to a team, in the broadest sense, is a
result of feeling part of something larger than yourself. It has a lot to do with
your understanding of the mission or objectives of the organization.
In a team oriented environment, you contribute to the overall success of the

organization. You work with fellow members of the organization to produce
these results. Even though you have a specific job function and you belong to a
specific department, you are unified with other organization members to
accomplish the overall objectives. The bigger picture drives your actions; your
function exists to serve the bigger picture.
You need to differentiate this overall sense of team work from the task of
developing an effective intact team that is formed to accomplish a specific goal.
People confuse the two team building objectives. This is why so many team
building seminars, meetings, retreats and activities are deemed failures by their
participants. Leaders failed to define the team they wanted to build. Developing
an overall sense of team work is different from building an effective, focused
work team when you consider team building approaches.
3.3 TWELVE CS FOR TEAM BUILDING

Executives, managers and organization staff members universally explore ways
to improve business results and profitability. Many view team based, horizontal,
organization structures as the best design for involving all employees in creating
business success.
No matter what you call your team based improvement effort, continuous
improvement, total quality, lean manufacturing or self-directed work teams, you
are striving to improve results for customers. Few organizations, however, are
totally pleased with the results their team improvement efforts produce. If your
team improvement efforts are not living up to your expectations, this self-
diagnosing checklist may tell you why. Successful team building, that creates
effective, focused work teams, requires attention to each of the following.
3.3.1 Clear Expectations

Do team members understand why the team was created? Is the organization
demonstrating constancy of purpose in supporting the team with resources of
people, time and money? Does the work of the team receive sufficient emphasis
as a priority in terms of the time, discussion, attention and interest directed its
way by executive leaders?
3.3.2 Context
Do team members understand why they are participating on the team? Do they
understand how the strategy of using teams will help the organization attain its
communicated business goals? Can team members define their team’s importance
to the accomplishment of corporate goals? Does the team understand where its
work fits in the total context of the organization’s goals, principles, vision and
values?
42
3.3.3 Commitment Team Management
Do team members want to participate on the team? Do team membersfeel the

team mission is important? Are members committed to accomplishing the team
mission and expected outcomes? Do team members perceive their service as
valuable to the organization and to their own careers? Do team members anticipate
recognition for their contributions? Do team members expect their skills to grow
and develop on the team? Are team members excited and challenged by the team
opportunity?
3.3.4 Competence
Does the team feel that it has the appropriate people participating? (As an example,
in a process improvement, is each step of the process represented on the team?)
Does the team feel that its members have the knowledge, skill and capability to
address the issues for which the team was formed? If not, does the team have
access to the help it needs? Does the team feel it has the resources, strategies and
support needed to accomplish its mission?
3.3.5 Charter
Has the team taken its assigned area of responsibility and designed its own
mission, vision and strategies to accomplish the mission. Has the team defined
and communicated its goals, its anticipated outcomes and contributions, its
timelines, and how it will measure both the outcomes of its work and the process
the team followed to accomplish their task? Does the leadership team or other
coordinating group support what the team has designed?
3.3.6 Control
Does the team have enough freedom and empowerment to feel the ownership
necessary to accomplish its charter? At the same time, do team members clearly
understand their boundaries? How far may members go in pursuit of solutions?
Are limitations (i.e. monetary and time resources) defined at the beginning of
the project before the team experiences barriers and rework?
Is the team’s reporting relationship and accountability understood by all members

of the organization? Has the organization defined the team’s authority? To make
recommendations? To implement its plan? Is there a defined review process so
both the team and the organization are consistently aligned in direction and
purpose? Do team members hold each other accountable for project timelines,
commitments and results? Does the organization have a plan to increase
opportunities for self-management among organization members?
3.3.7 Collaboration
Does the team understand team and group process? Do members understand the
stages of group development? Are team members working together effectively
interpersonally? Do all team members understand the roles and responsibilities
of team members? team leaders? team recorders? Can the team approach problem
solving, process improvement, goal setting and measurement jointly? Do team
members cooperate to accomplish the team charter? Has the team established
group norms or rules of conduct in areas such as conflict resolution, consensus
decision making and meeting management? Is the team using an appropriate
strategy to accomplish its action plan? 43
Leadership and Team 3.3.8 Communication
Building
Are team members clear about the priority of their tasks? Is there an established
method for the teams to give feedback, and receive honest performance feedback.
Does the organization provide important business information regularly? Do the
teams understand the complete context for their existence? Do team members
communicate clearly and honestly with each other? Do team members bring
diverse opinions to the table? Are necessary conflicts raised and addressed?
3.3.9 Creative Innovation

Is the organization really interested in change? Does it value creative thinking,
unique solutions and new ideas? Does it reward people who take reasonable
risks to make improvements? Or does it reward the people who fit in and maintain
the status quo? Does it provide the training, education, access to books and films,
and field trips necessary to stimulate new thinking?
3.3.10 Consequences
Do team members feel responsible and accountable for team achievements? Are
rewards and recognition given when teams are successful? Is reasonable risk
respected and encouraged in the organization? Do team members fear reprisal?
Do team members spend their time finger pointing rather than resolving problems?
Is the organization designing reward systems that recognize both team and
individual performance? Is the organization planning to share gains and increased
profitability with team and individual contributors? Can contributors see their
impact on increased organization success?
3.3.11 Coordination
Are teams coordinated by a central leadership team that assists the groups to
obtain what they need for success? Have priorities and resource allocation been
planned across departments? Do teams understand the concept of the internal
customer—the next process, anyone to whom they provide a product or a service?
Are cross-functional and multi-department teams common and working together
effectively? Is the organization developing a customer-focused process-focused
orientation and moving away from traditional departmental thinking?

Does the organization recognize that the team-based, collaborative, empowering,
enabling organisational culture of the future is different than the traditional,
hierarchical organization it may currently be? Is the organization planning to or
in the process of changing how it rewards, recognizes, appraises, hires, develops,
plans with, motivates and manages the people it employs?
Does the organization plan to use failures for learning and support reasonable
risk? Does the organization recognize that the more it can change its climate to
support teams, the more it will receive in pay back from the work of the teams?
Spend time and attention on each of these twelve tips to ensure your work teams
contribute most effectively to your business success. Your team members will
love you, your business will soar, and empowered people will “own” and be
responsible for their work processes. Can your work life get any better than this?
44
Fostering teamwork is creating a work culture that values collaboration. In a Team Management
teamwork environment, people understand and believe that thinking, planning,
decisions and actions are better when done cooperatively. People recognize, and
even assimilate, the belief that “none of us is as good as all of us. It’s hard to find
work places that exemplify teamwork. In America, our institutions such as schools,
our family structures, and our pastimes emphasize winning, being the best, and
coming out on top. Workers are rarely raised in environments that emphasize
true teamwork and collaboration.
3.4 METHODS TO MAKE TEAMWORK HAPPEN

To make teamwork happen, these powerful actions must occur.
• Executive leaders communicate the clear expectation that teamwork and
collaboration are expected.
• Executives model teamwork in their interaction with each other and the rest
of the organization.
• The organization members talk about and identify the value of a teamwork
culture.
• Teamwork is rewarded and recognized.
The lone ranger, even if she is an excellent producer, is valued less than the
person who achieves results with others in teamwork. Compensation, bonuses,
and rewards depend on collaborative practices as much as individual contribution
and achievement.
• Important stories and folklore that people discuss within the company
emphasize teamwork.
• The performance management system places emphasis and value on
teamwork.
• Form teams to solve real work issues
• Hold department meetings to review projects and progress.
• Build fun and shared occasions into the organization’s agenda.
• Use ice breakers and teamwork exercises at meetings.
• Celebrate team successes publicly.
3.5 METHODS TO CREATE EFFECTIVE TEAM

How to create effective teams, team work, and team building is a challenge in
every organization. Work environments tend to foster rugged individuals working
on personal goals for personal gain. Typically, reward, recognition, and pay
systems single out the achievements of individual employees.
Effective teams can be created if (i) we practice good communication skills (ii)
refrain from communication roadblocks (iii) listen well (iv) observe carefully
and (v) give feedback constructively.
It is important that we observe communication behaviours in a team so as to
make it effective. This would involve observing (i) Who participates and who 45
Leadership and Team does not (ii) How do people take turns and who talks to whom and who responds
Building
to whom etc. (iii) how are interruptions handled? Is silence O.K.? Is anyone
dominating the conversation? (iv) How are decisions made? Are they by
consensus? Or are they by voting? Or by one person? While doing all this, one
should be sure to observe one’s own feelings, reactions, and behaviors.
All communication takes place on the content and relationship level. Often the
problem with communication is the assumption of it. Metacommunication is
very useful.
When the person has built trust, that means he has acted with consistency and
coherence, demonstrated concern, treated others with a sense of fairness, fulfilled
obligations and commitments, etc.
When the person is engaging in a dialogue, that means he or she is Seeing things
from the other person’s perspective, really listening, expressing their concerns
as one’s own concern, and not as another person’s problem and giving others a
stake in the process or outcome.
The three concrete tips to follow include using a facilitator or coordinator,

delegating taks effectively using a work breakdown structure and set some ground
rules.
Work Break down structure

Work breakdown structure refers to the way to organize a series of tasks to
accomplish a project objective. This consists of (i) Hierarchical diagram of tasks
(ii) Person responsible for executing the task (iii) Deadline to have the task
completed (iv) Interdependencies with other tasks (v) Each task in a WBS should
contribute to the goal of delivering the required material on time and done well.
The function of facilitator / coordinator includes (i) Focus the team toward the
task (ii) Get all team members to participate (iii) Keep the team to its agreed-
upon time frame (iv) Suggest alternatives (v) Help team members confront
problems and (vi) summarise team decisions.
3.5.1 Setting Ground Rules

This involves goals and expectations, work norms, Facilitator norms,
Communication norms, Meeting norms, and Consideration norms
The teams give trouble when individuals misbehave and become highly egoistic.
The team can also give trouble when groups interest is subserved under individual
interest. It can also happen due to different styles of learning, interaction,
expression sub group interest etc. The group psychology may also play a role in
the sense that group behaviours such as defensive routines, Us versus them,
reluctance to test assumption publicly, getting off task, lack of boundaries or ill
defined roles and unclear objectives and or expectations.
The common problems in teams include talking too much (higging), jumping
from topic to topic (frogging), getting stuck on an issue (bogging) and tip toeing
around a contentious issue.
46
3.5.2 Creating a Team Mission Statement Team Management
Creating a team mission statement can help you focus your team effort and do a
lot of good in bringing your team together behind a common theme. The key to
success is not just creating a team mission statement but it is living the mission
statement.
A mission statement identifies the major purpose that your team fulfills when
providing products and services to customers.
The mission statement should:
• Include the reason for your team
• Identify your team’s unique ‘value added’
• Reflect your teams’s core business activity
• Provide a focus for your team
• Identify the team purpose
Step One : Develop the Team Mission Statement By Identifying
• Stakeholders - Those people who are directly affected by the team’s successes
and failures. Stakeholders could be employees, internal customers,
organizational customers, external customers.
• Products and Services - Items that your team produces for its customers.
Products and services might include consulting, training, products or services
for individual use, products or services for business use.
• Value Added - The key advantage your team provides over the competition.
Why would a customer come to your team for service? What makes your
team special?
Step Two: Construct a First Draft

The name of the team must meet the needs of stakeholders.
Step Three. Refine the Team Mission Statement
Whether the mission statement is too wordy, too brief, and to the point. Whether
the team members will remember it. Would the mission statement make sense to
the stakeholders? Is it a true mission statement and not a goal? Does it inspire
the organisation’s team and whether it describes the focus and effort of the team?
It is important to know if the mission statement Is unique.
Step Four: Make It Visible

Post the mission statement for easy review by all team members and customers.
Step Five. Live it!
To make a mission statement one must be involved in the entire team process.
The mission statement must be used as a guide for everything the team does.
Bounce team goals and activities against it to ensure the organization is doing
the right thing.
In order to make the team effective, the organization must engage the team in
dialogue
47
Leadership and Team Employee involvement, teams, and employee empowerment enable people to
Building
make decisions about their work. This employee involvement, team building
approach, and employee empowerment increases loyalty and fosters ownership.
These resources tell you how to do team building and effectively involve people.
Employee empowerment is a strategy and philosophy that enables employees to

make decisions about their jobs. Employee empowerment helps employees own
their work and take responsibility for their results.
Employee involvement is creating an environment in which people have an impact

on decisions and actions that affect their jobs. Employee involvement is not the
goal nor is it a tool, as practiced in many organizations. Employee involvement
is a management and leadership philosophy about how people are enabled to
contribute to continuous improvement and the ongoing success of their
organization.
3.5.3 Team Building And Successful Teams

People in every workplace talk about team building, working as a team, and my
team, but few understand how to create the experience of team building or how
to develop an effective team.
Many view teams as the best organization design for involving all employees in
creating business success and profitability. Learn how team building helps enable
the success of work teams and team work.
Team is a very well known word. Certainly one has heard this word and one uses
it off and on undoubtedly. Everyone including friends also use this word. It is
very common and popular word and it is used in many places. This word “team”
is used to describe any routine work group in a workplace expressing a desirable
degree of morale during performance. Within the frame of traditionally formal
work group life, through regular social interaction, interpersonal relations are
developed and informal groups are formed and they express high group morale
when and where necessary. The quality of cooperation, motivation and
determination to achieve goals which are expressed by the informal group
members reminds us of a good team work. But the said team work has no formal
recognition, no stable quality, not premised always on rational ground and it
hardly obeys any norms. Thus, it fails to satisfy the requirements and
characteristics of a formal “team”, the most important group phenomena in the
modern workplace.
Team management refers to techniques, processes and tools for organizing and
coordinating a group of individuals working towards a common goal. Here the
team as a whole work together to reach the common goal. To maximize the
effectiveness of the organization, managers must be able to work with one another
to achieve common goals. There are mainly six principles which are effective
one. Accountability is one of the important factors of every initiative. Proper
communication which encourages innovation and creativity is also another
important factor.
Regular performance discussions should be scheduled and strictly held to for

betterment. Performance management and performance measurement are the
key contributors to improved team management. It is sometimes difficult for
48
information sharing and effective communication. Teams must have unrestricted Team Management
access to all relevant information. Lastly we can say that the manager’s role
must be redefined for the team environment and an emphasis on the servant
style of leadership. The feeling of mutual respect, trust and maturity becomes
the foundation for team work and problem solving.
A team is a composite body which functions to yield “collective work-products.”

It refers to a production of any formal work-group and reflects the joint, real
contribution of team members. In this connection it may be mentioned that (i)
the team has shared leadership roles, (ii) it has individual and mutual
accountability, (iii) has a specific purpose to yield “collective work-products”,
(iv) encourages open-ended, active problem-solving meetings and product-
centered direct evaluation. Actually the team discusses, decides and does real
work together. According to Sandstorm, teams can be formed for any purpose
and which may be put under four categories :
1) Advice
2) Production
3) Project
4) Action.
We mainly have to know about the two types of teams, viz., quality circles and
autonomous or self-managed teams. Team effectiveness depends on both
individual and organizational factors. Under individual factors, older habits,
beliefs, unequal sense of responsibility and involvement, are most significant.
Organizational factors may be socio-cultural and related to terms and conditions
for work alone with limitations of workplace.
3.6 STEPS FOR EFFECTIVE TRAINING

APPROACH FOR TEAM
There are mainly ten steps for effective training approach for team. These are:
1) Establish credibility.
2) Ventilation of emotionality.
3) Orientation about team building.
4) Problem identification.
5) Setting up group goals.
6) Facilities the group process.
7) Establish intra-group procedures.
8) Establish inter-group procedure.
9) Change the active role of the trainer (active to passive).
10) Put an end on the trainers’ involvement (self-managing team).
Besides this, team building for organizational development may be structured
considering the following six steps:
49
Leadership and Team 1) Team skills workshop (to unfreeze various teams and get them ready to
Building
accept change).
2) Data collection (questionnaire survey to collect data on work climate,
supervisory behaviour and job content).
3) Data confrontations (open discussion on the problem areas and know the
suggestions to solve the problems).
4) Action planning (develop specific plans for change).
5) Team building (team identities the barriers, develop plans and try to
accomplish change).
6) Inter-group buildings (establish collaboration on share goals and problems
and generalize the OD effort to the total organization).
On the other hand, we can say that the organizational outcomes of organizational
development include increased effectiveness, problem solving and adaptability
for the future. Organizational development attempts to provide opportunities to
be “human” and to increase awareness, participation and influence. An overriding
goal is to integrate individual and organizational objectives by inculcating values
in people to serve the organizational cause sand learning to recognize valuable
things for proper usage. Team management is one of the important things which
we can mention in this context. The key points are as follows :
• Change agents should focus on systematic change in work-settings – at the
starting point and on individual behaviour as the key mediator associated
with organization outcome change.
• Results for technology interventions indicate that negative behaviour change
does not necessarily leads to negative organizational outcome change.
• Well-developed theories should provide a better basis for choosing
interventions than simply the change agents’ personal preferences values
and styles.
3.7 TECHNIQUES OF TRAINING TEAM

Under the broad coverage of training group technique, the most popular techniques
over the years are:
• grid training
• survey feedback and
• team building.
Blake and Mouton’s leadership grid (position 9, 9) indicates a maximum concern
for both people and production and signifies an implied goal of grid training.
The following six steps are generally followed under grid training for
organizational development.
1) Laboratory seminar training
2) Team development
3) Inter-group development
4) Organizational goal setting
50
5) Goal attainment Team Management
6) Stabilization.
Organizational program banks on the growth of empathy, improved
communication and highly active joint participation for managing change
effectively. There are five key areas of the team which remains open for monitoring
and evaluation. These are:
1) Team mission
2) Goal achievement
3) Empowerment
4) Open and honest communication
5) Positive roles and norms.
In connection with the team management we can further say that the following
elements make up the modern organizational development approach to the
management of change. These are :
1) It would be planned change

2) Takes the system perspective
3) Has a short and long term objectives
4) Concerned mainly with organizational processes than content
5) Designed to solve problems and
6) Focused primarily on human and social relationship.
Caution
At any point, team members can slide back to a lower level of effectiveness, if
they do not continually work together as a team, listen and communicate
effectively, deal with conflict effectively, recognize each other’s unique
contribution, provide honest feedback and demonstrate other characteristics of
an effective team.
Besides this, there are some practical guidelines which are not meant to dampen
the excitement and enthusiasm for change efforts but to put realistic expectations
into the process. The important points are as follows:
• Do not promise that all employees undergoing a change effort will be winner.
• Do not blame those who lose out for their negative attitudes.
• Do not focus only on the new and forget the old.
• Avoid symbolic participation in the change effort.
• Avoid destroying the old culture without building a new one.
• Do not launch HRM programs in the context of a major change without

considering the necessary time and resource to support them.
51
Leadership and Team
Building 3.8 ORGANIZATIONAL CULTURE, STRUCTURE
AND TEAM MANAGEMENT
Organizational culture is the product of all the organization’s feature, viz., its
people, objectives, size, technology, unions, policies, its successes and failures.
It is the sum total of shared values, beliefs and habits within an organization and
in short may be called the organizational personality. The challenge for human
resource professionals is to adjust positively to the culture of the organization.
They have to choose paths the best reflect the culture of the firm and the attitudes
of its people. To carry out tasks, managers generally follow certain steps :
• Identify the work, delegate it to various people.
• Establish relationship between people and positions.
• Measure and evaluate the work done at various levels.
There are three levels of organizations, viz., strategic, managerial and operating.
At the strategic level, policies are formulated, goals are set, and objectives are
framed. Strategies are also designed to achieve the objectives taking into
consideration to achieve the objectives taking into consideration the
environmental influences on the organization.
At the management level the programs regarding the procurement and allocation
of all types of resources are formulated to achieve the strategies and objectives.
At the operating level, the programs are implemented, i.e., actual operations are
carried out in the process of day to day activities in order to carry out the strategies
and achieve the objectives.
Basically, there are two types of organization structure, flat and tall. Tall or pyramid
type of organizational structures are suitable to the companies which are labour-
oriented. Flat organizations are suitable to the technology-oriented companies.
Since most of the modern organizations are technology based and endowed with
capital and highly educated employees they tend to have an organization structure
where the number of employees at the operating level are relatively less. In view
of this, personnel management is not only challenging but also significant one in
a modern organization. Moreover, human resources have a plus value in that
they can convert the disorganized resources into a useful and productive
organization. It is true that there is a close relationship between the organizational
structure and culture and the team management.
3.9 MODERN CONCEPT

Organization is the foundation of management. If the organization’s plan isd ill
designed, then management is rendered difficult and ineffective. If, on the other
hand, it is logical, clear cut and streamlined to meet present-day requirements,
then the first requisite of sound management has been achieved. Organization is
the means of multiplying the strength of an individual It takes his knowledge
and uses it as the resource, the motivation and the vision of the other workers. A
good organization facilitates administration, promotes specialization, encourages
growth and stimulates creativity. The work of management proceeds smoothly
only if it is well-defined, systemic and certain and appropriate functional groups
52
are provided to help the managers to manage. A sound organization stimulates Team Management
independent creative thinking and initiative by providing well-defined areas of
work with broad latitude for the development of new and improved ways of
doing things. Management development is a continuous process. Team
management is a significant factor for the enrichment of management
development.
3.10 LET US SUM UP

Team culture is necessary for success. It is not automatic to work together
effectively. It takes a specific effort and the development of a culture that is
supported by executive management. Knowledge transfer is essential for an
organization to grow. Without knowledge transfer and the sharing of success it
is difficult for the group to share any vision and work toward common goals. For
team management trust and respect is necessary. Brainstorming must be
encouraged to release team innovation. Reliance on team effectiveness minimizes
risk by being more flexible and adaptive than relying on a single individual. No
one individual alone can jeopardize success.

1) What do you mean by the term team?
2) What is team management?
3) Write in brief about the steps of effective training for team.
4) Is there any relationship between organizational structure and culture and
team management? – Discuss.
5) Discuss about the cautions in team management.
6) Briefly discuss about the nature of team.
3.12 GLOSSARY
Team : Team is a composite body which functions to yield
collective work products.
Team management : Team management refers to techniques, processes

and tools for organizing and coordinating a group of
individuals working towards a common goal.

Irwin McGraw Hill.


McMillon.
53
Leadership and Team
Building UNIT 4 RESOLVING CONFLICTS
Structure
4.0 Introduction
4.1 Objectives
4.2 Conflicts and Types of Conflict
4.2.1 Definition of Conflicts
4.2.2 Types of Conflicts
4.2.3 Source of Interpersonal Conflict
4.2.4 Causes of Conflict
4.3 Conflict Resolution
4.3.1 Principles of Conflict Resolution
4.4 Resolving Workplace Conflict
4.4.1 Conflict Resolution Techniques
4.4.2 Confront the Conflict
4.4.3 Techniques of Conflict Resolution
4.4.4 Ten (10) Steps in Conflict Resolution
4.4.5 Components of Conflict Resolution
4.4.6 Stress and Resolution of Conflict
4.5 Conflict Resolution Techniques
4.5.1 Preventative Techniques
4.5.2 Other Techniques
4.5.3 Positive Outcome of Conflicts
4.6 Personality Conflict and Resolution
4.7 Let Us Sum Up
4.0 INTRODUCTION
Conflict is a natural ingredient in every organization in every organization,
managers have to learn not only to live with it but also to manage it. So there is
a need to resolve conflict. There are various ways to resolve conflict. Bargaining,
negotiating, mediating, communication facilitation, etc are the ways to resolve
conflicts considering the existing scenario of the organization. So, undoubtedly
we can say that there is a need to resolve conflict as far as possible for the
improvement of the organization. In this unit we will be dealing with conflicts
and resolution of conflicts in an organization. We start with definition of conflicts
and types of conflicts. We then move on to the causes of conflicts and sources of
interpersonal conflicts. This is followed by the next section that deals with conflict
resolution and resolving work place conflict. In the latter we will be dealing with
the various techniques in conflict resolution. We then present the preventive
techniques and other techniques and the positive outcome of conflicts.
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Resolving Conflicts
4.1 OBJECTIVES
• Define conflict;
• Describe the types of conflict;
• Explain the reasons for conflict; and
• Analyse the methods to resolve conflict.
4.2 CONFLICTS AND TYPES OF CONFLICT

We, the individuals, always suffer from different types of conflict. Sometimes
we are able to manage it and sometimes not. We feel disturbance if we are unable
to solve the conflict. Conflict can be defined as the disagreement between
individuals or groups. Obviously, it is expected in groups, especially in the early
stages of group formation. Conflict has a strong influence on organizational
performance. When conflict reaches at the high level, it can be a major disruptive
force that reduces organizational effectiveness. Organizational resources may be
money, information, material human resources etc. Job boundaries and
responsibilities sometimes are not clear at all. This creates conflict. Not only this
communication may be defective, causing misunderstanding and conflict among
group. Besides this, personality clashes are also one of the important factors for
conflict and it is very common in organization. Actually personality conflicts are
caused by fundamental differences in values, attitudes, behaviour and personality.
Besides this, another important factor is power and status which creates conflict.
Conflict occurs when different people are pursuing different goals within the
same group or organization.
We will be dealing with definitions of conflicts and types of conflicts in this

section.
4.2.1 Definition of Conflicts

Conflicts occur when people (or other parties) perceive that, as a consequence of
a disagreement, there is a threat to their needs, interests or concerns. Although
conflict is a normal part of organization life, providing numerous opportunities
for growth through improved understanding and insight, there is a tendency to
view conflict as a negative experience caused by abnormally difficult
circumstances. Disputants tend to perceive limited options and finite resources
available in seeking solutions, rather than multiple possibilities that may exist
‘outside the box’ in which we are problem-solving.
Workplace conflict is a time consuming and costly problem that can have a severe
impact on the bottom line. Conflict in the workplace is generally the result of
serious disagreement over needs or goals and can result in behaviour such as
gossip, avoidance, verbal abuse, passive communication and hostility. We can
consider the following steps to resolve the conflict:
• A conflict is more than a mere disagreement. It is a situation in which people
perceive a threat (physical, emotional, power, status, etc.) to their well-
being. As such, it is a meaningful experience in people’s lives. It just does
not pass off on its own. It has to be resolved.
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Leadership and Team • Participants in conflicts tend to respond on the basis of their perceptions
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of the situation, rather than an objective review of it. As such, people filter
their perceptions and reactions through their values, culture, beliefs,
information, experience, gender, and other variables. Conflict responses are
both filled with ideas and feelings that can be very strong and powerful
guides to our sense of possible solutions.
• As in any problem, conflicts contain substantive, procedural, and

psychological dimensions to be negotiated. In order to best understand the
threat perceived by those engaged in a conflict, we need to consider all of
these dimensions.
• Conflicts are normal experiences within the work environment. They are
also, to a large degree, predictable and expectable situations that naturally
arise as we go about managing complex and stressful projects in which we
are significantly invested. As such, if we develop procedures for identifying
conflicts likely to arise, as well as systems through which we can
constructively manage conflicts, we may be able to discover new
opportunities to transform conflict into a productive learning experience.
• Creative problem solving strategies are essential to positive approaches

to conflict management. We need to transform the situation from one in
which it is ‘my way or the highway’ into one in which we entertain new
possibilities that have been otherwise elusive.
4.2.2 Types of Conflicts

We generally identify three types of conflict, viz.,
i) Approach Approach Conflict: the individual is motivated to approach
two or more positive but mutually exclusive goals.
ii) Approach Avoidance Conflict: the individual is motivated by approach a
goal and at the same time is motivated to avoid it.
iii) Avoidance Avoidance Conflict: the individual is motivated to avoid two
or more negative but mutually exclusive goals.
Besides this, the dynamics of interactive behaviour create impact on organizational

behaviour and there seems to be indication of interpersonal and inter-group
conflict. Conflict at the intra-individual level involves frustration, goal conflict,
role conflict and ambiguity. On the other hand, goal conflict can come from
approach-approach, approach-avoidance and avoidance-avoidance conflict.
4.2.3 Sources of Inter Personal Conflict

There exists individual difference where intelligence, ability, aptitude, motivation
vary from one person to other. In the organizational set up, there seem to be
conflict among the managers, subordinates, team members and others also. There
are mainly four sources of interpersonal conflict:
i) Personal differences: Everyone is unique. Family background, culture,
socialization, values and so many indicators vary from one person to another.
So, conflict may arise.
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ii) Information deficiency: There seems to be indication of communication Resolving Conflicts
gap and also there seems to be indication of misinformation.
iii) Role incompatibility: This type of interpersonal conflict mainly draws from
both intra-individual role conflict and inter-group conflict.
iv) Environmental stress: This is mainly due to stressful environmental
condition. Here downsizing, competition, uncertainty etc. are the significant
factors.
Besides this there exists inter-group conflict in any organizational set up. The
reasons are mainly as follows:
i) Competition for resources.
ii) Task interdependence
iii) Status struggle
iv) Ambiguity.
All these factors create impact in the group. There are number of strategies to
manage inter-group conflict, viz., avoidance, diffusion, containment and
confrontation.
Not only this, the individual in the organization faces different types of conflict
considering only the structural aspects. The types are mainly:
i) Hierarchical conflict
ii) Functional conflict
iii) Line-Staff conflict and
iv) Formal-informal conflict.
4.2.4 Causes of Conflict

Conflict is a normal and necessary part of healthy relationships. After all, two
people can’t be expected to agree on everything at all times. Therefore, learning
how to deal with conflict—rather than avoiding it—is crucial.
When conflict is mismanaged, it can harm the relationship. But when handled in
a respectful and positive way, conflict provides an opportunity for growth,
ultimately strengthening the bond between two people. By learning the skills
you need for successful conflict resolution, you can face disagreements with
confidence and keep your personal and professional relationships strong and
growing.
Conflict arises from differences. It occurs whenever people disagree over their
values, motivations, perceptions, ideas, or desires. Sometimes these differences
look trivial, but when a conflict triggers strong feelings, a deep personal need is
at the core of the problem¾a need to feel safe and secure, a need to feel respected
and valued, or a need for greater closeness and intimacy.
Conflicts arise from differing needs

Everyone needs to feel understood, nurtured, and supported, but the ways in
which these needs are met vary widely. Differing needs for feeling comfortable
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Leadership and Team and safe create some of the most severe challenges in our personal and professional
Building
relationships.
Think about the conflicting need for safety and continuity versus the need to
explore and take risks. You frequently see this conflict between toddlers and
their parents. The child’s need is to explore, so the street or the cliff meets a
need. But the parents’ need is to protect the child’s safety, so limiting exploration
becomes a bone of contention between them.
It is important to acknowledge that both parties’ needs play important roles in

the long-term success of most relationships, and each deserves respect and
consideration. In personal relationships, a lack of understanding about differing
needs can result in distance, arguments, and break-ups. In workplace conflicts,
differing needs are often at the heart of bitter disputes. When you can recognize
the legitimacy of conflicting needs and become willing to examine them in an
environment of compassionate understanding, it opens pathways to creative
problem solving, team building, and improved relationships.
• A conflict is more than just a disagreement. It is a situation in which one
or both parties perceive a threat whether or not the threat is real.
• Conflicts continue to fester when ignored. Because conflicts involve
perceived threats to our well-being and survival, they stay with us until we
face and resolve them.
• We respond to conflicts based on our perceptions of the situation, not
necessarily to an objective review of the facts. Our perceptions are influenced
by our life experiences, culture, values, and beliefs.
• Conflicts trigger strong emotions. If you aren’t comfortable with your
emotions or able to manage them in times of stress, you won’t be able to
resolve conflict successfully.
• Conflicts are an opportunity for growth. When you’re able to resolve
conflict in a relationship, it builds trust. You can feel secure, knowing your
relationship can survive challenges and disagreements.
4.3 CONFLICT RESOLUTION

Conflict in the work place is a very common phenomenon that occurs almost
daily. People generally work in different situations. The goals and needs also
vary from one setting to another. Sometimes it is adjustable and sometimes not.
So conflict may happen. In many cases effective conflict resolution skills can
make the difference between positive and negative outcomes. You can solve
many problems considering the following three main points. These are
Increased understanding: Sometimes discussion is needed to resolve the conflict

and ultimately it improves the awareness level. It also helps to achieve the goal.
Increased group cohesion: Team members can develop mutual respect and
renewed faith in their ability to work together.
Improved self-knowledge: Conflict helps individuals to sharpen their focus

and enhancing their effectiveness.
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Kenneth Thomas and Ralph Kilman (1970) identified five main styles of dealing Resolving Conflicts
with conflict. These are:
i) Competitive: Individuals who tend towards a competitive style take a firm

stand and they know what they want. This style is useful when there is an
emergency and decision needs to be made fast, when the decision is
unpopular.
ii) Collaborative: Individuals is tending towards a collaborative style because

he or she is willing to meet the needs involving all the other people. They
are highly assertive; they cooperate effectively and acknowledge that
everyone is important.
iii) Compromising: Here everyone is expected to give up something and want

to solve the problem as early as possible. It is useful when the cost of conflict
is higher than the cost of losing ground.
iv) Accommodating: This style indicates a willingness to meet the needs of

others at the expense of the person’s own needs. Accommodation is
appropriate when the issues matter more than the other. People may get
return from this.
v) Avoiding: This style is typified by delegating controversial decisions,

accepting default decisions, and not wanting to hurt anyone’s feelings.
Another important theory we can mention here is the Interest Based Relational
Approach. This approach indicates the following points in connection with
resolving conflict.
• We have to make sure that good relationships are the first priority.
• We have to keep people and problems separately.
• We have to pay attention to the interests that are being presented.
• We have to listen first and talk second.
• We have to set out the facts.
• We have to explore options together.
Considering the above points we can resolve our conflicts and it will be positive
and constructive one.
4.3.1 Principles of Conflict Resolution

We can further say that there are some common principles which we can apply
to resolve conflicts, whether it is within individuals, or group or communities or
nations. The salient points are as follows:
We may be calm: It may help to resolve the conflict.
We may be magnanimous: Here one can concentrate on the important issues of

difference rather than the smaller one.
Need for discussion or debate: Sometimes it happens that conflict is created

and maintained because there is no real discussion or debate.
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Leadership and Team Need to apply rationality: It is true that there are some conflict which is not
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about substance but perception.
We have to acknowledge emotions: In one side there is fact and this is rational
and we can not resolve much conflict because how people perceive those facts is
coloured by their emotions.
Need to think creatively: If we think the incidence or the matter creatively,

sometimes we can easily solve the problem.
Need to change the environment: We can easily observe it that if we change

the existing environmental condition, sometimes conflict may resolve.
Compromise: Compromise is another important factor to resolve the conflict.
Need to change the wording: Agreement or any settlement help to resolve the
conflict in many situations.
Have to accept the situation: There is not always a solution waiting to be found
and if there is a solution, it is unlikely to be the only one.
Besides, above mentioned ten points there are so many factors by which we can
resolve conflict. It can also be said that conflict can not always be avoided,
especially when fundamental differences, as opposed to perceived differences,
are involved; not all conflict is negative.
4.4 RESOLVING WORKPLACE CONFLICT

Generally there are two parties to a conflict due to one being unable to agree
with the other. While the disagreeing parties may resolve their differences
themselves in certain instances with their own conflict resolution methods, the
intervention of a third party with good conflict resolution strategies may be
required in other cases.
The best way to resolve a conflict is by facing it, analyzing and acting in a fair
and equitable manner by both parties; and not by ignoring or pushing it under
the carpet. Here are some good conflict resolution techniques to resolve conflicts.
4.4.1 Conflict Resolution Techniques

i) Good self-control: This is an important prerequisite in resolving conflicts.
Though one may be highly tensed up and unwilling to listen to anybody
other than having their own way during a conflict, once it is history, the
person will find that there was a good lesson to learn from that experience,
if not already learnt.
ii) Patient listener: Another good qualification is to be a patient listener and

assess the problem realistically without getting emotional or biased. Ask
appropriate questions for further clarification, but if you go to talk too much,
you could get carried away, and off the track. This is true of all conflict
resolution techniques.
iii) To have a give and take attitude: If you are really interested in resolving a
conflict and having lasting peace, do not expect to have the final solution
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fully in your favor and 100% according to your way of thinking. Everybody Resolving Conflicts
involved in the dispute must adopt a “give and take” attitude, as happens
with all good conflict resolution strategies. One has to give up a less important
part in order to retain a more important part. When everybody thinks and
acts like that, the earlier dislodged jig saw puzzle pieces will start falling
into their grooves to give a unitary undivided wholesome picture. This
wholesomeness comes of using efficient conflict resolution techniques.
To sum up these conflict resolution methods, first identify the conflict in its
proper perspective. Once it is done, we hope the foregoing conflict resolution
strategies will be of help to the person in resolving any conflict to everybody’s
satisfaction.
4.4.2 Confront the Conflict

We can call meeting and discuss about the facts.
• Confront the possible negative issues in the relationship.
• Have to encourage both people to look at the possible positive sides to their
relationship.
• Have to search various options and you can start gaining greater commitment
from them.
• To achieve the listed aspiration adequate strategies are needed.
• We have to set supporting structure to accomplish the aspirations and selected
directions.
• To know the feedback and cost of non-compliance.
• Need evaluation and re-evaluation.
• Need for summarization.
Identification of the problem properly and need for ability to manage the problem
properly at all levels.
Conflict in organization is inevitable. Managers can not avoid conflict problems

and need to have the skills to resolve them appropriately.
4.4.3 Techniques of Conflict Resolution

There are the numbers of techniques for conflict resolution:
Bargaining/negotiating.: Bargaining: a means of reaching agreement or

settlement through give and take, often synonymous with negotiation. Lulofs
(1994) makes the distinction that bargaining refers to business contexts, usually
involving money, and negotiation refers to all other contexts.
Bargaining range/Settlement range: in a single issue negotiation, the range of

overlap in solutions where both parties would prefer a settlement to no settlement.
For example, Party A has a car to sell and is asking $5,000, but will actually be
satisfied with as little as $4,300. Party B wishes to purchase the car and has an
initial desire to pay no more than $4,000, but is willing to pay as much as $4,600.
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Leadership and Team Negotiated rulemaking (NEG-REG): Representatives of agencies and private
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stakeholders are brought together to negotiate new government rules or
regulations.
Negotiator’s dilemma/Claiming value: Claiming value is the taking of resources
during a conflict or negotiation; the opposite of creating value which is the
discovery or invention of options or resources (see Lax and Sebenius, 1986).
The negotiator’s dilemma is knowing when to create value and when to take
value.
Mediation, as used in law, is a form of alternative dispute resolution (ADR), is
a way of resolving disputes between two or more parties. A third party, the
mediator, assists the parties to negotiate their own settlement (facilitative
mediation). In some cases, mediators may express a view on what might be a
fair or reasonable settlement, generally where all the parties agree that the mediator
may do so (evaluative mediation).
Mediation has a structure, timetable and dynamics that “ordinary” negotiation
lacks. The process is private and confidential. The presence of a mediator is the
key distinguishing feature of the process. There may be no obligation to go to
mediation, but in some cases, any settlement agreement signed by the parties to
a dispute will be binding on them.
4.4.4 Ten (10) Steps in Conflict Resolution

Here are the 10 steps with a few thoughts on each:
1) Set a time and place for discussion

In most cases blogging conflict happens in posts and comments between
bloggers. This is something I actually enjoy (if done well) but is also
something of a problem for constructive resolution (due to its public nature
and the fact that conflict rarely stays between two people). If a comment
thread is becoming destructive I generally attempt to take the discussion to
a more private setting either via email or IM. Doing this tends to take some
of the sting out of the interaction. Also to set up a discussion for some point
in the future helps to give each party a little space to calm down and approach
the interaction more reasonably.
2) Define the problem or issue of disagreement

Many online conflicts tend to spill out into related topics to the point where
parties end up not really knowing what they’re fighting about at all.
Attempting to keep a discussion to one main point (at a time) can mean
you’re more likely to move through it and then tackle another issue.
3) How do you each contribute to the problem?

Conflict is rarely a result of one person solely being at fault in a situation.
Communicating to each other not only what the other person has done wrong
but identifying your own failings can be a humbling experience and usually
brings you a long way closer to resolving the issue.
4) List past attempts to resolve the issue that were not successful
As blogging conflicts don’t usually come out of longer term relationships
62 this might not be as relevant. However there are occasions where the same
issues surface again and again and it can be helpful to identify previous Resolving Conflicts
occasions and look at what the resolution was. Identifying patterns of conflict
can be quite illuminating (you might just learn a thing or two about yourself
when doing it).
5) Brainstorm. List all possible solutions

When people fight they generally push one argument or solution upon others
and are not willing to entertain the idea that there might be other possible
solutions. Listing the alternative opinions and solutions can help both parties
to find compromise.
6) Discuss and evaluate these possible solutions

Talking over the alternatives in a neutral and objective way helps both parties
to see the pros and cons of different ways of thinking. This is where the
assertiveness and active listening skills that we unpacked yesterday come
to the fore.
7) Agree on one solution to try

In some cases there is no ‘solution’ needed (other than to agree to disagree
and to move on) – however in some cases there might be more. Agreeing
how and when to finish the conflict is important and stops those lingering
flame wars where neither party is willing to let the other one have the final
word.
8) Agree on how each individual will work toward this solution

If there’s some sort of agreement on the resolution to agree to how each
person will contribute to it is important so that there is accountability around
it.
9) Set up another meeting. Discuss your progress

I actually find that when you’ve had a blog conflict with someone and have
moved to some point of resolution that it can be helpful to privately contact
the person later on to debrief on it and to see if there is any further resolution
needed.
10) Reward each other as you each contribute toward the solution
4.4.5 Components of Conflict Resolution

Get In Touch With Your Feelings
An important component of conflict resolution involves only you — knowing

how you feel and why you feel that way. It may seem you’re your feelings should
already be obvious to you, but this isn’t always the case. Sometimes we feel
angry or resentful, but don’t know why. Other times, we feel that the other person
isn’t doing what they ‘should,’ but we aren’t aware of exactly what we want
from them, or if it’s even reasonable. Journaling can be an effective way to get in
touch with our own feelings, thoughts and expectations so we are better able to
communicate them to the other person. Sometimes this process brings up some
pretty heavy issues, and psychotherapy can be helpful.
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Leadership and Team Hone Your Listening Skills
Building
When it comes to effective conflict resolution, how effectively we listen is at
least as important as how effectively we express ourselves. It’s vital to understand
the other person’s perspective, rather than just our own, if we are to come to a
resolution. In fact, just helping the other person feel heard and understood can
sometimes go a long way toward the resolution of a conflict. Good listening also
helps for you to be able to bridge the gap between the two of you, understand
where the disconnect lies, etc. Unfortunately, active listening is a skill that not
everybody knows, and it’s common for people to think they’re listening, while
in their heads they’re actually formulating their next response, thinking to
themselves how wrong the other person is, or doing things other than trying to
understand the other person’s perspective. It’s also common to be so defensive
and entrenched in your own perspective that you literally can’t hear the other
person’s point of view.
Practice Assertive Communication

Communicating your feelings and needs clearly is also an important aspect of
conflict resolution. As you probably know, saying the wrong thing can be like
throwing fuel on a fire, and make a conflict worse. The important thing to
remember is to say what’s on your mind in a way that is clear and assertive,
without being aggressive or putting the other person on the defensive. One
effective conflict resolution strategy is to put things in terms of how you feel
rather than what you think the other person is doing wrong, using ‘I feel’
statements.
Seek a Solution
Once you understand the other person’s perspective, and they understand yours,
it’s time to find a resolution to the conflict — a solution you both can live with.
Sometimes a simple and obvious answer comes up once both parties understand
the other person’s perspective. In cases where the conflict was based on a
misunderstanding or a lack of insight to the other’s point of view, a simple apology
can work wonders, and an open discussion can bring people closer together.
Other times, there is a little more work required. In cases where there’s a conflict
about an issue and both people don’t agree, you have a few options: Sometimes
you can agree to disagree, other times you can find a compromise or middle
ground, and in other cases the person who feels more strongly about an issue
may get their way, with the understanding that they will concede the next time.
The important thing is to come to a place of understanding, and try to work
things out in a way that’s respectful to all involved.
Know When It’s Not Working

Because of the toll that ongoing conflict can exact from a person, sometimes it’s
advisable to put some distance in the relationship, or cut ties completely. In
cases of abuse, for example, simple conflict resolution techniques can only take
you so far, and personal safety needs to take priority. When dealing with difficult
family members, on the other hand, adding a few boundaries and accepting the
other person’s limitations in the relationship can bring some peace. In friendships
that are unsupportive or characterized by ongoing conflict, letting go may be a
great source of stress relief. Only you can decide if a relationship can be improved,
or should be let go.
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Resolving Conflicts
Healthy and unhealthy ways of managing and resolving conflict
Unhealthy responses to conflict: Healthy responses to conflict
• An inability to recognize and • The capacity to recognize and respond
respond to the things that matter to the things that matter to the other
to the other person person
• Explosive, angry, hurtful, and • Calm, non-defensive, and respectful
resentful reactions reactions
• The withdrawal of love, • A readiness to forgive and forget, and
resulting in rejection, isolation, to move past the conflict without
shaming, and fear of holding resentments or anger
abandonment
• An inability to compromise or • The ability to seek compromise and
see the other person’s side. avoid punishing
• The fear and avoidance of • A belief that facing conflict head is
conflict; the expectation of bad the best thing for both sides
outcomes
Conflict triggers strong emotions and can lead to hurt feelings, disappointment,
and discomfort. When handled in an unhealthy manner, it can cause irreparable
rifts, resentments, and break-ups. But when conflict is resolved in a healthy way,
it increases our understanding of one another, builds trust, and strengthens our
relationship bonds.
If you are out of touch with your feelings or so stressed that you can only pay
attention to a limited number of emotions, you won’t be able to understand your
own needs. If you don’t understand your needs, you will have a hard time
communicating with others and staying in touch with what is really troubling
you. For example, couples often argue about petty differences—the way she
hangs the towels, the way he parts his hair—rather than what is really bothering
them.
The successful resolution of conflict depends on the ability to:

• Manage stress quickly while remaining alert and calm. By staying calm,
you can accurately read and interpret verbal and nonverbal communication.
• Control your emotions and behavior. When you are in control of your
emotions, you can communicate your needs without threatening, frightening,
or punishing others.
• Pay attention to the feelings being expressed as well as the spoken words
of others.
• Be aware of and respectful of differences. By avoiding disrespectful words
and actions, you can resolve the problem faster.
In order to do this you will need to learn and practice two core skills:
i) The ability to quickly reduce stress in the moment and
ii) The ability to remain comfortable enough with one’s emotions to react in
constructive ways even in the midst of an argument or a perceived attack.
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Leadership and Team Being able to manage and relieve stress in the moment is the key to staying
Building
balanced, focused, and in control, no matter what challenges you face. If you do
not know how to stay centered and in control of yourself, you will become
overwhelmed in conflict situations and unable to respond in healthy ways.
4.4.6 Stress and Resolution of Conflict

• Accurately read another person’s nonverbal communication.
• Hear what someone is really saying.
• Be aware of your own feelings.
• Be in touch with your deep-rooted needs.
• Communicate your needs clearly.
The best way to rapidly and reliably relieve stress (if you don’t have someone
close at hand to talk to) is through the senses: sight, sound, touch, taste, and
smell. But each person responds differently to sensory input, so you need to find
things that are soothing to you.
The most important information exchanged during conflicts and arguments is

often communicated nonverbally. Nonverbal communication is conveyed by
emotionally-driven facial expressions, posture, gesture, pace, tone and intensity
of voice.
The most important communication is wordless

When people are upset, the words they use rarely convey the issues and needs at
the heart of the problem. When we listen for what is felt as well as said, we
connect more deeply to our own needs and emotions, and to those of other people.
Listening in this way also strengthens us, informs us, and makes it easier for
others to hear us.
When you’re in the middle of a conflict, paying close attention to the other person’s
nonverbal signals may help you figure out what the other person is really saying,
respond in a way that builds trust, and get to the root of the problem. Simple
nonverbal signals such as a calm tone of voice, a reassuring touch, or an interested
or concerned facial expression can go a long way toward relaxing a tense
exchange.
Your ability to accurately read another person depends on your own emotional
awareness. The more aware you are of your own emotions, the easier it will be
for you to pick up on the wordless clues that reveal what others are feeling.
Once stress and emotion are brought into balance your capacity for joy, pleasure
and playfulness is unleashed. Joy is a deceptively powerful resource. Studies
show that you can surmount adversity, as long as you continue to have moments
of joy. Humor plays a similar role when the challenge you’re facing is conflict.
You can avoid many confrontations and resolve arguments and disagreements
by communicating in a playful or humorous way. Humor can help you say things
that might otherwise be difficult to express without creating a flap. However, it’s
important that you laugh with the other person, not at them. When humor and
play is used to reduce tension and anger, reframe problems, and put the situation
into perspective, the conflict can actually become an opportunity for greater
connection and intimacy.
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Managing and resolving conflict requires the ability to quickly reduce stress and Resolving Conflicts
bring your emotions into balance.
It is possible to ensure that the process is as positive as possible by sticking to

the following conflict resolution guidelines:
Listen for what is felt as well as said. When we listen we connect more deeply
to our own needs and emotions, and to those of other people. Listening in this
way also strengthens us, informs us, and makes it easier for others to hear us.
Make conflict resolution the priority rather than winning or “being Right”.
Maintaining and strengthening the relationship, rather than “winning” the
argument, should always be your first priority. Be respectful of the other person
and his or her viewpoint.
Focus on the present. If you’re holding on to old hurts and resentments, your
ability to see the reality of the current situation will be impaired. Rather than
looking to the past and assigning blame, focus on what you can do in the here-
and-now to solve the problem.
Pick your battles. Conflicts can be draining, so it’s important to consider whether
the issue is really worthy of your time and energy. Maybe you don’t want to
surrender a parking space if you’ve been circling for 15 minutes. But if there are
dozens of spots, arguing over a single space isn’t worth it.
Be willing to forgive. Resolving conflict is impossible if you’re unwilling or

unable to forgive. Resolution lies in releasing the urge to punish, which can
never compensate for our losses and only adds to our injury by further depleting
and draining our lives.
Know when to let something go. If you can’t come to an agreement, agree to
disagree. It takes two people to keep an argument going. If a conflict is going
nowhere, you can choose to disengage and move on.
Whether the conflict is a classroom real-life simulation exercise or an on-going

emotional experience, learning ways to resolve issues and collaboratively work
through responses and solutions will teach you skills that can be applied in other
settings. It can help you:
o accept differences
o recognize mutual interests
o improve persuasion skills
o improve listening skills
o break the re-active cycle or routine
o learn to disagree without animosity
o build confidence in recognizing win-win solutions
o recognize/admit to/process anger and other emotions
o solve problems!
67
Leadership and Team In groups of people with various temperaments, philosophies and personalities,
Building
there is bound to be interpersonal conflicts. An interpersonal conflict may be
any form of confrontation or interaction between groups that hinders the
achievement of group goals (Poduska, 1980). In a school setting where persons
work closely and where job functions demand constant communication, some
relationships will inevitably be wrought with conflicts.
Conflicts can (1) cause stress, (2) cause frustration, (3) cause hostility, (4) result
in impaired or bad judgment, (5) restrict freedom, (6) use valuable energy, (7)
influence other workers negatively, (8) result in lack of confidence in principal
or administrator, (9) detract from the attainment of goals and objectives.
Some reasons for conflicts include:

i) Cognitive dissonance: A conflict between convergent and divergent
thinking.
ii) Status: When there is a need for status, such as the “wrong” person being
promoted.
iii) Economics: Insufficient remuneration.
iv) Leadership styles: Differences in leadership styles in administration.
v) Stress: Conflicts from stress from external sources; i.e., functional or
dysfunctional situations.
vi) Power struggle: Conflict from power struggle when all want to lead and
none want to follow.
vii) Inappropriate assignment of administrative leadership: Conflict resulting
from someone of less stature leading a more qualified and experienced
worker.
viii) The application and interpretation of rules and policies.
ix) Assessment of employee performance.
x) Allocation of resources and privileges.
There two types of conflict: (1) substantive conflict, and (2) affective conflict. A
substantive conflict is associated with the job, not individuals, while an affective
conflict is drawn from emotions
4.5 CONFLICT RESOLUTION TECHNIQUES

The choice of an appropriate conflict resolution technique depends on a number
of factors including (1) why the conflict occurred, (2) the relation between the
conflicting parties, and (3) the relationship between the principal and the
conflicting parties. Most of these techniques rest on one model which consists
of four steps:
1) Identify or clarify the issues.
2) Search for shared values.
3) Explore possible solutions.
4) Select the solution that satisfies those who have the conflict.
68
4.5.1 Preventative Techniques Resolving Conflicts
Several techniques fall within this category: (1) Personal qualifications of the
principal, promoting and becoming involved in morale-boosting social events
for staff, students, and parents, (3) promoting effective up-down and down-up
communication, (4) altering behavior through motivational seminars, peer
evaluation, mentoring, etc. I will elaborate on the personal qualifications of the
principal.
The principal must possess the qualities that enhance good working relationships
among staff members. These qualities include a knowledge of group dynamics,
motivational skills, persuasiveness, organizational sensitivity, ethnic and cultural
awareness, objectivity, a sense of humor, listening skills, and compassion. The
principal must show a high degree of loyalty and respect to all concerned. She
must be able to make wise and intelligent decisions and possess some analytical
skills.
4.5.2 Other Techniques

These techniques include but are not limited to: (1) integration, (2) consensus
management, (3) expansion of resources, (4) compromise, (5) negotiation, (6)
changing the formal structure of the group, (7) identification of similar goals
and objectives, (8) changing the formal structure of the group, (8) problem solving,
(9) superordinate goals, (10) smoothing, (11) authoritative command, (12) altering
of the human variable.
i) Authoritative command: This is based on the formal authority vested in
the leader and the tendency of subordinates to obey the leader’s command.
It is very successful in achieving short-term reduced levels of conflict. Its
major weakness is that it does not treat the cause of the conflict.
ii) Altering the human variable: This is very difficult to achieve. The goal is
to change the behavior of the conflicting parties. It has a dual potential
effect of alleviating the source of the conflict and ending the conflict itself.
This is achieved through human relations training, sensitivity and awareness
training. A third party is usually involved.
iii) Altering the structural variable: This is the most successful resolution
technique. It is assumed to be so because leaders have authority to change
the organizational structure or at least to have an input into such changes.
This is accomplished by exchanging group members, creating or coordinating
positions, developing an appeal system, expanding the boundaries of the
group or the organization.
iv) Integration: It is the most effective technique in cases when different goals
or ideals are being sought. Integration is achieved through face-to-face
dialogue and brainstorming in order to understand the conflict and evaluate
the worth of suggestions. This technique is useful, for example, when two
department heads are at odds over the use of the facilities that one has
jurisdiction over.
v) Consensus management: The principal seeks group input in the decision-
making process, especially in the formation and prioritizing of goals. This
technique is useful, for instance, when a school administration must decide
on the best day to begin internal examinations.
69
Leadership and Team vi) Compromise: Compromise sends a message of tolerance, understanding,
Building
and sympathy for both parties leaving integrity and dignity intact. This is
especially applicable in teacher-parent, teacher-student, or teacher-teacher
conflicts.
vii) Negotiation: Time should be taken to understand both sides through

questioning, to evaluate what is being said, and to make decisions without
being subjective. Choices should be offered after pointing out disadvantages
and benefits of suggestions. This is a suitable strategy when dealing with
parents of a disruptive student and when convincing irate teachers to tolerate
and “accept” a difficult student back in school after a severe disciplinary
infraction.
viii) Problem solving: This also known as confrontation. It seeks resolution of

disagreements through face-to-face confrontation of the conflicting parties.
Rather than accommodating various points of view, this approach aims at
solving the problem. It does not determine who is right, who is wrong, who
wins, or who loses. Conflict stemming from semantic misunderstanding
can be quickly and effectively alleviated in this manner.
ix) Superordinate goal: Common goals that two or more conflicting parties
each desire and that cannot be reached without the cooperation of those
involved are called superordinate goals. These goals must be highly valued,
unattainable without the help of all parties involved in the conflict, and
commonly sought. A union-management dispute illustrates the functioning
of the superordinate goal. In times of economic plenty, unions are frequently
adamant in their demands. But in numerous cases where an organization’s
survival has been seriously threatened owing to economic pressures, a union
has accepted pay reductions to keep the organization in business. A
compelling and highly valued goal, survival, has preceded other, individual
objectives, and temporarily resolved the labor conflict.
x) Smoothing: Smoothing can be described as the process of playing down

differences that exist between individuals or groups while emphasizing
common interests. Differences are suppressed in smoothing, and similarities
are accentuated. When we recognize that all conflict situations have within
them points of commonality, we further recognize that smoothing represents
a way in which one minimizes differences.
4.5.3 Positive Outcomes of Conflicts

Conflicts can have constructive outcomes when they are properly handled. They
can: (1) provide greater interest in the topic of discussion, (2) stimulate greater
feelings of identity, (3) cause attention to be drawn to the existing problems, (4)
cause diffusion of ideas for the solution for other problems, (5) promote
understanding, (6) motivate one to work more efficiently.
In many organizations, a manager must be prepared to manage a wide variety of

organizational subunits.
Committees are one of the most common subunits found in modern organizations.
Ad hoc committee and standing committee are the important one.
70
Task force is similar to an ad hoc committee. It has unique features. Task forces Resolving Conflicts
are generally associated with the coordination and integration of activities between
or among work units. Second, task force membership may change often as new
skills or inputs are needed. They also solve the conflict considering the relevant
factors in connection with the conflict.
4.6 PERSONALITY CONFLICT AND RESOLUTION

Interpersonal relationships between co-workers are one of the most important
factors in any work environment and the personality conflicts are a leading cause
of problems in the workplace. In this context we can say that there are some
basic management skills by which conflict can be resolved. The salient points
are as follows:
1) Need to be professional and calm.
2) Need to learn to work as a team.
3) Need proper communication.
4) Need work relationship.
5) Need to know about proper chain of command.
4.7 LET US SUM UP

Conflict can occur at the individual, interpersonal, group and organizational levels.
Intra-individual conflict is mainly related to stress. Another common source of
conflict for an individual is a goal that has positive or negative features or two or
more competing goals. Intra-individual aspects of conflict, the inter-personal
aspects of conflict are also an important dynamic of interactive behaviour. The
strategies for inter-personal resolution include a problem-solving collaborative
approach, movement toward an open self etc. Besides this the management of
organizational conflict was mainly based on simplistic assumption. Negotiation
is one of the important factors for conflict resolution. Committee, task force,
work group may help to resolve the conflict in the workplace environment. There
are so many mechanisms by which we can try to resolve the conflict in any
organizational set up.

1) What do you mean by the term conflict?
2) Write in brief about the different types of conflict.
3) Elucidate briefly about conflict resolution technique.
4) How can you resolve work place conflict? – Discuss.

Irwin McGraw Hill.

71
Leadership and Team Schultz, D.P. and Schultz, S.E.(1990). Psychology and Industry today, An
Building
introduction to industrial and organizational psychology, 5 th edition, NY.
McMillon.
References
Agarwal, R.D. (1994). Organization and management, New Delhi, Tata McGraw
Hill.
Luthans, F. and Kreitner, R. (1985). Organizational behaviour modification, Illi.

Scott Foresman.
Moorhead, G. and Griffin, R. (Eds.) (1999) Organizational behaviour, 5th Edition,

AITBS Publication.
Triandis, H.C., Dunnette, M.D. and Hough, L.M. (Eds) (1998). Handbook of
Industrial and Organizational Psychology, Vol.1-4, Jaico Publishing House.
72
UNIT 1 DEFINITION AND INTRODUCTION
TO ORGANISATIONAL
DEVELOPMENT
Structure
1.0 Introduction
1.1 Objectives
1.2 Organisational Development
1.3 Definitions of Organisational Development
1.3.1 Old Definition of Organisation Development
1.3.2 New Definition of Organisation Development
1.4 Goals of Organisational Development

1.5 Importance of Organisation Development
1.6 Organisational Development and Organisational Change
1.7 Organisational Culture
1.8 Let Us Sum Up
1.0 INTRODUCTION
Organisation is a framework in which the human resources function and thus has
a major influence on it. Organisational development can also be termed as the
modern approach to management of change for human resources development.
The development of an organisation thus is a key issue for the overall development
of the human resource and to enhance the goal achievement and profitability of an
organisation.
Organisational development can be described as a long range effort to improve
organisation’s problem solving and renewal processes, particularly through more
effective and collaborative management of organisational culture, often with the
assistance of a change agent or catalyst and the use of the theory and technology
of applied behavioural science. We thus need to focus on this very significant issue
in order to not only understand the concept of organisational development, but
also learn its significance in an organisational setup.
In the present unit you will be able to understand the concept of organisation and
then focus on the meaning and importance of organisational development. The unit
will also cover goals of organisational development. It will distinguish between
organisational development and organisational change and will highlight the concept
of organisational culture that is an important factor in the organisational development.
5
Introduction
1.1 OBJECTIVES
 Explain the meaning of organisational development;
 Discuss goals of organisational development;
 Distinguish between organisational development and organisational culture;
and
 Describe organisation culture.
1.2 ORGANISATIONAL DEVELOMENT

Let us now try to understand the meaning of organisational development by first
clarifying the concept of an organisation. Organisation is the core concept of
organisational development. Organisation can be defined as two or more people
working together toward one or more shared goal(s). Weisbord presents a six-
step model for understanding organisations:
1) Purposes: The organisation members are clear about the organisation’s mission
and purpose and goal agreements, whether people support the organisation’
purpose.
2) Structure: How do we divide up the work? The question is whether there
is an adequate fit between the purpose and the internal structure.
3) Relationship: Between individual, between units or department that perform
different tasks, and between the people and requirements of their job.
4) Rewards: The consultant should diagnose the similarities between what the
organisation formally reward or punished for doing.
5) Leadership: Is to watch for blips among the other boxes and maintain
balance among them
6) Helpful mechanism: Is a helpful organisation that must attend to in order to
survive which as planning, control, budgeting, and other information systems
that help organisation member accomplish.
Development in this context is the notion that an organisation may become more
effective over time at achieving its goals.
Organisational Development can be described as the systematic process to change
the culture, system and behaviour of organisation. It is process that helps in solving
organisational problems and achieving organisational objectives. It works as
important mechanism that helps in impressing the organisation and its employee
through planned and established system. It concentrates on people dimensions like
norms, values, attitudes, relationships, organisational culture etc. The strategies of
organisational development focus on enhancement of organisation effectiveness
and solving organisational problems. It includes structural and technological changes
and focuses on working relationships of employees with the organisation.
Warran Bennis has referred to organisational development as a response to change,
a complex educational strategy intended to change the beliefs, attitudes, values,
and structure of organisation so that they can better adapt to new technologies,
6
marketing and challenges, and the dizzying rate of change itself. Organisational Definition and Introduction
to Organisational
development is neither “anything done to better an organisation” nor is it “the Development
training function of the organisation”; it is a particular kind of change process
designed to bring about a particular kind of end result. Organisational development
can involve interventions in the organisation’s “processes,” using behavioural science
knowledge as well as organisational reflection, system improvement, planning, and
self-analysis.
Organisation Development (OD) is the process of improving organisations. The
process is carefully planned and implemented to benefit the organisation, its
employees and its stakeholders. The client organisation may be an entire company,
public agency, non profit organisation, volunteer group or a smaller part of a larger
organisation.
The change process supports improvement of the organisation or group as a
whole. The client and consultant work together to gather data, define issues and
determine a suitable course of action. The organisation is assessed to create an
understanding of the current situation and to identify opportunities for change that
will meet business objectives.
OD differs from traditional consulting because client involvement is encouraged
throughout the entire process. The ways in which people communicate and work
together are addressed concurrently with technical or procedural issues that need
resolution.
Organisational development (OD) can play a vital part in harnessing the collective
talent of an organisation, bringing about change and improving performance. It
involves taking planned steps to create an environment that will enable the staff
to understand and deliver thr organisation’s objectives.
These steps include developing appropriate skills, behaviours and attitudes, culture
and a style of leadership that will enable the organisation to achieve optimum
performance.
A clear sense of direction, strong leadership and a focus on people management
issues including the management of performance and the promotion of learning,
development, creativity and innovation are essential.
For organisational development to deliver significant performance improvement,
there is a need to develop staff with the right skills to help champion OD
throughout the organisation and encourage wide participation and ownership of
the continuous improvement process among staff and other stakeholders.
The term organisational development is often used interchangeably with organisational
effectiveness, especially when used as the name of a department within an
organisation. An organisation is the machinery of management and this machinery
system is operated and maintained by the personnel of the organisation. An
organisation must adapt itself to the changes taking place in its environment or
else, it will not remain effective enough to achieve the corporation’s goal of
profitability. Organisational development is a shared approach of its members and
it values a participative- democratic style of working. It is an ongoing interactive
process and it focuses on intact work teams.
7
Introduction
1) Describe organisational development.
.....................................................................................................................
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.....................................................................................................................
2) What are the main functions of OD?
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.....................................................................................................................
3) Describe the six step model of understanding organisation developed by
Weisboard.
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.....................................................................................................................
.....................................................................................................................
4) Explain the concept of organisational development as described as Warran
Bennis.
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1.3 DEFINITIONS OF ORGANISATIONAL

DEVELOMENT
We will now focus on some more definitions of organisational development. The
definitions of organisational development can be classified in to two categories, the
old definition and new definition.
1.3.1 Old Definition of Organisational Development

The nature and needs of organisations are changing dramatically. Correspondingly,
the profession of organisational development has been changing to meet the changing
needs of organisations. Therefore, it may be most useful to consider several
definitions of organisational development.
For many years, the following definition was perhaps the standard definition for
organisational development. The following definition was developed in 1969 at a
time when an organisation was considered to be much like a stable machine
8 comprised of interlocking parts.
“Organisational development is an effort planned, organisation-wide, and managed Definition and Introduction
to Organisational
from the top, to increase organisation effectiveness and health through planned Development
interventions in the organisation’s ‘processes,’ using behavioural-science knowledge”
(Beckhard, 1969).
1.3.2 New Definitions of Organisational Development

“Organisational development is the attempt to influence the members of an
organisation to expand their candidness with each other about their views of the
organisation and their experience in it, and to take greater responsibility for their
own actions as organisation members. The assumption behind this phenomena is
that when people pursue both of these objectives simultaneously, they are likely
to discover new ways of working together that they experience as more effective
for achieving their own and their shared organisational goals and that when this
does not happen, such activity helps them to understand why and to make meaningful
choices about what to do in light of this understanding.” (Neilsen, 1984)
Experts might agree that the following definitions of organisational development
represent the major focus and thrust of many of today’s organisational development
practitioners:
“Organisational development is a system-wide application of behavioural science
knowledge to the planned development and reinforcement of organisational
strategies, structures, and processes for improving an organisation’s
effectiveness.”(Cummings and Worley) “Organisational development is a body of
knowledge and practice that enhances organisational performance and individual
development, viewing the organisation as a complex system of systems that exist
within a larger system, each of which has its own attributes and degrees of alignment.
Organisational development interventions in these systems are inclusive
methodologies and approaches to strategic planning, organisation design, leadership
development, change management, performance management, coaching, diversity,
and work/life balance.” (Matt Minahan, MM & Associates, Silver Spring, Maryland).
“Cummings and Worley (2002) defined organisational development as “a system
wide application of behavioural science knowledge to the planned development,
improvement, and reinforcement of the strategies, structures and processes that
lead to organisation effectiveness”. This definition emphasises several features that
differentiate organisational development from other approaches to organisational
change and improvement, such as management consulting, technological innovation,
operations management, and training and development.
We have already discussed about the old and new definitions of organisational
development. Now we will discuss five important factors that need to be highlighted
while defining organisational development. These factors are as follows:
i) It is planned change effort: An organisational development programme
involves a systematic diagnosis of the organisation, the development of a
strategic plan for improvement, and the mobilisation of resources to carry out
the effort.
ii) It involves the total system: It is related to the change system of the
organisation such as a culture change and the changes in the rewards system.
There may be tactical efforts which work with subparts of the organisation
but the system to be change is total, relatively autonomous organisation.
9
Introduction iii) It is managed from the top: The top management of the system has a
personal investment in the program and its outcomes. They actively participate
in the management of the effort.
iv) It is designed to increased organisation effectiveness and health: The
total organisation, the significant subparts, and individuals, manage their work
against goals and plans for achievement of these goals. Miles et al. (1966)
define the healthy organisation in three board areas- those concerned with
task accomplishment, those concerned with internal integration, and those
involving mutual adaptation of the organisation and its environment.
v) Organisational development achieves its goals through planned
interventions using behaviour science knowledge: A strategy is developed
of intervening or moving into the existing organisation and helping its present
ways of work, norms, and values, and look at alternative ways of working,
or relating, or rewarding. The interventions used draw on the knowledge and
technology of the behavioural sciences about such processes as individual
motivation power, communications, perception, culture norms, problem- solving,
goal setting, interpersonal relationships, intergroup relationships and conflict
management.
Self Assessment Exercises
1) Discuss any two definitions of organisational development.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Describe factors that need to be highlighted while defining organisational
development.
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
3) How does OD achieve its goals?
.....................................................................................................................
.....................................................................................................................
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1.4 GOALS OF ORGANISATIONAL

DEVELOPMENT
Organisational development has various goals, they are discussed as follows:
i) Create an open and problem solving atmosphere in the organisation:
10 An open and problem solving atmosphere in an organisation will not only
facilitate the overall functioning in the organisation but will also promote Definition and Introduction
to Organisational
employee satisfaction and motivation. Development
ii) The authority should be associated with their role, status, knowledge
and competence: This goal will help develop a positive relationship between
superiors and subordinates, thus creating a conducive environment in the
organisation.
iii) Decision making and sources of information should be clear: This goal
will help employees have a clear idea about the functioning of the organisation,
about various opportunities for career development and issues and problems
existing in the organisation. This will not only make employees more aware
but will also promote organisational citizenship amongst the employees.
iv) Build trust and values amongst employees throughout the organisation:
This will not only enhance the interpersonal relationship and communication
amongst the employees but will lead to development of a positive organisational
culture.
v) Create healthy competitive atmosphere amongst the employees to
maximize collaborative efforts: Creating and maintaining healthy competition
amongst the employees not only promotes team work but will also enhance
the overall functioning of the organisation.
vi) Develop a reward or promotion system to motivate the personnel and
increase the performance: This is one of the most relevant goals of
organisational development as employee performance is key to organisational
development and in order to promote maximum performance on the part of
the employees, it is important to use varied motivational techniques.
vii) Improve the effectiveness of the organisation: Another important goal of
organisational development is to use varied techniques and promote
organisational effectiveness.
viii) Enhance achievement of the organisational goals: Various techniques
under organisational development can be used to help enhance the achievement
of organisational goals.
1) Discuss any two goals of organisational development.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Describe the most important goal of organisational development according
to you. Give reason.
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11
Introduction
1.5 IMPORTANCE OF ORGANISATIONAL
DEVELOPMENT
Profitability, productivity, morale and quality of work life are of concern to most
organisations because they impact achievement of organisation goals. There is an
increasing trend to maximize an organisation’s investment in its employees. Jobs
that previously required physical dexterity now require more mental effort.
Organisations need to “work smarter” and apply creative ideas.
The work force has also changed. Employees expect more from a day’s work
than simply a day’s pay. They want challenge, recognition , a sense of
accomplishment, worthwhile tasks and meaningful relationships with their managers
and co-workers. When these needs are not met, performance declines.
Today’s customers demand continually improving quality, rapid product or service
delivery; fast turn around time on changes, competitive pricing and other features
that are best achieved in complex environments by innovative organisational
practices.
The effective organisation must be able to meet today’s and tomorrow’s challenges.
Adaptability and responsiveness are essential to survive and thrive.
Functions of OD Consultants
OD consultants custom tailor established social science theory and methods to
organisations seeking to improve profitability, productivity, morale and/or quality
of work life. Examples of activities which are facilitated by OD consultants are:
1) Team building
2) Goal Setting
3) Group Facilitation
4) Creative Problem solving
5) Strategic Planning
6) Leadership Development
7) Management Development
8) Career Management
9) Conflict Resolution
10) Developmental Education
11) Interpersonal Communication
12) Human Resources Management
13) Managing Workforce Diversity
14) Organisation Restructuring
15) High Involvement Work Teams
16) Socio technical Systems Design
12
17) Technical Training Definition and Introduction
to Organisational
18) Total Quality Management Development
Often described as “change agents,” OD consultants come from varied backgrounds

with experience and training in organisation development, organisation behaviour,
psychology, education, management and/or human resources. Many have advanced
degrees and most have experience in a variety of organisational settings.
There are both internal and external OD consultants. An internal OD consultant is
a full-time employee with a given organisation. External consultants may be self-
employed or on the staff of a consulting firm. “Externals” work with one or more
clients contracting for specific projects.
Organisation Development (OD) consultants provide services to improve
organisation effectiveness and/or individual employee effectiveness. The purposes
are to increase productivity, work satisfaction and profit for the client company.
Organisation Effectiveness
Consultants apply organisation effectiveness strategies such as those shown below
when here are needs for assessment, planning, growth, quality improvement,
teamwork and other organisational changes.
1) Action Research : An assessment and problem solving process aimed at
improved effectiveness for the entire organisation or specific work units. The
consultant helps the client organisation identify the strengths and weaknesses
of organisation and management issues and works with the client in addressing
problem opportunities. (Some form of action research is generally applied as
a foundation for other consulting strategies.)
2) Conflict Management : Bringing conflicts to the surface to discover their
roots, developing a common ground from which to resolve or better manage
conflict. Consultants serve as facilitator in a conflict situation or train employees
to better understand and manage conflict.
3) Executive Development : One-on-one or group developmental consultation
with CEO’s or VP’s to improve their effectiveness.
4) Goal Setting : Defining and applying concrete goals as a road map to help
an organisation get where it wants to go. (Can also be applied to employee
development.)
5) Group Facilitation : Helping people learn to interact more effectively at
meetings and to apply group guidelines that foster open communication,
participation and accomplishment.
6) Managing Resistance to Change : Helping clients identify, understand, and
begin to manage their resistance to planned organisational change.
7) Organisational Restructuring : Changing departmental and/or individual
reporting structures, identifying roles and responsibilities, redesigning job
functions to assure that the way work gets done in the organisation produces
excellence in production and service.
8) Project Management : The general management of specific work, blending
diverse functions and skills, usually for a fixed time and aimed at reaching
defined outcomes. 13
Introduction 9) Self-Directed Work Teams : Developing work groups to be fully responsible
for creating a well defined segment of finished work.
10) Socio technical Systems Design : Designing and managing organisations to
emphasise the relationship between people’s performance, the workplace
environment and the technology used to produce goods and services in order
to effect high level productivity.
11) Strategic Planning : A dynamic process which defines the organisation’s
mission and vision, sets goals and develops action steps to help an organisation
focus its present and future resources toward fulfilling its vision.
12) Teambuilding : Improving how well organisation members help one another
in activities where they must interact.
13) Total Quality Management : Through work process analysis, teambuilding,
defining quality and setting measurable standards, the consultant assists the
organisation in becoming more cost effective, approach zero-defects and be
more market-driven
1.6 ORGANISATIONAL DEVELOMENT AND

ORGANISATIONAL CHANGE
Since now we have a clear idea about the meaning of organisational development.
Let us now distinguish it from organisational change. Organisational change is
equally significant area that needs to be focused on in an organisational set up.
Though both the tersm seem to be similar, they are different to a greater extent.
This distinction will be clear with the help of following points
Organisational development applies to the strategy, structure, and processes of an
entire system, such as an organisation, a single plant of a multiplant firm, or a
department or work group. A change program on the other hand aims at modifying
an organisation’s strategy, for example, it might focus on how the organisation
relates to a wider environment and on how those relationships can be improved.
It might include changes both in the grouping of people to perform tasks (structure)
and in methods of communicating and solving problems (process) to support the
changes in strategy.
Similarly, an organisational development program directed at helping a top-
management team become more effective might focus on interactions and problem-
solving processes within the group. This focus might result in the improved ability
of top management to solve company problems in strategy and structure. This
contrasts with approaches, focusing on one or only a few aspects of a system,
such as training and development, technological innovation, or operations
management. In these approaches, attention is narrowed to individuals within a
system, to improvement of particular products or processes or to development of
production or service delivery functions.
Organisational development is based on behavioural science knowledge and practice,
including micro concepts such as leadership, group dynamics, and work design,
and macro approaches such as strategy, organisation design, and international
relations. These subjects distinguish organisational development from such
applications as management consulting, technological innovation, or operations
management that emphasise the economic, financial, and technical aspects of
14
organisations. These approaches tend to neglect the personal and social Definition and Introduction
to Organisational
characteristics of a system. Development
Organisational development is concerned with managing planned change, but not

in the formal sense typically associated with management consulting or technological
innovation, which tend to be programmatic and expert-driven approaches to change,
rather, organisational development is more an adaptive process for planning and
implementing change than a blueprint for how things should be done. It involves
planning to diagnose and solve organisational problems, but such plans are flexible
and often revised as new information is gathered about the progress of the change
program. If, for example, there was concern about the performance of a set of
international subsidiaries, a reorganisation process might begin with plans to assess
the current relationships between the international divisions and the corporate
headquarters and to redesign them if necessary. These plans would be modified
if the assessment discovered that most of the senior management teams were not
given adequate cross-cultural training prior to their international assignments.
Organisational development involves both the creation and the subsequent
reinforcement of change. It moves beyond the initial efforts to implement a change
program to a longer-term concern for stabilizing and institutionalising new activities
within the organisation. For example, the implementation of self-managed work
teams might focus on ways in which supervisors could give workers more control
over work methods. After workers had more control, attention would shift to
ensuring that supervisors continued to provide that freedom. That assurance might
include rewarding supervisors for managing in a participative style. This attention
to reinforcement is similar to training and development approaches that address
maintenance of new skills or behaviours, but it differs from other change perspectives
that do not address how a change can be institutionalised.
Organisational development is oriented to improving organisational effectiveness.
This involves two major assumptions. First, an effective organisation is able to
solve its own problems and focus its attention and resources on achieving key
goals. Organisational development helps organisation members gain the skills and
knowledge necessary to conduct these activities by involving them in the process.
Second, an effective organisation has both high performances, including financial
returns, quality of work life. The organisation’s performance responds to the needs
of external groups, such as stockholders, customers, suppliers, and government
agencies that provide the organisation with resources and legitimacy. Moreover, it
is able to attract and motivate effective employees, who then perform at high
levels. Other forms of organisation change clearly differ from organisational
development in their focus. Management consulting, for example, is almost solely
concerned with financial performance, whereas training and development addresses
individual effectiveness.
Organisational Change
Organisational change is defined as change that has significant effects on the way
work is performed by the staff of an organisation. Organisational change may be
apparent when there is a gap between how the work area is operating and how
it should be operating to ensure successful future growth.
The organisation places high importance on ensuring that organisational change,
when required, is implemented in a timely and professional manner. A key reference
in the organisational Operational Priorities Plan identifies the operational objective,
15
Introduction viz., to retain the best-quality staff. This objective is one of the goals of an
effective organisational change process.
The organisation considers that where organisational change is implemented
correctly the benefits include:
 employee participation
 a greater understanding of the change
 a better informed decision is made
 trust is maintained throughout the process
 loss of productivity is minimised.
It is imperative that the work area understands that organisational change is about
allowing employees to influence the decision maker through a consultative process.
Significant organisational change occurs, for example, when an organisation changes
its overall strategy for success, adds or removes a major section or practice, and/
or wants to change the very nature by which it operates. It also occurs when an
organisation evolves through various life cycles, just like people must successfully
evolve through life cycles. For organisations to develop, they often must undergo
significant change at various points in their development. That’s why the topic of
organisational change and development has become widespread in communications
about business, organisations, leadership and management.
Leaders and managers continually make efforts to accomplish successful and
significant change. It is inherent in their jobs. Some are very good at this effort
while others continually struggle and fail. That is often the difference between
people who thrive in their roles and those that change from job to job, ultimately
settling into a role where they are frustrated and ineffective. There are many
schools with educational programs about organisations, business, leadership and
management. Unfortunately, there still are not enough schools with programs about
how to analyse organisations, identify critically important priorities to address
(such as systemic problems or exciting visions for change) and then undertake
successful and significant change to address those priorities.
Organisational change is undertaken to improve the performance of the organisation
or a part of the organisation, for example, a process or team. Organisational
performance involves the recurring activities to establish organisational goals, monitor
progress toward the goals, and make adjustments to achieve those goals more
effectively and efficiently. Those recurring activities are much of what leaders and
managers inherently do in their organisations.
Managing change and management are important . Today, teams and organisations
face rapid change like never before. Globalisation has increased the markets and
opportunities for more growth and revenue. However, increasingly diverse markets
have a wide variety of needs and expectations that must be understood if they are
to become strong customers and collaborators. Thus, the ability to manage change,
while continuing to meet the needs of stakeholders, is a very important skill required
by today’s leaders and managers
16
Definition and Introduction
Self Assessment Questions to Organisational
Development
1) Differentiate organisational development from organisational change.
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2) What is organisational change?
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3) Why is organisational change and change management are important?
.....................................................................................................................
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4) State any two ways in which organisational development is different from
organisational development.
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1.7 ORGANISATIONAL CULTURE

Organisation culture is the important factor in any organisational development. A
good culture of the organisation makes the organisation effective and successful.
A good culture is also contribute to implement the effective policy of an organisation.
Organisation culture means the prevailing patterns of activities, interactions norms,
sentiments, feelings, beliefs, attitudes, values, informal systems and products.
Organisational development efforts focuses on both the formal and the informal
system. The initial intervention strategy is usually through the informal system in the
sense that perceptions, attitudes and feelings are usually the first data to be
confronted. Collaborative management of the culture underlies a participative or
a shared kind of management, not of a hierarchically imposed kind, but a group
culture which is accepted both by the subordinates as well as the formal leader.
Work with team includes the subordinates and superior is the key factor of the
organisation culture.
An organisation’s culture determines the organisation behaviour. It is essential that 17
Introduction the organisation’s culture supports behaviour appropriate for its goal attainment
and vice-versa. Efforts to define, measure and change organisational culture have
become more sophisticated. Schein in particular has written extensively about
culture. He has devised intervention to help leaders and employees identify those
cultural assumptions that will assist the organisation in training its goals and those
that hinder goal attainment.
Making such distinctions is done through a joint exploration to identify sequentially
the organisation’s artifacts, such as office layout and status symbols; the values
underlying these artifacts; and the assumptions behind those values. Others have
helped organisations focus on culture through the use of questionnaires aimed at
identifying actual and desired norms. Participants than make agreements about
new norms and hoe to monitor and reinforce the changes.
In the last few years, the term organisational culture has gained popularity as
means of understand human systems. The organisational culture of an organisation,
include the values, that may be stated and unstated values, expectations of the
employees from the superiors, peers and the organisation as a whole, customs and
rituals, stories and myths about the history of the group, communication pattern
amongst the employees, organisational climate and metaphors and symbols, that
may be unconscious but can be found embodied in other cultural elements.
Morgan proposes four essential strengths of the organisational culture approach.
It focuses attention on the human side of organisational life, it makes clear the
importance of creating appropriate systems of shared meaning to help people
work together toward desired outcomes, it requires members—especially leaders—
to acknowledge the impact of their behaviour on the organisation’s culture and it
encourages the view that the perceived relationship between an organisation and
its environment is also affected by the organisation’s basic assumptions.
Organisational culture plays an extremely important role in the process of
organisational development. It is also initially important to assess organisational
culture before initiating the process of organisational development, as organisational
culture will provide the conducive environment necessary for the successful
implementation of organisational development. Thus any organisational development
practitioner should focus on organisational culture in a particular organisation,
assess it, modify or change it if required before the necessary organisational
development intervention is implemented.
1) Discuss the concept of organisational culture.
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1.8 LET US SUM UP

After reading this unit we can now summarize that the organisational development
is a planned, organisation-wide effort to increase an organisation’s effectiveness
and viability. It is a system-wide application of behavioural science knowledge to
18
the planned development and reinforcement of organisational strategies, structures, Definition and Introduction
to Organisational
and processes for improving an organisation’s effectiveness. Development
In the unit we also discussed about the goals of organisational development that
are of extreme importance in order to understand the relevance of organisational
development. The difference between organisational development and organisational
change was also highlighted in this unit.
We further discussed about the organisational culture, which means the prevailing
patterns of activities, interactions norms, sentiments, feelings, beliefs, attitudes,
values, informal systems and products. An organisation’s culture determines the
organisation behaviour. It is essential that the organisation’s culture supports
behaviours appropriate for its goal attainment and vice-versa. Thus we now have
a clear understanding of the term organisational development and its relevance in
an organisational setup.

1) Explain the meaning of organisational development.
2) Highlight the five important factors in organisational development.
3) Elaborate the goals of organisational development.
4) Differentiate between organisational development and organisational change.
5) Describe how organisational culture is important factor in organisational
development.

Beckhard (1969) Organisational Development: Strategies and Models, Reading,
MA: Addison-Wesley, p. 9.
French, W.L., Bell, C. H., & Vohra, V. (2006) Organisational Development. 6th
Ed. New Delhi. Dorling Kindersley (India) Pvt. Ltd.
Miner.J.B (1992) Industrial-Organisational Psychology, McGraw-Hill, Inc.
(International Edition)
References
Cummings and Worley (1977) Organisational development and Change, Sixth
Edition, South-Western Publishing, p.2.
Devi, Laxmi (1998) Organisational development, Institute for Sustainable
Development, Lucknow and Anmol Publications Pvt. Ltd.
Neilsen (1984) Becoming an OD Practitioner, Englewood Cliffs, CA: Prentice-
Hall, pp. 2-3.
Newstorm, J. W., & Davis, K. (1997). Organisational Behaviour: Human Behaviour
at Work. 9th Ed. New Delhi. Tata McGraw- Hill Publishing Company Limited.
Raja, A. P and Margulies, Newton (1979) Organisational change and development.
In Sehgal, J.L. (1988) Organisational Development. Printwell Publishers,
Jaipur.Spates,
J.L (1993) The sociology of values, Annual Review of Sociology, 9, 27-49. Steven
Kerr (Ed.), Organisational behaviour, pp. 355-378.
19
UNIT 2 FOUNDATIONS OF
ORGANISATIONAL
DEVELOPMENT
Structure
2.0 Introduction
2.1 Objectives
2.2 Nature of Organisational Development
2.3 Characteristics of Organisational Development
2.3.1 Organisational Development as Educational Strategy
2.3.2 Focus on Real Problems
2.3.3 The Organisational Development Practitioners
2.3.4 Focus on Immediate or Existing Problem
2.3.5 Organisational Development is a Dynamic Process
2.3.6 Organisational Development is Action Based
2.3.7 Organisational Development Works on Open and Adaptive System Concepts
2.4 Organisational Development Process

2.4.1 Diagnosis and Problem Identification
2.4.2 Action Plan or Planning Strategy
2.4.3 Evaluation of the Effects of Action
2.4.4 Intervening in the System
2.5 Organisational Development Practitioners

2.6 Values
2.7 Organisational Development and Organisational Effectiveness
2.8 Let Us Sum Up
2.0 INTRODUCTION
As you know in the recent years, organisational developmenthas developed as
one of the most significant developments in the field of organisational behaviour.
Organisational development began to evolve as a distinct field of study in the
1940s when behavioural scientists in the US and Britain made efforts to resolve
problems facing modern organisations. Organisational development has been defined
in different ways by different behavioural scientists and applies the knowledge and
practice of behavioural science to improve the effectiveness of organisations.
In the earlier unit we studied about the meaning and concept of organisational
development. We also highlighted the goals of organisational development, how it
is different from organisational change and further focused on organisational culture.
In this unit we will discuss about the foundations of organisational development.
While discussing about foundations of organisational development, we will focus
20 on nature and characteristics of organisational development. We will also explain
the concept of diagnosing organisations, process involved in organisational Foundations of
Organisational
development and the role of organisational development practitioner. We will further Development
discuss organisational effectiveness.
2.1 OBJECTIVES
 Discuss the nature of organisational development;
 Explain the characteristics of organisational development;
 Describe the process involved in organisational development;
 Analyse the role of organisational development practitioners;
 Explain the relevance of values in an organisational set up; and
 Discuss organisational effectiveness
2.2 NATURE OF ORGANISATIONAL

DEVELOPMENT
The nature of organisational development can be described with the help of the
following:
1) Organisational development as-an ongoing interactive and continues
process: The ongoing process nature of organisational development implies
that it is not to be regarded as a one-shot solution to organisational problems,
but more as a growing toward greater effectiveness through a series of
intervention activities over a time period. Managing and directing the change
of an organisation’s culture and process does not happen overnight, rather (a
more realistic time estimate) it may take several years.
Understanding about organisational development is greatly facilitated by viewing
it as an ongoing interactive process. A process is an identifiable flow of
interrelated events moving over time toward some goal or end. The interrelated
event consists of interventions in the client system as also responses to these
interventions. It also includes the dynamic, moving and changing things, in
which people can learn the new skills or revised the old ones.
Organisational development is a continuous process in the sense that, in
organisational development how things are done is as much important as what
is done. In order to solve problems and to create future problem solving
capabilities we need organisational development or the self-renewing and
culture managing capabilities among the organisational personnel.
2) Organisational development as a form of applied behavioural science:
An organisational development program applies the scientific and practice
principles from several behavioural sciences, social psychology, social
anthropology, sociology, psychiatry, economic and political science. It can be
define as the application of behaviour science knowledge, practices and skills
on ongoing systems in collaboration with system members. Organisational
development is both a result of applied behavioural science as well as a form
of behavioural science.
21
Introduction 3) Organisational development as normative re-educative change: It is a
process for improvement organisational effectiveness; it implies that things will
be done in a different style which requires usually changing its processes and
culture. These types of organisational changes are desired by the people who
will be affected, which open up alternatives for action rather than closing off
alternatives for the same. Organisational development has three types of
strategies for the organisation change i.e. empirical- rational strategy; normative
strategy; and power-coercive strategy. Normative strategy is more popular in
organisation settings and it can be cover other two types of strategies. This
strategy is based on the assumption that norms form the basis for behaviour
and change comes through a reeducation process in which outmoded norms
are supplanted by new ones. Changes in normative orientations involve changes
in attitudes, values, skills and significant relationships, not just changes in
knowledge, information or intellectual rationales for action and practice. For
example if we want to introduce the Wikipedia system in our organisation first
of all we have to introduce and train to our employees and also to re-educate
them about changing their existing norms and beliefs about computers that
their application will not result in retrenchment of personnel or loss of jobs
in the country.
4) Organisational development includes the incorporating a systems
approach to organisations: The term ‘system’ may refer either an entire
organisation or a sub-system such as an academic department or the group
of teachers. The focus is always on improving both the ability of a system to
cope and the relationships of the system with subsystems and with the
environment. It is always noted that the systems approach is one for the
foundations of an organisational development; a significant step was taken
toward the invention of organisational development. Systems approach
emphasises organisation phenomena and dynamics in their interaction. This
is approach is useful to understanding of organisation.
Blake and Mouton (1976) address that organisational development is the
development of overall system, not only of the one part of a system. It also
indicates the progress of total organisation. The objective of organisational
development is to liberate all of the individuals within it, so that they will be
free, participative, and contributive to problem solving, in order to achieve
corporate purposes of profitability, this objective cannot be reached until the
constraints that operate within the corporation’s culture have been studied
and deliberately rejected.
5) Organisational development is based on an action research (data based)
model of planned changed: The action based or data based research
model is a significant facet in organisational development. Generally the nature
of data based change activities in organisation setting are different from others
data based or action based programmes. They can be different in the following
way:
In the organisational development functioning, the value of data is more
important, organisation personnel learn how to collect and save the data and
they should have known the utilisation of data for problem solving in
organisations.
In organisational developmentprogrammes data about the organisation’s human
22 and social processes would be used more than the data about processes like
data in technical production, financial and marketing areas of the organisation Foundations of
Organisational
system. Development
In organisational development settings data collected is meant to be used by

the personnel who collected the data, where as data is traditionally collected
for the information of top management only. The purpose of the data collection
is to make the improvement in organisation and make a plan for the future
growth. This data based information also gives the spring board for the
building of action plans.
Some are discrepancy data and some are contradictory. This type of data
can be perceive as a suggestion rather than nuisances. They indicate directions
in which the organisational developmentprogramme should proceed as also
the differences which exist in the perceptions, motivations, attitudes etc; of
the organisation personnel.
In organisational development system we must also measure the functionality
and disfunctionality about the facts. For example how does an authority style
help in solving problems and how much is it dysfunctional for the occurrence
of the other results. That why in organisational developmentwe see a shift
from describing data to be used in organisational development for problem
solving rather than as a tool for enforcement of certain behaviours and to that
end a climate, or cultural pattern gets introduced in the organisation.
The strong data is a scientific way to collect the information. The decisions
are made largely on the basis of empirical facts rather than on the basis of
power, position, tradition, persuasion and precedent.
Data is an outcome of the needs and problems of the system members. This
data itself will ultimately supply answers to the central needs of the organisation
members.
6) Organisational development goes as an experience based learning mode
that emphasises goal setting and objectives: The process of organisational
development is based on experience and it emphasises that people learn
about organisational dynamics by living with their experiences and skills.
In this system the personnel learn to make decisions by making decisions and
then evaluating the same so that they may learn how to make adequate
decisions in future. They can also learn to manage conflicts after experiencing
the ill effects of conflicts and contra productive behaviours. Organisational
development interventions tend to focus on real behaviour of individuals and
groups, for solving real world problems and also tend to derive generalisations
about organisations dynamics inductively from experience.
The persons to be involved in the organisation functioning first of all they
should be involved themselves in an activity and then reflect on that experience
to learn and to derive generalisations about the phenomena. In order that
they may learn and improve the learning activity is essential, it also refers to
an inquiry attitude which the individuals take into all their experiences.
Therefore, experience based learning also becomes an important foundation
of organisational development.
7) Organisational development concentrates on intact work teams as the
primary instruments for organisation’s improvement: These different
23
Introduction aspects of organisational development serve as foundations, characteristics,
distinguishing features or theoretical and practice underpinnings upon which
the process has been built and this foundation has played a significant
contribution in shaping the practice of organisational development.
Now a days the organisational development is shifting its own area of attention
from one person to intact work teams which is a move towards viewing organisations
from a systems approach that had brought organisational development into limelight.
The above different aspects of organisational development serve as the foundation
upon which the process is built, and the foundation has played a significant role
in shaping the practice of organisational development.
State whether the statements are True (T) or False (F).
1) Organisational development as a continuous and interactive process ( ).
2) Organisational development defines as an application of behaviour science
( ).
3) Organisational development has two types of strategies for the organisation
change i.e empirical rational strategy and normative strategy
( ).
4) System approach emphasises organisation phenomena and dynamics in their
interaction
( ).
5) Strong data is a scientific way to collect the information about organisation
( ).
2.3 CHARACTERISTICS OF ORGANISATIONAL

DEVELOPMENT
We have so far discussed about the definition, goals and nature of organisational
development. It is also important at this point to understand certain characteristics
of organisational development as these characteristics reflect the relevance of the
role and contributions of organisational development to overall enhancement of
productivity in the organisation, increased profitability, and effective performance
and higher satisfaction amongst the employees. The characteristics of organisational
development are discussed as follows:
2.3.1 Organisational Development as Educational Strategy

Organisational Development is an educational strategy that attempts to bring about
a planned change: Under organisational development varied strategies are utilised
and a systematic procedure is followed in order to bring about the change. This
ensures better implementation, minimizes errors and the expected outcome is
positive.
2.3.2 Focus on Real Problems

24 Organisational Development relates to real organisational problems instead of
hypothetical cases: Since an elaborate process is involved in organisational Foundations of
Organisational
development with a focus on diagnosis of what actually is going wrong in the Development
organisation, it can be said that the organisational development focuses on real
problems of organisations rather than hypothetical cases.
Organisational Development uses sensitivity training methods and lay emphasis on
the significance of experiment based training: This characteristic is relevant in order
to ensure effective learning of skills and behaviours amongst the employees at
various hierarchical levels. Thus the use of sensitivity training and experiment
based training is promoted under organisational development. Training and
development is one of the important aspects under organisational development
intervention.
The organisational development practitioners are often external consultants outside
of the organisation: The change agents involved in the implementation of
organisational development intervention may or may not be from within the
organisation. Most often organisational development practitioners are external
consultants.
An external consultant has better perception of the problems and constraints in the
organisational structure and process and his/her perception is not biased. Further
an employee has to play a role of change agent, he/she may be burdened with his/
her own work activity, which may suffer as a result of the dual role played by the
employees. Also his/ her perception may be biased.
However, a collaborative relationship is required between the organisational
development practitioners and internal organisation executives establish a
collaborative that involves mutual trust, influence and jointly determined goals.
This will ensure smooth implementation of the organisational development
intervention as the employees within the organisation have a feeling of involvement.
2.3.3 The Organisational Development Practitioners

The organisational development practitioners are humanists and seek to establish
a social and altruistic philosophy within an organisation: The humanistic approach
believes that each individual is unique and has potentiality for growth. Also the
goals that the organisational development practitioner seeks to achieve through
organisational development tend to reflect humanistic approach and aims for better
conflict resolution, increased understanding and more considerable leadership. This
approach on the behalf of the organisational development practitioner promotes
better organisational climate within the organisation and provides better scope and
conducive environment for the employees to develop their potentialities. It also
enhances job involvement, participation and enhances overall satisfaction amongst
the employees of that particular organisation.
The required changes in the organisation are usually the result of some immediate
problems but it is a long term approach covering three to five years: Organisational
development is an elaborate process consisting of various components. One of the
most significant components of the organisational development process is diagnosis
of problems.
2.3.4 Focus on Immediate or Existing Problem

Organisational development to a greater extent may focus on the immediate or
existing problems in an organisation. But the overall approach towards dealing
25
Introduction with these problems is lengthy and complex. This is in order to ensure effective
dealing with the problem and to ensure that such a problem does not arise in
future.
The intervention strategies under organisational development are such that they
deal with the values, attitudes and beliefs of the employees. Identifying the values,
attitudes and beliefs of the employees and modifying and changing them is a
challenging job, which is a time consuming activity.
It is used to describe variety of change programmes and intends to change the
organisational philosophies, attitudes and skills of people: Organisational
development employees varied intervention strategies that mainly focus on the
attitudes, values and beliefs of the employees. This helps the organisational
development professional to understand the root cause of certain problems and
issues in an organisational setup. Dealing with these attitudes, values and beliefs
leads to effective management of the problems or issues.
2.3.5 Organisational Development is a Dynamic Process

It is a dynamic process that involves considerable investment of money and time:
As discussed in the earlier points, organisational development is a time consuming
and lengthy process which also requires a considerable financial investment. This
is as a result of the basic approach of organisational development which emphasises
the diagnosis of the problem or issues in the organisation and its effective management
with a goal that the problem or the issue should not repeat. Also the organisational
development process may require involvement and contribution of the employees
from varied organisational levels. Even the participation and encouragement on the
part of the management is crucial here.
Organisational development may bring about major change in the structures and
processes in an organisation, thus the process will consume a great amount of time
and money.
2.3.6 Organisational Development is Action Based

It is research based activity and aims at conducting surveys, collection of data and
evaluation of the situation: The organisational development process involves varied
steps as discussed above. It is planned activity which is action based. It is also
a process which focuses on determining the pressing problems and issues in an
organisation. Thus various data collection methods are used in order to understand
the problem that is taking place in the organisation. This data is then suitably
analysed and the situation is evaluated in order to design a suitable intervention
strategy. The whole research based activity ensures that the intervention strategy
developed will lead to effective management of the problems and will lead to
positive outcome.
2.3.7 Organisational Development Works on Open and

Adaptive System Concepts
It works on open and adaptive system concepts and believes that organisational
design and managerial performance are mutually interdependent: The success of
organisational development greatly depends on the role played by the managers
or leaders in the organisation.
Further since organisational design and managerial performance are interrelated, it
26
is extremely important for organisational development practitioners to interact with Foundations of
Organisational
managers in the organisation and take their help and support for successful Development
implementation of the organisational development interventions.
1) Discuss the characteristics of organisational development.
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2) Why do we say that organisational development is action based?
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3) Why do we say the organisational development focuses on immediate and
existing problems?
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2.4 ORGANISATIONAL DEVELOPMENT PROCESS

At this point it is important to focus on the essential steps involved in the process
of organisational development. This topic will be dealt in detail in the Block 3 of
this course. According to French and Bell the basic components in organisational
process are:
2.4.1 Diagnosis and Problem Identification

It is the component which represents a continous collection of data about the total
system, units and subunits.It is regarding system process culture and other targets
of interests.Through diagnosis comes the identification of problem and strength,
opportunities and problem areas.It begins with the organisational activities.Diagnosis
helps in identifying concerns and issues and explore the scope of future coarse of
action.This involves a number of techniques concerned establishing priorities and
translating them into aims and objectives.
From the chart it is clearly visualise that from the diagnosis comes identification
opportunities and then action plan or planning strategy is developed in step (2) to
correct problems.
27
Introduction 2.4.2 Action Plan or Planning Strategy
Once problems are diagnosed organisational development experts start planning
the various courses of action. Attempts are to transform diagnosis into proper
plan involving the overall goals for change, determination of the basic approach for
attaining these goals and the sequence of detailed scheme for implementing the
approach. It is relatively simple matter to identify changes after they have occurred
and is considerably difficult to influence the direction thrust of changes when they
are under way. Thus it is proved that planning and implementation both are inter
dependent. The way in which changes is planned has an impact on the way in
which it is carried out.
With the continuation of steps through planning strategy these action plans are
organisational development interventions specifically tailored to address issues at
individual, group, intergroup and organisational levels. Passing from this next step
comes fact finding concerning the results of the actions taken.
2.4.3 Evaluation of the Effects of Action

This step relates to evaluation of the results of organisational programmes so that
suitable actions may be followed. Since this is a long process there is an urgent
requirement for careful monitoring to get precise feedback regarding what is going
on as soon as an organisational development programme starts. Systematic
appraisal of change efforts and pre and post training behavioural pattern are quite
effective. If the actions have desired effects then the problems get solved and the
organisation members move on to new different problems and opportunities.
Sometimes some problems remain unsolved and the members have to initiate new
action plans and intervention in step four to resolve the issue.
2.4.4 Intervening in the System

In the system refers to the planned programme activities during the course of an
organisational programme.These planned activities bring certain changes in the
system which is the basic objective of organisational development.Some new
methods may be introduced in the system like education and laboratory training,
processs consultation, team development which will intervene and will possibly
attempt to solve the issues.Sometimes when problems remain unresolved after
initial attack then steps 3 and 4 entail redefining and reconceptualising the problems
areas.Steps 5, 6 and 7 and so on may require for some problems and opportunities
but any further steps are just iterations of the basic sequence of diagnosis-action-
evaluation action.
1) How process effects organisational development?
.....................................................................................................................
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2) State the similarity between diagnosis and problem identification.
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28
Foundations of
..................................................................................................................... Organisational
Development
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3) How process can be evaluated to see the organisational development?
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2.5 ORGANISATIONAL DEVELOPMENT

PRACTITIONERS
The organisational development practitioner plays a crucial role in the overall
process of organisational development. The term refers to at least three sets of
people. The most obvious group of organisational development practitioners are
those people specialising in organisational development as a profession. They may
be internal or external consultants who offer professional services to organisation
clients, including top managers, functional department heads, and staff groups.
Organisational development professionals traditionally have shared a common set
of humanistic values promoting open communications, employee involvement and
personal growth and development. They tend to have common training, skills, and
experience in the social processes of organisations (for example, group dynamics,
decision making, and communications).
1) In recent years, organisational development professional have expanded those
traditional values and skill sets to include more concern for organisational
effectiveness, competitiveness, and bottom-line results, and greater attention
to the technical, structural, and strategic parts of organisations. That expansion,
mainly in response to the highly competitive demands facing modern
organisations, has resulted in a more diverse set of organisational development
professionals geared to helping organisations cope with those pressures.
2) The term organisational development practitioner applies to people specialising
in the fields related to organisational development, such as reward systems,
organisation design, total quality, information technology, and business strategy.
These content-oriented fields increasingly are becoming integrated with
organisational development’s process orientation, particularly as organisational
development projects have become more comprehensive, involving multiple
features and varying parts of organisations. The integrated strategic change
intervention for example, is the result of marrying organisational development
with business strategy.
A growing number of professionals in these related fields are gaining experience
and competence in organisational development, mainly through working with
organisational development professionals on large scale projects and through
attending organisational developmenttraining sessions. For example, most of
the large accounting firms have diversified into management consulting and
change management. In most cases, professionals in these related fields do not
29
Introduction subscribe fully to traditional organisational development values, nor do they
have extensive organisational development training and experience.
Rather, they have formal training and experience in their respective specialties,
such as industrial relations, management consulting, information systems, health
care, and work design. They are organisational development practitioners in
the sense that they apply their special competence within an organisational
development – like process, typically by engaging organisational development
professionals and managers to design and implement change programs. They
also practice organisational development when they apply their organisational
development competence to their own specialties, thus spreading an
organisational development perspective into such areas as compensation
practices, work design, labor relations, and planning and strategy.
3) The term organisational development practitioner applies to the increasing
number of managers and administrators who have gained competence in
organisational development and who apply it to their own work areas. Studies
and recent articles argue that organisational development applied by managers
rather than organisational development professionals is growing rapidly. They
suggest that the faster pace of change affecting organisations today is highlighting
the centrality of the manager in managing change. Consequently, organisational
development must become a general management skill.
Along those lines, Kanter studied a growing number of firms, such as General
Electric, Hewlett-Packard, and 3M, where managers and employees have become
“change masters”.They gained the expertise to introduce change and innovation
into the organisation.
1) Who are the organisational development practitioners?
.....................................................................................................................
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.....................................................................................................................
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2) What is the role of organisational development practitioners?
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2.6 VALUES
Values are the explicit or implicit conceptions of the desirable held by an individual
or a group. They influence selections from available modes, means, and ends of
action. Whereas values are generalised conceptions, attitudes are operations of
several beliefs around specific object or situations.
Values uphold standards, while attitudes reflect multiple, often changing opinions
30
(Spates, 1983). Values concern what should be; they are the normative standards
by which human beings are influenced in their choices among alternative courses Foundations of
Organisational
of action. Development
Values are the engine of success. These values include mutual trust and confidence,
honesty and open communication, sensitivity and to the feeling and emotions of
others, shared goals, and a commitment to addressing and resolving conflict
(Buchanan and Huczynski, 1997, p.489).
There are organisations who value these human attributes above all other quick fix
benefits. Stephen Robbins (1986, p.461) expresses these human values more
concisely as follows:
 The individual should be treated with respect and dignity.
 The organisation climate should be characterised by trust, openness and
support.
 Hierarchical authority and control are not regarded as effective mechanisms.
 Problems and conflicts should be confronted, and not disguised or avoided.
 People affected by change should be involved in its implementation.
The value is the key point of organisational development and it plays a significant
role to maintain the performance of an organisation. These values are effective in
the following ways:
i) Utilisation of total available resources;
ii) Development of human potential;
iii) Organisational effectiveness and health;
iv) Exciting and challenging work;
v) Opportunity to influence work environment and
vi) Appreciation for unique and complex needs of individuals.
The values can also improve performance and productivity of an organisation. The
possibility exists that the values of organisational development, if implemented, can
be most useful in yielding increased job satisfaction for those people whose needs
the values meet. The values of organisational development, in and of themselves,
do not represent solutions to an organisation’s ills.
Humanistic values is also important for organisation. According to Raja and
Margulies (1979) humanistic values provide opportunities for people to function
as human beings rather than as resources, opportunities for each member, the
organisation, to develop to full potential, increase the effectiveness of the organisation
in terms of all its goals, not only profit and treat each human being as a person
with a complex set of needs.
1) Elucidate the values that are important for organisational development.
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.....................................................................................................................
..................................................................................................................... 31
Introduction
2) Explain how values and organisational development are related.
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3) Discuss the ways in which the values are effective.
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2.7 ORGANISATIONAL DEVELOPMENT AND

ORGANISATIONAL EFFECTIVENESS
We now have an understanding of how the organisational development contributes
to a greater extent to the overall effectiveness of an organisation. US funder
organisation Grantmakers for Effective Organisation (GEO, 2007) describes an
effective organisation as one which “is able to fulfill its mission through a blend of
sound management, strong governance, and a persistent rededication to achieving
results”.
The Alliance for Nonprofit Management (again, a US organisation) describes
organisational effectiveness as “the capacity of an organisation to sustain the people,
strategies, learning, infrastructure and resources it needs to continue to achieve its
mission”.
Barbara Kibbe (2007) has summarized the most important factors which contribute
to the effectiveness of organisation. One of the factors of an effective organisation
is relevant programmes that are regularly reviewed to ensure that service delivery
is consistent with known best practices and related to evolving needs and context.
Policies and processes, which are efficient, cost effective, aligned with mission and
goals, and focused on clear, measurable outcomes are also very important in order
to make an organisation effective. Further, adequate assets and resources are
required to accomplish organisational and programmatic objectives, including
physical and human resources as well as financial assets.
Stability through multiple funding streams, a high level of earned income, and/or
adequate cash reserves or endowment is also necessary. Last but not the least
skilled leaders are one of the most important aspects of an effective organisation
and also for the overall performance and success of the organisation. The skilled
leaders will provide continuous learning in terms of their personal and professional
growth, as well as the management of their organisations.
These factors that lead to organisational effectiveness can be achieved with the
help of organisational development process.
32
Foundations of
Self Assessment Questions Organisational
Development
1) What is organisational effectiveness?
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2) What are the important factors that contribute to organisational effectiveness.
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2.8 LET US SUM UP

To sum up, organisational development can be described as an ongoing, systematic
process to implement effective change in an organisation. Organisational
development is known as both a field of applied behavioural science focused on
understanding and managing organisational 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. Its main goal is to facilitate
effective functioning and growth in an organisation.
Organisational development is a particular kind of change process designed to
bring about a particular kind of end results. It attempts to make organisations
(viewed as social-technical systems) better able to attain their short and long-term
objectives. This is achieved by teaching the organisation members to manage their
organisation processes, structures, and culture more effectively. A basic belief of
organisational development theories and practitioner is that for effective, lasting
change to take place, the system members must grow in the competence to master
their own fates. Organisational development is a contractual relationship between
an organisational development practitioner and a sponsoring organisation entered
into for the purpose of using applied behavioural science and or other organisational
change perspectives in a systems context to improve organisational performance
and the capacity of the organisation to improve itself.
In this unit we discussed about the nature and characteristics of organisational
development, which are very important to understand so as to further clarify the
concept of organisational development. We also discussed the process involved in
organisational development. The role played by organisational development
practitioner was also discussed in the unit. We then highlighted the relevance of
values and focused on the organisational effectiveness.

1) Explain organisational development as an interactive and continuous process.
2) Discuss the characteristics of organisational development
33
Introduction 3) Describe the process involved in the organisational development.
4) Discuss the role of an organisational development practitioner.
5) Write a note on values.
6) Discuss about organisational effectiveness.

Blake, R.P., and J.S. Mouton. (1976) Consultation, Reading MA: Addison-
Wesley.
Devi, Laxmi (1998) Organisation Development, Institute for Sustainable
Development, Lucknow and Anmol Publications Pvt. Ltd, New Delhi .
French, W.L., Bell, C. H., &Vohra, V. (2006) Organisational Development. 6th
Newstorm, J. W., & Davis, K. (1997). Organisational Behaviour: Human
Behaviour at Work. 9th Ed. New Delhi. Tata McGraw- Hill Publishing Company
Limited.
34
UNIT 3 CONCEPTUAL FRAMEWORK OF
ORGANISATIONAL
DEVELOPMENT
Structure
3.0 Introduction
3.1 Objectives
3.2 A Brief History of Organisational Development
3.2.1 Early Development
3.2.2 Modern Development
3.3 Organisational Development Worldwide

3.3.1 Definition of Worldwide Organisations
3.3.2 Worldwide Strategic Orientation
3.3.3 Global Orientation
3.3.4 Multinational Orientation
3.4 Let Us Sum Up

3.0 INTRODUCTION
Organisational development may be described as a methodology or technique
used to effect change in an organisation or section of an organisation with a view
of improving the organisation’s effectiveness. It is a planned process of change
and applies behavioural science knowledge. It aims at the change of organisation
culture, reinforcement of organisation strategies, structures and processes for
improving organisation’s effectiveness and health. It applies to an entire system of
an organisation, department or group as opposed to an aspect of a system.
It is a long range effort to improve organisation’s problem solving and renewal
processes, particularly through more effective and collaborative management of
organisational culture, often with the assistance of a change agent or catalyst and
the use of the theory and technology of applied behavioural science. Although
behavioural science has provided the basic foundation for the study and practice
of organisational development, new and emerging fields of study have made their
presence known. Experts in systems thinking, leadership studies, organisational
leadership, and organisational learning (to name a few) whose perspective is not
steeped in just the behavioural sciences, but a much more multi-disciplinary and
inter-disciplinary approach have emerged as organisational development catalysts.
These emergent expert perspectives see the organisation as the holistic interplay
of a number of systems that impact the process and outputs of the entire
organisation. More importantly, the term change agent or catalyst is synonymous
with the notion of a leader who is engaged in doing leadership, a transformative
or effectiveness process as opposed to management, a more incremental or
efficiency based change methodology.
The main target of organisational development is a long term institutionalisation of 35
Introduction new activities such as operation of self managed or autonomous work teams and
other problem solving capabilities. It encompasses strategy, structure and process
changes and can be termed as a process managed from the top by the management.
In the previous units we discussed in detail about the concept of organisational
development, its nature, goals, characteristic and process. In this unit we will
mainly focus on the brief history of organisational development and will also discuss
the organisational development worldwide.
3.1 OBJECTIVES
On completing this unit, you will be able to:
 Define organisational development;
 Explain the history and process of organisational development;
 Describe organisational development worldwide;
 Delineate the characteristics of organisational development;
 Elucidate the process of organisational development;
 Explain organisational development practitioners;
 Analyse the values that are related to organisational development; and
 Describe organisational development and organisational effectiveness.
3.2 A BRIEF HISTORY OF ORGANISATIONAL

DEVELOPMENT
Organisational development is an effort, planned organisation wide and managed
from the top to increase organisation effectiveness and health through planned
interventions in the organisations process using behavioural science knowledge.
Kurt Lewin the founder father of organisational development introduced the group
dynamics and action research, which comes as underpin of organisational
development process. At the core it can be said that in organisational development
two or more people working together. It is a long range effort to improve
organisations problem solving and renewal process through more effective
collaboration with the assistance of a change agent or catalyst and the use of the
theory and technology of applied behavioural science. The emergent experts in the
field of organisational development see the organisation in holistic approach. This
holistic interplay of number of systems impacts the process and output of the
entire organisation.
Organisational development attempts to systematic and practical approach to
launching and diffusing change in organisation. This ongoing and cyclic process of
organisational development consists of wide range of strategies for any organisational
improvement. Warren Bennis has referred to organisational development as a
response to change a complex educational strategy intended to change the beliefs,
attitudes, values and structure of organisation so that they can better adapt to new
technologies marketing, challenges and the rate of change. Thus it can be analysed
with a view that organisational development targets new change in the organisation
for its betterment. This brings challenges to lead towards bright future. Burke
36
described organisational development as a planned process of change is an Conceptual Framework of
Organisational Development
organisation’s culture through the utilisation of behavioural science technology,
research and theory. This definition attempts to show the development in terms of
utilising new behavioural changes with the learning modern technology and new
research views. French and Bell describe organisational development in a more
comprehensive manner as a long term effort to improve an organisations problem
solving and renewal process, particularly through a more effective and collaborative
management of organisation culture.
Organisational development is a contractual relationship between a change agent
and a sponsoring organisation entered into for the purpose of using applied
behavioural science and or the organisational change perspectives in a systems
context to improve organisational performance and the capacity of the organisation
to improve. Thus organisation development is an ongoing systematic long term
process to make an effective change in an organisation. The success of organisational
development depends on the implementation of internal and external measures.
Internal measures entails a paradigm shift in terms of reorienting all levels of
personnel toward development goals the creation of a development office a high
level of transparency collaboration, flexibility and creative thinking. In the external
measures the process requires the implementation of highly integrated public relations,
fundraising and advocacy plans. This integration of the internal and external measures
comes as a core of an institution for its development.
Organisational development aims at achieving the goal, mission and vision in a
most effective and efficient manner. Fundamentally, organisational development is
the implementation of a process of planned change for the purpose of organisational
improvement (as opposed to a focus solely on performance).It is rooted in the
social and behavioural sciences and draws its influences from a wide variety of
content areas, including social psychology, group dynamics, industrial/organisational
(I/O) psychology, participative management theory, organisational behaviour,
sociology, and even psychotherapy. This diverse background has been cited as
both strength and a weakness of OD. Its strength lies in the breadth and diversity
that such openness affords.
We will now focus on the brief history of organisational development. The history
of organisational development will help to clarify the evolution of the term as well
as some of the problems and confusion that have surrounded it. As currently
practiced, organisational development emerged from five major backgrounds or
stems, as shown in Figure 1.1.The first was the growth of the National Training
Laboratories (NTL) and the development of training groups, otherwise known as
sensitivity training or T-groups. The second stem of organisational development
was the classic work on action research conducted by social scientists interested
in applying research to managing change. An important feature of action research
was a technique known as survey feedback. Kurt Lewin, a prolific theorist,
researcher, and practitioner in group dynamics and social change, was instrumental
in the development of T-groups, survey feedback, and action research. His work
led to the creation of organisational development and still serves as a major source
of its concepts and methods.
37
Introduction
Laboratory Training
CURRENT OD PRACTICE
Action Research/Survey Feedback
Participative Management
1950 Quality of Work Life 1960

1970 1980 1990
2000 Strategic Change
Fig. 1.1: The Five Stems of Organisational Development Practice
Courtesy: Cummings and Worley, Organisation Development and Change (2004),

Chapter 1, page 6.
The third stem reflects the work of Rensis Likert and represents the application
of participative management to organisation structure and design. The fourth
background is the approach focusing on productivity and the quality of work life.
The fifth stem of organisational development, and the most recent influence on
current practice, involves strategic change and organisation transformation.
3.2.1 Early Development

Kurt Lewin played a key role in the evolution of organisation development as it
is known today. As early as World War II, Lewin experimented with a collaborative
change process (involving himself as consultant and a client group) based on a
three-step process of planning, taking action, and measuring results. This was the
forerunner of action research, an important element of organisational development,
which will be discussed later. Lewin then participated in the beginnings of laboratory
training, or T-groups, and, after his death in 1947, his close associates helped to
develop survey-research methods at the University of Michigan. These procedures
became important parts of organisational development as developments in this
field continued at the National Training Laboratories and in growing numbers of
universities and private consulting firms across the country.
Douglas McGregor and Richard Beckhard while “consulting together at General
Mills in The failure of off-site laboratory training to live up to its early promise was
one of the important forces stimulating the development of organisational
development. Laboratory training is learning from a person’s “here and now”
experience as a member of an ongoing training group. Such groups usually meet
without a specific agenda. Their purpose is for the members to learn about
themselves from their spontaneous “here and now” responses to an ambiguous
hypothetical situation. Problems of leadership, structure, status, communication,
and self-serving behaviour typically arise in such a group. The members have an
opportunity to learn something about themselves and to practice such skills as
listening, observing others, and functioning as effective group members.
As formerly practiced (and occasionally still practiced for special purposes),
38 laboratory training was conducted in “stranger groups,” or groups composed of
individuals from different organisations, situations, and backgrounds. A major Conceptual Framework of
difficulty developed, however, in transferring knowledge gained from these “stranger
labs” to the actual situation “back home”. This required a transfer between two
different cultures, the relatively safe and protected environment of the T-group (or
training group) and the give-and-take of the organisational environment with its
traditional values. This led the early pioneers in this type of learning to begin to
apply it to “family groups” — that is, groups located within an organisation. From
this shift in the locale of the training site and the realisation that culture was an
important factor in influencing group members (along with some other developments
in the behavioural sciences) emerged the concept of organisation development.
The Cambridge Clinic found itself having difficulty with its internal working
relationships. The medical director, concerned with the effect these problems could
have on patient care, contacted an organisational consultant at a local university
and asked him for help. A preliminary discussion among the director, the clinic
administrator, and the consultant seemed to point to problems in leadership, conflict
resolution, and decision processes. The consultant suggested that data be gathered
so that a working diagnosis could be made. The clinic officials agreed, and tentative
working arrangements were concluded.
The consultant held a series of interviews involving all members of the clinic staff,
the medical director, and the administrator. Then the consultant “thematized”, or
summarized, the interview data to identify specific problem areas. At the beginning
of a workshop about a week later, the consultant fed back to the clinic staff the
data he had collected. The staff arranged the problems in the following priorities
Role conflicts between certain members of the medical staff were creating tensions
that interfered with the necessity for cooperation in handling patients. The leadership
style of the medical director resulted in his putting off decisions on important
operating matters. This led to confusion and sometimes to inaction on the part of
the medical and administrative staffs. Communication between the administrative,
medical, and outreach (social worker) staffs on mutual problems tended to be
avoided. Open conflicts over policies and procedures were thus held in check, but
suppressed feelings clearly had a negative influence on interpersonal and intergroup
behaviour.
Through the use of role analysis and other techniques suggested by the consultant,
the clinic staff and the medical director were able to explore the role conflict and
leadership problems and to devise effective ways of coping with them. Exercises
designed to improve communication skills and a workshop session on dealing with
conflict led to progress in developing more openness and trust throughout the
clinic. An important result of this first workshop was the creation of an action plan
that set forth specific steps to be applied to clinic problems by clinic personnel
during the ensuing period. The consultant agreed to monitor these efforts and to
assist in any way he could. Additional discussions and team development sessions
were held with the director and the medical and administrative staffs.
A second workshop attended by the entire clinic staff took place about two
months after the first. At the second workshop, the clinic staff continued to work
together on the problems of dealing with conflict and interpersonal communication.
During the last half-day of the meeting, the staff developed a revised action plan
covering improvement activities to be undertaken in the following weeks and
months to improve the working relationships of the clinic.
39
Introduction A notable additional benefit of this organisational development program was that
the clinic staff learned new ways of monitoring the clinic’s performance as an
organisation and of coping with some of its other problems. Six months later, when
the consultant did a follow-up check on the organisation, the staff confirmed that
interpersonal problems were now under better control and that some of the
techniques learned at the two workshops associated with the organisational
development programs were still being used.
Organisational Development is a system-wide application and transfer of behavioural
science knowledge to the planned development, improvement, and reinforcement
of the strategies, structure, and process that lead to organisation effectiveness.
(Abdul Basit - nust - seecs)
3.2.2 Modern Development

In recent years, serious questioning has emerged about the relevance of
organisational development to managing change in modern organisations. 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
organisational 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. deKlerk (2007) suggests that in order
to heal the trauma and increase performance, organisational development
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 organisation development. Roland Sullivan (2005) defined Organisation
Development with participants at the 1st Organisation Development Conference
for Asia in Dubai-2005 as “Organisation 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”.
Organisational development is the thing helping in building good culture in the
organisation.
1) Describe the role played by Lewin in organisational development.
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40 .....................................................................................................................
Conceptual Framework of
2) Discuss early development in organisational development. Organisational Development
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3) Describe modern development in organisational development.
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3.3 ORGANISATION DEVELOPMENT

WORLDWIDE
The Worldwide helps organisations to leverage their human potential. The worldwide
organisation development is a leader in the field of organisational development,
growth and success, providing a world-class repository of knowledge and expertise
on the topic of organisational development and reflecting the issues or challenges
faced by organisations of all types and sizes globally.
Organisation development world wide collects information, performs research,
writes and publishes case studies and organisational success stories for persons
and professionals in the interest of ongoing learning. It also disseminates information,
products, processes and services designed to help organisations of all kinds to
develop and grow.
The organisational development worldwide maintains four key areas as given below.
 Organisational research
 New products/tools/process development
 Organisational services
 Publishing
The Worldwide Organisational Development has four main areas of activity given
above. The Research and Process Development, are input-focused, and relate to
gathering information and feedback. Conversely, Organisational Services and
Publishing are output-focused, offering world-class solutions to members and clients.
Organisational research is conducted across a range of different organisations in
multiple sectors. The focus of research is on setting up medium to long term
studies in organisational development tools, techniques and methods and analysing
the results so that these can be written up and disseminated widely. This includes
the publication of organisational development articles, case studies and research
papers.
The worldwide organisational development seeks to learn with and have a significant
impact upon practicing managers and leaders and those who support them, through 41
Introduction exposure to organisational development tools, methods and processes. It helps
to create organisational development applications – both programs and products
– that are useful and attractive to clients. It shares knowledge through publications
and forums that reach practitioners and academic researchers with similar interests.
It forges developmental associations with like-minded organisations and research
institutions.
An important trend facing many business firms is the emergence of a global
marketplace. Driven by competitive pressures, lowered trade barriers, and advances
in information technologies, the number of companies offering products and services
in multiple countries is increasing rapidly. The organisational growth and complexity
associated with worldwide operations pose challenging managerial problems.
Executives must choose appropriate strategic orientations for operating across
cultures and geographical locations, and under diverse governmental and
environmental requirements. They must be able to adapt corporate policies and
procedures to a range of local conditions. Moreover, the tasks of controlling and
coordinating operations in different nations place heavy demands on information
and control systems and managerial skills and knowledge.
Worldwide organisation development applies to organisations that are operating
across multiple geographic and cultural boundaries. This contrasts with OD in
organisations that operate outside the United States but within a single cultural and
economic context. This section describes the emerging practice of OD in world
wide organisations, a relatively new but important area of planned change.
3.3.1 Definition of Worldwide Organisations

Worldwide organisations can be defined in terms of three key facets.
First, they offer products or services in more than one country and actively manage
substantial direct investments in those countries. Consequently, they must relate to
a variety of demands, such as unique product requirements, tariffs, value-added
taxes, transportation laws, and trade agreements.
Second, worldwide firms must balance product and functional concerns with
geographic issues of distance, time, and culture. American tobacco companies, for
example, face technological, moral, and organisational issues in determining whether
to market cigarettes in less-developed countries, and if they do, they must decide
how to integrate manufacturing and distribution operations on a global scale.
Third, worldwide companies must carry out coordinated activities across cultural
boundaries using a wide variety of personnel. Workers with different cultural
backgrounds must be managed in ways that support the overall goals and image
of the organisation.
The company must therefore adapt its human resources policies and procedures
to fit the culture and accomplish operational objectives. From a managerial
perspective, selecting executives to head foreign operations is an important decision
in worldwide organisations.
3.3.2 Worldwide Strategic Orientations

A key contingency in designing OD interventions in worldwide organisations is
how products, organisational units, and personnel are arranged to form strategic
42
orientations that enable firms to compete in the global marketplace. Worldwide
organisations can offer certain products or services in some countries and not in Conceptual Framework of
others; they can centralise or decentralise operations; and they can determine how
to work with people from different cultures.
Despite the many possible combinations of characteristics, researchers have found
that worldwide organisations generally implement one of three types of strategic
orientations: global, multinational or transnational. Table below presents these
orientations in terms of the diagnostic framework. Each strategic orientation is
geared to specific market, technological, and organisational requirements. OD
interventions that can help organisations to meet these demands also are included
in the table below.
3.3.3 Global Orientation

This orientation is characterised by a strategy of marketing standardized products
in different countries. It is an appropriate orientation when there is little economic
reason to offer products or services with special features or locally available
options. Manufacturers of office equipment, consumer goods, computers, tires,
and containers, for example, can offer the same basic product in almost any
country.
The goal of efficiency dominates this orientation. Production efficiency is gained
through volume sales and a small number of large manufacturing plants. Managerial
efficiency is achieved by centralising product design, manufacturing, distribution,
and marketing decisions.
Tight coordination is achieved by the close physical proximity of major functional
groups and formal control systems that balance inputs, production, and distribution
with worldwide demand. Many Japanese firms, such as Honda, Sony, NEC, and
Matsushta, used this strategy in the 1970s and early 1980s to grow in the
international economy.
In Europe, Nestle exploits economies of scale in marketing by advertising well-
known brand names around the world. The increased number of microwaves and
two-income families allowed Nestle to push its Nescafe coffee and Lean Cuisine
low-calorie frozen dinners to dominate market-share positions in Europe, North
America, Latin America, and Asia.
Similarly, Korean noodle maker, Nong Shim Company, avoided the 1999 financial
crisis by staying focused on efficiency. Yoo Jong Suk, Nong Shim’s head of
strategy, went against recommendations to diversify and stated, “All we want is
to be globally recognised as a ram yon maker’.
In the global orientation, the organisation tends to be centralised with a global
product structure. Presidents of each major product group report to the CEO and
form the line organisation. Each of these product groups is responsible for worldwide
operations. Information systems in global orientations tend to be quiet formal with
local units reporting sales, costs, and other data directly to the product president.
The predominant human resources policy integrates people into the organisation
through ethnocentric selection and staffing practices. These methods seek to fill
key foreign positions with personnel, or expatriates, from the home country where
the corporation headquarters is located. Managerial jobs at Volvo and Michelin,
for example, are occupied by Swedish and French citizens, respectively.
43
Introduction Ethnocentric policies support the global orientation because expatriate managers
are more likely than host-country nationals to recognise and comply with the need
to centralise decision making and to standardize processes, decisions, and
relationships with the parent company. Although many Japanese automobile
manufacturers have decentralised production, Nissan’s global strategy has been to
retain tight, centralised control of design and manufacturing, ensure that almost all
of its senior foreign managers are Japanese, and have even low-level decisions
emerge from face-to face meetings in Tokyo.
Several organisational development interventions can be used to support the global
strategic orientation, including career planning, role clarification, employee
involvement, conflict management, and senior management team building. Each of
these interventions can help the organisation achieve improved operational efficiency.
For example, role clarification interventions, such as job enrichment, goal setting,
and conflict management, can formalize and standardize organisational activities.
This ensures that each individual knows specific details about how, when, and why
a job needs to be done. As a result, necessary activities are described and
efficient transactions and relationships are created.
Table : Characteristics and Interventions for Worldwide Strategic
Orientations
Table : Characteristics and Interventions for Worldwide Strategic Orientations
Worldwide Strategy Structure Information Human Organisational
Strategic System Resource Development
Orientation Intervention
Global Standardized Centralized, Formal Ethnocentric Career planning Role

Products balanced, and selection clarification
Goals of coordinated Employee
efficiency activities involvement Senior
through volume Global product management team
division building
Conflict management
Multinational Tailored Decentralized Profit Regiocentric Intergroup relations
Products Goals operations; Centers or polycentric Local management
of local centralised selection team building
responsiveness planning Management
through Global development
specialisation Geographic Reward systems
divisions Strategic alliances
Transnational Tailored Decentralized, Subtle,clan- Geocentric Extensive selection

Products worldwide oriented selection and rotation Cultural
Goals of learning coordination controls development
and Global matrix Intergroup relations
responsiveness or Building corporate
through network vision
integration
Courtesy: Cummings and Worley, Organisation Development and Change (2004), Chapter
21, page 567.
Senior management team building can improve the quality of strategic decisions.
Centralised policies make the organisation highly dependent on this group and can
exaggerate decision making errors in addition interpersonal conflict can increase
44
the cost of coordination or cause significant coordination mistakes. Process
interventions at this level can help improve the speed and quality of decision Conceptual Framework of
making and improve interpersonal relationships.
Career planning can help home-country personnel develop a path to senior
management by including foreign subsidiary experiences and cross-functional
assignments as necessary qualifications for advancement. At the country level
career planning can emphasise that advancement beyond regional operations is
limited for host-country nationals. OD can help here by developing appropriate
career paths within the local organisation or in technical, non managerial areas.
Finally, employee empowerment can support efficiency goals by involving members
in efforts at cost reduction, work standardization, and minimization of coordination
costs.
3.3.4 Multinational Orientation

The multinational orientation emphasises a decentralised, global division structure.
Each region or country is served by a divisional organisation that operates
autonomously and reports to headquarters. This results in highly differentiated and
loosely coordinated corporate structure. Operational decisions, such as product
design, manufacturing, and distribution, are decentralised and tightly integrated at
the local level. For example, laundry soap manufacturers offer product formulas,
packaging, and marketing strategies that conform to the different environmental
regulations, types of washing machines, water hardness, and distribution channels
in each country.
On the other hand, planning activities often are centralised at corporate headquarters
to achieve important efficiencies necessary for worldwide coordination of emerging
technologies and of resource allocation. A profit-center control system allows
local autonomy as long as profitability is maintained. Examples of multinational
corporations include Hoechst and BASF of Germany. IBM and Merck of the
United States, and Honda of Japan. Each of these organisations encourages local
subsidiaries to maximize effectiveness within their geographic region.
People are integrated into multinational firms through polycentric or regiocentric
personnel policies because these firms believe that host country nationals can
understand native cultures most clearly. By filling positions with local citizens who
appoint and develop their own staffs, the organisation aligns the needs of the
market with the ability of its subsidiaries to produce customized products and
services.
The distinction between a polycentric and a regiocentric selection process is one
of focus. In a polycentric selection policy, a subsidiary represents only one country;
in the regiocentric selection policy, a slightly broader perspective is taken and key
positions are filled by regional citizens (that is, people who might be called
Europeans, as opposed to Belgians or Italians).
The decentralised and locally coordinated multinational orientation suggests the
need for a complex set of organisational development interventions. When applied
to a subsidiary operating in a particular country or region, the organisational
development process described above for organisations outside the United States
is relevant. The key is to tailor organisational development to fit the specific
cultural and economic context where the subsidiary is located.
When organisational development is applied across different regions and countries,
interventions must account for differences in cultural and economic conditions that 45
Introduction can affect its success. Appropriate interventions for multinational corporations
include intergroup relations, local management team building, sophisticated
management selection and development practices, and changes to reward systems.
Team building remains an important intervention. Unlike team building in global
orientations, the local management team requires attention in multinational firms.
This presents a challenge for organisational development practitioners because
polycentric selection policies can produce management teams with different cultures
at each subsidiary. Thus, a program developed for one subsidiary may not work
with a different team at another subsidiary, given the different cultures that might
be represented.
Intergroup interventions to improve relations between local subsidiaries and the
parent company are also important for multinational companies. Decentralised
decision making and regiocentric selection can strain corporate-subsidiary relations.
Local management teams, operating in ways appropriate to their cultural context,
may not be understood by corporate managers from another culture. Organisational
development practitioners can help both groups understand these differences by
offering training in cultural diversity and appreciation. They also can smooth parent-
subsidiary relationships by focusing on the profit-center control system or other
criteria as the means for monitoring and measuring subsidiary effectiveness.
Management selection, development, and reward system also require special
attention in multinational firms. Managerial selection for local or regional subsidiaries
requires finding technically and managerially competent people who also possess
the interpersonal competence needed to interface with corporate headquarters.
Because these people may be difficult to find, management development programs
can teach these cross-cultural skills and abilities. Such programs typically involve
language, cultural awareness, and technical training; they also can include managers
and staff from subsidiary and corporate offices to improve communications between
the two areas. Finally, reward systems need to be aligned with the decentralised
structure. Significant proportions of managers’ total compensation could be tied to
local profit performance, thereby aligning reward and control systems.
1) What is world wide organisation?
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
2) Discuss multinational orientation.
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.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) What are intergroup interventions?
46 .....................................................................................................................
Conceptual Framework of
..................................................................................................................... Organisational Development
.....................................................................................................................
.....................................................................................................................
4) What is required in management selection for multinational firms?
.....................................................................................................................
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3.4 LET US SUM UP

Organisational development is playing a significant role in helping organisations
change themselves, and rebuild their strategies, structure and processes.
Organisational development is helping organisation members go beyond surface
changes to transform the underline assumptions and values governing their
behaviours. Organisational development is also important to those who have no
aspirations to become professional practitioners. All managers and administrators
are responsible for supervising and developing subordinates and for improving
their department’s performance. Finally, organisational development is important
to general managers and other senior executives because organisational development
can help the whole organisation to become more flexible adaptable and effective.
Organisational development can provide the skill and knowledge necessary for
establishing effective interpersonal and helping relationships. It can show personnel
how to work effectively with others in diagnosing complex problems and devising
appropriate solutions.
This unit has covered the information on the characteristics of organisational
development, diagnosing the organisation, designing the effective interventions as
well as stating the requirements of the organisational development practitioners.
Lastly it has also focused on organisational development all over the world.

1) Trace the early and modern developments in organisational development.
2) Describe organisational development worldwide.

Beckhard, “Organisation Development: Strategies and Models”, Reading, MA:
Addison-Wesley, 1969, p. 9.
Neilsen, “Becoming an OD Practitioner”, Englewood Cliffs, CA: Prentice-Hall,
1984, pp. 2-3.
Cummings and Worley, “Organization Development and Change”, Sixth Edition,
South-Western Publishing, 1997, p.2.
Buchanan, D. and Huzynnski, A. (1997) Organization Behaviour: An
Introductory Text, 3rd Edition, Prentice Hall, London. 47
Introduction References
Smith, A. (1998), Training and Development in Australia. 2nd ed. 261. Sydney:
Butterworths.
Richard Arvid Johnson. Management, systems, and society : an introduction.
Pacific Palisades, Calif.: Goodyear Pub. Co..
Richard Beckhard (1969). Organisation development: strategies and models.
Reading, Mass.: Addison-Wesley. p. 114. ISBN 0876205406 9780876205402.
OCLC 39328.
Wendell L French; Cecil Bell. (2006) Organisation development: behavioural
science interventions for organisation improvement. Englewood Cliffs, N.J.:
Prentice-Hall.
Weisbord, Marvin. (1987). Productive Workplace: Organising and managing for
dignity, meaning and community. Jossey-Bass Publishers, San Francisco.
Richard Arvid Johnson (1976). Management, systems, and society : an
introduction. Pacific Palisades, Calif.: Goodyear Pub. Co.. pp. 223–229.
ISBN 0876205406 9780876205402. OCLC 2299496.
Bradford, D.L. & Burke, W.W. eds, (2005). Organisation Development. San
Francisco: Pfeiffer.
Bradford, D.L. & Burke, W.W.(eds), 2005, Reinventing Organisation Development.
San Francisco: Pfeiffer.
deKler, M. (2007). Healing emotional trauma in organisations: An O.D. Framework
and case study. Organisational Development Journal, 25(2), 49-56.
Kurt Lewin (1958). Group Decision and Social Change. New York: Holt, Rinehart
and Winston. p. 201.
Richard Arvid Johnson (1976). Management, systems, and society: an
introduction. Pacific Palisades, Calif.: Goodyear Pub. Co.. pp. 224–226.
ISBN 0876205406 9780876205402. OCLC 2299496.
Wendell L French; Cecil Bell (1973). Organisation development: behavioural
science interventions for organisation improvement. Englewood Cliffs, N.J.:
Prentice-Hall. chapter 8. ISBN 0136416624 9780136416623 0136416543
9780136416548. OCLC 314258.
48
UNIT 4 FIRST ORDER AND SECOND
ORDER CHANGE IN
ORGANISATIONAL
DEVELOPMENT
Structure
4.0 Introduction
4.1 Objectives
4.2 First Order Change in Organisational Development
4.3 Action Research
4.3.1 Major Theories of Action Research
4.4 Team Building

4.4.1 Team Building Exercises
4.4.2 Communication Exercises
4.4.3 Problem Solving/Decision Making Exercises
4.4.4 Planning Adaptation Exercises
4.4.5 Trust Exercises
4.5 Process Consultation

4.6 The Survey Feedback Process
4.7 Job Design
4.7.1 Human Relations Approach
4.7.2 The Job Characteristic Approach
4.7.3 Socio Technical Systems Approach
4.8 Participative Management

4.8.1 Benefits of Participative Management
4.9 Second Order Change in Organisational Development

4.10 Organisational Development Interventions
4.10.1 Applying Criteria to Goals
4.10.2 Establishing Inter- unit Task Forces
4.10.3 Experimentation with Alternative Arrangements
4.10.4 Identifying Key Communicators
4.10.5 Identifying “Fireable Offences”
4.10.6 Invisioning
4.10.7 Team Building
4.10.8 Inter-group Problem Solving
4.10.9 Management Leadership Training
4.10.10Setting Up Management Systems
4.10.11Total Quality Management
4.11 Let Us Sum Up

Introduction
4.0 INTRODUCTION
In the previous units we have extensively discussed about the meaning and
significance of organisational development. We also focused on the foundations
and historical development of organisational development. In this unit we will be
highlighting one of the significant aspects of organisational development that is
organisational transformation.
Amir Levy and Uri Merry (1986) give one of the most complete explorations of
this topic in their book, organisational transformation. They define the term as a
multi-dimensional, multi-level, qualitative, discontinuous, radical organisational
change involving a paradigmatic shift. Increasingly, organisational development
professionals distinguish between the more modest or evolutionary, efforts toward
organisation improvement and those that are massive and, in a sense, revolutionary.
For example, Nadler and Tushman refer to “transitions” on the one hand, and
frame bending” on the other. Goodstein and Burke contrast “fine tuning” and
“fundamental, large-scale change in the organisation’s strategy and culture”.
Organisational transformation is seen as requiring more demands on top leadership,
more visioning, more experimenting, more time, and the simultaneous management
of many additional variables.
Hillary utilises a model of First-order Change and Second-order Change, borrowed
from others (Levy, et al), to describe this transformation process. These two
models will now be discussed in detail in this unit, with descriptions of various
techniques that fall under each model, that facilitate organisational transformation.
4.1 OBJECTIVES
At the end of this unit, you will be able to:
 explain the first and second order change in organisational development;
 describe the elements in first order change; and
 discuss organisational development intervention.
4.2 FIRST ORDER CHANGE IN ORGANISATIONAL

DEVELOPMENT
The first order change of organisational development usually refers to socio-technical
aspects in the organisation. According to Hillary, First-order change does not
challenge or contradict the established context of ‘organisation.’ People are not
usually threatened either personally or collectively by this type of change. First-
order change, according to Hillary, happens in the context of “Core Processes”
of an organisation. This is superficial and “does not call into question the existing
culture, mission/purpose, or organisational paradigm.” In education reform language,
“Core processes” referred to the basic operation — the arena of the cafeteria, bus
scheduling, building maintenance, etc. These could be changed without creating a
paradigm shift in the overall structure and function of the local school. Likewise,
First-order change in a church could mean changing the hours for services,
renovating the building, choosing new choir robes, scheduling nursery workers,
etc.
The elements of first order change are:
50
1) Action Research First Order and Second Order
Change in Organisational
2) Team Building Development
3) Process Consultation
4) The Survey Feedback Process
5) Job Design
6) Participative Management
These elements will be discussed in the following sections.
1) What is first order change?
.....................................................................................................................
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.....................................................................................................................
2) Name the elements of first order change.
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4.3 ACTION RESEARCH

Action Research is research on action with the goal of making that action more
effective. Action refers to programs and interventions designed to solve a problem
or improve a condition. The action research model underlying most organisation
development activities is the action research model. In the action research the
three processes are involved i.e. data collection; feedback of the data; and planning
of the action to be taken. Action research involves an approach to problem solving
– a model, problem solving process – a series of activities and events. Action
refers tom programs and interventions designed to solve a problem or improve a
condition. Kurt Lewin believed that research on action programa, especially social
change programs, was imperative if progress was to be made in solving social
problems.
In organisation setting there is a healthy relationship between action research and
organisation development. Action research supplies an approach and a process
for generating and utilising information about the system itself that will provide a
base for the action research. Action research can also be undertaken by larger
organisations or institutions, assisted or guided by professional researchers, with
the aim of improving their strategies, practices, and knowledge of the environments
within which they practice. As designers and stakeholders, researchers work with
others to propose a new course of action to help their community improve its
work practices (Center for Collaborative Action Research). Kurt Lewin, then a
51
Introduction professor at MIT, first coined the term “action research” in about 1944. In his
1946 paper “Action Research and Minority Problems” he described action research
as “a comparative research on the conditions and effects of various forms of social
action and research leading to social action” that uses “a spiral of steps, each of
which is composed of a circle of planning, action, and fact-finding about the result
of the action”.
Action research challenges traditional social science, by moving beyond reflective
knowledge created by outside experts sampling variables to an active moment-to-
moment theorizing, data collecting, and inquiring occurring in the midst of emergent
structure.
4.3.1 Major Theories of Action Research

Chris Argyris Action Science begins with the study of how human beings design
their actions in difficult situations. Human actions are designed to achieve intended
consequences and governed by a set of environment variables. How those governing
variables are treated in designing actions are the key differences between single
loop learning and double loop learning.
When actions are designed to achieve the intended consequences and to suppress
conflict about the governing variables, a single loop learning cycle usually ensues.
On the other hand, when actions are taken, not only to achieve the intended
consequences, but also to openly inquire about conflict and to possibly transform
the governing variables, both single loop and double loop learning cycles usually
ensue. (Argyris applies single loop and double loop learning concepts not only to
personal behaviours but also to organisational behaviours in his models.) This is
different from experimental research in which environmental variables are controlled
and researchers try to find out cause and effected in isolated environment.
Cooperative inquiry, also known as collaborative inquiry was first proposed by
John Heron in 1971 and later expanded with Peter Reason. The major idea of
cooperative inquiry is to “research ‘with’ rather than ‘on’ people.” It emphasises
that all active participants are fully involved in research decisions as co-researchers.
Cooperative inquiry creates a research cycle among four different types of
knowledge: propositional knowing (as in contemporary science), practical knowing
(the knowledge that comes with actually doing what you propose), experiential
knowing (the feedback we get in real time about our interaction with the larger
world) and presentational knowing (the artistic rehearsal process through which
we craft new practices). The research process includes these four stages at each
cycle with deepening experience and knowledge of the initial proposition, or of
new propositions, at every cycle.
Participatory action research has emerged in recent years as a significant
methodology for intervention, development and change within communities and
groups. It is now promoted and implemented by many international development
agencies and university programs, as well as countless local community organisations
around the world. PAR builds on the critical pedagogy put forward by Paulo
Freire as a response to the traditional formal models of education where the
“teacher” stands at the front and “imparts” information to the “students” who are
passive recipients. This was further developed in “adult education” models
throughout Latin America.
The Developmental Action Inquiry is a “way of simultaneously conducting action
52 and inquiry as a disciplined leadership practice that increases the wider effectiveness
of our actions. Such action helps individuals, teams, organisations become more First Order and Second Order
capable of self-transformation and thus more creative, more aware, more just and Development
more sustainable” (Torbert, 2004). Action Inquiry challenges our attention to span
four different territories of experience (at the personal, group, or organisational
scales) in the midst of actions. This practice promotes timeliness, that is learning
with moment to moment intentional awareness among individuals and with regard
to the outside world of nature and human institutions.
It studies the pre constituted internalised and externalised universe in the present,
both as it resonates with and departs from the past, and as it resonates with and
potentiates the future. (Torbert, 2001). Whitehead and McNiff (2006), formulated
living theory of action research. In educational setting they explain that individuals
generate explanations of their educational influences in their own learning, in the
learning of others and in the learning of social formations. They generate the
explanations from experiencing themselves as living contradictions in enquiries of
the kind, ‘How do I improve what I am doing?’ They use action reflection cycles
of expressing concerns, (saying why you are concerned in relation to values),
imagining possibilities in developing action plans, acting and gathering data, evaluating
the influences of action, modifying concerns, ideas and action in the light of the
evaluations. The explanations include life-affirming, energy-flowing values as
explanatory principles.
Wendell L. French and Cecil Bell define organisation development (OD) at one
point as “organisation improvement through action research”. If one idea can be
said to summarize organisational development’s underlying philosophy, it would be
action research as it was conceptualized by Kurt Lewin and later elaborated and
expanded on by other behavioural 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”.
Lewin’s description of the process of change involves three steps:
1) Unfreezing: Faced with a dilemma or disconfirmation, the individual or group
becomes aware of a need to change.
2) Changing: The situation is diagnosed and new models of behaviour are
explored and tested.
3) Refreezing: Application of new behaviour is evaluated, and if reinforcing,
adopted.
53
Introduction
Fig.: Systems Model of Action-Research Process
Courtesy: http://en.wikipedia.org/wiki/Action_research
The above figure summarizes the steps and processes involved in planned change
through action research. Action research is depicted as a cyclical process of
change.
The cycle begins with a series of planning actions (the first stage) initiated by the
client and the change agent working together. The principal elements of this stage
include a preliminary diagnosis, data gathering, feedback of results, and joint
action planning.
The second stage of action research is the action, or transformation, phase. This
stage includes actions relating to learning processes (perhaps in the form of role
analysis) and to planning and executing behavioural changes in the client organisation.
As shown in Figure above, feedback at this stage would move via Feedback
Loop A and would have the effect of altering previous planning to bring the
learning activities of the client system into better alignment with change objectives.
Included in this stage is action planning activity carried out jointly by the consultant
and members of the client system. As indicated in the diagram, the planning stage
is a period of unfreezing, or problem awareness.
The action stage is a period of changing that is, trying out new forms of behaviour
in an effort to understand and cope with the system’s problems. (There is inevitable
overlap between the stages, since the boundaries are not clear cut and cannot be
in a continuous process).
The results stage is a period of refreezing, in which new behaviours are tried out
on the job and, if successful and reinforcing, become a part of the system’s
repertoire of problem-solving behaviour.
1) Define action research.
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54
First Order and Second Order
2) Discuss any one theory of action research. Change in Organisational
Development
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3) Discuss Lewin’s description of the process of change.
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4.4 TEAM BUILDING

Team Building refers to a wide range of activities, presented to businesses, schools,
sports teams, religious or nonprofit organisations designed for improving team
performance. Team building is pursued via a variety of practices, and can range
from simple bonding exercises to complex simulations and multi-day team building
retreats designed to develop a team (including group assessment and group-
dynamic games), usually falling somewhere in between. It generally sits within the
theory and practice of organisational development, but can also be applied to
sports teams, school groups, and other contexts.
Teambuilding is an important factor in any environment, its focus is to specialise
in bringing out the best in a team to ensure self development, positive
communication, leadership skills and the ability to work closely together as a team
to solve problems.
A focus on intact work teams and other team configurations has been central to
organisational development since the emergence of the field, but recent years have
seen widening and deepening interest in teams, especially what are called high
performance teams, cross functional teams and self-managed teams. Interest has
intensified particularly in self-managed or self-directed teams.
4.4.1 Team Building Exercises

Team building exercises consist of a variety of tasks designed to develop group
members and their ability to work together effectively. The purpose of team building
exercises is to assist teams in becoming cohesive units of individuals that can
effectively work together to complete tasks.
4.4.2 Communication Exercises

This type of team building exercise is exactly what it sounds like. Communications
exercises are problem solving activities that are geared towards improving
communication skills. The issues teams encounter in these exercises are solved by
communicating effectively with each other. The goal of this exercise is to create
an activity which highlights the importance of good communication in team
performance and/or potential problems with communication.
55
Introduction 4.4.3 Problem Solving/Decision Making Exercises
Problem Solving/Decision making exercises focus specifically on groups working
together to solve difficult problems or make complex decisions. These exercises
are some of the most common as they appear to have the most direct link to what
employers want their teams to be able to do. The goal here is to give team a
problem in which the solution is not easily apparent or requires the team to come
up with a creative solution.
4.4.4 Planning/Adaptability Exercises

These exercises focus on aspects of planning and being adaptable to change.
These are important things for teams to be able to do when they are assigned
complex tasks or decisions. The goal of this exercise is to show the importance
of planning before implementing a solution.
4.4.5 Trust Exercises

A trust exercise involves engaging team members in a way that will induce trust
between them. They are sometimes difficult exercises to implement as there are
varying degrees of trust between individuals and varying degrees of individual
comfort trusting others in general. The goal here is to create trust between team
members
1) Discuss the concept of team building
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2) Explain communication exercises
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3) Describe trust exercises
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4.5 PROCESS CONSULTATION

Process consulting is a late 20th century practice. Classically espoused in the
works of Edgar Schein (especially Process Consultation Revisited), this model
56 is based on consultation as a “helping relationship”. The mutual nature of this
relationship, with the consultant working with and not for the client is a keynote
of the process consultation philosophy.
Process consultation is generally contrasted with expert consultation and is frequently
seen by its advocates as a superior style of management consulting. In practice,
however, almost all management consulting involves a mix of expert and process
models, with the consultant frequently shifting roles to meet the needs of the
situation. Schein himself notes the need for such fluidity in practice.
Process consultation has the powerful advantage of being by its nature specifically
tailored to any particular situation. As new forms of organisations and new
interactions between organisations occur, process consultation will be applied in
different ways to meet new goals. Basically, one can extrapolate the strengths of
this model to 21st century conditions in the following ways:
1) Orientation toward ongoing ability and learning: The focus of process
consultation is on solving the problem. But in a world of constant change and
development, there will always be problems and particular solutions will never
be lasting. In the second generation form of process consultation, there more
be more emphasis on problem solving ability rather than problem solving.
2) More involvement and participation: It is a whole system world; processes
that look at and employ only one part of the organisation are insufficient. The
new generation of process consultants will increasingly work with internal
consultants, teams, and all levels of the organisation.
3) Building up facilitation and consultation skills in the organisation: There
will be development that means it is able to meet new challenges and conditions,
not just those which initiated the consultancy.
4) Wider application of techniques and methods: As everyone becomes
involved in all phases of the organisation and everyone becomes responsible
for the organisation’s development, there will be a need for more people to
know and to use more principles and more practices in more situations. For
example, dialogue, a staple of the process consultation effort, will be used not
simply in special situations or just for team-building purposes but will be a
tool of organisation and not just of the consultant, resulting in dialogic
communication as part of the organisational culture.
5) Links to mission, values and vision: If a 21st century organisation does
not know its mission, if it does not have strong values, or if it does not have
a compelling vision, it will die. The 21st practice of process consultation will
increasingly make use of these variables in analysis, diagnosis, and prescription
for organisational development. The goal of the consultancy will not simply be
to fix a situation but the creation of a better organisation.
Process consulting is a powerful tool which is used to enhance group effectiveness,
shorten meeting times, and address conflict. It helps teams to work together more
effectively, and its effects can last long after the consultant has departed. The
benefits of process consulting are usually:
 Shorter meetings.
 More productive meetings.
 Better decisions.
57
Introduction  Increased feelings of participation or potency.
 Greater satisfaction with the team or meetings.
1) Explain any two strengths of process consulting.
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2) Discuss the benefits of process consultation.
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4.6 THE SURVEY FEEDBACK PROCESS

In globally competitive environments, organisations are seeking information about
obstacles to productivity and satisfaction in the workplace. Survey feedback is a
tool that can provide this type of honest feedback to help leaders guide and direct
their teams. Obstacles and gaps between the current status quo and the desired
situations may or may not be directly apparent. In either case, it is vital to have
a clear understanding of strategies for diagnosis and prevention of important
organisation problems. If all leaders and members alike are clear about the
organisational development and change, strengths, weakness, strategies can be
designed and implemented to support positive change. Survey feedback provides
a participative approach and enables all members to become actively engaged in
managing the work environment.
Survey Process Steps:
Following are the steps involved in survey process:
 Identify project plan and objectives
 Brief team leaders and employees about the process
 Administer survey
 Conduct interviews and focus groups
 Train leaders on facilitating team discussions
 Analyse the data and construct a report
 Provide feedback to leaders
 Team leaders conduct feedback action planning and meetings
 Leaders present reports on progress and results to Senior Management
58  Follow-up by senior leadership to ensure progress and accountability
Self Assessment Questions Change in Organisational
Development
1) Mention the steps involved in survey process.
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4.7 JOB DESIGN

Job design in organisational development is the application of sociotechnical systems
principles and techniques to the humanisation of work. The aim of job design is
to improve job satisfaction, through-put, quality and to reduced employee problems,
e.g., grievances, absenteeism. There are various important approaches to job
design, viz.,
Engineering Approach
The most important single element in the Engineering approaches, proposed by
F.W. Taylor et al, was the ‘task idea’. “The work of every workman is fully
planned out by the management at least one day in advance and each man
receives in most cases complete written instructions, describing in detail the task
which he is to accomplish. This task specifies not only what is to be done but
how it is to be done and the exact time allowed for doing it.” The principles
offered by scientific management to job design can be summarized thus: work
should be scientifically studied, work should be arranged so that workers can be
efficient, employees should be trained to perform the job and monetary
compensation should be used to reward successful performance of the job.
These principles to job design seem to be quite rational and appealing because
they point towards increased organisational performance. Specialisation and
routinisation over a period of time result in job incumbents becoming experts
rather quickly, leading to higher levels of output. Despite the assumed gains in
efficiency, behavioural scientists have found that some job incumbents dislike
specialised and routine jobs.
1) Problems with engineering approach: After listening to several complaints
from employees about their highly specialised jobs, Walker and Guest indicated
the problems with job specialisation thus:
2) Repetition: Employees performed a few tasks repeatedly. This quickly led
the employees to become very bored with the job. There was no challenge
to the employees to learn anything new or to improve the job.
3) Mechanical pacing: Assembly line workers were made to maintain a certain
regular pace of work. They could not take a break when they needed to,
or simply divert their attention to some other aspect of the job or another
individual.
4) No end product: Employees found that they were not turning out any
identifiable end product; consequently, they had little pride and enthusiasm in
their work.
59
Introduction 5) Little social interaction: Employees complained that because the assembly
line demanded constant attention, there was very little opportunity to interact
on a casual basis with other employees and share their work experiences,
beliefs and sentiments.
6) No input: Employees also complained that they had little chance to choose
the methods by which they performed their jobs, the tools which they used,
or the work procedures.
This, of course, created little interest in the job because there was nothing which
they could improve or change.
4.7.1 Human Relations Approach

The human relations approach recognised the need to design jobs in an interesting
manner. In the past two decades much work has been directed to changing jobs
so that job incumbents can satisfy their needs for growth, recognition and
responsibility. Herzberg’s research popularised the notion of enhancing need
satisfaction through what is called job enrichment. One widely publicised approach
to job enrichment uses what is called job characteristics model and this has been
explained separately in the ensuing section.
According to Herzberg there are two types of factors, viz. (i) motivators like
achievements, recognition, work itself, responsibility, advancement and growth
and (ii) hygiene factors (which merely maintain the employee on the job and in
the organisation) like working conditions, organisational policies, inter-personnel
relations, pay and job security.
According to Herzberg, the employee is dissatisfied with the job if maintenance
factors to the required degree are not introduced into the job. But, the employee
may not be satisfied even if the required maintenance factors are provided. Herzberg
feels that the employee will be satisfied with his job and he will be more productive
if motivators are introduced into the job content.
4.7.2 The Job Characteristics Approach

The Job Characteristics Theory of Hackman and Oldham states that employees
will work hard when they are rewarded for the work they do and when the work
gives them satisfaction. Hence, they suggest that motivation, satisfaction and
performance should be integrated in the job design. According to this approach,
any job can be described in terms of five core job dimensions which are defined
as follows:
1) Skill variety: The degree to which the job requires that workers use a
variety of different activities, talents and skills in order to successfully complete
the job requirements.
2) Task identity: The degree to which the job allows workers to complete
whole tasks from start to finish, rather than disjointed portions of the job.
3) Task significance: The degree to which the job significantly impacts the
lives of others both within and outside the workplace.
4) Autonomy: The degree to which the job allows workers freedom in planning
and scheduling and the methods used to complete the job.
60
5) Feedback: The degree to which the job itself provides workers with clear, First Order and Second Order
direct and understandable knowledge of their performance. Development
The entire job dimensions impact workers psychologically. The first three
dimensions affect whether or not workers view their job as meaningful. Autonomy
determines the extent of responsibility workers feel. Feedback allows for feelings
of satisfaction for a job well done by providing knowledge of results. Jobs that
are high on motivating potential must be high at least in one of the three factors
that lead to meaningful work and must be high in both autonomy and feedback
and vice versa.
These three critical psychological states lead to the outcome such as
a) high internal work motivation,
b) high growth satisfaction,
c) high quality work performance,
d) high general job satisfaction,
e) high work effectiveness and
f) low absenteeism and turnover.
4.7.3 Socio Technical Systems Approach

The above theories of job design are all concerned with designing individual jobs.
The approach taken by the sociotechnical systems method is the design or work
systems that foster a meshing of the technical and social aspects of jobs. The term
sociotechnical system recognises that organisations have boundaries and that
transactions occur within the system (and its sub-systems) and between the wider
context and dynamics of the environment. It is an extension of sociotechnical
theory which provides a richer descriptive and conceptual language for describing,
analysing and designing organisations. A sociotechnical system, therefore, often
describes a ‘thing’ as an interlinked, systems based mixture of people, technology
and their environment.
Socio technical systems in organisational development is the term for an approach
to complex organisational work design that recognises the interaction between
people and technology in workplaces.
In order to create jobs, which have this supportive relationship, work teams not
individual jobs, must be studied. Jobs in the traditional sense are non-existent and
instead, each worker plays an assigned role in accomplishing the group’s objectives.
Redesigning work through sociotechnical systems methods requires the combined
efforts of employees, supervisors and union representatives in analysing significant
job operations. Jobs are not necessarily designed to be intrinsically motivating;
rather, they are designed so that the work is accomplished. Using the sociotechnical
approach, the following guidelines have been developed for designing jobs:
A job needs to be reasonably demanding for the individual in terms other than
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 call
their own. 61
Introduction  Employees need some minimal degree of social support and recognition at
the workplace.
 Employees need to be able to relate what they do and what they produce to
their social life.
1) Engineering approach to job design.
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2) Discuss the guidelines developed for designing jobs with regard to the socio
technical approach.
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4.8. PARTICIPATIVE MANAGEMENT

Type of management in which employees at all levels are encouraged to contribute
ideas towards identifying and setting organisational-goals, problem solving, and
other decisions that may directly affect them, also called consultative management.
Participative (or participatory) management, otherwise known as employee
involvement or participative decision making, encourages the involvement of
stakeholders at all levels of an organisation in the analysis of problems, development
of strategies, and implementation of solutions. Employees are invited to share in
the decision-making process of the firm by participating in activities such as setting
goals, determining work schedules, and making suggestions. Other forms of
participative management include increasing the responsibility of employees (job
enrichment); forming self-managed teams, quality circles, or quality-of-work-life
committees; and soliciting survey feedback.
Participative management, however, involves more than allowing employees to
take part in making decisions. It also involves management treating the ideas and
suggestions of employees with consideration and respect. The most extensive form
of participative management is direct employee ownership of a company.
Four processes influence participation. These processes create employee
involvement as they are pushed down to the lowest levels in an organisation. The
farther down these processes move, the higher the level of involvement by
employees. The four processes include:
1) Information sharing: This is concerned with keeping employees informed
about the economic status of the company.
62
2) Training: This involves raising the skill levels of employees and offering First Order and Second Order
development opportunities that allow them to apply new skills to make effective Development
decisions regarding the organisation as a whole.
3) Employee decision making: This can take many forms, from determining
work schedules to deciding on budgets or processes.
4) Rewards: This is generally tied to suggestions and ideas as well as
performance.
4.8.1 Benefits of Participative Management

A participative management style offers various benefits at all levels of the
organisation. By creating a sense of ownership in the company, participative
management instills a sense of pride and motivates employees to increase
productivity in order to achieve their goals. Employees who participate in the
decisions of the company feel like they are a part of a team with a common goal,
and find their sense of self-esteem and creative fulfillment heightened.
Managers who use a participative style find that employees are more receptive to
change than in situations in which they have no voice. Changes are implemented
more effectively when employees have input and make contributions to decisions.
Participation keeps employees informed of upcoming events so they will be aware
of potential changes. The organisation can then place itself in a proactive mode
instead of a reactive one, as managers are able to quickly identify areas of concern
and turn to employees for solutions.
Participation helps employees gain a wider view of the organisation. Through
training, development opportunities, and information sharing, employees can acquire
the conceptual skills needed to become effective managers or top executives. It
also increases the commitment of employees to the organisation and the decisions
they make.
Creativity and innovation are two important benefits of participative management.
In order for participative management to work, several issues must be resolved
and several requirements must be met. First, managers must be willing to relinquish
some control to their workers; managers must feel secure in their position in order
for participation to be successful. Often managers do not realise that employees’
respect for them will increase instead of decrease when they implement a
participative management style.
The success of participative management depends on careful planning and a slow,
phased approach. Changing employees’ ideas about management takes time, as
does any successful attempt at a total cultural change from a democratic or
autocratic style of management to a participative style. Long-term employees may
resist changes, not believing they will last. In order for participation to be effective,
managers must be genuine and honest in implementing the program.
Employees must also be willing to participate and share their ideas. Participative
management does not work with employees who are passive or simply do not
care. Encouragement should be offered in order to accustom employees to the
participative approach. One way to help employees engage in the decision-making
process is by knowing their individual strengths and capitalising on them. By
guiding employees toward areas in which they are knowledgeable, a manager can
help to ensure their success. 63
Introduction Before expecting employees to make valuable contributions, managers should
provide them with the criteria that their input must meet. This will aid in discarding
ideas or suggestions that cannot be implemented, are not feasible, or are too
expensive. Managers should also give employees time to think about ideas or
alternative decisions. Employees often do not do their most creative thinking on
the spot.
Another important element for implementing a successful participative management
style is the visible integration of employees’ suggestions into the final decision or
implementation. Employees need to know that they have made a contribution.
Offering employees a choice in the final decision is important because it increases
their commitment, motivation, and job satisfaction. The key is to build employee
confidence so their ideas and decisions become more creative and sound.
1) Discuss the four process involved in participation.
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2) Describe any two benefits of participative management.
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4.9 SECOND ORDER CHANGE IN

ORGANISATIONAL DEVELOPMENT
Second Order Change is the deeper changes that frustrate leaders and
threaten followers are planned second-order changes. These changes
intentionally challenge widely shared assumptions, disintegrate the context of
‘organisation’ and, in general, reframe the social system. This, in turn, generates
widespread ambiguity, discontinuity, anxiety, frustration, confusion, paramoia,
cynicism and anger as well as temporary dysfunction.
But Hillary’s focus in his article is on Second-order Change, and this is where
“transformation” is happening in the Church. Second-order Change challenges the
existing culture, mission/purpose and organisational paradigm. Hillary stated that:
“Change calls into question the status quo and disrupts the alignment among
organisational attributes.”
The most disruptive changes second order changes call into question the entire
context of organisation. Paradigm change is therefore not only traumatic in and
of itself, but also challenges other attributes and disintegrates the relationship
among all domains. The eventual outcome of such change is a ‘transformed’ or
64 ‘renewed’ organisation.”
Practitioners and researchers are giving considerable attention to emerging concepts, First Order and Second Order
interventions and areas of application that might be called as second generation or Development
second order change in organisational development. The second order change
utilises various organisational development interventions in order to facilitate
organisational transformation. The organisational development interventions will be
discussed in detail in this unit.
1) Describe second order change.
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4.10 ORGANISATIONAL DEVELOPMENT

INTERVENTIONS
Organisational development interventions refer to the techniques created by
organisational development professionals, coaches and mentors to help solve the
pressing problems of organisations who seek their services. It is a sequence of
activities, actions and events intended to help an organisations improve its
performance and effectiveness. Intervention design, or action planning, derives
from careful diagnosis and its meant to resolve specific problems and improve
particular areas of organisational functioning identified in the diagnosis.
OD interventions vary from standardised programmes that have been developed
and used in many organisation to relatively unique programmes tailored to specific
organisation or department. Interventions purposely disrupt the status quo; they
are deliberate attempts to change an organisation to ward a different and more
effective state. There are three major criteria that describe effective intervention
in OD:
1) The extent to which it fits the needs of the organisation
2) The degree to which it is based on causal knowledge of intended out comes
and
3) The extent to which it transfer change-management competence to organisation
members.
The following are the different kinds of organisational development interventions:
 Sensitivity training
 Survey feedback
 development discussion
 Goal setting and planning
 Team building and management objective.
 Managerial grid
65
Introduction  Job enrichment, participative management and quality circles.
 Process consultation intervention
 Inter-group Team-Building Interventions
 Third-Party Peacemaking Interventions
 Structural Interventions
These kinds of intervention can be used in various settings depending on the need
of the organisation. Survey feedback intervention provides data and information to
all the managers. Information related to the attitude, structure, working conditions
will included in the survey. Managers analyse the data pertaining to each and every
employee and takes appropriate action. They try to analyse the problem, evaluate
the result and correct the problem.
On the other hand, along the consultation process, the consultant meets all
departments, work teams, and observes the interaction and skill levels of those
working in those areas. Goal setting and planning goals are important for the
overall strategic plans for the profitability of the organisation. Managerial grid
identifies management behaviour on different ways. It looks into production-oriented
factors as well as the employee-oriented factors and combines them to interact
with each other. It also gives the structural view of the laboratory training. Managerial
grid interventions also relate to the leadership skills.
The growth of any organisation pulls its peoples to change their thinking toward
organisational development interventions. People with planned and changed
interventions can grow in organisations. An intervention forms the front view of
any developed organisation. So it is important to follow and implement creative
interventions. In implementing organisational development interventions, it is
important to apply criteria to goals, experiment with alternative arrangements,
establish inter unit task force, and identify key communicators and fire-able offenses.
Organisational development practitioners may choose the most appropriate
organisational development Intervention, to create planned change. The following
a few of most common organisational development interventions, that most of the
companies practice are:
4.10.1 Applying Criteria to Goals

Here the leadership establishes objective criteria for the outputs of the organisation’s
goal-setting processes. Then they hold people accountable not only for stating
goals against those criteria but also for producing the desired results.
For example, Organisations are implementing the concept of Balanced Scorecard,
X-Matrix etc., to capture the goals of the employees, which in turn is helpful in
their assessment and mid-term correction of their performance.
4.10.2 Establishing Inter-Unit Task Forces

These groups can cross both functional parts of the organisation (the “silos”) as
well as employee levels. They are ideally accountable to one person and are
appropriately rewarded for completing their assigned task effectively. Then they
disband. For example, Organisations have introduced various schemes for rewarding
their employees for their performance, like, introducing the concept of Variable
66
pay in as a part of CTC, Spot Recognition Award, Project bonus, performance First Order and Second Order
bonus etc., Development
4.10.3 Experimentation with Alternative Arrangements

Today organisations are subject to “management by best-seller.” The goal in these
interventions is to create what is being called a “learning organisation,” one that
performs experiments on organisational structure and processes, analyses the results,
and builds on them. For example, Organisations today are targeting at streamlining
the process of Learning and Development and encouraging the culture of Learning
in the organisations.
Targeting achieving mandatory man-days of training for their employees and
Introducing the Competency based practices.
4.10.4 Identifying Key Communicators

This is to carefully determine who seems to be “in the know” within the organisation.
These people often do not know that they are, in fact, key communicators. This
collection of individuals is then fed honest information during critical times, one-
on-one and confidentially. For example, Defining the process of Organisational
Communication policy - Introducing Top – down and Bottom – up Communication
approach - Introducing Employee Forums and Suggestion Box options for employee
interaction - Identifying Critical employees in the organisation and making them the
Brand Ambassadors of their company.
4.10.5 Identifying “Fireable Offenses”

This intervention deepens the understanding of and commitment to the stated
values of the organisation. This facilitates the work of the Top Management to
answer the critical question, “If we’re serious about these values, then what might
an employee do that wouldbe so affrontive to them that he/she would be fired?”
For example, - Publishing and Instilling Values and Beliefs among all employees
Introducing Policies like Whistle Blowing, Sexual Harassment etc.,
4.10.6 Invisioning
This is actually a set of interventions that help to “acculturate” everyone in the
organisation into an agreed-upon vision, mission, purpose, and values. The
interventions might include training, goal setting, organisational survey-feedback,
communications planning, etc.
4.10.7 Team Building

This intervention can take many forms. For example, the most common is interviews
and other pre-work, followed by a one- to three-day offsite session. During the
meeting the group diagnoses its function as a unit and plans improvements in its
operating procedures.
4.10.8 Inter-group Problem Solving

This intervention usually involves working with the two groups separately before
bringing them together. They establish common goals and negotiate changes in
how the groups interface. For example, this is practiced in Product Development
Companies and most of the IT and ITES Companies. – Focused group discussion
are encouraged by the management, for generating better ideasand concepts.
67
Introduction 4.10.9 Management/leadership Training
Many organisational development professionals come from a training background.
They understand that organisations cannot succeed long term without well-trained
leaders. The organisational development contribution there can be to ensure that
the development curriculum emphasises practical, current situations that need
attention within the organisation and to monitor the degree to which training delivery
is sufficiently participative as to promise adequate transfer of learning’s to the job.
For example, most of the organisations today are focusing at Leadership
Management for their employees.
4.10.10 Setting Up Measurement Systems

The total quality movement emphasises that all work is a part of a process and
that measurement is essential for process improvement. The organisational
development professional is equipped with tools and techniques to assist leaders
and others to create measurement methods and systems to monitor key success
indicators. For example, The concepts like Six Sigma, TQM etc. act as
Measurements tools for the process followed in the organisation. Further, second-
generation or second order organisational development, in particular, has a focus
on organisational transformation.
4.10.11 Total Quality Management (TQM)

The past decade has seen a mushrooming of interest in total quality management
worldwide, and then perhaps some decline in application as both successes and
failures have been reported. Applications that have been successful appear to have
some ingredients in common with organisational development efforts.
Ciampa, who acknowledges the pioneering contributions of Joseph Juran,
W.Edwards Deming, and Armand Feigenbaum to the development of TQM,
provides a clear statement on the relationship between TQM and organisational
development. First, his definition: “Total Quality is typically a companywide effort
seeking to install and make permanent a climate where employees continuously
improve their ability to provide on demand products and services that customers
will find of particular value.”
Burke also comments on the contribution organisational development can make to
TQM efforts. Focusing on the organisational development practitioner, he states:
“the quality movement, to be successful, is highly dependent on effective process
and process is the organisational development practitioner’s most important product.”
1) Discuss management/ leadership training as an organisational development
intervention.
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.....................................................................................................................
.....................................................................................................................
2) Define Total Quality Management.
68 .....................................................................................................................
..................................................................................................................... Change in Organisational
Development
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4.11 LET US SUM UP

Wendell L. French, Cecil H. Bell and Robert A. (2006), stated that the pace of
technological innovation, company mergers, acquisition, leveraged buyouts,
bankruptcies, success stories, downsizings and changes in law has been intensified.
At the same time thousands of small companies are born every year. Worldwide
rigorous efforts are going on to move from autocratic societies to democratic
institutions and making more globalize. These changes create opportunities for
organisational development applications but also stretch capabilities of leader and
organisational development practitioners to the utmost. In such a context the second
order change in organisational development is evolving.
The organisational development practitioners still depend upon first order techniques
that are highly relevant to adaptive incremental change, such as action research,
a focus on team, team building, the use of facilitator’s process of consultation,
survey feedback inter-group problem solving, socio-technical system approaches
to job design, and participative management. But the present organisational
development field is far reaching beyond the first order changes in the sense that
many applications of organisational development are now multifaceted. Therefor
the second order change in organisational development can be utilised in order
develop interventions and identify different areas of applications and very particularly
focus on organisational transformation.
4.12 UNIT END QUSTIONS

1) Explain with examples the first order change in organisational development.
2) Explain with the second order change in organisational development.
3) What is action research? Explain its relevance in organisational development.
4) Describe the importance of teams and the process of team building.
5) Explain the concepts such as process consultation, survey feedback, and inter
group problem solving in organisational development.
6) What is job design? Explain the socio-technical systems approach to job
design.
7) Highlight the importance of participative management in organisational
development.

Amir Levy and Uri Merry, Organisational Transformation (New York:Praeger
Publishers, 1986).
Chris Argyris and Donald Schon, Organisational Learning (Reading MA: Addison-
Wesley, 1976).
69
Introduction Chris Argyris, Overcoming Organisational Defensive Routines (Boston:Allyn
and Bacon, 1990).
References
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Participation.” Group and Organisation Management 20, no. 1 (1995): 4–17.
Edgar H. Schein, Organisational Culture and Leadership (San Francisco:Jossey-
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Greenfield, W.M. “Decision Making and Employee Engagement.” Employment
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Kaner, S., and L. Lind. Facilitator’s Guide to Participatory Decision-making.
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McCoy, T.J. Creating an Open Book Organisation: Where Employees Think
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Sumukadas, N., and R. Sawhney. “Workforce Agility through Employee
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70
UNIT 1 PARTICIPATION AND
EMPOWERMENT
Structure
1.0 Introduction
1.1 Objectives
1.2 Participation
1.2.1 Benefits of Participation
1.2.2 The Process of Participation
1.2.3 Factors Related to Success of Participation
1.2.4 Programmes to Promote Participation
1.3 Empowerment
1.3.1 Benefits of Empowerment
1.3.2 The Process of Empowerment
1.3.3 Determinants of Empowerment
1.3.4 Characteristics of Empowered Organisation
1.3.5 Techniques for Empowerment
1.4 Role of Managers in Participation and Empowerment
1.5 Let Us Sum Up
1.0 INTRODUCTION
Participation and empowerment are two important terms that form foundation of
organisational development. These are two strategies that can be adopted by an
organisation in order to increase motivation, morale and productivity of employees.
They not only lead to individual development of the employees but also results in the
overall development of the organisation. In this unit we will try to understand the
concept of participation and empowerment. We will also discuss the elements and
aspects of these strategies. The benefits of employing these two strategies and process
will also be discussed. Further the relevance of role of manager in implementation of
both these strategies will be focused on. Lastly the programmes and techniques
utilised to promote these strategies will be highlighted.
1.1 OBJECTIVES
 Define participation and empowerment;
 Conceptualise participation and empowerment;
 Elucidate the benefits of participation and empowerment;
 Describe the process of participation and empowerment;
 Analyse the role of managers in implementation of participation and empowerment;
 Describe the factors determining participation and empowerment; and
 Elucidate the programmes and techniques to promote participation and
empowerment. 5
Assumption, Beliefs and
Values in Organisational 1.2 PARTICIPATION
Development
Participation is the mental and emotional involvement of persons in group situations
that encourage them to contribute to group goals and share responsibility for them
(Newstrom and Davis, 1993). Managers who adopt participation as a strategy
encourage involvement of their subordinates in problem solving and decision making
process. Though the manager still retains the ultimate responsibility, this strategy
promotes job involvement amongst the employees. Three most important elements
of participation are (i) involvement, (ii) contribution and (iii) responsibility.
i) Involvement: The employee while participating in problem solving or decision
making or achievement of a particular goal should feel involved at both mental
and emotional levels. Thus participation does not merely mean task involvement,
but ego involvement of the employee is also necessary. Participation without ego
involvement of the employee is termed as ‘Pseudoparticipation’. The managers
should thus be careful to ensure that the whole self of the employee is involved
and just not his/her skills in performing the task.
ii) Contribution: Participation encourages people to contribute their skills and
resources to the successful completion of tasks. It provides the employee with
empowerment to be creative and innovative while achieving the goals assigned
to them. Participation does not mean consenting to a particular decision or
problem solving strategy. In consenting, the manager has already come up with
a decision or a strategy and merely seeks approval of the employees. But in
participation the employees are involved and contribute to the whole process of
decision making or problem solving right from the start.
iii) Responsibility: Participation provides an opportunity to the employees to take
responsibilities. This not only enhances self involvement but also increases self
efficacy of the employees. Feeling of responsibility in turn will encourage the
employees to be further involved and contribute to the achievement of the
organisational goal.
Thus the above three elements of participation are interrelated at the same time
extremely important for participation to be effectively implemented in an organisation.
Participation is especially effective when the superiors or managers do not possess
enough information to solve a problem alone to make an important decision. In this
case he/she can benefit from the expertise of the subordinates. It can also be used
when the nature of the problem is unclear or vague. It can be beneficial in situations
where the acceptance of the decision by the subordinates is critical to its effective
implementation and is relevant to them and when subordinates are willing to exercise
their own judgment and express their point of view. However participation is possible
only when there is no urgency involved in decision making and problem solving.
1.2.1 Benefits of Participation

Participation results in number of benefits to the organisation.
i) Acceptance of and commitment towards organisational goals
Participation will ensure the acceptance of and commitment towards organisational
goals as the employee is able to identify and find relevance in his/ her context. The
employee in this case might also be involved in the process of setting an organisational
goal, thus enhancing participation on the part of the employee.
6
ii) Smooth implementation of organisational change Participation and
Empowerment
As the employee is a part of the whole process of bringing about the organisational
change, the smooth implementation of organisational change is possible. The views
and concerns of the employees also get expressed through right channels and his/ her
insecurities are dealt with thus enhancing the implementation.
iii) Improves productivity, morale, self esteem and motivation of employees
Through participation, the employee is also exposed to varied knowledge and expertise.
Further the opportunity to participate in important decisions and problem solving
process enhances the morale, motivation and self esteem of the employee thus
improving his/ her productivity.
iv) Leads to increased job satisfaction and job involvement
Participation boosts job satisfaction and job involvements as the employee has a
feeling of responsibility and contribution to the achievement of organisational goals.
v) Promotes organisational citizenship
Due to high job satisfaction and job involvement combined with an opportunity to
contribute to the organisational processes brings about the feeling of organisational
citizenship in the employee.
vi) It establishes better communication in the organisation
Participation and communication are interrelated in an organisation as better
communication will enhance participation and effective implementation of participation
as a strategy will ensure better and open communication.
vii) Employees experience increased awareness about the organisation’s
finances, goals and operations that allow them to make better suggestions
To ensure effective participation in an organisation, it is extremely important that
relevant information with regard to finances, goals, operations etc is provided to the
employee. This not only ensures effective decisions making and problem solving but
also makes employee more aware.
1.2.2 The Process of Participation

Depending on the situation, whether, it demands problem solving, decision making or
achievement of a particular task the participation programme can be launched. Once
this programme is launched, it is important to ensure that the employees feel involved,
both mentally and emotionally, have adequate scope and freedom to contribute and
feel responsible towards the outcome of the activity. This in turn will ensure higher
output, better quality and creative suggestions, acceptance of change and a conflict
and stress free environment.
1.2.3 Factors Related to Success of Participation

However, success of participation will depend on varied factors.
i) Adequate time should be available before participation is encouraged
As the employees will require sufficient time in order to come up with a suitable
suggestion or strategy. Thus participation cannot be used in emergency situations.
7
Assumption, Beliefs and ii) Consider benefits of participation before hand
Values in Organisational
Development It is also important to consider before hand that the benefits of participation outweigh
the costs involved. Only then participation can be termed as effective.
iii) Ensure employee view participation
Care should be taken to ensure that the employee view the process of participation
positively at the same time find it interesting and significant.
iv) To tap the Trade union attitude towards participation
Even the attitude of trade unions in a particular organisation need to be focused and
worked upon before encouraging participation.
v) Ensure open communication amongst employees
It is extremely important to promote open communication amongst the employees
and between superiors and employees in order to promote participation. As without
such a condition the employees will hesitate or fail to communicate their suggestions
and view points. The employees should not feel threatened to express a particular
view or suggestion.
vi) Orient employees about goal of participation
The employees should be oriented with regard to the goal and area of participation.
So that they do not violate the area of job freedom of any other department or
employee.
1.2.4 Programmes to Promote Participation

Various programmes can be used in order to promote participation amongst
employees. These are discussed below:
Participative and Consultative Management
The organisation and especially the managers involved in promoting participation
should adopt both participative and consultative management.
Participative management means that sufficient strategies, programmes and practices
are employed in order to empower the employees and encourage participation amongst
them.
Consultative management means that the superiors or managers provide adequate
information, support and motivation to their subordinates to come up with suitable
suggestions. Thus before participation is employed it is important that the organisation
creates conducive environment for successful implementation.
Suggestion Programmes
These are formal plans strategised by the organisation to promote expression of
suggestions and view points amongst the employees. Certain awards and prizes are
also given to best suggestions. This does not merely mean making available a suggestion
box at cafeteria or work place. But the organisation should have a concrete plan to
ensure that large number of employees do contribute their suggestions to relevant
issues regarding the organisation.
Quality Circles
8 Quality circles are a group of people who discuss and develop solutions issues that
relate to quality, productivity or costs. These circles meet regularly in order to Participation and
Empowerment
generate suggestions with regard to varied issues. They provide employees with
opportunities to personal development and feeling of achievement.
Total Quality Management (TQM)
Various organisations adopt TQM in their organisations in order to involve their
employees in continuous improvement of their operations. Utmost importance is
given to quality of product and services under TQM. As TQM is a formal programme
that requires direct participation of each employee, it might be necessary to provide
the employees with training with regard to the concept and implementation of TQM.
Self Managing Teams
Self Managing Teams or self directed teams can also be used to promote participation
in organisations. In these teams there is no external supervision carried out. The team
members can carry out their activities implement decisions and evaluate results on
their own. This ensures participation of team members and as there is no supervision
the members develop a sense of responsibility towards the functioning of the team
and achievement of the team objective and are empowered in the process.
Survey Feedbacks
In survey feedback data about an organisation or one of its departments is collected
with the help of a questionnaire and feed back is provided. This data is then used
to identify problems in an organisation and develop suitable intervention strategies to
deal with the problem.
Survey feedback enhances participation from employees at various hierarchical levels.
The participation is encouraged amongst employees right from planning stage of
survey feedback to the intervention development stage.
Search Conferences
These are conferences are organised for a duration of two to three days and is
attended by twenty five to thirty employees. Employees for participation in such
conferences are selected based on their potentialities, knowledge and expertise. The
conference constitutes of plenary sessions as well as group discussions.
Search conferences can boost participation amongst the employees as they are
encouraged to take part in such conferences and provide suggestions and possible
solution to the impending problems in the organisation.
1) Explain how lack of contribution and responsibility on part of the employee
can affect participation.
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
2) Highlight factors that determine the success of participation.
.....................................................................................................................
9
Assumption, Beliefs and .....................................................................................................................
Development .....................................................................................................................
.....................................................................................................................
3) Explain Total Quality Management and quality circles as programmes to promote
participation.
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.....................................................................................................................
1.3 EMPOWERMENT
In order to implement empowerment in an organisation, it is extremely important to
understand what it is. Empowerment can be described as a condition that enables
people to feel competent and in control, energized to take initiatives and persist at
meaningful tasks. It is a part of progressive change witnessed in today’s corporations.
One of the bases of empowerment is its view of power as it considers power to be
something that can be shared by everyone in flatter and more collegial structures
rather than considering power to be something to be held only at higher levels in the
traditional organisational structures. It is thus important to distinguish empowerment
from power.
Though power is one way in which activities and tasks can be enforced and performed
in an organisation; it lies with certain people who act as authorities in exercising it.
Where as in the process of empowerment a conducive environment is created in
order to make people self sufficient and enable to achieve their greatest potentiality
and contribute to the development of the organisation.
Empowerment can be categorised in to two, (i) structured empowerment and (ii)
flexible empowerment. Structured empowerment provides guidelines to the
employees about what exactly needs to be done. These guidelines help the employees
solve problems and make decisions immediately without waste of time. This also
enables managers to retain basic control over the procedure and the situation.
On the other hand flexible empowerment allows employees discretion to take
decision and solve problems directly. A very broad guideline and limitations might be
made available by the management to the employees. Further, suitable training in this
case may also be provided to the employees.
Empowerment can come from within individual, from peers or from superiors. An
individual can empower oneself by initiating personal actions to develop high self
perception and enhance self motivation.
To empower oneself, it is extremely important to put in efforts and be willing to take
on additional responsibilities, employ creative strategies in problem solving and set
higher goals in accordance with one’s potentialities.
Empowerment from colleagues and co workers can have an immense impact on the
work related behaviour and performance of an individual. Respect, acceptance,
10 encouragement, positive criticism and cooperation from colleagues and coworkers
can not only encourages the cohesiveness at the work set up but increases self Participation and
Empowerment
perception at work and enhances achievement of individual and organisational goals.
One of the most important sources of empowerment is that from superiors. The
empowering superior creates a conducive environment to enable empowerment of
the individual. This can be done by providing complex tasks, challenging activities,
sharing information, open communication, delegation of power, and providing concrete
and positive criticism.
1.3.1 Benefits of Empowerment

Organisations have realised the benefits of developing and empowering their employees.
Some of the benefits are listed as follows:
Empowerment brings about positive self perception
Three important concepts under self perception are self concept, self esteem and self
efficacy. Self concept can be defined as how we view ourselves, self esteem is how
we feel about our own worthiness and self efficacy is our perception about our ability
to perform. A positive self perception will encourage an individual to set higher goals
for one self, accept challenging tasks and enhance goal achievement.
Empowerment enhances motivation
Empowered people are better focused and are more committed to their goals. They
are intrinsically motivated as their self perception is high.
Empowerment encourages active problem solving
Empowered individuals are more flexible in behaviour and try alternative paths when
they are blocked and are eager to take new initiatives.
Empowerment alters expectations:
Since empowerment leads to overall development of the employees and their potential,
the organisations can alter their expectations about productivity and performance of
the employee. Thus the employees can be provided with challenging and complex
tasks and organisations can expect them to carry out these tasks with high motivation,
interest and enthusiasm.
1.3.2 The Process of Empowerment

There are two main aspects of process of empowerment, namely, (i) the removal of
conditions of powerlessness and (ii) enhanced job related self efficacy. These lead
to the perception of empowerment amongst the employees.
To remove the conditions of powerlessness in employees it extremely important to
bring about a change in the overall power distribution in the organisation. In this
regard a participative view should be accepted instead of an autocratic view. A
downward flow of power and authority might not be effective in order to bring about
empowerment in an organisation.
Managers play the most important role in empowering employees. Thus, it is important
that the managers cultivate suitable leadership and communication skills and be open
to sharing of power with their subordinates. Along with change in the processes and
structures of the organisations, the leadership style employed in the organisation
should also be focused on, so as to make it more inclusive and democratic, to create
an environment suitable for development of empowerment amongst the employees. 11
Assumption, Beliefs and A reward system that recognises the independent and group contributions of the
Development
employees and that which identifies creative and innovative ideas of employees
should be implemented in the organisation. Further the job of the employee should
be modified to make it more interesting, challenging and innovative.
To enhance job related self efficacy four broad aspects can be focused on, that is
job mastery, role models, reinforcement and support. Employees can be empowered
by providing them with an opportunity to develop mastery over their jobs. This can
be done by providing them with suitable training, mentoring, coaching and career
management and development opportunities.
Certain role models can also be provided to these employees. These role models can
be the successful or productive employees of the organisation. Also certain younger
employees can be paired with older and more experienced employees under mentoring
programmes so as to provide the younger employees with guidance and support in
the organisation. These older employees will not only serve as role models but will
also ensure effective adjustment of the younger employee to the new environment of
the organisation.
Reinforcements ranging from praise, verbal feed back to rewards can also be used
in order to motivate an employee to work effectively and develop empowerment. It
is also important to provide employees with psychological, emotional and social
support in order to develop empowerment. This will lead to perception of
empowerment amongst the employees. The employee will become competent to not
only carry out his/her tasks effectively but with innovation and confidence. He/she
will develop high value for himself/ herself. Will find the job more meaningful and will
be able to use his/ her potentialities to the fullest.
1.3.3 Determinants of Empowerment

Various aspects need to be taken in to consideration before implementing
empowerment. It is necessary to thoroughly understand the nature and the current
environment in the organisation before empowerment is introduced. One reason why
successful implementation of empowerment may fail is when the organisational culture
is not conducive to its implementation. The organisational culture thus needs to be
changed and modified before implementation of empowerment.
A culture of continuous learning and support needs to developed in an organisation.
Empowerment requires a culture of trust and collaboration. The concept of
OCTAPACE (Openness, Confrontation, Trust, Authenticity, Pro-action, Autonomy,
Collaboration and Experimentation) has been proposed as the ethos for empowerment
(Pareek, Udai, 2008).
Employees vary in their degree of empowerment. Some seek more responsibility and
others less. Thus while implementing empowerment the individual differences amongst
the employees needs to be taken in to consideration.
In order to promote empowerment amongst employees, it is important to first ensure
that the concept of empowerment is understood by the employees and they have a
positive attitude towards it. Further they might also need help in developing suitable
skills to be empowered. Sense of confidence should be developed amongst the
employees.
Before empowerment is implemented it is extremely important to focus on the present
organisational strategy and goals. After this is considered then this strategy can be
12
safely implemented as, if it does not fit with the organisational strategy then the whole Participation and
Empowerment
process of empowerment will be a futile exercise.
Technological advancement in an organisation can also be one of the determinants
of empowerment in an organisation as it may actually facilitate its implementation and
promotion.
1.3.4 Characteristics of Empowered Organisation

Following characteristics are observed in the empowered organisation:
1) Flat organisational hierarchy for equal distribution of power and opportunity to
participate in problem solving and decision making.
2) Stress on quality of performance rather than quantity.
3) Facilitation and promotion of open communication amongst employees and
management.
4) Employees encouraged and given chance to make personal contribution to the
tasks on hand so as to promote development and empowerment.
5) High employee awareness in terms of individual and organisational goals.
6) An organisational culture that is cooperative and supportive and purposeful
rather than problem and blame oriented.
7) Employees’ satisfaction given utmost importance.
8) The processes of recruitment and selection are focused on, in order to hire
employees who could possible adjust well to the environment in the organisation.
9) Suitable opportunities for training and career development are provided.
1.3.5 Techniques for Empowerment

There are quite a few effective techniques for empowering employees and these are
presented below:
Open Book Management
This technique not only results in empowerment of the employee but also leads to
financial benefits to the organisation. The technique focuses on developing an
understanding about financial aspects about the organisation amongst its employees
so as to help them understand the organisational performance. The employees are
then encouraged to set high performance standards in order to achieve high profitability
thus providing the employee an opportunity to directly contribute to the achievement
of the organisational goal and success. This also leads to effective participation.
Job Rotation, Job Enlargement and Job Enrichment
These three techniques can be effectively used to empower the employees. Job
rotation involves time to time assignment of a completely new task and job activity,
different from the actual work activity carried out by the employee on regular basis.
In job enlargement an employee is given wider variety of duties and tasks to perform
so as to reduce his/ her monotony and make the work activity more interesting.
And under job enrichment, the focus is on the depth of the job. That is, the employee
is given more control, responsibility and discretion over the work activities that he/
she carries out. This ensures complete job involvement on part of the employee. 13
Assumption, Beliefs and Self Managing and Cross Functional Teams
Development These two types of team have already been discussed under the unit on team. They
can be used effectively in order to develop empowerment in employees.
Self managing teams provide the employees with an opportunity function at his/ her
own terms and take responsibility for the task performed. Where as, cross functional
teams provides a chance to interact with team members who possess diverse skills
and expertise which provides the employees with opportunity to learn.
Delegation
Empowerment in an employee can also be developed with the help of effective
delegation. However, care needs to be taken to delegate work according to the
potentialities of the employee. A systematic delegation should be applied here where
the complexity of the work assigned to employee increases progressively. The
delegator should also ensure the completion of work by regularly monitoring the
progress, though care needs to be taken to avoid interference so as to provide the
employee with a chance to take responsibility and work with his/ her full potential.
Involvement in Policy Making
Empowerment can also be developed by involving the employees in policy- making
process of the organisation. This will provide the employees with sense of respect
and he/ she will feel valued. This in turn will enhance the self esteem of the employee.
1) Discuss in detail the determinants of empowerment.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) What are the characteristics of empowered organisation?
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.....................................................................................................................
3) What are the various techniques of empowerment?
.....................................................................................................................
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4) Explain open book management and delegation as techniques of empowerment.
.....................................................................................................................
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14 .....................................................................................................................
Participation and
1.4 ROLE OF MANAGERS IN PARTICIPATION AND Empowerment
EMPOWERMENT
Managers play the most important role in the implementation of participation and
empowerment in an organisation. Various issues need to be dealt with when we focus
on the role of managers. Though the benefits of promoting participation and
empowerment amongst employees are quite obvious, their might be some resistance
amongst managers in its application. This can be due to varied reasons discussed as
follows:
Vague understanding of participation/empowerment
Some managers might not be clear about the concept of participation/empowerment,
what it means and how it is to be implemented. This can interfere with the process
on empowerment. Thus it is extremely important that suitable training regarding
participation/empowerment is provided to the managers before it is introduced in the
whole organisation.
Lack of skills
A manager might resist participation/empowerment or may not be able to successfully
implement them due to lack of skills. He/ she may not possess suitable leadership
and communication skills necessary for such implementation. The managers thus
need training and organisational support with regard to this aspect. Further care can
be taken while hiring managers so as to select managers who would be in position
to empower the employees and ensure their effective participation.
Habit
Sometimes it is difficult for managers to promote participation/empowerment just
because during the previous years they have been trained otherwise to delegate and
use authority and power. Thus they may not be able to adjust to the sudden shift
towards participation/ empowerment. In this case, positive attitude towards
participation/ empowerment and its practices should be developed amongst the
managers.
Insecurity
Many times managers may also feel insecurity about implementing participation/
empowerment due to fear of loosing control over the employees. This can also be
dealt with by providing training programmes and workshops so as to make managers
better aware.
Pragmatism
Managers recognise the fact that participation/ empowerment however beneficial,
might not be a solution to all the problems in an organisation and might not be
suitable in certain situations. Thus they might not be completely convinced about the
effectiveness of participation/ empowerment.
In this situation the managers need to be informed that if properly managed,
participation/ empowerment can of great benefit and that an overall culture of
participation/ empowerment will greatly benefit the development of employees and
the organisation as a whole.
It thus becomes a duty of the top level management to train, develop and empower
the managers in an organisation before participation and empowerment is implemented 15
Assumption, Beliefs and at other levels. The managers should be encouraged to play a role of a counselor
Development
or a coach who is sensitive to the problems of the employees and is always there
to help and support in any circumstances. He/ she can be developer of talent and
potentiality at the same time creator of goals and challenges. All this is again a
challenging task for a manager as he/ she has to be a leader at the same time when
other roles are being played.
Focus on individual differences
Managers also need to focus on individual differences. Individual differences will
exist in ways each employee can be encouraged to participate or be empowered.
As certain employees seek active participation and some may not. While some
employees can be easily empowered within short duration of time, others may require
extra support and help on behalf of the manager and other superiors. This might also
differ depending on the age, gender, education, position and other demographic and
socio- cultural aspects of the employees. These two strategies should thus be employed
after due consideration of individual differences amongst the employees.
Kouze and Posner have suggested five leadership practices for managers that can
help them in becoming effective managers.
i) Firstly, the managers need to make the tasks assigned to the employees more
challenging and they should be constantly in search of opportunities for such
challenges. Further they should encourage experimenting and risk taking amongst
employees in dealing with tasks at hand.
ii) Secondly, it is important that the manager envisages a shared vision. The
objectives are set in collaboration with the employees and are to be collectively
achieved.
iii) Thirdly, the manager should facilitate active participation amongst the employees
and encourage them to work as a team and be supportive to each other.
iv) Fourthly, the manager should serve as a role model to the employees.
v) Lastly, the manager should recognise individual contributions and reinforce
accomplishments.
1) Explain how lack of skills and insecurity can discourage managers from
employing participation and empowerment.
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2) Discuss five leadership practices that can make managers effective.
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16 .....................................................................................................................
Participation and
1.5 LET US SUM UP Empowerment
Thus we can sum up that participation and empowerment are two significant strategies
in organisational development. The most important outcomes of these strategies are
acceptance of change on behalf of employees and enhanced performance as a result
of goal oriented behaviour. Further they also promote awareness about the organisation,
its structure, process and practices and also increase involvement of the employees
in the goal achievement process of the organisation. Participation and empowerment
also enhance organisational citizenship. The benefits of adoption of these two practices
may not be immediate, though in long term, it will result in a highly positive organisational
culture and well developed human resource.
Participation is not restricted only to management, but is extended to the employees
at all levels in an organisation. To empower is to give power and this is done by
providing an employee with authority to participate, make decisions, and contribute
their ideas. In a way both these terms are interrelated as participation enhances
empowerment and empowerment encourages participation.
However, utmost care needs to be taken before they are implemented in terms of
organisational culture, attitude, managerial role and nature of organisation etc. But if
implemented suitable the benefits of these two strategies can be observed for a long
period of time and will greatly benefit the overall development of the organisation.

1) Describe participation and empowerment and discuss their.
2) What factors need to be taken in to consideration before implementation of
empowerment?
3) Describe the process of participation and empowerment.
4) Describe the significance of role played by managers in implementation of
Empowerment.
5) Highlight the characteristics of empowered organisation.
6) Explain the programmes that be carried out for implementing participation and
empowerment.

Clutterbuck, David., & Kernanghan, Susan. (1995). The Power of Empowerment:
Release the Hidden Talents of your Employees. London. Kogan Page Limited.
Coffey, R. R., Cook, C.W., & Hunsaker, P.L. (1997). Management and
Organisational Behaviour, 2nd Ed. New Delhi. McGraw- Hill Companies.
Limited.
Pareek, U. (2008). Understanding Organisational Behaviour, 2nd Ed. New Delhi.
Oxford University Press. 17
UNIT 2 TEAM AND TEAMWORK
Structure
2.0 Introduction
2.1 Objectives
2.2 Team
2.2.1 Stages of Team Development
2.2.2 Types of Team
2.2.3 Team Activities
2.2.4 Creating High Performance Team
2.3 Teamwork
2.3.1 Problems Affecting Team Work
2.3.2 Enhancing Team Work
2.4 Team Intervention Strategies

2.5 Let Us Sum Up
2.0 INTRODUCTION
Work is becoming more and more complex day by day with technological advances
and complex structure and processes in organisations. These factors have lead to
varied complex problems. In order to deal effectively with this situation it is extremely
important that teams are employed. Teams can be effectively used to carry out
diverse tasks, solve problem, make decisions and implement them. However immense
care has to be taken in order to build a team and ensure its smooth functioning. A
very large team can make it very difficult for the team, members to coordinate,
communicate and land on a single decision. Various types of teams can be used
depending on the task on hand and the problem faced by the organisation. It is also
extremely important to identify the problems that can occur during the functioning of
the team and suitable intervention are carried out to ensure their smooth functioning.
In this unit we will try to understand concept of team and teamwork. The characteristics
of high performing teams will be also discussed. The unit will also highlight activities
carried out by teams. The problems interfering with effective team work will also be
explained along with ways of promoting effective team work.
2.1 OBJECTIVES
After completing this unit, you will be able to:
 Define team and team work;
 Describe high performing teams;
 Explain activities carried out by teams;
 Elucidate the barriers to effective teamwork; and
18  Analyse the ways of enhancing teamwork.
Team and Teamwork
2.2 TEAM
Team can be explained as cumulative effort of a number of individuals. It is different
from a group in number of ways. The members of a team are accountable for each
others performance. Teams can be termed as more effective than individuals because
the employee skills are better utilised in teams. Teams are flexible and enhance and
facilitate employee involvement and participation and also lead to increase in motivation
of the employees. A team is more effective in problem solving, decision making and
achievement of organisational goals as compared to an individual. Teams can be used
when many perspectives are needed and acceptance of decision is critical, when the
problem or task in hand is complex and diverse suggestions are required and when
risk involved is high.
Team can be categorised in to two: (i) Family group and (ii) special group. Family
group is a permanent team consisting of a superior and several subordinates whereas
the special group is a temporary team constituted to tackle specific tasks, as for
example ad hoc committees and newly formed groups.
Teams are significant for various reasons. Changes in norms and values of a team
have a direct impact on the behaviours of team members and such changes are long
lasting and immediate. Thus teams can be effectively utilised to positively influence
the behaviours of its team members. Certain tasks that are complex can be
conveniently dealt with, with the help of a team that constitutes individuals with
diverse skills.
The cumulative effort of the team members results in a synergy. Further working as
a team enhances individuals need for social interaction, recognition, and belongingness.
It also serves as a support system while the individuals are facing problems in dealing
with tasks on hand.
A team can be distinguished from a group. A group is two or more people who
regularly interact and influence each other; however, members of a group see
themselves as individual entity and produce individual output. A team is a type of
group with a common objective, whose collective and coordinated efforts result in
a common output. A team may be described as a group but not every group can be
described as a team. The distinction between team and group is presented in the
table below:
Table: Difference between teams and groups
Parameters Teams Groups
Performance Depends on both Depends on work of
individual and collective individual members.
contributions of the team
members
Accountability Individual and mutual Individual
Goals Common goals and Common goals.
commitment to
achievement of goal.
2.2.1 Stages of Team Development

A team goes through various stages of development which can be categorised in to
four main headings namely, (i) forming, (ii) storming, (iii) norming and (iv) performing. 19
Assumption, Beliefs and These stages are discussed below:
Development i) Forming: Once the team has been put together, the members may know or
may not know each other. At this stage the members interact and get to know
each other better. A rapport is established amongst the members which is
extremely important for the succeeding stages of team development as well as
for the achievement of the team goal. Once the members get to know each
other better, they discuss about the team tasks and goals.
ii) Storming: As the name suggests this stage is that of discussion and arguments
about the team goal and making plans to achieve it. The team members also
compete at this stage for status, position and control in the team. At this stage
tension between the team members might also be created. It is extremely important
for the leader to coordinate amongst the members and manage the team
members during this stage as it is most crucial for efficient performance of the
team.
iii) Norming: At this stage to some extent, balance prevails after the stage of
storming. Now the team is in position to work together. It is more settled as the
team members are already aware about the roles that they are expected to play
and there is some kind of a consensus with regard to the functioning of the team.
The team is now ready to collectively work towards achievement of the goal.
iv) Performing: Through the earlier three stages, the team develops and the
members also develop positive interpersonal relationship with each other and
are more comfortable working with each other. At this stage the team is ready
to deal with complex challenges and achieve the team goal.
A fifth stage might be added to this depending on whether the team is permanent or
temporary. In case it is temporary then the last stage is Adjourning where the team
members have achieved the team goal and are now no more required to work as
a team and thus the team is adjourned. At this stage the team members might be
involved in winding up activities of the team.
2.2.2 Types of Team

As per the needs of the organisations various types of teams can be employed. Some
of these types include (i) problem solving team (ii) cross functional team (iii) Self
managing team (iv) virtual team. These are discussed in detail below:
i) Problem Solving Teams: As the name suggests the main purpose of this team
is focusing on the problem and coming up with a suitable solution. The members
of this team meet regularly to examine work related problems.
Quality circles can also be formed under this type of team that mainly discuss
and develop solutions to issues that relate to quality, productivity or costs. For
the quality circles to be effective the members and the leader need adequate
training in group dynamics, information gathering and problem solving techniques.
ii) Cross- Functional Teams: The speciality of this type of team is that it consists
of members representing different departments or units in the organisation. For
example this type of team may consist of managers from different departments
in the organisations like finance, human resource, production etc. However, a
problem can occur in these teams due to failure in communication across
functions, referred to as ‘functional silos’. ‘Functional silos’ occurs when the
20 employees from a particular department are well aware about their own work
activity but are poorly involved in and have weak idea about activities of other Team and Teamwork
departments.
iii) Self Managing Teams: Also called as self directed teams, this is a high
involvement team in which there is no external supervision carried out on the
functioning and activities of the team. The team is empowered to carry out their
activities, implement decisions and evaluate results on their own.
iv) Virtual Teams: Due to technological advancement it is possible for employees
in organisations to work together as a team from different locations. Such teams
are referred to as virtual teams in which the members from different locations
are electronically linked together via networked computers. This type of teams
not only saves time but also expenses of travelling from different places. However
members should be well trained in using computers.
2.2.3 Team Activities

A team may be constituted to carry out a number of activities in an organisation.
These activities include (i) Advising (ii) Innovating (iii) Promoting (iv) Developing (v)
Organising (vi) Producing (viii) Inspecting (ix) Maintaining and (x) Linking are listed
as follows:
i) Advising: A team may be constituted in order to identify and understand a
particular problem or issue in an organisation so as to provide the management
with suitable advice. Advice may also be given with regard to organisational
development, employee well-being, technological advancement etc.
ii) Innovating: One of the activities carried out by teams is innovating that is
brainstorming and engaging in systematic discussion and coming up with
innovative ideas about products, advertising, strategies etc.
iii) Promoting: A team may also be involved in promotional activities. These
promotional activities may be related to launching a new product or a particular
strategy or programme like health, safety, discipline etc. in the organisation.
iv) Developing: A team may be part of developing a new product or strategy. It
may also be involved in developmental activities meant for employees or
organisation as a whole. But mainly it may be involved in planning the
developmental activities and also its implementation and follow-up.
v) Organising: Another activity of a team is organising. A team may be constituted
to organise seminars, conferences, events and other programmes in an
organisation. It may also be involved in organising training and development
programmes. Further, they may also contribute to organising varied human
resource functions like selection, recruitment, performance appraisal etc.
vi) Producing: A team may also be involved in the production activities of the
organisation. The production may be with regard to the existing products or a
newly launched product. In either case a team facilitates the overall functioning
of that particular department by providing help to deal with complex problems
and making the whole process fast and accurate.
vii) Inspecting: A team may also be formed in order to inspect a particular problem,
accident or a strategy. The team members here would be mainly involved in
evaluation and analysis of the task in hand.
viii) Maintaining: A team is also utilised in order to maintain discipline, safety rules 21
Assumption, Beliefs and and strategies in an organisation. They may also be involved in maintaining
Development
positive attitude, high morale, high motivation and overall maintenance of
organisational citizenship amongst the employees.
ix) Linking: A team also serves as a link between varied groups in an organisation,
like, management and employees or two or more formal or informal groups of
employees. It mainly functions here to bridge the gap between the two or more
groups and maintain cordial communication and intergroup relationship.
Thus there are varied types of activities that a team can utilise to perform. A single
team may perform one, many or all of the activities depending on the nature of the
organisation, problem faced and the demands of the situation.
2.2.4 Creating High Performing Team

A high performing team in an organisation results in high productivity and swift
achievement of organisational goals. Any organisation should focus on developing
high performing teams in their organisations. Such teams have special characteristics
that enhance their team work. Such teams have strong core values that guide their
behaviour, performance and attitudes towards achievement of team goals. There also
exits amongst team members a shared sense of purpose to achieve the objectives.
Such teams set performance standard for themselves on the basis of which the
performance is regularly evaluated and feedback is taken in to consideration.
Frequently high performing teams comprise of people with diverse skills and engage
highly in lateral and creative thinking. In order to develop high performing teams in
organisations following measures can be adopted.
i) Setting high performance standards: It is important that the management in
an organisation recognises certain teams and set high performing standards or
goals for these teams. It is also important that these standards should be clear
and specific so that they drive the team members towards achieving them. It is
not enough just to set these standards but there also needs to be suitably
communicated to the respective teams.
ii) The first team meeting: The first team meeting here is crucial as during this
meet the rapport needs to be established not only between the management and
team members but also amongst the team members. In this meet the specific
goals and expected performance of the team are to be clearly stated. This meet
should set ground for the team to carry on with the assigned task.
iii) Creating a sense of urgency: Certain time limit for the achievement of goal
needs to set and communicated to the team members in order to create a sense
of urgency and commitment amongst the members. The members should also
be encouraged to be involved in planning and setting smaller goals with time limit
in order to efficiently achieve the final objective assigned to them.
iv) Select members with right skill: In the process of team building, care needs
to be taken to include members with diverse skills. It is also important to select
members with effective communication, interpersonal and leadership skills. This
has to be done keeping in mind the goal set for the team.
v) Establishing clear rules and norms for team behaviour: The team members
should be informed about the limitations of their work activity and expected
team behaviour. This can also be communicated in the first meet so that the
expectations of the team members are clarified before they get in to the working
22
mode.
Keep the team members aware and informed. For the team to perform at its Team and Teamwork
best it needs to be abreast of all the new information about the development in
the organisation and the goal assigned to them. Technological support in this
case can be provided to the team so as to ensure their exposure to latest
developments.
vi) Ensure that the team meets regularly: This is important not only to ensure
that the team regularly works towards achievement of its objective but also to
develop rapport and a sense of cohesiveness amongst the team members. The
more time they spend together the more they will be able to understand and
work effectively with each other.
vii) Providing training: After the team has been constituted some kind of an
orientation and training programme can be organised for the members in order
to provide them with better idea about the task on hand, facilities available and
expected performance.
viii) Provide support: Ensure that adequate support is available to the team form
the management and the organisation as a whole for them to work effectively.
ix) Give positive feedback: The management should regularly monitor the
performance of the team and provide feedback.
x) Reward high performance: Ensure that high performance by the team is
always rewarded. This encourages the team members to perform better and
even set higher standards of performance the next time they work on a task.
This will also encourage and set example for other teams to enhance their performance.
1) Differentiate between teams and groups.
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2) Discuss various activities carried out by teams.
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3) How do we create a high performance team?
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23
Values in Organisational 2.3 TEAM WORK
Development
Team work occurs when the members of a team work together and utilise their
individual skills to achieve a common goal. In this process the team members also
support each other and contribute collectively to the task and achievement of the
goals. The goal assigned to the team has to be clear and specific. If the goal is vague
then it is not possible for the team members to work collectively towards achieving
it. Thus suitable care needs to be taken by the team leader or the management in
an organisation to see to it that the goal is clearly understood by the team members.
For team work to be successful and goals to be achieved, proper planning and
suitable coordination amongst the members is of utmost importance. Each member
should be aware about the task he/ she is supposed to take up.
Suitable planning is to be carried out about the way goal will be achieved and the
steps involved and all the team members should be made aware about the plan.
Smooth and open communication amongst the team members will enhance the team
work and facilitate achievement of team goal.
Each member in the team should be aware about his/her role in the team. Any role
ambiguity will lead to ineffective team work. The role played by the leader is very
important as he/ she is the one who will have complete knowledge about the team
goal and has to accordingly distribute tasks to each member, carry out planning,
coordinate the activities of the team and create conducive environment for the team
members to function.
All the members in the team are interdependent and thus have to collectively carry
out their work. This awareness about interdependence and readiness to be supportive
and cooperative are extremely important for the success of team work.
A team should consist of 4 to 12 members. A larger size will negatively impact the
planning, coordination and communication amongst the team members. Thus the size
of the team should be suitably maintained in order to enhance team work.
A leader also plays an extremely significant role in the team in terms of setting team
goals, planning and coordinating team activities, ensuring active participation of
members and promoting cohesiveness in the team. The leader has to display suitable
leadership skills that will enhance team work.
It is also important for the team leader to know his own strengths and how those
strengths can help the entire group He/ she should share power and information in
order to empower team members and reach goals. They also have the responsibility
to enable members to find answers for themselves asking questions and encouraging
balanced participation. Most important the leader should accept the concept of
continuous on- the- learning.
In order to ensure smooth functioning of team and achievement of its goals the team
leaders should assign the right people to the right task, maintain diversity in the team
in terms of skills and knowledge. They should focus on the interpersonal relationship
and communication among team members and make expectations clear.
The team leaders are also responsible to administer rewards and positive reinforcement
to the team members and play a crucial role in removing road blocks and obstacles
that keep the team from performing.
24 The team leader while dealing with the team members should remember that each
member has something to add to his/ her team. They also need to fix goals that are Team and Teamwork
measurable to keep your team focused. They should always reward merit, but never
let errors go unmarked. They should ensure a degree of independence is essential
in successful team work.
Delegation, openness of conduct and communication and a free exchange should be
encouraged. They should react positively to novel and creative ideas. A team leader
should also understand the strengths, weaknesses of his/ her team members. He/ she
should carry out regular performance evaluation and provide suitable feedback.
2.3.1 Problems Affecting Team Work

The problems affecting teams can be broadly classified in to six categories, namely,
(i) goals, (ii) team members, (iii) norms, (iv) decision making, (v) leadership and (vi)
size. The problems listed below can be categorised under one or more of the above
six broad categories.
i) Changing Composition: Change in compositions of the team like transfers,
changes, additions of members can affect the functioning of the team. As the
team develops through various stages as discussed above, the members develop
a rapport and interpersonal relationship with each other. If the composition of
team changes frequently, new members are added or old members are transferred,
the cohesiveness amongst the team members will be hampered leading to disruption
in functioning of the team and delay in the achievement of team goal.
ii) Interpersonal relationship among members: Problems can occur amongst
team members if they lack suitable positive interpersonal relationship with each
other. Team members in conflict with each other are not only going to negatively
impact the team cohesiveness but will also change the team focus to the conflict
rather than the task.
iii) Communication barriers: Lack of open and smooth communication between
the team members can interfere with the achievement of the team goals.
Communication barriers can also occur due to language and cultural differences
amongst the members.
iv) Social loafing: Social loafing occurs when certain member of a team does not
put in his/her best, thus affecting team activity and team morale at the same time.
The team members might feel that the tasks in a team are not equally divided.
v) Inappropriate leadership style/ ineffective leader: A leader plays an
extremely important role in any team as he/ she is the person who carries out
the planning and coordinates amongst the team members. Thus an ineffective
leader or an inappropriate leadership style will interfere with the effective
performance of the team.
vi) Large size of the team: If the size of the team is very big it would be difficult
for the team members to coordinate and communicate with each other leading
to chaos. Thus depending on the task, a suitable size for the team needs to be
decided which preferably should be below 12.
vii) Role ambiguity: If the team members are not clear about the role they play
in the team, then it would not be possible for them to function effectively.
viii) Lack of trust: It is important that at an early stage of team development the
team members develop rapport and positive interpersonal relationship with each
25
Assumption, Beliefs and other that will promote development of trust. Lack of trust amongst members
Development
will avoid them from sharing information and knowledge with each other and
negatively impact their functioning.
ix) Domination by one or more members: The team leader needs to ensure that
each member effectively contributes to the functioning of the team at the same
time each member has an opportunity to express himself/ herself in the team and
contributes to the decision making or problem solving process. Domination by
one or members will lead to lowering of morale and motivation amongst other
team members as they might feel that their suggestion and view points have not
been considered.
x) Lack of motivation: Lack of motivation on part of the team members will
disrupt the performance of the team members. Thus the motivation of the team
members should be boosted by regular feedbacks rewards etc.
xi) Disagreement over team’s purpose and tasks: Arguments and disagreements
amongst team members over the team goals and the direction of functioning can
gravely impair its functioning. This can be minimised by adopting effective strategies
of group discussions by the team leader and members.
2.3.2 Enhancing Team Work

For enhancing team work the following have to be considered:
Size: The size of the team plays an important role in enhancing team work. As
discussed earlier a team should be between 4-12 members. The size may also
depend on the nature of the organisation and the issue on hand or task to be
performed. An optimal team size will enhance team work it enhances coordination,
planning and communication amongst the team members.
Skills: At least three main skills need to be focused on while selecting members for
the team, namely, technical competence, problem solving and interpersonal skills.
Individuals with these skills will be able to function better as team members and will
be in a better position to achieve team objectives and goals.
Behavioural aspects of the team members: The behavioural aspects of team
members is also important in enhancing team work. The team members should be
encouraged to speak respectfully to one another about one another, listen without
interrupting, express opinions, feelings openly, honestly, to make ‘I’ statements and
not ‘You’ statements while taking responsibility, ask for help when needed, offer help
when possible, make commitments seriously and keep them up, support the team
and each other and focus on problem and solutions, not blame and accusations.
Open Communication: To ensure effective performance of the team, open
communication should be ensured. This will reduce disintegration of information and
enhance team functioning.
Goals: The team goals should be specific and clear and these goals should be clearly
communicated to the team members. Further performance standards should also be
set as per the potentialities of the individual members of the team.
Shared leadership: As far as possible shared leadership should be adopted, as it
will give opportunity to each and every member to act as a leader. This will also lead
to increase in morale of employees and lead to their individual growth.
26 Decisions/ solutions based on consensus: A team works collectively towards
decision making and problem solving. It is quite possible that members come up with Team and Teamwork
varied and different solutions. The ultimate decision and solution should be based on
consensus so as to promote the feeling of cohesiveness amongst the team members.
The leader plays a crucial role in ensuring this.
Supportive environment: The organisation and the managers should ensure supportive
environment for the team to function at its optimal level.
Stress management: Any stress amongst team members should be identified and
managed, as stress can interfere with effective functioning of the team. Yoga, meditation,
rational emotive behaviour therapy, relaxation techniques and other techniques can
be used in order to help employees deal with stress. An employee counsellor may
also be appointed by the organisation in order to help employees cope with their
personal and work problems.
Training: Suitable training with regard to both skills and knowledge etc. should be
regularly provided. Training can be related to technical or interpersonal skills or with
regard to a technological advancement in the organisation. Various methods and
modes of training programmes can be utilised.
1) Explain the concept of team work.
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2) Discus any two problems affecting team work.
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3) Highlight any three ways of enhancing team work.
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2.4 TEAM INTERVENTION STRATEGIES

As we have seen earlier there are various problems that can clog the activities of the
team and measures need to be taken by the management in order to ensure high
performance amongst team members. In this regard, certain team intervention strategies
can be used by the management or team leaders to enhance the functioning of the
teams or reduce conflict amongst the members. These interventions can be directed
either at family groups or special groups. 27
Assumption, Beliefs and i) Role Analysis Techniques [RAT]: This technique is mainly used to clarify the
Development
role obligations of each team member, understanding expectations of team
members. The techniques consists of structured series of meetings, listing specific
duties and responsibilities, listing the expectations from others and learning what
others expect from the individual. A written summary of the whole discussion is
also maintained. The technique is especially useful for newly formed teams and
teams with role ambiguity.
ii) Family Group Diagnostic Meeting: The purpose of this is to identify team’s
problems, but not to solve them. The meeting is normally scheduled away from
the work situation. A lot of preparation needs to be carried out prior to the
meeting in order to understand the nature of the team and goal assigned to them.
Further at the meeting, diagnostic information is shared, problem area identified
and discussed and attempts are made to generate preliminary action plan. This
technique is mainly useful to find out the cause of any problem and to come up
with a preliminary action plan.
iii) Family Group Team Building Meeting: This is mainly used to improve team
effectiveness in order to solve the problem. It may last for 2-3 days. It involves
a series of meetings to ensure that the intended changes take place and remain
stable overtime and can be used with both family and special groups. It is useful
to ensure stability of a group, improve effectiveness and maintain the team
cohesiveness.
1) Discuss Role Analysis Techniques as a team intervention strategy.
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2) Explain the concept of Family Group Diagnostic Meeting.
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2.5 LET US SUM UP

Thus in the above unit we discussed about what is a team and team work. We also
discussed about the activities of a team and the barriers that can affect team
performance. We further highlighted ways of enhancing team work and discussed
team intervention strategies. A team thus is an important tool that can be used by
organisations to carry out varied functions accurately and efficiently. However, care
should be taken while constituting a team and once the team is constituted measure
to ensure its effective functioning also needs to be carried out. If this is taken care
of then a team serves as an effective mode to ensure organisational development.
28
Team and Teamwork
1) Describe team and team work and explain their significance in organisations.
2) Highlight the stages of team development.
3) Discuss various activities performed by a team.
4) Explain various types of teams.
5) Discuss in detail the characteristics of high performing teams.
6) Explain various barriers to effective team work and suggest suitable solutions to
enhance teamwork.

Greenberg, J., & Baron, R, A. ( 2003). Behaviour in Organisations. 8th Ed. Delhi,
Pearson Education, Inc.
Nair, S. R. (2004). Organisational Behaviour: Texts and Cases. Mumbai. Himalaya
Publishing House.
Limited.
Shermerhorn, J. R., Hunt, J. G., Osborn, R. N. (2005). Organisational Behaviour.
9th Ed. New Delhi. John Wiley and Sons Inc.
29
UNIT 3 PARALLEL LEARNING STRUCTURES
Structure
3.0 Introduction
3.1 Objectives
3.2 Organisational Learning
3.2.1 System Thinking
3.2.2 Team Learning
3.2.3 Shared Vision
3.2.4 Mental Models
3.2.5 Personal Mastery
3.2.6 Strategies for Organisational Learning
3.3 Parallel Learning Structures

3.3.1 Shared Area of Interest
3.3.2 Community
3.3.3 Practice
3.3.4 Features of Parallel Learning Structures
3.3.5 Encouraging Development of Parallel Learning Structures
3.4 Let Us Sum Up

3.0 INTRODUCTION
In the present unit, initially we will try to understand the term organisational learning,
which is basic to understanding parallel learning strategies. Further we will discuss the
concept of parallel learning structures and try to understand the significance of these
structures in organisational context. The unit will highlight features of such structures
and also discuss ways of promoting their development in the organisation.
3.1 OBJECTIVES
 Define organisational learning;
 Describe characteristic features of organisational learning;
 Explain parallel learning structures;
 Describe the features of parallel learning structures; and
 Analyse the ways of developing parallel learning structures.
3.2 ORGANISATIONAL LEARNING

Learning can take place at individual level, team level or at organisational level.
Though we mainly focus and relate learning to an individual, more and more
organisations are adopting the concept of organisational learning in order to survive
30 in the competitive world.
Organisational learning can be described as the ability of an organisation to develop Parallel Learning
Structures
an understanding and gain insight from experience through experimentation, observation
and analysis and thus make it more efficient and effective in competition to other
organisations.
Organisational learning thus studies models and theories about the way an organisation
learns and adapts. Effective organisational learning entails modifying the procedure
themselves and may be even the assumptions, values, and objectives on which they
were based to not only solve current problems, but to prevent their recurrence in the
future (Coffey et al, 1997).
It not only contributes to resolving organisational issues, but promotes individual
development of knowledge and skills. Organisational learning is also related to
organisational change as it can contribute and is conducive to organisational change.
An organisation in the process of learning may utilise any one of the three learning
styles, viz., (i) single loop learning, (ii) double loop learning and (iii) deuteron
learning.
i) Single loop learning mainly deals with the identification and rectification of errors.
This is the fundamental level of organisational learning where the effectiveness
of rules and policies in the organisation are focused on. One disadvantage of this
style is that, the organisations may focus only on the errors and not on
developmental aspects. This style can be most effective when solving problems
with high level of urgency.
ii) Double loop learning when compared to single loop learning is in-depth. It is
normally used in an organisation when there is a need to focus on norms,
structures and identify the root causes of an error. The use of this learning style
may lead to certain changes that may impact the values, beliefs and strategies
in an organisation.
Double loop learning directly deals with the root cause of the problem thus may
require a long period of time and cannot be utilised for dealing with immediate
problems. Double loop learning is definitely more advantageous to any
organisation compared to single loop learning. However, there is hesitation on
part of the organisations to use it because of its complexity, time consuming
process and also because it involves disclosure of errors and questioning of
values, beliefs and strategies in an organisation.
iii) In deuteron learning, not only there is an in-depth analysis of error and questioning
of values, beliefs and strategies as in double loop learning, but it goes one step
further and also attempts to evaluate and analyse the whole process of learning.
This style thus enhances the learning practice in the organisation.
The above are the three learning styles that might be adopted in an organisation.
However, it is not that only a single style is utilised. A successful organisation will
apply each of these learning styles depending on the demands of the situation.
Organisational learning is based on five core areas, namely, system thinking, team
learning, shared vision, mental models and personal mastery. Of these five areas,
system thinking is the most important. These five core areas also distinguish a learning
organisation from a bureaucratic organisation.
31
Assumption, Beliefs and 3.2.1 System Thinking
Development System thinking is like looking at the organisation as a whole and then focusing on
the relationship between its varied parts. It helps in working along with the system
rather than against it. In order to develop system thinking, the employees in an
organisation need to participate actively in the varied activities taking place in the
organisation. System thinking lies at the heart of organisational learning because all
the members of the organisation are able to develop an understanding of the whole
rather than parts of the organisation like structure, processes and behaviour.
3.2.2 Team Learning

Various types of team exist in organisations that are crucial to the overall functioning
of the organisation. Thus it can be said that teams are fundamental units of an
organisation and form basic learning units of an organisation.
Team learning occurs when the team members develop a feeling of cohesiveness and
collectively experience productiveness while working on a particular task. It involves
sharing of knowledge and application of this knowledge in collective thinking
environment. For team learning to take place it is extremely important that the team
members are involved in effective team behaviour and team work. Further, effective
interaction between the team members is extremely important for the team learning
to take place and to overcome the barriers that interferes with learning.
3.2.3 Shared Vision

Shared vision means that all the employees in an organisation have common objectives
and goals, and they are collectively committed to achieving them. Shared vision is
extremely important in an organisation as it sets a performance standard against
which each employee can compare his/ her contribution to the organisational goal.
Shared vision also develops a feeling of cohesiveness amongst employees and may
enhance organisational citizenship. However, in the process of developing a shared
vision, it important to take in to consideration, the mental models existing in that
particular organisation. The employees should also be encouraged to express their
personal vision that can form basis of the shared vision. Care must also be taken to
evaluate the shared vision on regular basis.
3.2.4 Mental Models

Mental models determine our perception about the world and they are formed in
order to help us look at the world in a simple manner. In an organisational set up
mental models guide the way in which employees perceive the organisational structures
and its processes. It is thus extremely important for an organisation to focus and be
aware about the mental models of its employees, as mental models may limit the
perception of the employees and stop them from being creative and innovative and
may compel them to perceive things from a single perspective. Thus the existing
mental model in the organisation needs to be identified and challenged if necessary.
Further, a shared mental model may also be developed in an organisation.
3.2.5 Personal Mastery

Personal mastery occurs when an employee is committed to self and professional
development and involved in enhancement of his/ her learning skills and competencies.
An organisation should encourage development of personal mastery amongst its
employees by providing them with training and development programmes, coaching,
32
mentoring and other facilities. Personal mastery is relevant at all hierarchal levels in Parallel Learning
Structures
an organisation and every employee should be able to develop it in order to enhance
organisation learning.
3.2.6 Strategies for Organisational Learning

Varied strategies are employed to promote organisational learning. They are as follows:
i) Action learning: It is process carried out by a group of people with different
levels of skills and experience to analyse a real problem and develop an action
plan. Learning here takes place by actually working on the problem or carrying
out the problem related work activity. The group also supervises the implementation
of the action plan and may make changes throughout the implementation process.
This strategy is mainly used to deal with complex problems, to identify root
cause of the problem and derive a suitable solution and to develop new strategic
plans and increase developmental opportunities.
ii) Cross-functional teams: It is composed of people with varied levels of skills
and experience who are brought together to accomplish a task.
Cross functional teams help deal with an impending problem in organisations
referred to as ‘functional silos problem’, that occurs when the employees in an
organisation focus only on the matters concerning their department or function
and interact minimally with other departments or units in the organisation. This
leads to effective functioning of a single department but not of the organisation
as a whole as there is no much communication and coordination between the
difference departments and units of the organisation.
With the help of cross functional teams, employees from different departments
or units come together, interact, discuss and share their point of view with
regard to a particular issue or problem. This not only provides with a number
of alternatives for dealing with a single issue but also enhances organisational
learning as the employees with varied skills, knowledge and expertise are involved
in sharing and learning from each other. They may also use action learning as
one of their strategies.
iii) Work-outs: These are meetings of employees representing all levels and functions
of the organisation or unit, except management, to identify ways the organisation
can work together more efficiently and effectively. Work outs can be effectively
used to facilitate organisational change and to ensure active participation of all
employees in change process, to develop creative and practical strategies of
dealing with varied problems in an organisation. It can also be used to redesign
work practices and processes.
iv) Groupware: It is technology used to facilitate a group’s communication, problem-
solving, and decision-making processes. The group members here may come
from different geographical locations. It is extremely useful as it makes
communication effective and fast thus accelerating the problem solving a and
decision making process.
v) Benchmarking: It is a process through which the performance, best practices
and achievements of other organisations are compared with one’s own
organisation. It can be mainly used to identify the areas in an organisation where
improvements can be carried out. It also helps an organisation learn from the
performance and achievements of other organisations.
33
Assumption, Beliefs and vi) Parallel learning structures: Also known as communities of practice, parallel
Development
learning structures, promotes innovation and change in large bureaucratic
organisations while retaining the advantages of bureaucratic design. These
structures are also effective in bringing about organisational change.
All the above strategies are similar as they promote organisational learning. They
differ however in their processes and practices.
1) Describe the concept of organisational learning.
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2) Explain the any two core areas of organisational learning.
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3) Discuss action learning and work-outs as strategies of organisational learning.
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3.3 PARALLEL LEARNING STRUCTURES

Parallel Learning Structures may be a form of Knowledge Management. Knowledge
Management involves capturing the organisation’s collective expertise wherever it
resides (in databases, on paper, or in people’s heads) and distributing it to the people
who need it in time. They promote innovation and change in large bureaucratic
organisations while retaining the advantages of bureaucratic design. It is also referred
to as communities of practice.
Though recently coined the practice has been around for since a very long time. It
is widely used in various organisations in order to promote learning and development
because knowledge is viewed as a critical asset that requires suitable management.
Parallel learning strategies focus on people and on the social structures that enable
them to learn with and from each other.
The concept of Parallel Learning Structures was first introduced by Dale and Zand
in 1974 under the label Collateral Organisations. They described it as a supplemental
organisations existing with usual formal organisations, which are mainly useful to deal
with structural problems that the formal organisation is unable to deal with.
These structures are modes of learning how to change the structure and leading the
34 whole change process. It can also be described as a structure or a coordination of
employees that emerges or is created parallel to the formal structure of the organisation, Parallel Learning
Structures
which can be beneficial in promoting organisational learning, encouraging innovation
and creativity and their implementation amongst the employees.
Parallel Learning Structures consists of a steering committee and number of working
groups that study changes that need to be made, make suggestions for improvement
and monitor the change process. The steering committee might also be supported by
idea or action groups.
There are three important elements of parallel learning structures namely, shared area
of interest, community and practice.
3.3.1 Shared Area of Interest

The members of the group involved in parallel learning structure necessarily have a
shared area of interest and the members are committed to this interest. This area
of interest can be a problem, an issue requiring decision making. The group members
have collective competence in dealing with the shared area of interest and they learn
from each other in the process.
3.3.2 Community
The members of the group engage in activities and sharing of knowledge and
information in the process of dealing with shared area of interest. It might not be
necessary for the members to interact on daily basis. An interpersonal relationship
develops between the members and they involve in give and take of ideas and
information. They interact and learn together as one community.
3.3.3 Practice
The group members share information and ideas about the issue or area of interest
and are able to identify certain solutions. They develop a shared gamut of resources,
experiences, stories, tools, and ways of addressing recurring problems that can also
be referred as shared practice. This may take time and sustained interaction.
The parallel learning strategies are a combination of the above three elements. These
structures are valuable to both individuals and organisations. The individual members
greatly benefit from these structures especially when they come across a particular
problem and need some kind of assistance dealing with it. In such a situation they
have an easy assess to expertise and help from other members. Thus they are able
to deal effectively with the problem within a short period of time.
The individuals also benefit from the sharing of knowledge and may develop expertise
in this process. Overall the individuals in parallel learning structures are found to be
highly motivated towards learning and self development. This also has a positive
impact on their performance and productivity in the organisation.
At organisational level, such structures are extremely significant not only because it
leads to individual development of the employees in the organisation, but also because
it leads to overall development of the organisation and achievement of its goals.
Parallel learning structures are useful when the organisation needs the employees to
be creative and innovative in their approach to work, promote the give and take of
knowledge and information amongst the employees in the organisation and to enhance
and utilise the collective expertise of the organisation.
35
Assumption, Beliefs and An organisational culture with continuous learning is created and developed with the
Development
help of such structures. The younger and newer employees in the organisation also
benefit through sharing with certain senior employees in the organisation and able to
adjust to the new situation in better manner. The members develop a sense of identity
and become more participative and empowered.
Parallel learning structures can be compared with two other groups commonly found
in organisational set up, namely, interest groups and project teams. Parallel learning
structures are similar at the same time different from these two groups in various
ways.
An interest group is a group of employees taking interest and working on an issue
or a problem and a project team is a team constituted to achieve a particular goal.
The similarities between these three types of groups are that they are face to face
or virtual, in either case there is a continuous and consistent interaction taking place
between the members.
With regard to the differences, the goal of parallel learning structures and interest
groups is knowledge sharing and knowledge creation where as project teams mainly
deal with tasks and projects. Parallel learning structures and interest groups have a
culture of learning, are spontaneous, voluntary, informal and may have short or long
lifespan, where as project teams have a culture of action, are intentional, is formal
in terms of its administration and is constituted for a limited period of time.
The structure of parallel learning structures is homogeneous, on the other hand the
interest groups and project teams have a heterogeneous structure. With regard to
membership, parallel learning structures have core and voluntary members, interest
groups have an open membership, where as project teams have membership as a
result of assignment. The parallel learning structures focus on same topic, problems
and interests and this is the main reason that the structures emerge. Interest groups
focus on mixed topics, different problems but same interest and project teams focus
on deliverables.
Thus it can be noticed that though the three groups do have lots of similarities, they
do differ mainly in terms of their focus.
3.3.4 Features of Parallel Learning Structures

Though parallel learning structures may vary from organisation to organisation, they
do possess certain common features. These features are discussed as follows:
i) Sharing of Knowledge: One of the main features of parallel learning structures
is sharing of knowledge and information amongst the members of its groups.
The knowledge is shared through discussions, interactions and participation.
This kind of sharing helps the members become more aware of the issues in an
organisation and also help them come up with effective solutions.
ii) Spontaneous: Most parallel learning structures emerge spontaneously without
any efforts on behalf of the organisation, as the members get together voluntarily.
It is however beneficial for organisations to promote growth of such structures
for successful sharing of knowledge and effective resolution of certain issues.
iii) Common Objective: Most commonly parallel learning structures emerge as a
result of a group of people with common objective or interest or shared vision
coming together. These people in an informal set up start sharing knowledge
36
with regard to their common concern. These individuals may also have a common
set of values and beliefs. Though the group members might not work together Parallel Learning
Structures
or meet regularly there is a consistent sharing of knowledge that takes place
between them. The members may also share equal passion and commitment
towards the common issue which enhances the overall functioning of the structure.
The group members may interact with each other either face to face or virtually.
Technological advancement can facilitate development of such structures and
enhance their overall functioning.
iv) Informal nature: As the emergence of these structures is spontaneous, the
groups are informal in nature thus creating a conducive environment for interaction
and give and take of knowledge. These informal networks in an organisation
facilitate faster and better accomplishments of tasks and effective problem solving
and decision making. These informal networks may later be formally incorporated
into the organisational structure.
v) Formal guidance: Though these structures emerge spontaneously and are
informal in natures. The overall functioning of these structures can be enhanced
if they receive formal guidance from the management and the organisation. It is
not only important for the organisation to formalize certain structures that greatly
contribute to the resolution of issues and overall development of the organisation,
but also to provide guidance and direction for the structures and its members
to work.
vi) Size of the structure: The size of different structures will vary depending on
the shared issue. The size can range from few members to more than hundred
members. The size will also determine the activities and practices of structures.
vii) Lifespan: The life span of the structure will again vary depending on the
common objective, activities and practices of the structures. Thus the lifespan
may be short or long. The lifespan will also depend on the trust and support
amongst the members and whether the structure is informal or formalised.
viii) Leader: A leader of a particular structure plays an extremely significant role in
the functioning of the structure. The leader serves as a bridge between the
structure and organisation besides ensuring smooth sharing of knowledge and
focus on the shared objective. The leader may be one of the most respected
and influential members of the structure.
3.3.5 Encouraging Development of Parallel Learning

Structures
The organisations need to be aware and identify the informal interactions that naturally
occur amongst the employees, as it might not be possible for an organisation to
initiate a particular structure. But they can definitely create conducive environment for
such structures to develop and flourish in the organisation.
The organisations should also develop an understanding of what a parallel learning
structure is. They need to understand that these structures are informal and spontaneous
in nature and may exist across department and hierarchies and boundaries in same
organisation.
It is also important that these informal structures are identified by the organisation and
provided with suitable guidance, direction and environment. But it should also be
ensured that there is no interference on behalf of the organisation in the overall
functioning of these structures.
37
Assumption, Beliefs and Organisations need to promote trust, open communication, mutual understanding and
Development
support to foster successful development of such communities. An interaction format
may also be developed by the organisation and adequate time should be provided
for social interaction between the employees.
The organisations need to distinguish between sharing of information and sharing of
knowledge. Sharing of information via emails, notices, minutes of meetings and other
modes is not at same level as sharing of knowledge which occurs at a deeper level
where the insights and analysis of any information is shared.
The organisations may also promote technological advancements in order to enhance
development and functioning of parallel learning structures.
The organisation may offer incentives and rewards for the contributions of parallel
learning structures. This will encourage further growth of such structures and emergence
of new ones. The basis of such rewards can be innovation, creativity or spontaneity.
1) Define and describe parallel learning structures.
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2) Discuss various elements of parallel learning structures.
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3) Explain any three features of parallel learning structures.
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4) How do you encourage development of parallel learning structures?
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3.4 LET US SUM UP

Parallel learning structures are everywhere, in schools, universities, in sports, at work
etc. They are about people and are of great benefit to its members and the organisation.
38 They can be described as groups of people who share a common interest and
concern. They enhance the sharing of knowledge and information and also provide Parallel Learning
Structures
quick solutions to complex problems. It is thus extremely important for an organisation
to identify the parallel learning structures within its environment as it can contribute
greatly to the overall development of the organisation.. But it is important to focus
on these structures and guide their development without too much of interference on
part of the organisation and management. Their presence in an organisation enhances
organisational learning and change and they also contribute to the knowledge
management process in an organisation.

1) Explain the concept of organisational learning and its core areas.
2) Describe various strategies of organisational learning.
3) Describe parallel learning structures and highlight its features.
4) Discuss how development of parallel learning structures can be encouraged in
an organisation.

Al-Hawamdeh, Suliman.( 2003). Knowledge Management. Oxford. Chandos
Publishing Limited.
39
UNIT 4 A NORMATIVE RE-EDUCATIVE
STRATEGY FOR CHANGE
Structure
4.0 Introduction
4.1 Objectives
4.2 Organisational Change
4.3 Resistance to Change
4.3.1 Resistance as a System Variable
4.4 Strategies to Overcome Resistance to Change

4.4.1 Action Centered Approach
4.4.2 Rational Empirical Approach
4.4.3 Normative Re-educative Approach
4.4.4 The Power Coercive Approach
4.4.5 Common Assumptions of a Power Coercive Approach to Change
4.4.6 Political/Positional Power as a Change Strategy
4.4.7 Economic Power as a Change Strategy
4.4.8 Environment Adaptive Strategy
4.5 A Normative Re- educative Strategy for Change

4.5.1 Assumptions of Normative Re-educative Strategy for Change
4.5.2 Factors to be Considered while Applying Normative Re-Educative Strategy
4.5.3 Implications of Normative Re-educative Strategy
4.5.4 Sub Strategies for Normative Re-educative Strategies
4.6 Let Us Sum Up

4.0 INTRODUCTION
In this unit we will discuss the concept of organisational change and various approaches
to organisational change. It will further highlight normative re-educative strategy as
one of the approaches to change. It will then explain the factors of implementing this
strategy. The applications and implications of this strategy will also be highlighted.
Further sub- strategies for this approach will also be explained.
4.1 OBJECTIVES
 Define organisational change;
 Describe the characteristic features of organisation change;
 Explain the various approaches to organisational change;
 Elucidate the normative re educative strategy for change;
40  Analyse the factors before implementing the normative re educative strategy;
 Explain the assumptions and implication for the normative re- educative approach; A Normative Re-educative
Strategy for Change
and
 Analyse the sub strategies for the normative re educative approach.
4.2 ORGANISATIONAL CHANGE

Changes are constantly taking place in the environment of organisations. Change can
be described as a process of moving from one condition to another. Changes in
organisations can occur as a result of varied external and internal forces. Ecological,
demographic and cultural changes are some of the external forces that can have an
impact on political, economic and technological aspects of change in an organisation.
Changes in policy, structures, technology can be examples of internal changes in an
organisation. In order to survive, develop and prosper in this situation, organisations
must identify and adapt to these forces.
Organisational Change can be described as a complex process that occurs as a
result of interaction between technological, historical, behavioural, social, economic,
demographic and political forces.
Change can be planned or unplanned. A planned change occurs spontaneously,
where as an unplanned change is intentional and planned by the management.
Introduction of new safety devices or technological advancement can be an example
of planned change introduced by an organisation.
High turnover, absenteeism, communication and decision making breakdown can be
examples of unplanned changes.
The timing and manner in which changes are introduced in an organisation have a lot
to do with how successful they are. They can be introduced effectively when factors
that would be conducive to their acceptance and those that provoke employees to
resist them are first identified. Once this is done change could be introduced in
various ways (Sekaran, 2008).
Both people and organisations resist change though it might be in the best of their
interest. Change can have an adverse effect on the motivation, morale and the overall
performance of the employees. It can lead to increase in absenteeism, high errors
and low productivity.
Organisational change can also be categorised as:
i) radical change also called as frame breaking change and
ii) incremental change also called as frame bending change.
Radical change can be explained as a change that leads to major refurbish of an
organisation or its systems. Incremental change on the other hand is a part of the
organisation’s natural development.
4.3 RESISTANCE TO CHANGE

Resistance to change is functional when not carried to extremes. In other words, the
energy we put into resisting change also permits us to preserve balance in our lives
by relegating habitual responses to the unconscious. Two key components of resistance
are (i) selective perception and (ii) selective retention.
41
Assumption, Beliefs and These help us organise our understandings of our environment.
Development As we grow up, we learn to depend on others’ expertise in various roles that is of
parents, teachers, doctors, sports coaches and so on. Basically, society teaches us
to accept the status quo. This leads to self-distrust in the face of potential change (“I
shouldn’t”) and even to regression (as in reverting to old, familiar practices in new
situations). All of these, of course, are processes to which the coach/consultant
would be as readily subject as the client. Yet resistance is almost always discussed
in the context of client behaviour.
There are theories of resistance in social systems and resistance in individuals.
Attempts to eliminate resistance, therefore, tend to focus on the targets of change.
If team members are resisting their manager’s directives, for example, we might
facilitate group meetings where we communicate the need for change and encourage
group plans to enact the change. In doing this we might use joint diagnosis and
consensus building to reduce feelings of threat, to engage peoples’ interest, to help
them feel the project is at least somewhat their own, and try to make it fit their values
and ideals. We search for the key “defenders” of the status quo and try to enlist their
support for the change effort by taking their concerns seriously as given in the box
below:
What are the threats to their well-being?
What might be dysfunctional about the proposed change that we’ve overlooked?
What have we not yet understood about the sources of their mistrust?
In order to overcome resistance we should observe even subtle differences between
our perceptions and those of our clients. We should appreciate the importance of
understanding clients’ values and sources of identification and of determining where
our values are likely to fit, rather than vice versa. We are less likely to forget that
difficulties in a change effort may stem from our own assumptions about what clients
need.
4.3.1 Resistance as a System Variable

Lewin’s force-field analysis is the most commonly used model to illustrate elements
of change and resistance to change:
According to Lewin’s model, pressing for change tends to threaten stability and thus
increases the power of forces maintaining the system.
Therefore, the most effective way to bring about change is to reduce the forces of
resistance. This implies, however, that resistance exists only on one side of the force
field. The energy to restrain movement toward change and the energy to move
toward change are treated conceptually as arising from different places. As coaches/
consultants, we see ourselves as the “driving forces.” Thus theory guides practice
when we interpret resistance to change as emanating only from clients (“restraining
forces”).
Individuals may resist change due to selective perception, lack of information, fear
and uncertainty, negative attitude, etc. On the other hand, organisations may resist
change to maintain power and structural stability, to avoid risk taking, etc. Therefore
organisations have to systematically plan to bring about changes and be constantly
aware and alert about certain changes that can occur in the external and internal
environment of the organisations.
42
To overcome resistance to change, organisations: A Normative Re-educative
Strategy for Change
1) They can employ various strategies like open communication with the relevant
stake holders like clients, customers, share holders and most importantly
employees.
2) They can also create awareness regarding the purpose and benefits of change.
3) They can provide education with regard to the purpose and benefits of change.
4) They can encourage the employees to participate in the decision making related
to change.
5) They can involve them in the process of change.
6) The organisations can also provide support, training, counseling during the process
of change in order to deal with the anxieties and uncertainties experienced by
the employees.
Managing change in an organisation is a complex activity that requires dealing with
varied problems and challenges in the internal and external environment of the
organisation. As change is inevitable, it is extremely important that the management
and the managers are aware of change and take active role in anticipating, planning,
facilitating and implementing change through effective strategies.
Competencies in managing change are required in order to achieve the organisational
goal. Various approaches to managing change can be utilised by organisations. These
strategies can be selected based on various aspects like
a) the target population or
b) the nature of target population,
c) the type and degree of change and
d) resistance to change displayed or expected,
e) time and expertise available to manage change.
4.4 STRATEGIES TO OVERCOME RESISTANCE TO

CHANGE
Any of the following strategies can be used depending on the demands of the
situation in the organisation.
4.4.1 Action-Centred Approach

This approach is action based and mainly focuses on the problem and possible
solution to the problem. It can be described as a process of systematically collecting
data on a particular organisation. The data collected is then passed on to the
management or the relevant authorities who utilise the data to draw an action plan.
The results of the action plan are then evaluated and more data might accordingly
be collected by repeating the process as necessary. The steps involved in this approach
include:
1) preliminary diagnosis,
2) collection of data,
43
Assumption, Beliefs and 3) feedback about the data,
Development 4) development of action plan,
5) implementation of action plan and
6) evaluation and follow up.
This approach is utilised as and when a performance gap is identified.
One especially useful, if perhaps excessively academic, roundup of “General Strategies
for Effecting Changes in Human Systems” is provided by Robert Chin and Kenneth
Benne in their classic textbook The Planning of Change. In their analysis, change
strategies fall into three categories:
1) rational-empirical, 2) normative- re-educative, and 3) power-coercive.
4.4.2 Rational Empirical Approach

The rational-empirical approach assumes that men and women are rational and
practical and will change on their own given the appropriate conditions. These strategies
include:
1) Provide the right information, education or training to allow individuals to change
of their own volition.
2) Ensure that the “right” people are in the right “place” to bring about needed
changes.
3) Invite the perspectives or expertise of outsiders.
4) Engage in research and development.
5) Promote utopian thinking to stimulate creativity and “best-case” scenarios.
6) Clarify the issues and/or reconceptualise the situation in order to bring about
greater overall understanding among members of the group.
4.4.3 Normative Re-educative Approach

This is being dealt with in detail at the end of this unit. However to state briefly, the
second category of strategies, that is the normative-reeducative approach is
predicated on the view that change begins from the bottom up, not the top down.
That is to say, it focuses on changing the individuals that make up a social system.
It is the preferred method of counselors, trainers, and therapists. Two strategies
characteristic of this approach are to:
 Improve the problem-solving capacities of a system by encouraging individuals
to be self-diagnosing.
 Release and foster growth in the persons who make up the system.
4.4.4 The Power-Coercive Approach

This approach to effecting change is the one most commonly associated with political
movements and social activism. In the words of Chin and Benne, “these strategies
are oriented against coercive and nonreciprocal influence, both on moral and on
pragmatic grounds.” Strategies in this category include:
 Using political institutions to achieve change.
44  Shifting the balance of power between social groups, especially ruling elites.
 Weakening or dividing the opposition through moral coercion or strategies of A Normative Re-educative
Strategy for Change
nonviolence.
Another taxonomy of change strategies is offered by Roland Warren, a sociologist
who has devoted much attention to social change at the community level. His list of
community based change strategies include: consensus planning, bargaining, protest
movements, research- demonstrations, social action, non-violence, organisations of
client populations, community development, conflict, elite planning, organisation of
indigenous groups, and civil disobedience. He classifies these under four headings:
1) collaborative strategies, 2) campaign strategies, 3) contest strategies, and 4) a
combination of strategies.
What this literature shows is that there are at bottom two modes of viewing change:
the reactive and the proactive. From one perspective, individuals and groups are the
objects of change. They are at the receiving end, in the sense that change happens
to them. From the other perspective, individuals and groups are the initiators of
change and change follows from human volition. Both perspectives have their validity,
of course, and they are closely interrelated. For instance, when one social group
actively tries to bring about change, there are invariably other groups who feel put
upon and try to resist the change.
4.4.5 Common Assumptions of a Power Coercive Approach

to Change
 Power is legitimate and carries rights with it. That is people should listen to
those who hold power.
 Those with power have the responsibility to give direction to others in the
system. It is not significant that those others do not accept the direction that
they are receiving as appropriate or correct.
 Those who hold power have the right to punish those who do not follow their
directions.
 The best interest of the organisation are served naturally by following the directions
of those who are more senior in the hierarchy , that is, naturally they know what
is best because of their experience.
Elements of power can be found in all approaches to change as explained below.
In the rational empirical approach power is based in the information or knowledge
that is used as a prime mover of change. In this approach, those who possess the
knowledge hold power in the system. Judicious use of information represents a clear
application of power within the systems change driven by knowledge.
In Normative reeducating change, the underlying philosophy of change focuses on
the development of a personal sense of power and the sharing of organisational
power through the active involvement of system members in problem definition and
solution generation.
The power coercive strategy emphasises a different approach and different elements
of the power process. In general, this approach to change emphasises the use of
political and economic sanctions as the principle strategy to bringing about change,
although the use of ‘moral’ power also historically forms a key element of the
strategy. (Benne & Chin, 1985).
45
Assumption, Beliefs and 4.4.6 Political / Positional Power as a Change Strategy
Development Political or positional power involves the ability to create policies, directions, laws
and other legal agreements that bring with them legitimate sanctions for non compliance.
Threat of sanction has the impact of increasing the willingness of system members to
follow the directions of those who hold the power and engage in the change that they
mandate. In addition to the economic and other sanctions that tend to be associated
with this approach to change, many individuals are influenced by deeply held cultural
beliefs concerning the legitimacy of senior members of the hierarchy to give direction
to members of the systems for which they hold responsibility. The aura of legitimacy
of the power source is sufficient in these cases to reduce resistance to imposed
change. In such cases, a power coercive way of making decision is accepted as the
nature of the way the system operates.
4.4.7 Economic Power as a Change Strategy

The use of economic sanctions represents a logical extension of political power.
Under a political power scenario in the broader social context, sanctions generally
focus on jail and other personal liberty sanctions. Under the economic power
strategy for change, the rewards (and sanctions) focus on the provision of financial
incentives or withholding the incentives. Organisations can differentially reward
members for their active implementation of new methods of management or new
approaches to dealing with issues.
Specific strategies of power coercive change range from overthrow of political regimes
through non violence, the changing of organisational management through stakeholder
pressure and the power of the annual meeting, the use of public policy and legislation
to force organisational change, and the use of moral persuasion to embarrass
management into appropriate action. Classic example of such a strategy is that of
Gandhi’s efforts to overthrow the British in India. Many different applications of
power strategies to force change is available and all are quite effective in their own
way.
All of the above meta strategies, namely rational-empirical, normative reeducative,
and power coercive represent approaches to bringing about change in human systems.
The power-coercive approach is based on political, economic, and/or moral
sanctions as sources of influence, is widespread in organisations but not particularly
valued by change agents. At the furthest extreme, a coercive approach pays little
attention to the people, their ideas or their needs. Changes are implemented in a
relatively mechanical way
Typical of a coercive approach is the shock and surprise that people encounter as
change is thrust upon them. The usual situation is that people arrive at work one
Monday morning and find that they no longer have a job. They may alternatively be
told that they are going to have to move far away across the country, a tactic
sometimes used to legally reduce the workforce. Another variant is to bankrupt the
company and then re-start as a new company with everyone having to apply again
for their jobs (this has been used to get around Trade Union issues).
Not all coercive approaches are unethical and some are simply born of the need for
urgency. Ethics lie in the values of the people who are planning and implementing the
change, rather than the fact that a coercive approach is being used.
Thus the coerceive approach is one of the approaches that is widely used in
46
organisations but might not be most effective approaches of managing change. This A Normative Re-educative
Strategy for Change
approach mainly follows an authoritative style, in which there is application of power,
sanctions and influence to bring about change. It is based on assumptions that power
is legitimate that individual comply with people who have power. The individual with
power gives direction that is to be followed by others. These individuals with power
have a right to punish those individuals who do not comply with their directions. Thus
in a change situation the employees have to follow the directions given by those with
authority and accept the change without giving a thought to its significance their
context. Though the implementation of this approach is quick, the effect might not be
long lasting and will result in low commitment amongst the employees.
As mentioned earlier briefly, the Empirical rational approach believes that employees
are rational and therefore need to be provided with relevant information about change
and, its benefits to the organisation in general and employees in specific. This approach
promotes open communication and awareness about change in order to persuade the
employees to accept and facilitate change. This approach is based on assumptions
that employees are driven by self interest, if the information with regard to change
and its relevance is appropriately put forth in front of the employees they will understand
it in a better way and support it. However, the information provided should be
accurate. The managers and superiors play an important role in communication of
such information. This approach cannot be termed as the most effective approach.
However, it can lead to moderate commitment by the employee towards change and
the effect might last for some period of time if not permanently.
4.4.8 Environmental Adaptive Strategy

This approach assumes that reaction to change is a natural process as is adaptation
to change. Any change in an organisation will meet with negative attitude and reactions
by employees, which will lead to gradual adaptation to change. Thus the organisation
creates a new environment, once this has been done, the old environment is shut
down. The employees then have to adjust to the new environment as no other option
is made available.
As discussed earlier, the Normative re educative approach is one very effective
approach to deal with change as it focuses on changing the norms, attitudes and
values of individuals which in turn will lead to changes in behaviour and performance
of the employees. This approach will be discussed in detail in this unit.
There is no single strategy that can be used in varied situations. An eclectic approach
is often necessary to deal with each organisational change situation. Various factors
need to be taken in to consideration like the degree of change and resistance, the
population of the organisation, time limit, nature of the organisation etc. before a
particular strategy or strategies are employed. In complex situations, a combination
of all strategies can be employed
1) Explain the concept of organisational change.
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47
Values in Organisational 2) What are the various approaches to break resistance to organisational change?
Development
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3) Differentiate between and power coercive and empirical rational approach.
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4) What is meant by eclectic method to break resistance to change?
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4.5 A NORMATIVE RE-EDUCATIVE STRATEGY

FOR CHANGE
Normative re-educative strategy is at the core of organisational change. The strategy
was introduced by R. Chin and K. Benne. It is also called as shared power strategy.
The objective of this strategy is to expose employees to new values and norms and
the need to adopt these new values and norms. It is based on rational/ scientific
evidence or emotional appeals. This strategy is implemented by focusing mainly on
system renewal, people in the organisation. Here it is important to employ an
educational strategy with learning through experience as its highlight. The strategy
also promotes dealing with real problems by using a planned strategy.
For this strategy to be successfully implemented the organisation needs to identify a
change agent at the same time ensure involvement of top-level administration. This
strategy is based on the belief that people are social creatures, and cultural norms
are core to their group identity. It not only assumes that individuals are rational but
gives equal importance to the socio- cultural influences in an organisation.
According to this approach change will occur after the employees involved in bringing
about or affected by change are able change their older normative orientations to
commit to new orientations related to the change to be implemented in the organisation.
Change in this approach is not limited to knowledge, information and intellectual
rationales but it also covers attitudes, values, skills and significant relationships.
This strategy mainly focuses on group norms, personal values, and common goals.
This is much effective compared to imposing change through authority and coercion.
By utilising this approach, change becomes part of the organisational culture and thus
receives the support of the social forces and group dynamics in an organisation.
48
Change can thus be successfully implemented when it is in tandem with existing A Normative Re-educative
Strategy for Change
structures, attitudes, values, and norms in an organisation. The approach promotes
collaborative working with the employees to identify problems and facilitate solutions.
Its objective is to improve problem-solving capacities and mechanisms within a
system, and develop new attitudes, values, skills, and norms for interaction amongst
employees. The strategy not only promotes organisational change but also encourages
participation and develops empowerment amongst the employees.
Further team work is also promoted as the manager or the superior needs to work
together with the employees in order to implement this strategy. It also results in
optimal development and application of creativity and experience of the employees
within the organisation.
The three main elements of this strategy are attitudes, beliefs and values. Attitudes
are feeling and beliefs that determine the way in which employees perceive their
environment and behave. It can be described as modes through which employees
express their feelings about the organisation, people in it and its structure, processes
etc. Employee attitudes are extremely important in an organisation as they might be
a reflection of an underlying problem. If not dealt with at right time a negative attitude
towards an organisation or its aspects can lead to development of major problems
in an organisation.
Positive attitude on the other hand will enhance the overall functioning of an
organisation. Attitude plays an extremely important role when it comes to change.
Change leads to development of number of insecurities amongst the employees that
may lead to development of negative attitude towards change. Thus before change
process is initiated, the management needs to identify the presence of any negative
attitude and deal with it. Normative re-educative strategy is once such strategy that
directly focuses on the employee attitude and this can be termed as key to its
successful long tem effects in an organisation.
Beliefs can be described as certainty in the truth of a proposition. They are based
on experience, perception, communication reasoning etc. In an organisational set up
beliefs of an employee are extremely important. The change process may be affected
by the beliefs of employees about the change process. Thus beliefs are to be focused
on before the change process is initiated.
Values can be described as an individual understands of what is wrong and what is
right, good or bad, preferable or not preferable. Values develop early in life and
greatly determine an individuals’ behaviour. They are also extremely difficult to change.
Values of employees are of extreme importance in an organisation as they determine
the motivational level, behaviour and attitudes of an employee. In order to enhance
the process of change in an organisation, the management needs to examine values
of its employees.
Though the strategy is time consuming it is beneficial as it is long lasting and results
in internalised change. Despite of these benefits, managers hesitate in using these
strategies due to fear of loosing control or shifting focus from organisational goals.
Managers do play an important role in implementing this strategy as their willingness
to share power and interpersonal skills in terms of interacting, communicating and
promoting participation is necessary for the implementation of the strategy to be
successful.
49
Assumption, Beliefs and 4.5.1 Assumptions of Normative Re-educative Strategy for
Development Change
The employees are involved in the process of change and its implementation.
The strategy focuses and promotes shifts in attitudes, values, norms, and relationships
amongst employees in order to enhance the process and implementation of change.
Management and employees play equally crucial role and mutually contribute to the
change process.
There is no power dominance by the management or any higher authority on the
employees during the overall change process.
In depth analysis of the structure, system and processes of the organisation is carried
out as apart of the change process. This is done not only to enhance implementation
of change in present but also to ensure smooth change process in future.
4.5.2 Factors to be Considered While Applying Normative

Re-educative Strategy
Care needs to be taken and factors to be considered, before this strategy is applied
so as to ensure its successful implementation. This strategy is largely based on
culture. It also takes in to consideration attitudes, values and beliefs of employees in
the organisation. It can be extremely difficult to change culture and the whole process
takes a long period of time. Thus this strategy will not be effective and should not
be selected in situations that demand urgent rectification of problems and issues.
Further organisational culture depends on both formal and informal groups in the
organisation. Thus this strategy will be most applicable only when there is a positive
cordial and harmonious relationship between the formal and informal groups in the
organisation. In case of a conflict situation between formal and informal groups the
strategy might be applied only after the conflict is deal with and harmony is reinstated.
Also it is important to focus and be aware about parallel learning structures in the
organisation as they can be a key to success of this strategy.
Any change process will have both short term and long term goals. Normative
re-educative strategy will fit in well to achieve the long term goals. As this strategy
directly focuses on culture in an organisation and attitudes, values and beliefs of an
organisation the outcome is almost always positive and long lasting. Further, this
strategy is effective when the core issue and problem to be dealt with has its roots
either in culture of the organisation or it has to do with attitudes, values and beliefs
of the employees.
Managers and other superiors also need to be trained and their attitude is to be deal
with before the strategy is implemented. Managers play a crucial role in this case as
they are the ones who directly interact with the employees and thus are to a greater
extend aware about their attitudes, values and beliefs.
4.5.3 Implications of Normative Re-educative Strategy

Employees in the organisation affected by the change process suggest desired change
and improvement rather than the organisational change practitioners or change agent.
The employees are given complete control over the change situation that encourages
them to come up with suitable solutions for smooth implementation of organisational
50 change.
A collaborative approach is employed, where the employees and change agents A Normative Re-educative
Strategy for Change
discuss problems and seek and suggest solutions. The employees are thus encouraged
to employ participative approach and are empowered in the whole process.
Barriers to effective problem solving like negative attitudes, doubts are identified and
openly discussed. Such an open discussion not only highlights the barriers and creates
awareness amongst the employees but also promotes their effective management.
Solutions to problems are based on attitudes, beliefs, values, relationships rather than
technical knowledge and information. This results in long lasting management of
problems.
4.5.4 Sub Strategies for Normative Re-educative Strategies

Some of the sub strategies are given below:
i) Training Programmes on problem solving and decision making organised
for employees in the organisation: In order to enhance the whole process
of normative re-educative strategy, the employees in the organisation are provided
with training programmes on problem solving and decision making.
ii) Participation encouraged amongst the employees: Measures are taken to
encourage participation amongst the employees. Employees are also encouraged
to be innovative and involve in lateral thinking. They are also encouraged to set
up challenging tasks and opportunities for employees. Participation is also
encouraged in the change process.
iii) Gathering and collection of information and data with regard to the
system by the employees: To bring about smooth implementation of change,
it is necessary that employees understand the whole organisational system,
hence the employees are involved in the process of gathering and collecting
information and data so that they not only feel involved in the process of
participation but also become aware about the relevance and benefits of
implementing change in the organisation. Further change related discussions are
also promoted in the organisation.
iv) Vertical slice benchmarking: This involves demonstration of developments
across all units or departments of an organisation. This helps the employees
understand the performance standards and achievements of the organisation and
also make them aware about the need for change.
1) Explain the concept of normative re-educative strategy for change.
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2) Highlight assumptions of normative re-educative strategy.
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51
Values in Organisational 4.6 LET US SUM UP
Development
Normative Re-educative Strategy believes that employees are social being and are
strongly influenced by culture and norms prevalent in the organisation. Thus according
to this strategy change can be successfully initiated when culture in organisation is
dealt with and norms are redefined and reinterpreted. While applying this strategy the
manager or the superior plays an extremely important role. Various factors also need
to be taken in to consideration before its application. Though the change process
brought about with the help of this strategy might be slow, the results are definitely
accurate and long lasting.

1) Discuss the concept of organisational change and highlight strategies used by
organisations to promote organisational change.
2) Explain the concept of normative re-educative strategy for change.
3) Discuss implication of normative re-educative strategy.
4) Highlight the sub strategies of normative re-educative strategy.

Limited.
Pareek, U. (2008). Understanding Organisational Behaviour, 2nd Ed. New Delhi.
Oxford University Press.
52
UNIT 1 COMPONENTS OF
ORGANISATIONAL
DEVELOPMENT (OD) PROCESS
Structure
1.0 Introduction
1.1 Objectives
1.2 The Process of Organisational Development
1.3 Initial Diagnosis
1.4 Data Collection
1.5 Data Feedback and Confrontation
1.6 Selection and Design of Interventions
1.7 Implementation of Intervention
1.8 Action Planning and Problem Solving
1.9 Team Building
1.10 Inter-Group Development
1.11 Evaluation and Follow-Up
1.12 Let Us Sum Up
1.0 INTRODUCTION
In the Block 1 we have extensively discussed about organisational development.
We described organisational development as a process of improving organisations.
It can be explained as an effort, planned organisation wide and managed from the
top to increase organisational effectiveness and health through planned interventions
in the organisations process using behavioural science knowledge.
An organisation is a part and parcel of society at large and thus it has an external
environment that is outside the organisation and an internal environment. Both
these environment need to be taken in to consideration to promote organisational
development. The success of organisational development thus will depend on the
implementation of internal and external measures.Internal measures entails a
paradigm shift in terms of reorienting all levels of personnel toward development
goals the creation of a development office a high level of transparency collaboration,
flexibility and creative thinking. In the external measures the process requires the
implementation of highly integrated public relations, fundraising and advocacy plans.
This integration of the internal and external measures comes as a core of an
institution for its development.
The intervention strategies of organisational development lead to improved
organisation performance through an improved decision making climate. 5
Analysing and Managing the Organisational development experts work to improve relationship among interacting
OD Process
and interdependent organisational group and gather attitudinal data throughout the
organisation and feel this data back to selected individuals and group. This
information comes as a basis for planning and making needed improvements. The
process of organisational development is long term and requires both commitment
and positive attitude of those involved in it. It is not a one time training and
development programme but is an ongoing and cyclic process.
In the present unit we will focus on the process of organisational development. We
will discuss each stage of organisational development process one by one and try
to understand their relevance.
1.1 OBJECTIVES
 discuss about process of organisational development; and
 explain each step involved in the process of organisational development.
1.2 THE PROCESS OF ORGANISATIONAL

DEVELOPMENT
Organisational development can also be described as a process of changing people
and other related aspects of an organisation. Thus it consists of many sub processes
and steps. When the process of any organisational development starts it progresses
through different stages and determines satisfactory progress made for additional
involvement. The organisational development process is based on the action research
model which begins with an identified problem or need for change. The process
proceeds through assessment, planning of an intervention, implementing the
intervention, gathering data to evaluate the intervention, and determining if satisfactory
progress has been made or if there is need for further intervention. The process
is cyclical and ends when the desired developmental result is obtained.
The organisational development process begins when an organisation recognises
that a problem exists which impacts the mission or health of the organisation and
change is desired. It can also begin when leadership has a vision of a better way
and wants to improve the organisation. An organisation does not always have to
be in trouble to implement organisation development activities. The process can
be initiated to bring about overall change in organisational culture or just for
enhancement of processes and structures in an organisation. The process may also
be implemented keeping in mind the long term and aspirational goals of the
organisation.
The process may also be launched when a member of an organisation or unit
contacts an organisational development practitioner about potential help in
addressing an organisational issue. The organisation member may be a manager,
staff specialist, or some other key participant, and the practitioner may be an
organisational development professional from inside or outside of the organisation.
Determining whether the two parties should enter into an organisational development
relationship typically involves clarifying the nature of the organisation’s current
functioning and the issue(s) to be addressed, the relevant client system for that
issue, and the appropriateness of the particular organisational development
6
practitioner. In helping assess these issues, the organisational development
practitioner may need to collect preliminary data about the organisation. Similarly, Components of
Organisational
the organisation may need to gather information about the practitioner’s competence Development (OD)
and experience. This knowledge will help both parties determine whether they Process
should proceed to develop a contract for working together.
Before we go on to discussing the organisational development process we will
focus on two important terms, that of, entering and contracting. Entering and
contracting involve defining in a preliminary manner the organisation’s problems
and opportunities for development and establishing collaborative relationship
between the organisational development practitioner and a group of employees
involved in the organisational development process, about how to work on those
issues. Entering and contracting set the initial parameter for carrying out the
subsequent paces of organisational development: diagnosing the organisation,
planning and implementing changes and evaluating and institutionalising them. They
help to define what issues will be addressed by those activities, which will carry
them out, and they will be accomplished.
Entering and contracting can vary in complexity and formality depending on the
situation. In those cases where the manager of a work group or department serves
as his or her own organisational development practitioner, entering and contracting
typically involve the manager and group members meeting to discuss what issues
to work on and how they will jointly accomplish that. Here, entering and contracting
are relatively simple and informal. They involve all relevant members directly in the
process without a great number of formal procedures. In situations where managers
and administrators are considering the use of professional organisational development
practitioners, either from inside or from outside the organisation, entering and
contracting tend to be more complex and formal. Organisational development
practitioners may need to collect preliminary information to help define the
problematic or development issues. They may need to meet with representatives
of the client organisation rather than with the total membership; they may need to
formalise their respective roles and how the change process will unfold.
The activities of entering an organisational development relationship are a necessary
prelude to developing an organisational development contract. They define the
major focus for contracting, including the relevant parties. Contracting is a natural
extension of the entering process and clarifies how the organisational development
process will proceed. It typically establishes the expectations of the parties, the
time and resources that will be expended, and the ground rules under which the
parties will operate. The goal of contracting is to make a good decision about how
to carry out the organisational development process. It can be relatively informal
and involve only a verbal agreement between the client and organisational
development practitioner. A team leader with organisational development skills, for
example, may voice his or her concerns to members about how the team is
functioning. After some discussion, they might agree to devote one hour of future
meeting time to diagnosing the team with the help of the leader. Here, entering and
contracting are done together informally. In other cases, contracting can be more
protracted and result in a formal document. That typically occurs when organisations
employ outside organisational development practitioners. Government agencies,
for example, generally have procurement regulations that apply to contracting with
outside consultants.
Regardless of the level of formality, all organisational development processes require
some form of explicit contracting that result in either a verbal or a written agreement.
Such contracting clarifies the client’s and the practitioner’s expectations about 7
Analysing and Managing the how the organisational development process will take place. Unless there is mutual
OD Process
understanding and agreement about the process, there is considerable risk that
some once expectations will be unfilled. That can lead to reduced commitment and
support, to misplaced action, or to premature termination of the process. The
contracting step in organisational development generally addresses three key
areas: what each party expects to gain from the organisational development process,
the time and resources that will be devoted to it, and the ground rules for working
together.
The different approaches to OD process but the typical process consists of seven
steps, viz., initial diagnosis, data collection, data feedback and confrontation, action
planning and problem solving, team building, inter group development and evaluation
and follow up.
1) Discuss the meaning of organisational development relationship.
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2) How is organisational process cyclical?
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3) Explain developing contract as a part of process of organisational
development.
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4) Explain the concept of entering.
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1.3 INITIAL DIAGNOSIS

Diagnosing organisation is a major aspect of organisational development. When
diagnosis is done well, it clearly points the organisation and the organisational
8
development practitioner toward a set of appropriate activities that will improve Components of
Organisational
organisational effectiveness. Development (OD)
Process
Diagnosis is the process of understanding how the organisation is currently
functioning and provides information necessary to design change interventions. It
generally follows from successful entry and contracting, which sets the stage for
successful diagnosis. They help the organisational development practitioners to
focus on, how to collect and analyse the data to understand them, and how to
work together to develop action steps from the diagnosis.
It is not necessary that initial diagnosis is conducted when the organisation faces
certain problems as the process can be initiated to tackle the problem and improve
the performance of the organisation. In order to do so initially the focus should be
on identifying the parts of the organisation that requires to be changed. Once
choice is made, condition may be further reviewed to understand the problem
better. This review or in other words data collection is the second step in the
process of organisational development and will be discussed later.
Diagnosis provides a systematic understanding of organisations so that appropriate
interventions may be developed for solving problems and enhancing effectiveness.
If executives recognise that there are inadequacies within organisation which can
be corrected by organisational development activities, it is necessary to find out
the professional and competent people within the organisation to plan and execute
organisational development activities.
If competent people are not available within the organisation the services of an
external agency may utilised. The consultants adopt various methods including
interviews, questionnaires, direct observation, analysis of documents and reports,
focused group discussions for diagnosing the problem. The methods can be selected
on the basis of the initial diagnosis and then the organisation can move to the next
stage of data collection.
1) Explain the stage of initial diagnosis.
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2) Discuss the relevance of initial diagnosis.
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3) When do we take the help of external agency?
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9
Analysing and Managing the
OD Process 1.4 DATA COLLECTION
After the initial stage of diagnosis is complete it is necessary to carry out data
collection in order to generate necessary information that will facilitate and enhance
the process of organisational development. This stage may also be termed as need
assessment as the development of intervention strategy will mainly depend on this
stage. Various methods of data collection may used for this purpose. A combination
of methods may also be used as per the purpose of data collection. It can be done
with the help of questionnaires, observations, interview methods etc. Focus group
discussion is another method that can be used in order to collect data from the
employees in an organisation.
The initial diagnosis will give certain idea about the impending problem in the
organisation and depending on that a suitable method of data collection may be
selected and data may be collected. Data can be collected to assess the
organisational culture or climate or to understand any behavioural problems arising
in the organisation. On the whole this particular stage is important so as to have
a concrete proof of the problem or situation occurring in the organisation and to
confirm the results of initial diagnosis. The data collection may be conducted by
the personnel from the organisation or experts from an external agency may also
be hired for the purpose.
However, encouraging participation of employees in this step can be of great help
as it will promote their involvement. Also the goal and objective of data collection
should be made clear in order to inform the employees about the overall purpose
of the process and to ensure their cooperation and deal with any kind of insecurities
in their minds.
1) Explain the relevance of data collection.
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2) How does initial diagnosis help?
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3) Why do we have to encourage employee participation in the data collection
process?
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10
Components of
1.5 DATA FEEDBACK AND CONFRONTATION Organisational
Development (OD)
During the stage of data feedback and confrontation, data collected is analysed Process
and reviewed by the organisational development practitioners. This is mainly done
to bring in to perspective the view points of various organisational development
practitioners involved in the process and also to better understand the data collected.
The data collected is to be systematically analysed an interpreted so as to have
a concrete idea about the problem and situation in the organisation. The results
obtained are discussed at a length by the practitioners or the experts involved in
the process of organisational development. Again the participation of the employees
at various levels may be of great help in this case. The data thus analysed is now
ready in order to select and design suitable intervention strategy. Thus after the
stage of data collection, feedback is sought from the experts or the organisational
development practitioners and it is confronted or discussed at a length in order to
interpret it correctly. This process is crucial in a way as with inputs from varied
experts and employees the data collected can be meaningfully interpreted in order
to make decisions with regard to the nest step.
1) Explain the stage of data feedback.
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2) What is meant by confrontation here?
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1.6 SELECTION AND DESIGN OF

INTERVENTIONS
Once the process of diagnosis including the initial diagnosis, data collection and
feedback and confrontation is complete, then based on the interpretation and
discussion, suitable intervention strategy may be selected and applied. During this
stage goals are created on the basis information collected. Decisions with regard
about suitable intervention strategy to be implemented and the way in which it is
implemented is to taken at this stage. The interventions are the planned activities
that are introduced into the system to accomplish desired changes and improvements.
During this stage the suitable interventions are to be selected. In earlier blocks we
discussed in detail about various intervention strategies that can be implemented
in an organisation. We will now focus on some of the strategies.
1) Techno structural approach: As the name suggests this intervention mainly
relates to technology and also task methods and processes. The main goal of
the intervention is to match technology and social structure existing in the 11
Analysing and Managing the organisation. A technological advancement in an organisation is often met with
OD Process
strong resistance from the employees. Technological advancement is necessary
for organisational development as it will lead to less error rate and fast and
improved production. But negative attitude and resistance from the employees
will interfere with the whole process of technological advancement. Thus this
intervention strategy can be used in order to help employees understand the
relevance of the technological advancement and to put to rest their insecurities.
This can be done when an alignment is created between the technological
configuration and the social structure of the organisation.
2) Process consultation: This mainly focuses on the processes in the organisation
and is mainly implemented in order to enhance these processes in order to
make them faster and more effective. The processes may be related to
communication, interpersonal relationship, problem solving, decision making
etc. This intervention strategy has been discussed in detail in the earlier block.
3) Team building: Team work today is one of the most important aspects in
an organisation. Organisations generate varied measures in order to encourage
team work amongst their employees. Team work not only ensures effective
dealing of complex problems faced by the organisations but also leads to
efficiency in complex work activity. However putting a team together is a
challenge and that is what is exactly covered under this intervention of team
building. It mainly focuses on how a team can be created and discusses the
stages of forming, norming, storming, performing and adjourning.
4) Third-party intervention: This is an intervention that is designed in order to
improve inter group relationships through better communication and interaction
between various groups that exist in the organisational setup. It also strives
to reduce conflict, unhealthy competition, promoting interdependence and a
spirit of team work and encouraging cooperation.
5) Survey Feedback: In this intervention a survey is conducted with help of a
questionnaire. Information is collected with regard to the attitudes, perceptions
and feelings of the employees. The data thus collected is then used to provide
a feedback to the organisation so that they have an idea about their employees.
The data thus can be used by the organisation to make the overall functioning
of the organisation more effective and to develop satisfaction and organisational
citizenship amongst their employees.
1) Discuss third party intervention.
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2) Describe techno structural activities.
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12
.....................................................................................................................
Components of
3) What is process consultation? Organisational
Development (OD)
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4) Explain team building.
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1.7 IMPLEMENTATION OF INTERVENTION

During this stage the selected intervention is finally implemented. Intervention may
take the form of training programmes, workshops, feedback of data to the
employees, group discussions, written exercises, on-the-job activities, etc. Great
care needs to be taken before the intervention is implemented to avoid any sort
of negative impact. A huge amount of effort and financial investment goes in to the
overall organisational development process and at this stage the whole process
should not crumble just because no adequate care is taken at the time of
implementation of an intervention strategy. The organisational development
practitioners should identify before hand any negative attitudes and resistance on
the part of the employees and that should be dealt with before the actual
implementation. A conducive environment should be conducted in the organisation
in order to ensure success and positive effect of the intervention strategy. This will
also ensure real and long lasting change with regard to the problem. More than
one intervention may also be employed at the same to time.
1.8 ACTION PLANNING AND PROBLEM

SOLVING
Based on the data collected and its interpretation the organisational development
practitioners prepare recommendations and specific action plan in order to solve
the specific and identified problem.The present stage of action planning and problem
solving is required in order to ensure effective management of the problem or the
situation faced by the organisation. The process of developing an action plan
involves the identification of certain target variables and determination of techniques
to deal with impending situation or problem. The action plan can be termed as
another intervention strategy. It actually specifies the intervention strategy. As certain
objectives are created that are to be achieved as part of the intervention strategy
implementation process. Also planning is done about the people involved in
implementation, time period required, assignment of responsibilities etc.
With regard to problem solving, the focus is mainly on understanding the nature
of the problem, identifying a suitable solution and then trying to resolve the problem.
Problem solving in an organisational set up does not merely focus on decision
making with regard to suitable solution. It also includes identifying the problem
13
and understanding it in a better way, deciding about the possible solutions and
Analysing and Managing the implementing them. The process of problem solving also includes reviewing the
OD Process
outcomes after implementation of the solutions.
Thus the action planning and problem solving is an important stage that specifically
focus on the problem in a systematic matter, that adds on to the effect of an
intervention strategy.
1) Explain the stage of implementation of intervention.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) What is involved action planning and problem solving?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) Describe the process of problem solving.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
1.9 TEAM BUILDING

As discussed earlier in this unit and in earlier blocks, team building is a process
of creating teams. Teams have always existed in an organisation. There are formal
teams and there are informal teams. Formal teams are the part of an organisational
structure. For example a particular department is a formal team that has various
employees working together and who are interdependent to get their work activities
successfully completed. An informal team on the other hand may be a group of
employees from various departments that interact and have a common goal. In an
organisational set up teams may be purposely created in order to deal with certain
problems or issues or in order to promote innovations or to make certain decisions.
Organisations have long understood the relevance of teams and how they enhance
the overall production process and lead to increased profits. However if a team
is not effectively put together then it can lead to disastrous outcome. Employees
are to be assigned to teams in a systematic manner after having a complete idea
about their techniques, skills, personalities, behaviour, attitudes, values etc. Thus
the whole process of team building is very crucial. The size of the team and its
composition is also extremely important. This will again depend on the purpose for
which the team is been built. The organisation should focus on a team right from
14
the first stage that of forming to the last stage of adjourning, when the team is Components of
Organisational
dissolved after its purpose is achieved. Development (OD)
Process
Team building as part of organisational development process is essential mainly for
successful implementation of the process. During implementation of any intervention
varied activities or tasks may be required to be performed; teams would help in
effective conduction of these activities and tasks. Further the trust, interdependence
and cohesiveness between the team members will promote efficient implementation
of any strategy. However as mentioned earlier utmost care needs to be taken
while building the teams.
1.10 INTER-GROUP DEVELOPMENT

Besides team building another important stage is that of intergroup development.
There will exist various groups in organisation that can be categorized as formal
and informal. One main objective of the organisational development practitioners
should be to promote positive interaction and smooth communications amongst
these groups. This in turn will again facilitate the implementation of intervention
strategy. Inter- group development can be brought about by conducting meetings
and workshops and constantly encouraging interaction amongst the members of
various groups. This will lead to a positive relation between groups that will in turn
lead to reduced conflict, better team work and overall effective functioning in the
organisation.
The intergroup development will also take care of diversity amongst the employees
in an organisation that results from employees belonging to different races, religion,
culture, region and gender. It will promote acceptance and respect amongst various
group members in the organisation leading to development of a harmonious
environment.
1.11 EVALUATION AND FOLLOW-UP

This is the last stage of organisational development process, but can be termed as
the most effective stage. During this stage organisational development practitioner
tries to evaluate the whole process and impact of the process. At this stage it is
necessary to evaluate each stage for their effectiveness and take necessary measures
if the intended results are not obtained. Based on the evaluation of the whole
process, follow up in terms of developing or selecting new intervention strategies
or adopting other measure to rectify any shortcomings in process may be required.
These two aspects are extremely important to mainly understand the impact and
the degree of impact of the whole process. Further depending on the result of the
evaluation suitable follow-up can be developed.
1) Describe team building.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
15
OD Process 2) What is meant by inter group development?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) Explain evaluation and follow-up.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
1.12 LET US SUM UP

Organisational development can be defined as the process of working together
with organisations, organisation leaders and organisation groups in bringing
systematic change to the root problems and hence increasing productivity and
employee satisfaction. Mainly organisational development offers three things, what
we do, how we do and the results we get. By understanding these three aspects
we can solve critical aspects of the organisation. It is a complex strategy that
brings changes in every aspect of the entire organisation. It is designed in a way
to produce a end kind of result. Ultimately it can be said that organisational
development is a new field which also includes positive adult development and
plays a major role in business profit.
Managing the organisational development programs is a constant concern and a
continuous activity. Innovations are carried out to solve complex organisational
problems through laboratory training, feedback methodology and action research.
Second generation organisational development efforts revolved around organisational
transformation visioning and virtual organisation. What one should understand is
various objects of organisational development before the beginning is made. In
other words it is the planned change to a company or organisation to enable
growth in an effective way. It includes consulting with the organisation to improve
effectiveness, the client and consultant relation, empowering individuals and team
and developing capable managers.
A lot of planning needs to done before the organisational development process is
implemented. The success of organisational development process mainly depends
on the members of an organisation, that is not only the top management but
employees at hierarchical levels. This process calls for active involvement and
participation of the employees. The attitudes of the employees are of extreme
importance in this case. Any change is normally met by a negative reaction. Thus
the employees should be given an idea about the problem and need for organisational
development intervention. They also should be encouraged to participate in the
overall process which will give them a feeling of involvement and will also reduce
insecurities sin their minds that result from anticipation of any kind of change in an
organisation.
16 To conclude, the process organisational development is extremely important to
bring about a positive change and promote advancement in an organisation. An Components of
Organisational
organisation should adopt it as a part and parcel of its functioning and make it an Development (OD)
ongoing process. Process

1) Discuss the role of initial diagnosis in understanding the problems of the
organisation.
2) Discuss team building and state its relevance in the process of organisational
development.
3) Which is the most important stage in the organisational development according
you? Give reason.
4) Describe the stages of action planning and problem solving.

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of organisation development methods (2nd ed.). Reading, MA: Addison-Wesley.
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development (6th ed.). Englewood Cliffs, NJ: Prentice-Hall.
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plans, A’s, praise, and other bribes. New York: Houghton Mifflin.
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New York: Wiley & Sons.
Mclean, G. N., Rothwell, W. J., & Sullivan, R. S. (eds.). (2005). Practicing
organisation development: A guide for consultants (2nd ed.). Hoboken, NJ:
John Wiley & Sons.
Nevis, E. C. (1987). Organisational consulting: A gestalt approach. London:
The Analytic Press.
Perrow, C. (1986). Complex organisations: A critical essay (3rd ed.). New
York: McGraw-Hill.
18
Robinson, D. G. & Robinson, J. C. (1996). Performance consulting: Moving Components of
Organisational
beyond training. San Francisco, CA: Berrett-Koehler. Development (OD)
Process
Rothwell, W. J., Sullivan, R., & McLean, G. N. (Eds.). (1995). Practicing
organisation development: A guide for consultants. San Diego, CA: Pfeiffer.
Schein, E. (1987). Process consultation Volume II: Lessons for managers and
consultants. Reading, MA: Addison-Wesley.
Schein, E. (1988). Process consultation Volume I: Its role in organisation
development (2nd ed.). Reading, MA: Addison-Wesley.
Schein, E. H. (1999). Process consultation revisited: Building the helping
relationship. Reading, MA: Addison-Wesley.
Weisbord, M. R. (2004). Productive workplaces revisited: Dignity, meaning,
and community in the 21st century. New York: John Wiley & Sons.
19
UNIT 2 DIAGNOSING THE SYSTEM,
SUBUNITS AND PROCESS
Structure
2.0 Introduction
2.1 Objectives
2.2 Definition and Concept of Diagnosis
2.3 Phases of Diagnosis
2.3.1 Entry
2.3.2 Data Collection
2.3.3 Feedback
2.4 Organisational Processes to be Diagnosed

2.5 Marvin Weisbord’s ‘Six Boxes Model’
2.6 Let Us Sum Up
2.0 INTRODUCTION
In the previous unit we discussed about the organisational development process.
In this unit we are going to specifically highlight one of the most important aspects
in organisational development, that is, diagnosis. Diagnosis is the first step in the
organisational development process and also one of the most crucial steps as the
whole process depends on how this step is carried out and on outcome of this
step. In this unit we will focus on diagnosing the system, sub units and processes
in an organisation. Such a diagnosis will help identify any loopholes and develop
suitable intervention strategies.
Diagnosis in organisational development is a structured work for the growth of the
organisation. Since the development of organisational development, diagnosis has
moved from behavioural to strategic and holistic approach. Organisational
development and diagnostic phase of activities in particular is spreading from the
occupational psychologists toward mainstream business. The analysis of an
organisation’s structure, subsystem and process in order to identify the strengths
and weakness of its structural components and process is basic to development
of plans to improve the organisation.
2.1 OBJECTIVES
By the end of this unit, you will be able to:
 Define and discuss the concept of diagnosis;
 Explain the phases of diagnosis;
 Discuss the organisational processes that need to be diagnosed; and
20
 Describe the Marvin Weisbord’s ‘Six Box Model’.
Diagnosing the System,
2.2 DEFINITION AND CONCEPT OF DIAGNOSIS Subunits and Process
Development in any organisation will depend to a great extend on diagnosis. It is

a planned change by the organisational development practitioners and plays an
active role in gathering data from employees and management for diagnostic purpose.
Diagnosis in an organisation is a way of determining gaps between current and
desired performance and also to understand ways in which the goals of the
organisation can be achieved. Today diagnosis is one of the major aspects of
organisational development rather than a mere technique. The main reason being,
that the whole process of intervention depends on the results obtained after the
process of diagnosis. Diagnosis in an organisation should be carried in a systematic
fashion, with focus on the organisation and its structures. It should then focus on
the changes that are required to be brought in in the organisation.
Diagnosis gives the state of the organisation or one or more of its subsystems and
points out the scope for improvements that made for achieving organisational
effectiveness. Effective diagnosis is require for the rapidly changing environment,
new organisation forms must be developed more for more effective goal setting
and planning process must be learned.
The importance of conducting diagnostic activities prior to change implementation
is recognised in a variety of prescriptive theories of change implementation. The
careful direction of change efforts through the use of diagnostic information is
important because many change efforts fail to produce expected results.
According to Cummins and Worley diagnosis involves the systematic collection of
data to determine the current state of an organisation allowing managers and
consultants to enhance organisational effectiveness. This definition helps clarify that
the diagnostic approach in organisational development is the understanding the
organisation and enhancing its effectiveness.
According to Howard diagnosis involves developing road maps to guide and
direct organisational change. That is, when any diagnosis is carried out in the
organisation it leads towards changes on the overall aspect.
Beckhard states that in rapidly changing environment, forms must be developed,
more effective goal setting and planning processes must be learned and practiced.
Teams of independent people must spend real time improving their methods of
working, decision making and communicating. Competing or conflicting groups
must move towards a collaborative way of work. In order for these changes to
occur and be maintained, a planned and managed change effort is necessary. This
definition clarifies the importance of diagnosis for any good organisation change to
work for one cause in a collaborative manner is necessary for the organisation
development. The diagnosis phase in organisation is often regarded as an overall
organisational development process, but commonly known as consulting process.
The purpose of a diagnosis is to identify problems facing the organisation and to
determine their causes so that management can plan solutions. This is a powerful
conscious raising activity its main usefulness lies in the action that it induces.
In any organisation, effectiveness comes with its performance in the social field by
their employees. It show the strength of the organisation ,the organisation should
be diagnosed in a way of attempting ,gaps between current and desired
performance and goals can be achieved. Diagnosis basically based on behavioural
science theory for introducing in the human system, collecting valid data about 21
Analysing and Managing the human experiences with the said system and feeding that information back to the
OD Process
system for promoting increased understanding of the system by its members. This
diagnostic approach provokes human nature inevitably for change.
Robbins stated that organisational development should increase performance at
organisational and individual level. This statement clarifies that, planned change
through humanistic values aims to improve organisational effectiveness and wellbeing
of the employee. The work in organisational diagnosis require professional to
work within the organisation as a whole, including organisation environment relations,
group inside and outside the organisation and individuals who are being shaped by
the organisation and they are only in turn determine the nature of organisation. The
development is an action programme based on valid information about current
problems and opportunities which effects the goal achievement. The requirement
for diagnostic activities designed to provide an accurate account of things which
are really stems from too needs, first to know the state of things and second is
to know the effects or consequences.
The diagnostic activities emphasised by Beckhard is a diagnosis of the various
subsystem that makeup the total organisation and second are the process like
decision making process, communication patterns and styles, relationship between
interfacing groups, the management of conflict, setting of goals and planning methods.
The major targets or subsystems in an organisation desire common methods of
obtaining the information. Organisational consultant works from both the way
targets to process the organisational development. They provide a means for
protecting themselves from excessive and unproductive demands by clients. Continual
diagnosis is a necessary ingredient of any planned change effort. Action plans are
developed to close the gap, are continuously monitored to measure progress or
movement toward the goal.
Further it can be said that organisational development programme are not only the
results of diagnostic activities but how the information is collected and what is
done with the information are significant aspects of the process. It is collaboration
between organisation practitioner and the organisation members about issues what
target groups are to be diagnosed. How the diagnosis is best accomplished, what
process and dynamics should be analysed, what is to be done with the information,
how the data will be worked with and how the information will be used to aid
action planning. Therefore the diagnostic component and the action component
are intimately related in organisation development.
Diagnosis can be carried out in an organisation for various purposes. Some of the
purposes are discussed as follows:
1) To develop an understanding of functions and processes in the
organisation: This is one of the purposes of diagnosis in an organisation.
Diagnosis can help in developing better understanding about the various process
and functions that are carried out in an organisation. For example the process
of communication may be diagnosed in order to understand it in a better
manner and also to find out any problems with regard to the process. In case
if any problems are identified then suitable measure can be carried out in
order to rectify them.
2) To promote growth and development of the organisation: Diagnosis may
also be carried out with a purpose of promoting growth and development in
the organisation. In this case diagnosis will be required to be carried out of
22
the structure, system and sub systems in the organisation to identify if any Diagnosing the System,
Subunits and Process
modifications or changes are required in them before the organisation plans
its development strategy.
3) To improve organisational effectiveness and increase productivity:
Diagnosis may further be carried out in order to improve organisational
effectiveness and to increase productivity. This is one of the main goals of any
organisation and in order to achieve it the employees have to perform at their
best at the same time the structure, systems and process in the organisation
should be conducive to promote growth and effectiveness in the organisation.
Thus a diagnosis can be carried out to understand the situation and identify
any possible problems with the organisational structure, process and systems
in order to carry out necessary steps to promote organisational effectiveness
and increase productivity.
4) Enhance problem solving and decision making in organisational set
up: A systematic diagnosis will provide the organisation with relevant information
about various aspects of the organisation, persistent problems and relevant
situation. This information then can be used in order to solve problems
effectively and also to make effective decisions.
5) Develop suitable intervention strategy: As we have discussed that
diagnosis will help understand a particular problem in a better manner and
then suitable intervention strategies may be developed and applied. Some of
the intervention strategies that can be used are discussed in the previous units.
6) Understand the organisational culture: The diagnosis can also be carried
out to understand the culture prevalent in the organisation. We have an idea
that organisational culture is one of the most important aspects of an
organisation as it has an influence on the employee performance, satisfaction
and is thus related to the overall growth and development of the organisation.
It is thus important to understand the organisational culture of an organisation
so as to identify any deviations and take measures to modify or change it.
Further diagnosis in an organisational setup can be carried out from various
perspectives. For example, the diagnosis can be carried out from perspective of
economics that deals with distribution of resources human, monitory and non
monitory. An organisation can be diagnosed from a political perspective that focuses
on the power and politics prevalent in the organisation. Another perspective would
be that of social, that mainly highlights the interaction between the groups and
various members in the organisation that can be important for the overall functioning
of the organisation. Management is another perspective that includes not only the
roles played by the managers in an organisation but also focuses on the strengths
and weakness of an organisation threats faced by it and opportunities available,
goals to achieved, existing policies and so on. The last is the behavioural perspective
which focuses on human process and behaviours through out the organisation. It
is also concerned with values, attitudes and beliefs of the members or employees
in the organisation.
Diagnosis can thus be carried from one or more of the above perspectives. The
decision about which perspective to take will depend on the decision taken by the
management depending on the problem arising in the organisation or depending on
the goals of organisational development.
23
OD Process Self Assessment Questions
1) What is diagnosis in organisational development?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Explain diagnosis according to Howard.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) What are the diagnostic activities emphasised by Beckhard?
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
4) Highlight any two purposes of diagnosis in an organisation.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
5) Discuss various perspectives from which diagnosis in an organisation can be
carried out.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2.3 PHASES OF DIAGNOSIS

There are three main phases in diagnosis; they are entry, data collection and
feedback. These three are discussed in detail as follows:
2.3.1 Entry
Entry is major primary objectives and is also the time to quickly grasp the nature
of the organisation identifying the appropriate decision and build a trusting
24 relationship. Entry phase determines which unit of the organisation will participate
in the diagnosis and whether researcher and respondent can reach agreement Diagnosing the System,
about their respective roles during data collection and feedback. In the entry the
first encounter starts between concerned members of the organisation and consultant
and conclude with the decision that whether they can jointly continue to complete
the diagnosis.
This stage is also a time to collect data as consultant starts learning about the
organisational system through observation and by studying documents. Consultants
can be the members of the organisation who have their own vested interest in their
organisations. Consultants establish some type of liaison system to manage the
relationship between the consultant and those elements of the system where
diagnosis takes place. Depending on the nature of the system the liaison system
may be an individual, a series of individual or a group.
Entry is thus the initial phase of the diagnosis when the preparation to start the
process takes place. The relationship need to developed during this phase and a
conducive environment has to be created in order to facilitate the process of
diagnosis. Also during this phase the consultant or the persons in charge of carrying
out diagnosis need to foresee possible problems and obstacles that they may
come across while carrying out the process. They also have to observe and study
documents in order to develop better understanding of the organisation. The success
of this phase will lead to effective implementation of other phases during the
process of diagnosis.
2.3.2 Data Collection

The next step that follows after the phase of entry is that of data collection. The
entry phase helps the consultant develop better idea about the organisation and he/
she thus has some idea about the impending problems and situation in the
organisation. Data collection can now be carried out in a particular direction
depending on the information collected during the entry phase. Also the entry
phase has paved a way and created a conducive environment for collection of
data.
Data collection can be termed as a systematical way of gathering valid information.
It is the information regarding the nature of the system in the organisation. Data
collection begins with the aim when consultant prepares a methodology for eliciting
information and contacts members of the system to implement the methodology
and it ends when the consultant has analysed the data and is prepared to provide
feedback.
In this process of eliciting the information through data collection from employees,
consultant becomes more specific about kinds of data that will be useful. In the
process of data collection the liaison system assists the consultant in determining
what data to be collected and how to collect it. Effective liaison system helps the
consultant with access to part of the system where data must be collected and aids
the consultant in establishing credibility so that the data obtained will maintain its
validity. Various methods can be used to collect data depending on the nature of
the problem or the situation. Methods data collection like questionnaires, Interviews,
Observation, focused group discussions can be used in order to collect data.
Further records, circulars, appraisal reports and other organisational literature,
hard data of organisations and various units can also be analysed to get an idea
about the organisation and its aspects. Problem identification/problem solving
workshops, seminars, symposia and training programme and recording and
25
Analysing and Managing the examining critical incidents, events can also be carried out in order to collect data
OD Process
or to understand the problems and situations in an organisation in a better manner.
After the data is collected using suitable methods of data collection, the data is
compiled and analysed. The data can be analysed with the help of various tools
of statistics. It is then used to carry out the last phase, that is, feedback.
2.3.3 Feedback
Feedback consists of series of meetings between the consultant and members of
the organisation during which the consultant presents the data analysis and the
parties discuss and interpret the data. Effective feedback design relates the content
of the feedback to the process by which the analysis is delivered. Content of
feedback is the data analysis prepared at the close of the data collection phase.
The process of feedback is the composition of feedback meetings, behaviour of
the organisational system during feedback and the behaviour of the consultant
within and between feedback meetings. The best known feedback design is built
around the “family group” that consists of the supervisors and immediate
subordinates. Conventionally structured organisation can be viewed as a series of
interlinking family groups from top to bottom. The alternative design is called as
“peer group-intergroup model”. In this people first meet in group of peers, which
have no formal hierarchical differences among members, then the next step begins.
This peer group-intergroup depends upon how it has been managed effectively
and the tendencies toward ethnocentrism that exist in all groups.
Thus during the feedback phase, the members of the organisation are given an
idea about the information collected through the process of data collection. This
information can then be used in order to develop suitable intervention strategies
or to carry out various other steps in the process of organisational development.
Charts, graphs and various other modes of presentation can be used in order to
present the feedback to the members of the organisation. It is important that the
feedback is given in a systematic and clear manner in order to facilitate the
understanding of the persistent problem or situation in the organisation. A well
compiled feedback will help the organisation to take suitable measures in order to
implement the intervention strategies.
Thus care needs to be taken at each phase of the diagnosis so that the whole
process is carried out in a systematic manner in order to provide the organisation
with reliable and valid information.
1) What are the phases of diagnosis in organisational development?
2) Discuss the first phase in diagnosis of an organisation.
3) Discuss the phase of feedback.
2.4 ORGANISATIONAL PROCESSES TO BE

DIAGNOSED
1) Communication pattern, styles and flows: This mainly focuses on the
most important aspect in an organisation that is the communication process.
This will mainly highlight issues like who talks to whom how long about what,
who initiates. Is communication directed upward or downward or both are
they filtered why in what way?
26
The methods used for data collection may be observations, questionnaire, Diagnosing the System,
interviews and discussions with groups
2) Goal setting: Goal setting is yet another important function in an organisation.
Setting task objectives and determining criteria to measure accomplishments
of objectives is the main focus with regard to diagnosis here. The questions
that arise in this context are Do they set goals how is done? Who participates
in goal setting? Do they posses the necessary skills.
Questionnaires, interviews and observation can be used for data collection
with regard to collecting information about goal setting.
3) Decision making, problem solving and action planning: It is important
to diagnose the decision making, problem solving and action planning in an
organisation as these functions will directly lead to achievement of goals in an
organisation. Also evaluating alternatives and choosing a plan of action are
integral function for most organisation members. Questions asked in this regard
are who makes decisions? Are they effective? Are all available sources utilised?
With regard to methods of data collection, observation of problem solving
meetings at various organisational levels can be used.
4) Conflict resolution and management: In this regard Conflict interpersonal,
intrapersonal and intergroup frequently exists in organisations are taken in to
consideration. Questions that arise are where does conflict exist? Who are
the involved parties? How is it being managed?
Interviews, third party observations and observation meetings are some of the
methods that can be used in this context.
5) Managing interface relations: Interfaces represent the situations wherein
two or more groups face common overlapping problems. The questions
highlighted here are what is the nature of the relations between two groups?
Are goals clear is responsibility clear?
6) Superior subordinate relations: This mainly focuses on the formal
hierarchical relations in organisations dictate that some people lead and other
follow. This relationship is again important for goal achievement and smooth
functioning of an organisation. The questions that arise here are what are the
extant leadership styles? What problems arise between superiors and
subordinates?
Questionnaires can be used to collect data here.
7) Technological and engineering systems: All organisations rely on multiple
technologies for production and operations for information processing and
thus diagnosing technological and engineering systems is of utmost importance.
Some important questions here are, are the technologies adequate for
satisfactory performance?
Interviews and group discussions focusing on technology are among the best
ways to determine the adequacy.
8) Strategic management and long range planning: Monitoring the
environment, adding and deleting products, predicting future events and making
decisions are some of the functions that fall under this process. Who is
27
Analysing and Managing the responsible for looking range decisions? Do they have adequate tools and
OD Process
support? are some of the questions highlighted in this context.
Interviews of key policy makers’ group discussion and examination of historical
records may be used to collect relevant data.
9) Organisational learning: This diagnosis is mainly concerned with the learning
climate in an organisation. The questions that arise are what are our strengths
problem areas? What observation ideas suggestions are available from all
organisational members?
Interviews, questionnaires, group methods of diagnosis examination of assumptions
and culture can be used to collect information in this regard.
2.5 MARVIN WEISBORD’S ‘SIX BOX MODEL’

Marvin Weisbord’s “Six Box Model” is a diagnostic tool in order to understand
the effectiveness of an organisation. This model also helps understand management
of change in an organisational set up. Weisbord identified six areas in which things
should go right and be internally consistent for an organisation to be successful.
The six box in this model are described as follows:
1) Purpose: When we speak about purpose as one of the boxes we mainly
focus on the objective of the organisation and reason why the said objective
was developed. What is the purpose behind the overall functioning of the
organisation and understanding it is of utmost value under this. Diagnosis of
the purpose or goal will definitely help develop suitable intervention strategy
in order to achieve the goals of the organisation. Further if the purpose is not
suitably derived, the process of goal setting can be repeated.
2) Structure: The work activity in order to achieve the organisational goal
needs to be divided or structured for its smooth achievement. Under this box
the work activity may be categorized in a systematic manner. The structure
is diagnosed for any changes that are required to be made based on the
external environment, changes in technology and so on.
3) Relationship: Interpersonal relationship between employees and between
the employees and management is extremely important and thus under this
box with the help of varied techniques the relationship in the organisation
needs to be enhance. This will lead to reduction in conflict and effective
performance amongst the employees. Diagnosis of relationships and also
communications is extremely relevant as an y problems diagnosed in this area
may be dealt with at the earliest in order to avoid any complications and
obstacles in the organisational processes.
4) Rewards: To work towards change process and towards organisational
development some kind of driving force is required. An appropriate reward
system will serve as a suitable driving force. Diagnosis of reward system is
also important in order to find out whether they are suitable and on par with
the work activity and performance displayed by the employees.
5) Leadership: All the boxes that we discussed are crucial but an effective
leader is required not only to supervise the whole activity but also to maintain
integrity and balance. Diagnosis has to be carried out with regard to the
effectiveness of leadership in an organisation so as to develop suitable
28
intervention and training programmes in case if the leadership is not found to Diagnosing the System,
be effective in an organisation.
6) Helpful mechanism: Various mechanisms, like technological support, help
from experts and other facilities should be available to facilitate the whole
process of managing change. Diagnosis in this area will help the organisation
update their technology and also develop various other facilities.
This model will also be discussed in the context of managing change.
1) Discuss relationship as one of the boxes in the model suggested by Weisbord.
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2) Discuss the box pertaining to helpful mechanism.
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2.6 LET US SUM UP

The purpose of organisational diagnosis is to establish a widely shared understanding
of a system and based on that understanding to determine whether change is
desirable. Diagnosticians attempt to change an organisation as its necessary to
accomplish the purpose of diagnosis change in one part of the system affects the
other part. Organisational development focuses to improve the organisational
capacity to handle its internal and external functioning and relationships. It should
also include the things like improved interpersonal and group process with effective
communication, enhanced ability to cope with organisational problems of all kinds
etc. It also includes improved skill in dealing with destructive conflict and higher
levels of trust and cooperation among members of the organisation. These all
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. This all process should be carried out more scientifically by testing
the hypothesis and continual reviewing of results. The diagnostic component and
the action component are intimately related in dual way in development of the
organisation.
This unit highlights that diagnosis is a conceptual and collaborative process involving
both managers and consultant. It aimed at discovering the cause of specific problems
and directed in assessing the departments of the organisation. The organisation is
viewed as open system to coordinate the behaviours of its department. As open
system organisation are hierarchically ordered and composed of groups. It consists
of environmental inputs, a set of design components called a strategic orientation
and a variety of outputs. Diagnosis thus involves understanding each of the parts
and then to assess how the strategic orientation starts with each other.
29
Analysing and Managing the In today’s world of growing competition and globalization, any organisations needs
OD Process
to carry out diagnosis of its structure, systems, sub systems and processes in
order to understand them in a better manner and to further carry out changes and
modifications.
Thus in the present unit we discussed about the concept of the diagnosis in an
organisational set up and further discussed about the purposes and perspective of
diagnosis. We also highlighted the three phases of organisational development
namely, entry, data collection and feedback. Then we explained various
organisational processes that may be required to be diagnosed in order to promote
organisational effectiveness. Lastly we discussed the Marvin Weisbord’s ‘Six Box
Model’ that helps us understand the diagnosis in an organisation in a better manner
with the help of the six boxes namely, purpose, structure, relationship, rewards,
leadership and helpful mechanisms.
2.7 UNIT END QUESTION

1) Discuss in detail the concept of diagnosis and its relevance in an organisational
set up.
2) Explain any two phases of diagnosis in an organisation.
3) Discuss the purposes to carry out diagnosis in an organisational set up.
4) Discuss various organisational processes that need to be diagnosed.
5) Describe the Six Box Model.

Levinson, H. (1972). Organisational Diagnosis. Cambridge, Mass.: Harvard
University Press,
T.G Cummings and C.G .Worley. (1993). Organisational Development and
Change, St. Paul, MN: West Publishing Co.
Wendell L French; Cecil Bell. Organisation Development: Behavioural Science
Interventions for Organisation Improvement. Englewood Cliffs, N.J.: Prentice-
Hall.
References
Alderfer, C. P. (1968). Comparison of questionnaire responses with and without
preceding interviews. Journal of Applied Psychology, 1968, 52, 335-340. (a)
Alderfer, C. P. Organisational diagnosis from initial client reactions to a researcher.
Human Organisations, 27, 260-265. (b)
Alderfer, C. P. (1976) Boundary relations and organisational diagnosis. In H.
Meltzer & F. R.Wickert (Eds.), Humanizing organisational behaviour. Springfield,
111.: Charles C Thomas
Alderfer, C. P. (1977.a). Groups and intergroups. In J. R. Hackman & J. L. Suttle
(Eds.), Improving life at work. Santa Monica, Calif.: Goodyear,
30
Alderfer, C. P. (1977.b) Improving organisational communication through long- Diagnosing the System,
term intergroup intervention.Journal of Applied Behavioural Science, 13, 193-
210.
Alderfer, C. P., & Holbrook, J. (1973). A new design for survey feedback.
Education and Urban Society, 5, 437- 464.
Berg, D. (1977). Failure at entry. In P. Mirvis & D. Berg (Eds.), Failures in
organisation development. New York: Wiley.
Bowers, D. G., & Franklin, J. L. (1972). Survey-guided development: Using
human resources measurement in organisational change. Journal of Contemporary
Business, 7, 43-55.
John P. Kotter, (March- April 1995). Leading Change: Why Transformation Fails,
Harvard Business Review, P.61
Harrison, I. M., & Shirom, A. (1999). Organisational Diagnosis and Assessment:
Bridging Theory and Practice. Thousand Oaks: Sage Publications.
Hart, P. M., Griffin, M. A., Wearing, A. J., & Cooper, C. L. (1996). Manual for
the QPASS Survey. Brisbane: Public Sector Management Commission.
Hornstein, H. A., & Tichy, N. M. (1973). Organisation Diagnosis and Improvement
Strategies. New York, Behavioural Science Associates.
Howard, A. (1994). Diagnostic perspectives in an era of organisational change. In
A. Howard & Associates (Eds.), Diagnosis for Organisational Change: Methods
and Models (pp. 3-17). New York: The Guilford Press.
Karasek, R. (1990). Lower health risk with increased job control among white
collar workers.Journal of Organisational Behaviour, 11(3), 171-185.
Nadler, D. A. (1981). Managing organisational change: An integrative perspective.
The Journal of Applied Behavioural Science, 17(2), 191-211.
Nadler, D. A., & Tushman, M. L. (1977). A diagnostic model for organisation
behaviour. In J. R. Hackman, E. E. Lawler, & L. W. Porter (Eds.). Perspectives
on Behaviour in Organisations. New York, Academic Press.
Nadler, D. A. (1977). Feedback and organisation development. Reading, Mass.:
Addison-Wesley,
Rice, A. K. Individual, group and intergroup processes. Human Relations, 1969,
22, 562- 584.
31
UNIT 3 MODELS FOR MANAGING
CHANGE (Including Six Boxes
Organisational Model)
Structure
3.0 Introduction
3.1 Objectives
3.2 The Concept of Change
3.3 Preparation before Implementing Change
3.4 Resistance to Change
3.5 Strategies for Change
3.6 Models of Change
3.6.1 Lewin’s Change Model
3.6.2 Kotter’s Eight Step Plan for Implementation of Change
3.6.3 Marvin Weisberg “Six Box Model”
3.6.4 Greiner’s Model
3.6.5 Cumming and Worley Model
3.6.6 Burke and Litwik Model of Organisation Change
3.6.7 John Fisher Change Model
3.7 Let Us Sum Up

3.0 INTRODUCTION
In the previous units we discussed a great deal about the organisational development
process. In the present unit we will be highlighting another important aspect of
organisational development that is managing change. Why do we speak about
managing change? And what is the relevance of the topic? These are some of the
questions that may come to your mind.
Change is something that is permanent. As we discussed in one of the earlier
blocks, that organisation is a part of parcel of society at large and thus there are
two environments with regard to an organisation. One is external to the organisation
and the other internal to the organisation. Both these environments can be influenced
by numerous factors and thus will lead to change in various aspects of an
organisation. A change can be planned or unplanned. A planned change is
systematically brought about by the human resource managers or the management.
However an organisation should always be prepared to face the changes that they
have not planned but that can have an impact on the overall functioning of the
organisation. Change and organisational development are greatly related as to
develop meaning to change in a positive direction. In fact the modern approach
to the management of change and the development of human resource is called
organisation development.
32
Thus in the present unit we will discuss this relevant topic and also focus on types Models for
Managing Change
and models of change.
3.1 OBJECTIVES
By the end of this unit, you will be able to:
 Discuss the concept of change;
 Discuss the preparations to be made before implementing change;
 Explain resistance to change;
 Highlight strategies for change; and
 Describe the models of change.
3.2 THE CONCEPT OF CHANGE

The term “change” refers to any alteration which occurs in the overall work
environment of an organisation. According to Robbins change means making things
different. Change in an organisation includes adapting to change, controlling change
and effecting change. It can also be described as a shift in the external situation
is situational and happens at a given time in space. Four main areas in an
organisation need special focus when we discuss about change in an organisational
set up, they are as follows:
1) Changing Organisational Structure: With globalization, competition and
technological advancements, it becomes necessary that changes are made in
the structure of the organisation. Thus this one of the most important changes
that can be brought about in an organisation and the one that will call for
planning and a lot of effort and involvement of management and employees
at all levels.
2) Changing Technology: Technology is fast changing and the organisation has
to keep pace of it in order to remain in business and survive strong competition.
Thus new machinery has to be bought or existing machinery has to be updated
in the organisation. This is a major change as, as per the technological
advancements other changes like changes in structure, job positions, training
programmes etc. have also to be made.
3) Changing Work Environment: Work environment is fast changing due to
various reasons, as a result of diversity in the organisation, changing technology,
changes in job market etc. A launching of new product or merger or acquisition
may also call for certain changes in an organisation. Thus the organisation has
to keep track of such changes and develop measure to deal with them.
4) Change with regard to People in the Organisation: Changes also occur
with regard to people in the organisation, due to attitudes, values, beliefs.
Changes can also be as a result of new recruitment, promotions, demotions,
transfers etc. may also take place and they are to be effectively dealt with.
Change can be explained with help of the following points:
1) Change Results from the Pressure of Forces, which are both Inside
and Outside the Organisation: As discussed earlier various factors from
33
Analysing and Managing the within the organisation and external to it may bring about some kind of
OD Process
change in an organisation. The external forces like technology, nature of
work, economic shocks, competitions, social trends and politics necessitate
change in the internal organisation like machinery, equipment, relationships,
leadership and decline in profitability etc. This organisational change is the
alteration of work environment in organisation which implies a equilibrium
between different components of the organisation.
2) The Whole Organisation Tends to be Affected by the Change: In some
way or the other change influences the whole organisation as the sub units or
various departments in an organisation are interrelated and interdependent.
3) Change Takes Place in All Parts of the Organisation but in its Own
Rates of Speed of Significance: Different sections or different departments
of an organisation are influence by change differently and this influence may
vary in its speed and degree.
Usually there are many changes occurring simultaneously in an organisation. An
effective management technique is thus required in order to deal with the changes.
Changes in an organisation depend on various aspects. These are the aspects of
an organisation that facilitate change.
These aspects can be discussed as follows:
1) Genuine and Hard Working Employees: Change will depend on the
commitment of the employees to the functioning of the organisation.
2) The Willingness of the Employee to Develop: The employees should
have an intrinsic motivation to develop and become fully functional. This will
create a positive attitude in them to readily accept change.
3) Effective Leadership: Effective Leaders Will Ensure Effective
Management Of Change In An Organisation: The leaders in an organisation
play most crucial role in implementation of the change as they are the ones
who are in regular touch with employees and have great influence over them.
4) Effective Diagnosis of Need for Change: In order to effectively implement
change effective diagnosis about need for change is also required. In the
previous blocks we have discussed about diagnosis and we now understand
how relevant the topic is. The strategy to be employed for implementation of
change will depend on the diagnosis.
5) Commitment of Leaders in the Organisation to Diagnosis,
Implementation and Evaluation: As we discussed about effective leadership
in the same way the leaders should be committed and participate fully in the
process of diagnosis, implementation and evaluation of change process.
Change agents also play an important role in the whole process of managing
change. They are the ones who anticipate possible need for change and suggest
strategies to manage them. According to Robbins change agents are individuals
who act as catalyst and assume responsibility for change management activities.
Change agents are required in order to ensure smooth implementation of change
process.
34
Models for
Self Assessment Questions Managing Change
1) Explain changing organisational structure and changing work environment.

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2) Highlight any two aspects that facilitate change.
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3) Discuss the relevance of change agents in the process of change.
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3.3 PREPERATION BEFORE IMPLEMENTING

CHANGE
The following care needs to be taken before implementing change in an organisation:
1) Ensure Effective Participation of the Employees: For the success of any
change process, the effective participation of the employees is of utmost
importance. This will ensure commitment to the change process and lack of
resistance.
2) Plan Effectively: Effective planning is required before the change process
is initiated in order to foresee the possible problems like resistance from the
employees and negative attitudes. Planning needs to be carried out not only
for smooth implementation of change process but also in order to develop
suitable intervention to deal with certain obstacles and problems.
3) Employee’s Interest should be Considered: While bringing out change
the employee’s interest should be foremost as they are the most important
unit of an organisation and the overall development of an organisation depends
on them.
4) Focus on Group Dynamics: In any organisations there are various groups,
both formal and informal. While implementing change the group dynamics in
such groups should be identified.
5) Systematic Implementation of Change: Caution and patience should be
maintained while implementing change. Also it should be implemented in a
systematic fashion in order to avoid any negative outcome. 35
Analysing and Managing the 6) Motivation: The employees and also the management should be motivated
OD Process
in the direction of change in order to ensure its successful implementation.
7) Highlighting the Benefits Of Change: In order to ensure the commitment
and interest of the employees in the change process, the benefits of the
change should be highlighted. This will discourage the employees from resisting
to change and will ensure their cooperation.
8) Training and Developmental Activities: Any change will require the
employees to develop new skills and techniques. Thus training and other
developmental programmes should be organised for the employees. This will
also take care of any insecurity amongst the employee that occurs due to lack
of skills required after implementation of change.
9) Understanding the Purpose of Change, the Risks and Benefits involved
and Communicating the Same to the Employees: An open communication
should be promoted during the change process where the employees have
complete idea about the risks and benefits of the change. Once employees
understand the purpose of the change and its benefits then it would be easier
to ensure their cooperation.
10) Anticipating Possible Reasons for Resistance to Change and Making
Suitable Preparation: During the planning stage, the change agents should
take to consideration the possible reasons for resistance that may arise and
plan suitable interventions for the same.
11) Constantly Focusing on the Process of Change: The change process
should be constantly focused on in order to identify any obstacles and take
suitable measures.
12) Interacting with Leaders/ Supervisors in the Organisation: Leaders and
supervisors play an utmost important role in the change process as they are
the ones who are constantly interacting with the employees. Thus the change
agents should keep in touch with the leaders in the organisation, seek their
cooperation and suitably train them to encourage and support employees
through the change process.
1) Highlight any two preparations to be made before implementation of change.
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2) Discuss the relevance of leaders in the organisation during the change process.
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36
Models for
3) Which is the most important aspect during preparation for implementation of Managing Change
change according to you? Give reason.
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3.4 RESISTANCE TO CHANGE

Change no matter how dynamic and constant a phenomenon is often received with
resistance from the employees. This is mainly due to the insecurities and lack of
clear idea about the consequences of change. Some of the factors that cause
resistance to change are as follows:
1) Economic Factors: Economic fear may be one of the major factors for
resistance. There is fear amongst the employees that they may loose their
jobs as a result of change in technology and due to lack of skills to work with
the new technology. This insecurity that they may be demoted, or may not be
able to perform their jobs and that they may even loose their jobs as a result
of this can create resistance towards change in minds of the employees.
2) Psychological Factors: Different psychological factors like ego defensiveness,
status quo, lack of trust, low tolerance, unknown fear etc. This makes the
person to defend their ego and resist change. The change is perceived as an
instrument for exposing the weakness of the people. The reason behind is
people don’t want to get disturbed in their existing equilibrium of life and
work, and they tries to avoid it. This shows that people have very low level
of tolerance for change and ambiguity as compared to others. When people
have low degree of confidence then person also fears for unknown and show
resistance to change efforts.
3) Social Factors: People desire to maintain existing social interaction and feel
satisfied. If there is any change, their existing social interactions are also likely
to change which people do not want and therefore resist for change.
4) Group Resistance: Group dynamics like forces in the group who determines
behaviour of its members. An employee may resist change just to maintain the
conformity of the group and not because he/ she really wants to resist change.
Change in an organisation is the vital need for its functioning and going profit in
varied terms.It becomes the responsibility of the change agent or the organisational
development expert to implement the changes and provide interventions so that
weak areas are improved in a phase manner. Resistance may be possible not only
from employees, but even manager may resist changing due to above reasons.
1) Discuss economic factors as reason for resistance change.
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OD Process 2) Describe psychological factors that lead to resistance to change.
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3.5 STRATEGIES FOR CHANGE

Strategies for change are discussed as follows:
1) Shaping the Future: This is the first strategy for organisational change. It
creates scenarios for the future of the business. The strengths and weakness
of the organisation are considered with respect to how well or poorly prepared
for implementation of the proposed changes. The responsibility of the
organisational change lies on, how much clear sense the organisation has and
how it leads to set the stage for second level.
2) Selecting Core Competencies: In this, management identifies the strength
and weakness of that organisation. Analysis of opportunities and threat also
complete in preparation for defining the organisation may assume that the
future will mirror the past. Others may have been involved with working in
the framework of the organisation existing mission statement and not given the
freedom to refine and revise the mission.
3) Making Structural Changes: This strategy takes the form of transformational
change. It is radical in nature and involves big picture changes. This stage also
comesas a reengineering for organisational process. This aims at improving
productivity and satisfaction.
4) Changing Work Process: The fourth and final strategy of organisational
change involves incremental changes. It tends to be risk averse and tends to
underestimate how much organisation change is actually require. The levels of
changes can become unsuccessful if the small changes are not supported
throughout the organisation.
1) Explain shaping the future as a strategy for change.
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2) Highlight changing work process as a strategy for change.
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38
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Models for
3.6 MODELS OF CHANGE Managing Change
Managing change may be described as adoption of a new idea or behaviour by

an organisation. Organisations need to continuously adapt to new situations if they
are to survive and prosper. Also constant change keeps organisations agile and is
an indicative of learning organisations.
Change at all times involve and agree support from people within system and
understand the organisation. Managing organisational change is the process of
planning and implementing change in organisation in a way as to minimize employees’
resistance and cost to the organisation, at the same time maximizing the effectiveness
of the change. A systematic approach of dealing with change should focus on both
the perspective of an organisation and on the individual level. Thus change is not
on micro level but on a macro level. It is generally expected from the management
of the organisation to manage change in a systematic and effective manner. The
responsibility of organisation is to develop adaptability to change otherwise it will
either be left behind or be swept away by the forces of change.
Change calls for the organisation and the employees to make new adjustments.
This can give rise to insecurity and anxiety amongst the employees. Change can
reactive or proactive. Proactive change is the change that is planned and a whole
lot of preparation goes in that process to achieve the anticipated outcome. A
reactive change is an automatic or planned response to change occurring in the
environment. In the proactive change, change is not a response to a particular
problem or a situation. But it is initiated in order to further develop the organisation.
With regard to reactive change, it is in response to some kind of problem or
situation that arises in the organisation.
Change management can be described effectively with the help of following models:
3.6.1 Lewin’s Change Model

The process of change was first put forth by Kurt Lewin. He proposed three stage
model of the change process for any organisation development.
1) Unfreezing: To move people from this “frozen” state, to unfreeze them and
to make them “change ready” significant effort is required. This stage mainly
focuses on creating motivation and readiness to change amongst the employees.
The managers as a change agent have to assume the responsibility to break
open the shell of complacency and self righteousness among their subordinates.
Manager has to identify the background factors contributing to resistance.
Subordinates may resist change for economic social or personal reasons. The
interplay among the several factors are responsible for resistance have to be
isolated. Manager need to discuss with his or her subordinates, explain them
the problem and need for change. This is a process of mutual learning between
the manager and the subordinates. Unfreezing basically cleans the slate so
that fresh behavioural pattern, customs, traditions can be imprinted which
becomes a new way of doing things.
2) Movement: A change process that transforms the organisation from the
status quo to a desired end state. Helping the employees to see, feel, judge
things. After unfreezing moving means incorporating change begins. The
employees undergo cognitive restructuring. This is done with the help of
compliance, identification and internalisation. Compliance is achieved by 39
Analysing and Managing the introducing rewards and punishments. Under identification, employees are
OD Process
psychologically impressed upon to select their role model and modify behaviour.
Internalization involves internal changing of individuals thought process in
order to adjust to a new environment.
3) Refreezing: Putting down roots again and establishing the new place of
stability. This relates to integrating the new behaviour into persons personality
and attitude. It also refers to as stabilization. This stage comes when new
behaviour takes a new form of normal way of life. New behaviour replaces
the old on permanent basis.
Simultaneously Lewin also introduced force field analysis for analysis for
implementing change. This analysis identifies what forces required to push the
change what forces are likely to restrain. Lewin perceived change as occurring
due to two forces, those internal to an employee and external forces that are
imposed by the environment. He also categorized external forces in to driving
forces and restraining forces. The equilibrium can be changed by strengthening the
driving forces or by weakening the restraining forces.
3.6.2 Kotter’s Eight Step Plan for Implementation of Change

John P Kotter’s attempted to give his own point of view for change model. Kotter
suggested eight steps which are as follows:
1) Establishing a Sense of Urgency by Creating A Compelling Reason for
why Change is Needed: A Sense of urgency can be created amongst the
employees by informing them about the reasons for requirement to bring
about a change. This will to some extend help the organisation deal with
resistance expressed by the employees.
2) Form a Coalition with Enough Power to Lead the Change: Once the
employees are convinced with regard to the need for change then a strong
coalition can be created that will ensure successful implementation of change.
The coalition can be amongst the employees or it can be between employees
and the management. The informal group leaders may also be involved in this.
3) Create a New Vision to Direct the Change and Strategies for Achieving
the Vision: A goal or an objective has then to be creates and the organisation
as a whole should work towards it.
4) Communicate the Vision Throughout the Organisation: This vision or
goal or an objective once created should be informed to all the employees
in the organisation.
5) Empower Others to Act on the Vision by Removing Barriers to Change
and Encouraging Risk Taking and Creative Problem Solving: Once the
objectives are set and the employees are communicated about it, then suitable
training programmes should be organised in order to help the employees
achieve the goal. Basically the employees should be encouraged and helped
to develop suitable skills in order to achieve the objectives.
6) Plan for Create and Reward Short-Term “Wins” That Move the
Organisation toward the New Vision: The overall vision or objective to
bring about change may further be divided in to smaller goals and achievement
of these goals may be rewarded.
40
7) Consolidate Improvements Reassess Changes, and Make Necessary Models for
Managing Change
Adjustments in the New Programs: The whole process of bringing about
change should be continuously assessed and necessary changes should be
made to the strategy of change process from time to time.
8) Reinforce the Changes by Demonstrating the Relationship Between
New Behaviours and Organisational Success: Change can be encouraged
by highlighting its positive outcomes. So as to ensure the employees that
change is necessary and leads to enhances work activity and environment.
3.6.3 Marvin Weisberg “Six Box Model”

Six box model by Marvin Weisberg is a diagnostic tool of organisational development
that highlights the effectiveness of an organisation. Weisberg identified six areas in
which things should go right and be internally consistent for an organisation to be
successful. The result of diagnosis should proceed towards change process.
This approach outlines the organisational structure and design. It focuses on issues
like planning, incentives and rewards, the role of support function like personnel,
internal competitions among organisational units, standards for remuneration,
partnerships, hierarchical and the delegates of authority, organisational control,
accountability and performance assessment. The six box in this model are described
as follows:
1) Purpose: When we speak about purpose as one of the boxes we mainly
focus on the objective of the organisation and reason why the said objective
was developed. What is the purpose behind the overall functioning of the
organisation and understanding it is of utmost value under this.
2) Structure: The work activity in order to achieve the organisational goal
needs to divided or needs to be structures for its smooth achievement. Under
this box the work activity may be categorized in a systematic manner.
3) Relationship: Interpersonal relationship between employees and between
the employees and management is extremely important and thus under this
box with the help of varied techniques the relationship in the organisation
needs to be enhance. This will lead to reduction in conflict and effective
performance amongst the employees.
4) Rewards: To work towards change process and towards organisational
development some kind of driving force is required. An appropriate reward
system will serve as a suitable driving force.
5) Leadership: All the boxes that we discussed are crucial but an effective
leadership is required not only to supervise the whole activity but also to
maintain integrity and balance.
6) Helpful Mechanism: Various mechanisms, like technological support, help
from experts and other facilities should be available to facilitate the whole
process of managing change.
The above model is basically easy to understand and to visualize. It reflects the
important activities in an organisation and successfully implemented to assist in
changing the organisation. This model offers superficial strategic and financial
analysis. The strategy is assumed to be constant and require a capable leadership
for rebalancing the six boxes.
41
Analysing and Managing the 3.6.4 Greiner’s Model
OD Process
Organisational change also requires management of growth which measures the
organisational development. Greiner has developed a theory of change by
considering growth as a factor for change. He identified different problems in each
stage of evolution. The solution to the problem brings change. At the starting
growth is achieved through creativity of a founder of the organisation but sometimes
it creates a problem of leadership. In order to tie-up with problem of leadership
higher level managerial personnel take charge of the situation.But after a period of
time it is noticed that excessive leadership creates a situation of concentration of
power in organisation and subordinates have to wait for the decision. Thus the
change is necessitated that leads to delegation of authority to subordinates. Geriener
said that each organisation moves through five phases of development as it grows.
Each phase contains a calm period called as evolutionary phase and ends with a
management crisis marked by a substantial amount of internal turmoil. Each evolution
period is characterised by dominant problems and solved so that the growth
continues. The age of an organisation is critical because problems and decisions
are rooted in time. The phases in organisational growth and change are discussed
as follows:
1) Growth through Creativity: This first phase and it emphasises on creativity
in the organisation with regard to the products, marketing and sales strategy
etc. As the organisation grows in size and complexity the need for greater
efficiency cannot be achieved through informal channels of communication.
Thus many managerial problems emerge and the first revolutionary period
begins. These problems can be dealt with adequately by coming up with
creative and innovative solutions.
2) Growth through Direction: When there is a leadership crisis for power to
professional managers, organisation growth is achieved through direction. In
this phase the professional managers and key staff takes most of the
responsibilities for instituting direction and lower level supervisors are treated
as functional specialist than autonomous decision making managers. Thus
directive management technology enables the organisation to grow. Further as
low level supervisors become more knowledgeable, they begin to demand
more autonomy and thus the growth moves toward delegation.
3) Growth through Delegation Stage: Crisis resolution for autonomy is through
powerful top managers relinquishing some of their authority and certain amount
of power equalisation. When any organisation reaches the stage of growth
through delegation, it usually begins to develop a decentralised organisation
structure which heightens motivation of the lower levels. This crisis leads to
the next phase of coordination stage.
4) Growth through Coordination: Coordination is the most effective method
for overcoming crisis of control. This phase needs to have more formal
system for achieving greater coordination with top management as the watch
dog. The new coordination system proves useful for achieving growth.
Procedure takes precedence over problem solving, the organisation becomes
too large and requires to be managed through formal programmes and rigid
systems.
5) Growth through Collaboration: This stage involves more flexible and
behavioural approaches to the problems of managing a large organisation.
42
Greiner observed that while the coordination stage was managed through Models for
Managing Change
formal systems and procedures, the collaboration stage emphasis greater
spontaneity in management action through teams and skillful confrontation of
interpersonal differences.
This model shows the variety of stages through which organisation is likely to go
during its growth period. The overall potential issues and problems between stages
are highlighted. The major problem is seen as managerial behaviour that needs to
be overcome with help of suitable training programmes and workshops.
3.6.5 Cumming and Worley Model

This model suggested five areas for change that can be discussed as follows:
1) Motivating Change: It is important that the leaders of organisation must
create readiness to change amongst their employees. The motivation is achieved
through sensitizing people about the pressure of change, highlighting advantage
of change, creating pains in the minds of the employee and involving employee’s
right from the beginning of change.
2) Creating a Vision: This is visualizing that how the future will look. Vision
shows the reality. It need to be beneficial to the majority of people in the
organisation and should be attainable. With these desired vision organisation
need to have mission backed up by the values and making available the inputs
require for achieving the essence of change.
3) Developing Political Support: It is suggested that the practitioner assess his
or her own power. Individual need to identify the key players whose support
is require for success of implementing change. Individuals who wedge power
in the organisation need to associate with the change efforts.
4) Managing the Transition: Unfreezing of present state, that the transition to
the new future, attainment of desired goals and refreezing the outcome. This
involves checklist preparation of various activities, sequence of events and
people responsible for various activities. Commitment planning is important
for managing the transition.
5) Sustaining Momentum: It needs to have regular meetings to review progress
of the work done, solving problem, ensuring the resources available and close
interaction with the specialist. To maintain sustainment it is necessary for
highlighting the gains, and reminding the employees to make a change effort
in group.
1.6.6 Burke and Litwik Model of Organisation Change

The model strives to bring in change in the performance of a team or an organisation
by creating a link between performance and internal, external factors. It begins
with outlining a framework, comprising the affecting factors which can be
manipulated for smooth transition of one phase changing process to another. The
12 dimension in this structure, practices and the system of the organisation are
discussed as follows:
1) External Environment: It is the key factors that have an impact on the
organisation must be identified. The direct and indirect impact on the
organisation is clearly established.
2) Mission and Strategy: The mission and strategy of the organisation is defined
by the top management and examined from employees’ point of view. 43
Analysing and Managing the 3) Leadership: The leadership structure in the organisation is carried out which
OD Process
identifies the chief role models.
4) Organisational Culture: It seeks information on the explicit as well as the
rules, regulations, customs and principles implied that influence the
5) Structure: The structure should be function based focusing on the responsibility,
authority; decision making that exists between the people of the organisation.
6) Systems: It includes all types of policies and procedures in regard to both
the people and the operations of the organisation.
7) Management Practices: This entail a study that how well manager can
conform to the organisation strategy and deal with employees and resources.
8) Work unit Climate: It is a collective study of how the employees think, feel
and what they expect. The kind of relationships the employees share with
their team members and other.
9) Tasks and Skills: This involves understanding the job position its demand.
This also includes the kind of skills and knowledge that employees have to
fulfill the responsibility.
10) Individual Values and Needs: This dimension seeks to explore employees
opinion about their work, identify quality factors which result in job enrichment
and better satisfaction.
11) Motivation Level: Identifying the motivational level makes it easier to
determine the willingness to be put in their effort to achieve organisational
goals
12) Individual and Overall Performance: This dimension takes into account
the level of performance on individual and organisational levels in different
key areas like productivity, quality, efficiency etc.
3.6.7 John Fisher Change Model

As per the model stated by John Fisher, an employee operates within a multitude
of environments within an organisation. During the changes we go through the
stages which are more complex. The speed of transition depends on the employees
self perception, locus of control and other past experiences all this combine and
create their anticipation of future events.
According to Fisher transition effectively need to understand for the perception of
past, present and future. The stages move from Anxiety, Happiness, Fear, Threat,
Guilt, Depression, Disillusionment, Hostility and ends with Denial. The overall
changes in the employees passes through all stages and he or she experience the
new way of dealing in the organisation. The organisation in this way also gains and
the development curve emerge.
1) Explain in detail Lewin’s change model.
.....................................................................................................................
.....................................................................................................................
44
Models for
..................................................................................................................... Managing Change
.....................................................................................................................
2) Highlight Marvin Weisberg “Six Box Model”.
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
3) Discuss the 12 dimensions in Burke & Litwik model of Organisation Change.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3.7 LET US SUM UP

Thus in the present unit we mainly focused on managing change. We initially
disused about the concept of change as we see it in an organisational set up and
then highlighted the preparation that bare to be made before implementation of
change, resistance expressed by the employees towards change process. We
further discussed the strategies and models for change.
Change is an important part of an organisational process. Any human resource
manager needs to be aware about the need for change in an organisation and also
should be prepared to deal with unplanned change. As discussed during the change
process planning is the mopst important function and at the same time it is important
to encourage the employees to participate and involve in the change process right
from the start.

1) Explain in detail the concept of change.
2) Discuss the preparations that are to be carried out before implementation of
change
3) Highlight the strategies for change.
4) Discuss any two models of change.

Andriopoulus, Constantine and Patrick Dawson.(2009). Managing Change,
Creativity and Innovation. New Delhi. Sage Publication.
Heller, Robert. (1998). Essential Managers: Managing Change. New York.
D.K Publishing. Inc.
45
Analysing and Managing the Coffey, R. R., Cook, C.W., & Hunsaker, P.L. (1997). Management and
OD Process
French, W.L., Bell, C. H., & Vohra, V. (2006) Organizational Development. 6th
Newstorm, J. W., & Davis, K. (1997). Organizational Behaviour: Human
Behaviour at Work. 9th Ed.New Delhi. Tata McGraw- Hill Publishing Company
Limited.
Pareek, U. (2008). Understanding Organizational Behaviour, 2nd Ed. New
Delhi. Oxford University Press.
References
Bergman JI. Managing change in the nonprofit sector: lessons from the evolution
of five independent research libraries. San Francisco, CA: Jossey-Bass, 1996.
Curzon SC. Managing change: a how to do it manual for planning, implementing,
and evaluating change in libraries. New York, NY: Neal-Schuman Publishers,
1989.
Cherrington, David J. Organisational Behaviour: The Management of Individual
and Organisational Performance . Boston: Allyn and Bacon, 1994.
Dove, Rick. “The Principles of Change.”Automotive Manufacturing and
Production. March 1997.
Dyer, William G. “Team Building: A Microcosm of the Past, Present, and Future
of O.D.” Academy of Management OD Newsletter. Winter 1989.
Gibson, James L., John M. Ivancevich, and James H. Donnelly Jr. Organisations:
Behaviour, Structure, Processes. 8th ed. Boston: Richard D. Irwin, 1994.
Goodstein, Leonard D., and W. Warner Burke.”Creating Successful Organisation
Change.”Organisational Dynamics. Spring 1991.
Ivancevich, John M., and Michael T. Matteson. Organisational Behaviour and
Management . Homewood, IL: Richard D. Irwin, Inc., 1990.
Lippitt, Gordon L., Peter Longseth, and Jack Mossop. Implementing
Organisational Change. San Francisco: Jossey-Bass, 1985.
Northcraft, Gregory B., and Margaret A. Neale. Organisational Behaviour: A
Management Challenge . Chicago: The Dryden Press, 1990.
Recardo, Ronald J. “Best Practices in Organisations Experiencing Extensive and
Rapid Change.” National Productivity Review. Summer 2000.
Shaffer, Rima. Principles of Organisation Development. American Society for
Training and Development, 2000.
vonDran GM, Cargill J. eds. Catalysts for change: managing libraries in the 1990s.
New York, NY: Haworth Press, 1993.
46
UNIT 4 PROGRAMME EVALUATION
PROCESS IN ORGANISATIONAL
DEVELOPMENT
Structure
4.0 Introduction
4.1 Objectives
4.2 Definition and Concept of Programme Evaluation
4.3 Types of Evaluation
4.4 Stages in Programme Evaluation
4.5 Models of Programme Evaluation
4.5.1 Donald Kirkpatrick Model
4.5.2 Jack Philip ROI Model
4.5.3 CIPP Model
4.5.4 Kaufman’s Five Levels of Evolution
4.5.5 CIRO Model
4.6 Let Us Sum Up

4.0 INTRODUCTION
In the previous units we focused on topics like the organisational development
process, diagnosing the system and models of managing change.
Understanding these topics is extremely important in order to successfully carry
our organisational development in an industry or organisation.
In the present unit we will highlight yet another important aspect of organisational
development, that is, programmme evaluation. Programme evaluation is a systematic
method for collecting, analysing, and using information to the gaps in the
programmes. It focuses particularly about the effectiveness and efficiency of a
particular programme.
In both the public and private sectors, stakeholders want to know if the programmes
which are being funded, implemented, voted for are actually having the intended
effect. With the changes all over the world, organisations are facing competition.
It is not only about delivering a quality product for customers but an art of
surviving in the markets and making profits. To exist as a perfect competitor one
has to go in for constant evaluation and introspection of the organisation. In this
kind of situation to survive and develop the organisations have to keep an eye on
their programmes and projects.
In the unit we will further discuss about the concept of programme evaluation, its
significance and methods that can be used while conducting evaluation.
47
OD Process 4.1 OBJECTIVES
At the end of this unit, you will be able to:
 Discuss the definition and concept of programme evaluation;
 Explain the types of evaluation;
 Discuss the stages in programme evaluation; and
 Describe the models of programme evaluation.
4.2 DEFINITION AND CONCEPT OF

PROGRAMME EVALUATION
Patton defined programme evaluation as a systematic collection of information
about the activities,characteristics and outcomes of programme to make judgments
about the programme, improve programme effectiveness and or inform decisions
about future programming.
Programme evaluation may also be defined asevaluative inquiry that is an ongoing
process for investigating and understanding critical organisational issues.It is an
approach to learning that is fully integrated with an organisation’s work practices.This
definition specifically highlightsthat programme evaluation is an ongoing investigation
and makes new learning in the organisational setup.
Programme evaluation can also defined as a systematic acquisition and assessment
of information pertaining to a programme to provide useful feedback about the
organisation. This emphasises all works collecting and shifting through data, making
judgments about valid information and of inferences we derive from it.
Generally the goal of the programme evaluation is to provide useful feedback,
which would act as a facilitator in decision making. It is a methodological area that
is closely related. Programme evaluation is broader in sense and encompasses the
most general groups. It goes on continuously rather than on periodic basis and
thus allows progress and effective monitoring at the same time.
Organisation’s programme evaluation measures compare and analyse the coherence
between results and specific objectives, between specific objectives and between
general objects of institutional projects. Programme evaluation is an important
aspect of improving the administration in any organisation. This plays a very
important role in helping the managers to improve the efficiency and effectiveness
in their operations. Programme evaluation in any organisation generates reliable
information which then becomes a valuable experience and is very useful for
planning the future, establishment of priorities and resource allocation. With the
help of programme evaluation, organisations solve their internal conflicts. Conflicts
in any organisation are inevitable but it is the skill of the management as to how
they integrate those conflicts and difference in opinion in an efficient manner. This
helps the evaluation team to learn more about an employee’s motivational level in
the organisation. This approach poses a major facilitator to any organisation for
assessing their internal conflicts or disagreement and helps the organisation to
rebuild. The situation greatly increases the importance of developing ways to help
organisations assess their work, examine what’s working and what is not and learn
how to strengthen the organisations and increase their impact.
48
Programme evaluation is thus an integral part to determine the effectiveness of the Programme Evaluation
Process in Organisational
organisation. It is needed for training interventions with regard to learning, transfer Development
and organisation impact which involves a number of complexity factors.
The programme evaluation process demands clarity of purpose and the answers
to the questions which will yield a guiding framework for the measurement process.
If evaluation lacks clear purpose then it tends to wander aimlessly and results in
findings which are devoid of organisational relevance. Specifically it will be used
to address the appropriateness of the learning objectives and the length of the
course and also assessing the effectiveness of the overall programme in terms of
the performance needs which is design to address. For example in any organisation
which have faced with financial cutbacks or a rigorous budget setting process,
evaluation would be utilised to measure the extent.
Through this process of evaluation the net result could be achieved, but it needs
rigorous planning. This planning will help the organisation to sustain in the market
and also would facilitate to maintain the credibility.
With the help of programme evaluation managers and employees of an organisation
becomes continually aware of their achievements and objectives. External
opportunities and threat and internal strength and weakness represent the basis of
current strategies are continually monitored. Failure to make satisfied result toward
the accomplishment of long term objectives signals a need for corrective actions.
Some of the major strategies used in programme evaluation are as follows:
1) Scientific experimental models: This is the most dominant strategy especially
in social sciences. This prioritizes on the desirability of impartiality, accuracy,
objectivity and the validity of the information generated about a particular
programme. It is scientific in nature and focuses on the objectivity of the
study. This is one systematic approach that can be used in order to evaluate
programmes.
2) Management oriented systems models: This is widely used method for
programme evaluation. It studies the problems related with management group
in terms of controlling, managing and organising the work. In this process
gaps may be present which this system evaluates.
3) Qualitative model: This model emphasises the importance of observation;
the need to retain the phenomenological quality of the programme evaluation.
It values the subjective human interpretation in the programme evaluation
process.
4) Participant oriented models: It emphasises the central importance of the
interacting with participants, specially clients and users of the programme in
order to evaluate the programme.
Thus we understand that programme evaluation plays a significant role in the
overall process of organisational development and is an extremely important tool
in order to achieve organisational goals and objectives.
1) What is programme evaluation?
.....................................................................................................................
..................................................................................................................... 49
Analysing and Managing the .....................................................................................................................
OD Process
.....................................................................................................................
2) Highlight the any two strategies that can be used in programme evaluation.
.....................................................................................................................
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.....................................................................................................................
.....................................................................................................................
3) Which strategy would be most effective in programme evaluation according
to you? Give reason.
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4.3 TYPES OF EVALUATION

There are various types of evaluation used in organisations. As stated earlier the
type of evaluation selected will mainly depend on the demands of the problem or
situation in an organisation. Some of the types of evaluation are discussed as
follows:
1) Formative evaluation: It improves the situations which is being evaluated
and helps by examining the delivery of the program and the quality of its
implementation and also by assessing the organisational context. The purpose
of the formative evaluation is to make sure that the programme is well
developed. This uses methods like stakeholders consultation, need assessment,
collaborative group process etc. It facilitates group discussion with stakeholders
interviewing stakeholders about the program implementation and reporting
about the development and determines who needs the program, how much
it is needed and what might work to meet the need.
2) Implementation evaluation: This monitors the fidelity of the program. It
sees how effectively the program is being delivered. Review of past research
literature and experience-It reviews what is already known about the type of
program or intervention being used and using this to improve the outcomes
model for the program. Monitoring and evaluation of data collected-new data
collected their protocols need to be put in a place for further evaluation
otherwise it will have its impact on the outcome.
3) Summative evaluation: In contrast to the former ones, this examines the
effects or outcome of some situation. It describes what happens subsequent
to delivery of the program, assessing the caused outcome and determining the
overall impact of the causal factor. Beyond it the only immediate target
outcomes and estimating the relative costs associated with the situation. This
may be further categorized in to the following:
a) Outcome evaluation: Which investigate the program caused demonstrate
50
effects on specifically targeted outcomes.
b) Impact evaluation: This is broader in sense and assess the overall Programme Evaluation
effects, intended or unintended of the program as a whole. Development
c) Cost effectiveness and cost benefit: It focus on the questions of

efficiency by standardizing outcomes in terms of their costs and values.
d) Secondary analysis: Secondary analysis reexamines the existing data
to address new questions and use new methods which are previously
used.
e) Meta analysis: It integrates the outcome estimates from multiple studies
and arrive at an overall judgment on an evaluation question.
Even though evaluation is a potent and necessary tool considered for measuring
the development phenomena in the organisations. Impact of all evaluation can only
be perceived with the organisational output. There must be a continuous loop that
links organisation to performance gap identification to the final evaluation of the
programme.
1) Explain formative evaluation.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Highlight various categories of summative evaluation.
.....................................................................................................................
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.....................................................................................................................
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4.4 STAGES IN PROGRAM EVALUATION

Programme evaluation is carried out at through various stages by using data derived
from the policing plan priorities and objective performance gap identification, job
profiles, capacity building design and existing capacity building programme. Each
of these represents a starting point for evaluation and generates a wealth of data
to guide and structure the measurement process. The process of programme
evaluation involves four basic stages that will be discussed as follows:
1) Needs: When we focus on this stage of programme evaluation, we mainly
discuss about the purpose of programme evaluation including expected impact
and outcome of the programme. During this step it is also important to
identify the focus group or participants or stakeholders in the programme,
financial requirement and the time period required for the programme.
2) Planning: As we have discussed in previous unit, planning is an important
aspect in the overall process of organisational development. In a similar
manner, in programme evaluation also planning is of extreme importance. 51
Analysing and Managing the During this stage it is necessary to determine objectives of the programme,
OD Process
gather relevant information and evaluate the planning to identify any loop
holes.
3) Collection of data: After needs are identified and planning is accordingly
carried out, the nest stage is collection of data. During this stage a suitable
model or method for programme evaluation is selected. Also methods for
data collection are finalized based on the objectives, budget and time period.
4) Finalization of the report: The data collected in the above stage is then
analysed and findings are reported to the competent authority for further
application.
1) What are the starting points to initiate the programme evaluation process.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Discuss the relevance of planning as one of the stages of programme
evaluation.
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.....................................................................................................................
.....................................................................................................................
3) Highlight collection of data as one of the stages in programme evaluation.
.....................................................................................................................
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4.5 MODELS OF PROGRAMME EVALUATION

An important decision that the management has to take during implementation of
the process of evaluation is about which model to choose. The choice of a single
model will mainly depend on the nature of the problem or the situation in an
organisation. However an integrative approach using more than one model may
also be used.
Before implementation of any of these models and before the actual process of
evaluation starts it is important to make suitable preparations and create a conducive
environment in the organisation for successful conductance of the evaluation. The
following points are to be taken in to consideration before and at the time an
evaluation is carried out in an organisation:
52
 Evaluation needs identification and setting of objectives by the organisation Programme Evaluation
 Planning, design and preparation of the programmes. Development
 Pre-course identification of people with needs and completion of the preparation

required by the evaluation programme.
 Provision of the agreed evaluative programmes.
 Pre-course briefing meeting.
 Completion of end-of-programme Learning Questionnaire or Key Objectives
Learning Questionnaire.
 Completion of Action Plan.
 Post-course debriefing meeting.
 Review meetings to discuss progress of implementation.
 Final implementation review meeting.
Some of the models of programme evaluation are discussed as follows:
4.5.1 Donald Kirkpatrick Model

This model mainly focuses on programmes that are related to learning and training.
Learning/ training evaluation is a widely researched area. Learning lies at the core
of human resource development and is a key to organisational development. Any
organisation would value an effective training programme as it will update the skills
of their employees and make them more efficient.
The four levels of learning/ training evaluation introduced by Kirkpatrick
are as follow:
1) Reaction: Reaction evaluation is how the employees felt about the training
or learning experience. ‘Happy sheets’, feedback forms. Verbal reaction,
post-training surveys or questionnaires can be used in order to find out about
the reactions of those employees who participated in the training programme.
This is of utmost importance as the reactions will not only provide information
about the effectiveness of the training programme and whether to repeat it,
but it will create an impression on the employees that the organisation is
genuinely concerned with the individual development of the employees. This
will increase the morale of the employees in general.
2) Learning: Learning evaluation is the measurement of the increase in
knowledge. That is the status of knowledge before and the status of knowledge
after the training programme. The reaction evaluation will provide information
about the feeling of the employees towards the training programme. The
learning evaluation on the other hand will provide information about the
effectiveness. This can be done by comparing the skills and knowledge of the
employees before and after the training programme. Interview or observation
can also be used.
3) Behaviour: Behaviour evaluation is the extent of applied learning back on
the job - implementation. This is again very important as, what ever learned
by the employees during the training programme has to be implemented. For
this the training programme should be effective enough to encourage and
53
Analysing and Managing the promote transfer of learning at the same time the environment in the organisation
OD Process
should be conducive to transfer of learning.
4) Results: Results evaluation is the effect of training on the business or
environment. Once the training programme is conducted it should be related
to the outcome in the organisation. Whether it led to increase in production,
reduction in absenteeism, increase in profits and so on.
Thus training programmes in an organisation can be evaluated effectively with the
help of this model.
4.5.2 Jack Philip ROI Model

ROI means Return on Investment. As the name suggests the model focuses on
whether the returns or outcome of a particular programme really match the
investment made in them. This is extremely important as investment without positive
outcomes is a loss to an organisation and thus to be avoided. Thus this model can
help us understand ROI in context of a particular programme.
In the process of ROI analysis begins with deliberate attempts to isolate the
effects of training on the data items. The ROI model requires a variety of data
collection tools ranging from questionnaires and surveys to monitoring on the job
performance. Different strategies have been used to accomplish the ROI calculation.
The ROI formula is the annual net programme benefits divided by programme
costs, and net benefits are the monetary value of the benefits minus the costs of
the programme. It is as follows:
ROI (%) = Benefits – Costs × 100costs.
This model also recognises that there would be intangible benefits that will be
presented along with the ROI calculation organisations. Several common strategies
began to emerge that can be considered best practices for calculating an ROI in
training and development. The process of establishing evaluation targets has two
important advantages.
1) It provides measurable objectives for the training staff to clearly measure
progress for all programs or any segment of the process.
2) Adopting targets focuses more attention on the accountability process,
communicating a strong message tothe training staff about the commitment to
measurement and evaluation.
This model consists of five levels, they are discussed as follows:
1) Reaction and Planned Action: This level is similar to that of the Reaction
level we discussed in Donald Kilpatrick Model. The reaction of the participants
is recorded to understand the effectiveness of the programme. Besides the
reaction the planned action or the way the participants intend to apply whatever
learned by them is also taken in to consideration.
2) Learning: In this level stock is taken of the kind of learning or enhancement
of knowledge occurring due to the programme.
3) Job Applications: This mainly focuses on whether the participants are applying
what they learned while carrying out their job activity.
4) Business Results: This level is mainly concerned with whether the earlier
step that is job application had produced any business results or positive
54
outcomes for an organisation.
5) Return on Investment: At this stage the formula can be applied to find out Programme Evaluation
whether the outcome has exceeded the investments in terms of finances and Development
other resources.
4.5.3 CIPP Model (Context, Input, Process and Product)

This model was developed by Stufflebeam et al in 1960s as a result of their
experience of evaluating education projects for the Ohio Public Schools District.
As the title suggests the model focuses on the four aspects of context, input,
process and product. The model can be termed as decision-focused approach to
evaluation. It emphasises the systematic provision of information for management
and operation of a programme. This information in turn can be helpful in making
certain decisions.
This model mainly focuses on linking programme to decision making in order to
ensure effective implementation of a programme. This is mainly done with the help
of four aspects that is, context, input, process and product. These aspects are
discussed in details as follows:
1) Context: In context the main focus is collecting data in order to conduct a
needs assessment to determine goals, priorities and objectives of a particular
programme. A context is created in order to understand the future course of
action. The decision involved here is mainly with regard to planning.
2) Input: This deals with what is required for the programme to be successful,
resources and strategies required for successful management of the programme.
The decision here mainly focuses on the structure.
3) Process: This mainly highlights the actual process of implementation of the
programme. Whether it is been implemented as per the plan and if there are
any obstacle that need to be dealt with. The decision thus focuses on
implementation.
4) Product: This aspect focuses on the outcome and whether the whole process
of programme implementation was successful or not. Based on this decision
can be taken with regard to the future course of action.
4.5.4 Kaufman’s Five Levels of Evaluation

Kaufman, Keller & Watkins (1996) promoted an assessment strategy called the
Organisational Elements Model (OEM) which involves four levels of analysis.
Since the introduction of Kaufman’s four-level OEM model, it has been widely
used for evaluation. Kaufman, et al. (1996), for example, later added levels of
impact that go beyond the traditional four-level, training-focused approach which
they felt did not adequately address substantive issues an organisation faces. Such
modification to the model resulted in the addition of a fifth level, which assesses
how the performance improvement program contributes to the good of society in
general as well as satisfying the client. This model is mainly developed to evaluate
a program from the trainee’s point of view Let us discuss the five levels of analysis:
1) Input and Process: This analysis is based on inputs, and focuses on reductions
of cost. This analysis can be divided in two parts, the first part focuses on
the resources, financial, human resource and so on and the second part
highlights the actual process and the reaction of the participants in the
programme in order to understand the effectiveness of the programme.
55
Analysing and Managing the 2) Acquisition: This analysis focuses on the potentiality of the participants involved
OD Process
in the programme to grasp or acquire.
3) Application: This is in a way related to the previous analysis of acquisition.
In this the actual application of knowledge and skills acquired is focused on.
4) Outputs: This relates to the products or services that are delivered to external
clients.
5) Outcomes: This analysis highlights the value of the outputs (the aggregated
products or services) delivered to external clients and their clients and ultimately
to society.
4.5.5 CIRO Model (Content, Input, Reaction and Outcome)

The CIRO model was developed by Birdet al. The main elements of this model
are Content, Input, Reaction and Outcome. It is very similar to the CIPP model.
The main advantage of the CIRO model is that the objectives (context) and the
training equipment (input) are taken in to consideration during the evaluation. The
main elements of the model are discussed as follows:
1) Context evaluation: This evaluation is concerned with factors such as the
effective identification of training needs and the setting of objectives with
focus on organisation’s culture and climate. The context in which the programme
is to be implemented is given utmost importance.
2) Input evaluation: This evaluation is concerned with the design and
implementation of the training activity.
3) Reaction evaluation: It focuses on collecting and using information about
the quality of trainees’ experiences.
4) Outcome evaluation: It highlights the achievements gained from the activity.
The activities are assessed at three levels: (a) immediate, (b) intermediate,
and (c) ultimate evaluation. The focus is on the end results of the evaluation.
Immediate evaluation attempts to measure changes in knowledge, skill, or
attitude before a participant returns to the job. Intermediate evaluation refers
to the impact of training on job performance and transfer of learning on the
job. And ultimate evaluation attempts to assess the impact of training on
departmental or organisational performance in terms of overall results.
Third Wave Consulting
After ten years of Weisbord six box model the new concept of third wave managing
and consulting was introduced by him, in which Weisbord reconsidered the issues
of diagnosis and intervention. Third wave indicates that the world has progressed
through the agricultural revolution (first wave), industrial revolution(second wave)
and information and technological revolution (third wave).Weisbord did not believe
in problem centered model to help people in achieving the desired organisational
diagnosis, instead he preferred wellness to achieving the desired outcome. The
third wave consultant focuses on assessing the potential for action, getting the
whole system in the room, focusing on the future and structuring tasks that people
can do for themselves. This optimistic goal oriented view helps the organisation in
the evaluation process.
56
Programme Evaluation
Self Assessment Questions Process in Organisational
Development
1) Describe Kirkpatrick’s model of evaluation?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
2) Discuss Kaufman model.
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
3) What is third wave consulting?
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
.....................................................................................................................
4.6 LET US SUM UP

With the help of this unit we discussed the concept of programme evaluation and
also described its relevance in an organisational set up. We discussed about the
type of evaluation, stages of programmes and more importantly the various models
of programme evaluation.
A programme is often taken in an organisation inn order to enhance productivity
or profitability. A huge investment in terms of finance, human resource, time and
efforts is made in order to make a particular programme successful. Thus with this
kind of investment systematic planning, management and evaluation of these
programmes is very important in order to ensure success of the programme and
also in order to make decisions about programmes to be conducted in future. The
organisation thus needs to focus and prioritize programme evaluations in their
setup.

1) Discuss the concept programme evaluation in organisational development.
2) Describe various types of evaluation.
3) Highlight the stages of programme evaluation.
4) Discuss how the Kirkpatrick’s model is more effective for programme
evaluation in organisation development?
5) Highlight Kaufman’s Five Levels of Evaluation.
6) Compare CIRO and CIPP model for evaluation. 57
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Royse, David; Theyer, Bruce and Padgett Deborah. (2010). Programme
Evaluation: An Introduction. USA: Wadsworth,Cengage Learning.
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Jossey-Bass
62
UNIT 1 DEFINITION, FACTORS TO BE
CONSIDERED, NATURE AND
CLASSIFICATION OF OD
INTERVENTIONS
Structure
1.0 Introduction
1.1 Objectives
1.2 Meaning of Organisational Development
1.2.1 Definition of OD
1.2.2 Characteristics of OD
1.2.3 Process of OD
1.2.4 Role of Consultant in OD
1.2.5 Objectives and Values of OD
1.3 Definition and Concept of OD Interventions

1.3.1 Factors of OD Interventions
1.3.2 Readiness for Change
1.3.3 Capability to Change
1.3.4 Cultural Context
1.3.5 Capabilities of the Change Agent
1.3.6 Contingencies Related to the target of Charge
1.4 Organisational Issues

1.4.1 Rules for Implementation
1.5 Nature and Classification of Organisational Development Interventions

1.5.1 Human Processes
1.5.2 Techno Structural
1.5.3 Human Resource Management
1.5.4 Intervention Based on the Underlying Causal Mechanisms
1.6 Major “Families” of OD Intervention Activities

1.7 Let Us Sum Up
1.8 Unit end Questions
1.0 INTRODUCTION
In this unit we will be dealing with organisational development. We start with Meaning
of organisational development, definition, characteristics and process of OD. We
then discuss the role of a consultant in organisational development. The next section
deals with OSD interventions in which we start with definition and concept of of OD
interventions. Then we discuss the various factors that are associated with OD
interventions. Then the discussion passes on to the readiness for change and OD
interventions. Whether the organisation has the capability to change and what the
cultural contexts in which the OD intervention is to be taken up and how the cultural
factors affect OD interventions. Then we take up the capabilities opf the change 5
OD Interventions agent. Following this we deal with organisational issues, and the the implementation
rules thereof. We then discuss the nature and classification of OD intervention and
deal with human processes, the techno structural factors and the management of
human resources. Finally we discuss the major aspects of the OD intervention activities
1.1 OBJECTIVES
 Define and give the meaning of organisational development;
 Describe the characteristics of OD;
 Explain the Process of OD;
 Analyse the role of consultant in OD;
 Elucidate the objectives and values of OD;
 Define and conceptualise OD Interventions;
 Delineate the factors of OD interventions;
 Analyse the readiness for change through OD;
 Discuss the organisational issues;
 Classify the organisational interventions; and
 Elucidate the major families of OD intervention activities.
1.2 MEANING OF ORGANISATIONAL

DEVELOPMENT
Change has become a way of life for most organisations. Pressures from increasing
competition, globalisation, technological developments and other forces have created
an environment that rewards organisations that are capable of identifying trends and
issues and responding quickly to them. The element of HRD that can best enable
organisations to embrace and manage change is organisation development. It is not
entirely clear as to who coined the term “Organisation Development” but in all
probability it was Robert Blake, Herbert Shephard and Jane Mouton. The OD
movement gained tremendous momentum by 70s and is increasingly applied throughout
the globe in the present day. It has now been evolved into accepted field of study
and professional practice. It has been estimated that in USA alone more than 5000
persons refer themselves as OD practitioners. Early OD efforts primarily addressed
first order change that is, making moderate adjustments to the organisation, its people
and its processes. Today the demands of the organisation are so great that the
second order change is required in many instances. The fundamental nature of work
and organisation is changing.
Organisation development most frequently referred to as OD is a systematic and
practical approach to launching and defusing change in organisations. It is not a one
time training or development program but is an ongoing and cycling process. It is a
complex educational strategy which aims to bring about a better fit between human
beings who work in organisations and expect things to take place as they visualise
and the busy, unrelenting environment, with its insistence on adapting to changing
times. OD is employed as “comprehensive strategy for organisation improvement”.
6
1.2.1 Definition of OD Definition, Factors to be
Considered, Nature and
Organisational development is a process that is an identifiable flow of interrelated Classification of OD
Interventions
events moving overtime towards goals of organisational improvement and individual
development. It is a journey and not a destination. Organisational development is an
effort planned, organisation – wide and managed from the top to increase organisation
effectiveness and health through planned interventions in the organisation’s processes
using behavioural science knowledge (Beckhard, 1996). Organisational development
is a response to change, a complex educational strategy intended to change the
beliefs, attitudes, values and structure of organisations so that they can better adapt
to new technologies, markets and challenges and the dizzying rate to change itself
(Bennis,1969). OD can be defined as a planned and sustained effort to apply
behavioural science for system improvement, using reflexive, self analytic methods.
(Schmuck and Miles, 1971). The aims of OD are…enhancing congruence between
organisational structure, processes, strategy, people and culture, developing new and
creative organisational solutions and developing the organisations self renewing capacity.
(Beer, 1980). OD is a systematic application of behavioural science knowledge to
the planned development and reinforcement of organisational strategies, structures
and processes for improving organisation’s effectiveness. (Cummings and Worley,
1993). To sum up, Organisational Development is a long-term effort, led and
supported by top management, to improve an organisation’s visioning, empowerment,
learning and problem-solving processes, through an ongoing, collaborative management
of organisation culture – with special emphasis on the culture of intact work teams
and other team configurations- using the consultant- facilitator role and the theory
and technology of applied behavioural science, including action research.
The field of OD is so rapidly changing that in few years the label of OD may be
applied to somewhat different set of activities. Every program is unique as every
organisation has unique problems and opportunities. Organisational development is
both a professional field of social action and an area of scientific inquiry. The practice
of OD covers a wide spectrum of activities with a lot of variations. It emphasises
both macro and micro organisational changes: macro changes are intended to ultimately
improve the effectiveness of the organisation, whereas micro changes are directed at
individuals, small groups and teams. The fundamental difference between organisational
development and other organisation improvement programs is found in the OD
consultant’s role and relationship to clients.
1.2.2 Characteristic of OD
1) Long Range Effort: OD is not designed to solve short term temporary or
isolated problems. It is long term approach meant to elevate the organisation to
a higher level of functioning by improving the performance and satisfaction of
organisation members.
2) Broad Based: OD is used broadly to describe a variety of change programs.
It essentially deals with big picture – The Organisation.
3) Dynamic Process: OD includes the effort to guide and direct change as well
as to cope with or adopt to impose change.
4) System View: OD utilises system thinking. It is based on an open, adaptive
system concept. It recognises organisation structure and management performance
are mutually interdependent. The organisation is treated as an interrelated whole
and no part of the organisation can be changed without affecting other parts.
7
OD Interventions 5) Research Based: Most OD interventions are research based, not just introspect
employees rather collect data, evaluate and take decisions.
6) Goal Setting and Planning: Since OD is concerned with the entire organisation,
the change agents define goals of the group and will see to it that together they
all work to achieve the goal.
7) Normative re-educative strategy: OD is based on the principle that “norms
fond the basis of behaviour and change is re-educative process of replacing old
by new ones”.
1.2.3 Process of OD
1) Plan the changes and the process of change, necessarily, in consultations with
the trained and experienced consultants/behavioural experts by advising the top
management and seek their approval. It is primarily initiated by the top
management.
2) Change the attitudes and habits of individuals, particularly, in the areas of
interpersonal behaviour.
3) Create a team culture in the organisation.
4) Work out appropriate new structures.
5) Solve short term day-to-day and long term problems involving external and
internal change.
1.2.4 Role of a Consultant in Organisational Development

OD consultants establish a collaborative relationship of relative equality with the
organisation members as they together identify and take action on problems and
opportunities. The role of the OD consultant is to structure activities to help organisation
members learn to solve their own problems and learn to do it better over time. They
do not provide solutions to the problems but create learning situations in which
problems are identified and solutions are developed. The aim of leaving the organisation
members better able to solve their own problems is a distinctive feature of organisation
development. As an organisational development consultant, the person is devoted to
developing organisations and the people in them through planned change. This includes
working with individuals, teams and large systems.
The organisational development contultant (OD consultant) can take a variety of
approaches to the role ranging from expert to process consultant. They can operate
from the process consultant model which means that the consultant partners with his
clients to identify problems and create solutions. The point of this approach is to
leave the client system more capable of diagnosing and solving its own problems in
the future. Rather than foster dependency, the consultant’s aim is to foster independence.
By its nature, OD consulting is fresh and unique to each client situation. Many
organisations need outside help to continue or improve their operations. As an
organisational development consultant, the person’s role is to assist the company in
determining what its main problems are, how to cope effectively with them, and how
to manage any resistance to changes.
One of the first roles of an organisational development consultant is to identify,
quantify, and accurately describe problems within the company. This is not as easy
8 as it sounds. The issues often are complex, multifaceted, and intertwined with one
another. Observation and employee questionnaires are two tools consultants often Definition, Factors to be
use to determine areas of trouble. Classification of OD
Interventions
Solving a company’s problems is at the heart of organisational development consulting.
After changes are recommended, consultants advise employers on the best way to
implement them while causing the least amount of disruption to the business’s day-
to-day operations.
One of the greatest challenges faced by organisational development consultants is
helping employees accept any changes that are recommended. Consultants should be
encouraged to make employees part of the change process whenever possible,
valuing the input they provide. Employees are less likely to resist changes that they
helped implement.
1.2.5 Objectives and Values of OD

OD is way of looking at the whole humanistic side of organisational life. OD
emphasises on the human dimension of an organisation consisting of main humanistic
values: 1) Opportunities to people to function like human beings rather than be
treated as mere inputs. 2) Opportunities for individual and the organisation to develop
to their full potential. 3). Increasing the effectiveness of individual and organisation.
4) Creating an organisational environment that generates exciting and challenging
work. Thus it focuses on the following objectives:
1) Improving mutual trust and emotional support among all the employees.
2) Promoting, in a healthy manner, incidences of intra-group and inter-group
confrontations.
3) Creating a culture in which authority is based on knowledge and skills.
4) Encouraging open communication bottom up, top down, sideways and diagonally.
5) Increasing the level of enthusiasm and satisfaction among the employees.
6) Promoting problem solving culture.
7) Improving individual employee participation and group participation to plan and
implement.
8) To find Synergistic solutions to problem with greater frequency.
1) What is the role of the consultant in Organisation Development Intervention?
a) Team building b) Group Development
c) Structuring activities d) Behaviour modification
2) OD objectives do not focus on which of the following?
a) Promoting problem solving culture b) find synergistic solutions
c) open communication d) Survey feedback
3) The organisation is treated as an interrelated whole and no part of the
organisation can be changed without affecting other parts is ————
a) Sensitivity training b) goal setting
c) Group development d) Systems view
9
OD Interventions
1.3 DEFINITION AND CONCEPT OF OD
INTERVENTIONS
OD interventions are sets of structured activities in which selected organisational units
(target groups or individuals) engage in a task or a sequence of tasks with the goal
of organisational improvement and individual development. Interventions constitute
the action thrust of organisation development. Behind every program is an overall
game plan or intervention strategy. This plan integrates the problems or opportunity
to be addressed, the desired outcomes of the program, and the sequencing and
timing of the various interventions. Intervention strategies are based on diagnosis and
the goals desired by the client system. The number of OD intervention is not small
but they all vary in range and depth into the penetration into the organisational system
and the purpose they serve. Most of the OD interventions are inherited from the
predecessor – the Human Relation Movement. OD intervention is not a management
development, not exclusively concerned with people, not a no fail formula, not aimed
at simply making organisation more productive and efficient, not gimmick or Fad, not
a separate discipline.
The different interventions are needed to serve different purposes in the organisation.
It is difficult to classify OD interventions because of their overlapping and interrelated
nature, for instance French and Bell designated 12 families of intervention. OD
practitioner employs any one or range of these interventions depending on the nature
of the problem. They are:
Diagnostic, Team building, Intergroup Activities, Survey Feedback Method, Education
and Training Programs, Techno Structural Activity, Process consultation, The
Management Grid, Mediation and Negotiation Activities, Coaching and Counseling
and Career planning and goal setting activities..
1.3.1 Factors of OD Interventions

In OD, three major criteria define an effective intervention:
1) the extent to which it fits the needs of the organisation;
2) the degree to which it is based on causal knowledge of intended outcomes; and
3) the extent to which it transfers change-management competence to organisation
members.
The first criterion concerns the extent to which the intervention is relevant to the
organisation and its members. Effective interventions are based on valid information
about the organisation’s functioning; they provide organisation members with
opportunities to make free and informed choices; and they gain members’ internal
commitment to those choices. Valid information is the result of an accurate diagnosis
of the organisation’s functioning. It must reflect fairly what organisation members
perceive and feel about their primary concerns and issues. Free and informed choice
suggests that members are actively involved in making decisions about the changes
that will affect them.
It means that they can choose not to participate and that interventions will not be
imposed on them. Internal commitment means that organisation members accept
ownership of the intervention and take responsibility for implementing it. If interventions
are to result in meaningful changes, management, staff, and other relevant members
10
must be committed to carrying them out. The second criterion of an effective Definition, Factors to be
intervention involves knowledge of outcomes. Because interventions are intended to Classification of OD
produce specific results, they must be based on valid knowledge that those outcomes Interventions
actually can be produced. Otherwise there is no scientific basis for designing an
effective OD intervention. Unfortunately, and in contrast to other applied disciplines
such as medicine and engineering, knowledge of intervention effects is in a rudimentary
stage of development in OD. Much of the evaluation research lacks sufficient rigor
to make strong causal inferences about the success or failure of change programs.
Moreover, few attempts have been made to examine the comparative effects of
different OD techniques. All of these factors make it difficult to know whether one
method is more effective than another.
Despite these problems, more attempts are being made to assess systematically the
strengths and weaknesses of OD interventions and to compare the impact of different
techniques on organisation effectiveness. The third criterion of an effective intervention
involves the extent to which it enhances the organisation’s capacity to manage change.
The values underlying OD suggest that organisation members should be better able
to carry out planned change activities on their own following an intervention. They
should gain knowledge and skill in managing change from active participation in
designing and implementing the intervention. Competence in change management is
essential in today’s environment, where technological, social, economic, arid political
changes are rapid and persistent. They include the following are situational factors
that must be considered in designing any intervention: the organisation’s readiness for
change, its change capability, its cultural context, and the change agent’s skills and
abilities.
1.3.2 Readiness for Change

Intervention success depends heavily on the organisation being ready for planned
change. Indicators of readiness for change include sensitivity to pressures for change,
dissatisfaction with the status quo, availability of resources to support change, and
commitment of significant management time. When such conditions are present,
interventions can be designed to address the organisational issues uncovered during
diagnosis. When readiness for change is low, however, interventions need to focus
first on increasing the organisation’s willingness to change.
1.3.3 Capability to Change

Managing planned change requires particular knowledge and skills, including the
ability to motivate change, to lead change, to develop political support, to manage
the transition, and to sustain momentum. If organisation members do not have these
capabilities, then a preliminary training intervention may be needed before members
can engage meaningfully in intervention design.
1.3.4 Cultural Context

The national culture within which the organisation is embedded can exert a powerful
influence on members’ reactions to change, so intervention design must account for
the cultural values and assumptions held by organisation members. Interventions may
have to be modified to fit the local culture, particularly when OD practices developed
in one culture are applied to organisations in another culture. For example, a team-
building intervention designed for top managers at an American firm may need to be
modified when applied to the company’s foreign subsidiaries.
11
OD Interventions 1.3.5 Capabilities of the Change Agent
Many failures in OD result when change agents apply interventions beyond their
competence. In designing interventions, OD practitioners should assess their experience
and expertise against the requirements needed to implement the intervention effectively.
When a mismatch is discovered, practitioners can explore whether the intervention
can be modified to fit their talents better, whether another intervention more suited
to their skills can satisfy the organisation’s needs, or whether they should enlist the
assistance of another change agent who can guide the process more effectively. The
ethical guidelines under which OD practitioners operate requires full disclosure of the
applicability of their knowledge and expertise to the client situation. Practitioners are
expected to intervene within their capabilities or to recommend someone more suited
to the client’s needs.
1.3.6 Contingencies Related to the Target of Change

OD interventions seek to change specific features or parts of organisations. These
targets of change are the main focus of interventions, and researchers have identified
two key contingencies related to change targets that can affect intervention success:
the organisational issues that the intervention is intended to resolve and the level of
organisational system at which the intervention is expected to have a primary impact.
1.4 ORGANISATIONAL ISSUES

Organisations need to address certain issues to operate effectively. These issues
along with the OD interventions are intended to resolve them. It shows the following
four interrelated issues that are key targets of OD interventions:
1) Strategic issues: Organisations need to decide what products or services they
will provide and the markets in which they will compete, as well as how to
relate to their environments and how to transform themselves to keep pace with
changing conditions. These strategic issues are among the most critical facing
organisations in today’s changing and highly competitive environments. OD
methods aimed at these issues are called strategic interventions. The methods
are among the most recent additions to OD and include integrated strategic
change, mergers and acquisitions, trans-organisational development, and
organisation learning.
2) Technology and structure issues: Organisations must decide how to divide
work into departments and then how to coordinate among those departments
to support strategic directions. They also must make decisions about how to
deliver products or services and how to link people to tasks. OD methods for
dealing with these structural and technological issues are called techno-structural
interventions and include OD activities relating to organisation design, employee
involvement, and work design.
3) Human resources issues: These issues are concerned with attracting competent
people to the organisation, setting goals for them, appraising and rewarding their
performance, and ensuring that they develop their careers and manage stress.
OD techniques aimed at these issues are called human resources management
interventions.
4) Human process issues: These issues have to do with social processes occurring
among organisation members, such as communication, decision making,
12 leadership, and group dynamics. OD methods focusing on these kinds of issues
are called human process interventions; included among them are some of the Definition, Factors to be
most common OD techniques, such as conflict resolution and team building. Classification of OD
Interventions
1.4.1 Rules for Implementation
There are rules for managing the implementation process.
1) Maximize diagnostic data: In general, interventions will provide data needed to
make subsequent intervention decisions should come first.
2) Maximize effectiveness: Interventions should be sequenced so that early
intervention enhances the effectiveness of subsequent interventions.
3) Maximize efficiency: Interventions should be sequenced to conserve organisation
resources such as time, energy and money.
4) Maximize speed: Interventions should be sequenced to maximize the speed
which ultimate organisational improvement is attained.
5) Maximize relevance: Interventions that management sees as most relevant to
indicate problems should come first.
6) Minimize Psychological and organisational strain: A sequence of intervention
should be chosen that is least likely to create dysfunctional effects such as and
insecurity, distrust, dashed expectations, psychological damage to people, and
anticipated and unwanted effects on organisational performance.
Self Assessment Questions 2
1) Interventions will provide data needed to make subsequent intervention decisions
should come first to————.
a) Maximize efficiency b) Maximize diagnostic data
c) Maximize relevance d) Maximize speed
2) These ———————— are among the most critical facing organisations in
today’s changing and highly competitive environments.
a) Technology issues b) Cultural issues
c) Human resource issues d) Strategic issues
3) Issues that have to with social processes occurring among organisation members,
such as communication, decision making, leadership, and group dynamics are—
—————-
a) Human process issues b) Technology issues
d) Cultural issues d) Strategic issues
1.5 NATURE AND CLASSIFICATION OF OD

INTERVENTIONS
Different interventions have different dynamics; they do different things because they
are based on different casual mechanisms. It is important to know the underline
casual mechanisms of interventions to ensure the interventions fit the desire outcome.
Interventions do different things; they cause different things to happen. One
13
intervention’s major result may be increasing interaction and communication between
OD Interventions parties. Other interventions’ major results may be increasing feedback, or increasing
accountability. These differential results are often exactly what is needed to produce
change in the particular situations. There are some of the results one can expect from
OD intervention: Feedback, Awareness of changing socio cultural norms or
dysfunctional current norms, increased interaction and communication, Confrontation,
education, participation, increased accountability, increased energy and optimism.
Following are some of the OD interventions given under four major classifications:
1.5.1 Human Processes

T group, process consultation, third party intervention, team building, organisational
confrontation meetings, survey research.
1.5.2 Techno Structural

Formal structural change, differentiation and integration, cooperative union-management
projects, total quality management, kaizen, quality circles, work design.

Goal setting, performance appraisal, reward systems, career planning and development,
managing work force diversity, employee wellness.
Strategic: Integrated strategic management, culture change, strategic change, self
designing organisations.
1.5.4 Interventions Based On the Underlying Causal

Mechanisms
Robert Blake and Jane Mouton identified the following types of interventions based
on the underlying causal mechanisms:
1) Discrepancy intervention, which calls attention to a contradiction in action or
that then, leads to exploration.
2) Theory intervention, where behavioural science knowledge and theory are
used as plain present behaviour and assumptions underlying the behaviour.
3) Procedural intervention, which represents a critiquing of how something is, be
done to determine whether the best methods are being used.
4) Relationship intervention, which focuses attention on interpersonal relations
(particularly those where there are strong negative feelings) and surfaces the
exploration and possible resolution.
5) Experimentation intervention, in which two different action plans are tested
for consequences before a final decision on one is made.
6) Dilemma intervention, in which an imposed or emergent dilemma is used to
force examination of the possible choices involved and assumptions underlying
them
7) Perspective intervention, which draws attention away from immediate actions
and demands and allows a look at historical background, context and future
objectives order to assess whether or not the actions are “still on target”.
8) Organisational structure intervention, which calls for examination and
14 evaluation structural causes for organisational ineffectiveness.
9) Cultural intervention, which examines traditions, precedents, and practices- Definition, Factors to be
the of the organisation’s culture- in a direct, a focused approach. Classification of OD
Interventions
1.6 MAJOR “FAMILIES” OF OD INTERVENTION
ACTIVITIES
The inventory of OD interventions is quite extensive. We will explore several
classification schemes here to help you understand how interventions “clump” together
terms of (1) the objectives of the interventions, and (2) the targets of the interventions.
Becoming familiar with how interventions relate to one another is useful for planning
the overall OD strategy. The major “families” of OD intervention activities are:
1) Diagnostic Activities: Fact finding activities designed to ascertain the state of
the system. The status of a problem, the “way things are.” Available methods
range from projective devices such as “build a college that represents your
place in this organisation” to the more traditional data collection methods f
interviews, questionnaires, surveys, meetings, and examining organisational
records.
2) Team Building Activities: Activities designed to enhances the effective operation
of system teams. These activities focus on the task issues, such as the way
things are done, the skills and resources needed to accomplish tasks, the quality
of relationship among the team members or between members and the leader,
and how well the team gets its job done.
3) Intergroup Activities: Activities designed to improve the effectiveness of
interdependent groups-groups that must work together to produce a common
output.
4) Survey Feedback Activities: Activities that rely on questionnaire surveys to
generate information that is then used to identify problems and opportunities.
5) Education and Training Activities. Activities designed to improve individual’s
skills, abilities and knowledge. Several activities are available and several
approaches possible.
6) Techno structural or Structural Activities: Activities designed to improve the
effectiveness of organisational structures and job designs. The activities may
take the form of (a) experimenting with new organisation structures and evaluating
their effectiveness in terms of specific goals or (b) devising new ways to bring
technical resources to bear on problems.
7) Process Consultation Activities: Activities that “help the client to perceive
understand and act upon process events which occur in the client’s environment.”
These activities perhaps more accurately describe an approach, a consulting
mode in which the client gains insight into the human processes in organisation
and learns skills in diagnosing and managing them.
8) Grid Organisation Development Activities: Activities developed by Robert
Blake and Jou Mouton, which constitute a six phase change model involving the
total organisations internal resources are developed to conduct most of the
programs, which may take from to five years to complete.
9) Third- party Peacemaking Activities: Activities conducted by a skilled
consultant (the third party). Designed to “help two members of an organisation
manage their interpersonal conflict”. 15
OD Interventions 10) Coaching and Counseling Activities: Activities that entail the consultant or
other organisation member working with individual to help (a) define learning
goals, (b) learn how others see their behaviour, and (c) learn new behaviours
to help them better achieve their goals.
11) Life and Career Planning Activities: Activities that enable individuals to focus
on their and career objectives and how to go about achieving them. Structured
activities include producing life and career inventories, discussing goals and
objective and assessing abilities, needed additional training and area of strength
and deficiency.
12) Planning and Goal Setting Activities: that include theory and experience in
planning and goal setting problem-solving models, planning paradigms, ideal
organisations status real organisation “discrepancy” models, and the like.
13) Strategic management Activities: Activities that help key policymakers to
reflect systematically on the organisation’s basic mission and goals and
environmental demands, thrums and opportunity and to engage in long-range
action planning of both a reactive and active nature.
14) Organisational Transformation Activities: Activities that involve large scale
system change activities designed to fundamentally change the nature of the
organisation.
1) Which of these is not labeled as Organisation Development Intervention?
c) Process consultation d) Behaviour modification
2) ——————————is an intervention that helps to motivate people to
contribute towards a future that is desirable.
a) Behaviour modifications b) Visioning
c) Sensitivity Training d) Survey feedback
3) Activities designed to improve the effectiveness of organisational structures
and job designs are————
a) Tecno structural activity b) Team building activity
c) Coaching and counseling activities d) Inter group activity
1.7 LET US SUM UP

Each of these families of intervention includes many activities. They involve both
conceptual material and actual experience with the phenomenon being studied. Some
families are directed toward specific, targets, problems or processes. Another way
to classify OD interventions is by the primary target of the intervention, for example,
individuals, dyads and triads, teams and group, intergroup relations, and the total
organisational.
16
Definition, Factors to be
1.8 UNIT END QUESTIONS Considered, Nature and
Classification of OD
1) “Organisational development has become imperative in view of dynamics of Interventions
external environmental conditions and internal tensions and strain”. Justify this
statement.
2) What is an OD Intervention? Discuss its concept and nature.
3) Describe the factors to be considered for OD interventions.
4) Discuss the types of interventions based on the underlying causal mechanisms
given by Robert Blake and Jane Mouton.
5) Elucidate the major “families” of OD intervention activities.

Cummings, T.G. &Worley, C.G., Organisational Development and Change,
Thomson: Singapore.
Desimone, R.L., Werner, J.M. & Harris, D.M., Human Resource Development,
Thomson: Singapore.
Dwivedi,R.S, Human Relations And Organisational Behaviour: A Global
Perspective, Macmillan:ND
French, Wendell L & Bell, Cecill H Jr.: Organisational Development: Behavioural
Science Interventions For Organisational Improvement, Pearson ND (LDA)
Tosi, LH, Mrero, NP & Rizzo, John R: Managing Organisational Behaviour,
Blackwell: Oxford
17
UNIT 2 SELECTION AND ORGANISING OF
INTERVENTION ACTIVITIES
Structure
2.0 Introduction
2.1 Objectives
2.2 Selection of Organisational Development Intervention Activities
2.2.1 Framework of OD Intervention Activities
2.2.2 Issues to be considered while Selecting OD Intervention Activities
2.2.2.1 Factors that Impact the Success of OD Interventions
2.2.2.2 Assumptions about the Nature and Functioning of Organisations
2.3 Designing of OD Interventions
2.3.1 Designing Interventions
2.3.2 Definition of Effective Interventions
2.3.3 Specific Roles
2.3.4 Steps in Designing the Intervention Strategy
2.4 Organising of OD Intervention Activities
2.5 Let Us Sum Up
2.0 INTRODUCTION
In this unit we are dealing with selection and organising of intervention activities. In
this we first discuss the framework of Organisational Development intervention
actyivites. Selection of organisational development intervention activities requires a
framework of OD interventions which are presented in this section. Following this is
the issues to be considered while selecting OD intervention. The next section deals
with the factors that impact OD interventions and how to design OD interventions
and the steps thereof are discussed in the next section. The next section deals with
organising of OD intervention activities which involves guidelines in selecting the OD
interventions, the work setting itself in which the programme will be introduced an
the rewards system that goes to make the programme a success.
2.1 OBJECTIVES
 Define organisational development Interventions;
 Describe its characteristics;
 Explain the Selection of organisational development intervention activities;
 Elucidate the framework for OD intervention activities;
 Describe the different OD interventions;
 Elucidate the steps required to introduce OD interventions;
 Explain how to design OD intervention activities; and
18  Describe the specific roles and steps in designing OD interventions.
Selection and Organising
2.2 SELECTION OF ORGANISATIONAL of Intervention Activities
DEVELOPMENT INTERVENTION ACTIVITIES
An organisation development intervention is a sequence of activities, actions, and
events intended to help an organisation improve its performance and effectiveness.
Intervention design, or action planning, derives from careful diagnosis and is meant
to resolve specific problems and to improve particular areas of organisational functioning
identified in the diagnosis. OD interventions vary from standardised programs that
have been developed and used in many organisations to relatively unique programs
tailored to a specific organisation or department.
All OD programs have three basic components: diagnosis, action and program
management. The diagnostic component represents a continuous collection of data
about the total system, its subunits, its processes and its culture. The action component
consists of all the activities and interventions designed to improve organisation’s
functioning. The program management component encompasses all activities designed
to ensure success of the program. While diagnosing the state of the system, focusing
on the client’s concerns, strengths, problem areas, unrealised opportunities and
discrepancy between vision of desired future and the current situation will give a
valuable input for the correct selection made regarding the OD intervention activity.
The selection of the OD intervention activity will also be influenced by the approach
that is taken towards these components. It will also be determined by the framework
of OD intervention activities that is used to obtain the diagnostic data.
2.2.1 Framework of OD Intervention Activities

While making a selection of the OD intervention activity two types of frameworks
to classify interventions are identified: process models and content models. This also
helps to choose the intervention which suits the requirements. Process models explain
the intervention process or strategy. These models communicate the “do’s” and
“don’ts” or blueprints of interventions ranging from the early stages of diagnosis of
the need of OD in the workplace, through conducting changes and evaluating the
results. We find them to be potentially useful in helping organisations follow critical
issues as interventions unfold. The process models have a distinctive focus on the
approach or steps taken to institute interventions in the organisation. These process
guides vary on the elements of focus in an intervention but they are all loosely
consistent with models seen in the general management (e.g. decision making, change
management) and health and safety literatures (e.g. risk assessment).
Content models or taxonomies on the other hand are more concerned with the
elements of the job, person or organisation that need to change. These taxonomies
use features that characterise the intervention such as the popular primary, secondary
and tertiary classification of interventions. They are useful for listing any number of
intervention strategies found in organisations (e.g., EAPs, Job design) but are seriously
lacking in their ability to help organisations chose which type of intervention best
deals with identified problems. The content models or taxonomies found in the
literature represent the organisational, job, individual or other content areas in which
changes can be brought. In their simplest form these models are a catalogue of such
human resource techniques or programs (e.g., EAPs, Role Clarification, Job Design,
and Relaxation). They vary on the characteristics by which they categorise the strategies.
In some cases, the classification lends itself to reviewing the major types of interventions
in the literature because of a focus on main differentiating (theoretical) elements of
focus. Parkes and Sparkes (1998) divide interventions into two major types— 19
OD Interventions Socio-technical interventions and psychosocial interventions. In this scheme, the socio-
technical interventions— which are also techno-structural—”are primarily concerned
with changes to objective/structural aspects of the work situation (e.g., staffing levels,
work schedules, company mergers, work patterns, staff meetings) which have
implications for the stress, health and job satisfaction among the personnel concerned”.
They view these interventions as most likely to manipulate objective work conditions
and therefore more readily amenable to systematic study. They might also be seen
as consisting of mostly primary interventions focusing on the objectives.
To better guide research and interventions, we propose an evidence-based framework
as a hybrid model. Evidence-based practices or interventions are quickly gaining
momentum in numerous medical and social fields. Put simply, they prescribe
interventions based on evidence. Such requires a clear explanation and evidence of
the sources of problems (e.g. stressors) and their consequences so as to then propose
and evaluate interventions that are expected to deal with the problem in its entirety.
Within context, the framework communicates the evidence that exist for interventions
relating to the problems. It is an improvement over the content models that simply
list intervention methods with little to no reference to the problems as it intends to
address, and requires that an account of the strength of existing evidence is taken.
If interventions are bunched into a “broad” grouping, the limited research does
suggest success for “Socio-technical” interventions. Interventions of this type center
on objective changes in the work-environment which include elements related to job
design in most instances. So changes in workload and schedules, for instances, seem
to have important effects on well-being and performance. Evidence is mixed for
psychosocial types of interventions. These are “approaches intended to change
employees’ perceptions of the work environment through strategies such as increasing
participation, communication and social support, reducing role ambiguity and conflict,
and enhancing control over work tasks”.
2.2.2 Issues to be Considered while Selecting OD

Intervention Activities
Organisational development interventions refer to the techniques (methods) created
by OD professionals, coaches and mentors to help solve the pressing problems of
organisations who seek their services. A single organisational consultant cannot use
all the interventions available in his arsenal. It is always preferable to use interventions
when the need arises. This therefore calls for an effective understanding of the
organisation, its needs and the problems it is facing so as to make sure that the right
intervention tools solve the right kinds of problems.
2.2.2.1 Factors that Impact the Success of OD Interventions

I) Factors relating to Change Situation
These relate to the environment of the organisation and include the physical and
human environment.
Readiness for Change: Intervention success depends heavily on the organisation
being ready for planned change.
Capability to Change: Managing planned change requires particular knowledge
and skills including the ability to motivate change, to lead change, to develop political
support, to manage transition, and to sustain momentum.
20
Cultural Context: The national culture within which an organisation is embedded
can exert a powerful influence on members’ reactions to change, and so intervention Selection and Organising
of Intervention Activities
design must account for the cultural values and assumptions held by organisation
members.
Capabilities of the Change Agent (OD Consultant): The success of OD
interventions depend to a great extent on the expertise, experience and talents of the
consultant.
II) Factors Related to the Target of Change
These relate to the specific targets at which OD interventions are targeted. The
targets of change can be different issues of the organisation and at different levels.
A) Organisational Issues
1) Strategic Issues: Strategic issues refer to major decisions of organisations
such as what products or services to offer, which markets to serve, mergers,
acquisitions, expansions, etc.
2) Technology and Structure Issues: These refer to issues relating to how
organisations divide their work amongst departments and how they coordinate
between departments.
3) Human Resource Issues: These issues are concerned with attracting competent
people to the organisation, setting goals for them, appraising and rewarding their
performance, and ensuring that they develop their careers and manage stress.
4) Human Process Issues: These issues have to do with social processes occurring
among organisation members, such as communication, decision-making,
leadership, and group dynamics.
B) Organisational Levels
OD interventions are aimed at different levels of the organisation: individual, group,
organisation and trans-organisation (for example different offices of the organisation
around the globe; or between organisation and its suppliers, customers, etc.) In
addition to facing interrelated issues, organisations function at different levels—
individual, group, organisation and trans-organisation. Thus, organisational levels are
targets of change in OD.
For example, some techno-structural interventions affect mainly individuals and groups
(for example, work design), whereas others impact primarily the total organisation
(for example, structural design). Many OD interventions also have a secondary
impact on the other levels. For example, structural design affects mainly the organisation
level but can have an indirect effect on groups and individuals because it sets the
broad parameters for designing work groups and individual jobs.
Again, practitioners need to think systemically. They must design interventions to
apply to specific organisational levels, address the possibility of cross-level effects,
and perhaps integrate interventions affecting different levels to achieve overall success.
For example, an intervention to create self-managed work teams may need to be
linked to organisation-level changes in measurement and reward systems to promote
team-based work.
2.2.2.2 Assumptions about the Nature and Functioning of Organisations
There are many possible intervention strategies from which to choose. Several
assumptions about the nature and functioning of organisations are made in the choice
of a particular strategy. Beckhard lists six such assumptions: 21
OD Interventions 1) The basic building blocks of an organisation are groups (teams). Therefore, the
basic units of change are groups, not individuals.
2) An always relevant change goal is the reduction of inappropriate competition
between parts of the organisation and the development of a more collaborative
condition.
3) Decision making in a healthy organisation is located where the information
sources are, rather than in a particular role or level of hierarchy.
4) Organisations, subunits of organisations, and individuals continuously manage
their affairs against goals. Controls are interim measurements, not the basis of
managerial strategy.
5) One goal of a healthy organisation is to develop generally open communication,
mutual trust, and confidence between and across levels.
6) People support what they help create. People affected by a change must be
allowed active participation and a sense of ownership in the planning and conduct
of the change.
2.3 DESIGNING OF OD INTERVENTIONS

2.3.1 Designing Interventions
An organisation development intervention is a sequence of activities, actions, and
events intended to help an organisation improve its performance and effectiveness.
Intervention design, or action planning, derives from careful diagnosis and is meant
to resolve specific problems and to improve particular areas of organisational functioning
identified in the diagnosis. OD interventions vary from standardised programs that
have been developed and used in many organisations to relatively unique programs
tailored to a specific organisation or department.
Behind every program is an overall game plan or intervention strategy. This plan
integrates the problem or opportunity to be addressed, the desired outcomes of the
program, and sequencing and timing of the various interventions. Intervention strategies
are based on diagnosis and the goals desired by the client system. Designing OD
interventions requires paying careful attention to the needs and dynamics of the
change situation and crafting a change program that will be consistent with the
previously described criteria of effective interventions. Current knowledge of OD
interventions provides only general prescriptions for change. There is scant precise
information or research about how to design interventions or how they can be
expected to interact with organisational conditions to achieve specific results. Moreover,
because the ability to implement most OD interventions is highly dependent on the
skills and knowledge of the change agent, the design of an intervention will depend
to some extent on the expertise of the practitioner. Two major sets of contingencies
that can affect intervention success are: those having to do with the change situation
(including the practitioner) and those related to the target of change. Both kinds of
contingencies need to be considered in designing interventions.
2.3.2 Definition of Effective Interventions

The term intervention refers to a set of sequenced planned actions or events intended
to help an organisation increase its effectiveness. Interventions purposely disrupt the
status quo; they are deliberate attempts to change an organisation or subunit toward
22
a different and more effective state. In OD, three major criteria define an effective Selection and Organising
intervention:
1) the extent to which it fits the needs of the organisation;
2) the degree to which it is based on causal knowledge of intended outcomes; and
3) the extent to which it transfers change-management competence to organisation
members.
The first criterion concerns the extent to which the intervention is relevant to the
organisation and its members. Effective interventions are based on valid information
about the organisation’s functioning; they provide organisation members with
opportunities to make free and informed choices; and they gain members’ internal
commitment to those choices. Valid information is the result of an accurate diagnosis
of the organisation’s functioning. It must reflect fairly what organisation members
perceive and feel about their primary concerns and issues. Free and informed choice
suggests that members are actively involved in making decisions about the changes
that will affect them.
It means that they can choose not to participate and that interventions will not be
imposed on them. Internal commitment means that organisation members accept
ownership of the intervention and take responsibility for implementing it.
If interventions are to result in meaningful changes, management, staff, and other
relevant members must be committed to carrying them out. The second criterion of
an effective intervention involves knowledge of outcomes. Because interventions are
intended to produce specific results, they must be based on valid knowledge that
those outcomes actually can be produced. Otherwise there is no scientific basis for
designing an effective OD intervention.
Unfortunately, and in contrast to other applied disciplines such as medicine and
engineering, knowledge of intervention effects is in a rudimentary stage of development
in OD. Much of the evaluation research lacks sufficient rigor to make strong causal
inferences about the success or failure of change programs. Moreover, few attempts
have been made to examine the comparative effects of different OD techniques. All
of these factors make it difficult to know whether one method is more effective than
another.
Despite these problems, more attempts are being made to assess systematically the
strengths and weaknesses of OD interventions and to compare the impact of different
techniques on organisation effectiveness. The third criterion of an effective intervention
involves the extent to which it enhances the organisation’s capacity to manage change.
The values underlying OD suggest that organisation members should be better able
to carry out planned change activities on their own following an intervention. They
should gain knowledge and skill in managing change from active participation in
designing and implementing the intervention. Competence in change management is
essential in today’s environment, where technological, social, economic, arid political
changes are rapid and persistent.
2.3.3 Specific Roles

There are at least three distinct sets of roles that must be fulfilled when designing and
implementing intervention strategy – the change manager, the change agent, and the
roles played by individuals within the system that is being changed. The change
manager oversees the design of the intervention strategy. This person would have 23
OD Interventions overall responsibility for assessing the need for change, determining the appropriate
intervention activities, implementing the strategy and evaluating the results. The change
agent assists the change manager in developing and implementing change strategy.
This person should have knowledge of OD theories, concepts, practices and research
results so that he or she can advice the change manager on implementing issues and
the efficacy of different intervention strategies. For example, if during the initial stages
of designing the intervention strategy, the change manager lacks understanding of
some of the key concepts of planned change, the change agent may act as a trainer
and educator to ensure that these concepts are understood. The change agent must
address himself to all of these hazards and obstacles. Some of the things which will
help him are:
1) A real need in the client system to change
2) Genuine support from management
3) Setting a personal example: listening, supporting behaviour
4) A sound background in the behavioural sciences
5) A working knowledge of systems theory
6) A belief in man as a rational, self-educating being fully capable of learning better
ways to do things.
The roles of individuals within the system that is the target of the intervention
strategy are determined by the change manager. Change committees or task forces
are important for helping to collect data, develop team skills and define the emerging
tasks and roles within the system. Therefore to design an intervention strategy, the
change manager with the help of the change agent and others in the system, must be
able to diagnose the existing environment for change, develop and implement a plan
of action and evaluate the results of the intervention to determine if the desired
behavioural changes have occurred.
HRD practitioners have two primary roles in the design of OD interventions; first
they can serve as change agents and second can play role in the design and
implementation of OD interventions. OD interventions and labour relations are
inextricably linked. If an organisation wants to bring about lasting change in a unionised
work environment, management must first attempt to make labor relations a more
rational process. They must view union leaders as partners in change and emphasise
that their commitment to long term goals for change is important.
2.3.4 Steps in Designing the Intervention Strategy

Consistent with system theory, organisational issues are interrelated and need to be
integrated with each other. Organisation’s need to match answers to one set of
questions, with answers to other sets of questions to achieve high levels of effectiveness.
For example, decisions about gaining competitive advantage need to fit with choices
about organisation structure, setting goals for and rewarding people, communication,
and problem solving. Thus, intervention design must create change methods appropriate
to the organisational issues identified and diagnosed. Moreover, because the
organisational issues are themselves linked together, OD interventions similarly need
to be integrated with one another. For example, a goal-setting intervention that tries
to establish motivating goals may need to be integrated with supporting interventions,
such as a reward system that links pay to goal achievement. The key point is to think
24 systemically. Interventions aimed at one kind of organisational issue will invariably
have repercussions on other kinds of issues. Careful thinking about how OD Selection and Organising
interventions affect the different kinds of issues and how different change programs
might be integrated to bring about a broader and more coherent impact on
organisational functioning are critical to effective intervention activity. Some of the
steps involved in designing the intervention strategy / activities are:
Diagnose the environment: Diagnosing the environment is an assessment process
that focuses on determining the readiness of the target group to accept change. Force
field analysis is essential to analyse the driving and restraining forces. To determine
the effectiveness of the intervention activity it is required that the change manager
reduces the resistance.
Organisation of report: The report begins with an overview of the theoretical
framework underpinning our conceptualisation of problem areas. This allows all
readers, familiar or new to the topic, to develop a common bearing for the concepts
and terminology. That section is followed by a brief methods section wherein the
scope of literature search is discussed, for the purposes of this mandate. This search
led to the development of the report’s core elements contained in both the results and
recommendation sections. The results section overviews basic frameworks, models
and strategies with commentary and criticism on their utility. Then it is proposed how
a framework might best “evolve” from this review for the purposes outlined in
objectives. The results section will then end with a brief summary of evidence related
to objectives. The final section of the report will close with recommendations meant
to guide the efforts of research and practices. In a practical sense, those factors that
will assist organisations and researchers to make changes that are likely to have a
positive impact are recommended
Preparation of the report: A preliminary report to serve as a discussion piece
during a consultative symposium with invited international, national and local experts
is prepared. This symposium report hereafter includes commentary received from
these participants.
Literature search: The literature review for this work is conducted over a six-
month period The main goal of this search is to uncover any papers, articles or
reports that refer to studies conducted on the intervention in the workplace, any
reviews of such studies and any conceptual or theoretical papers reflecting on the
topic.
Results of literature search: Several frameworks have been proposed as a means
of integrating intervention strategies. Over twenty-six years ago, Newman and Beehr
(1979) conducted what is considered to be a first comprehensive review of the
literature and at that time presented a way of classifying intervention types. Elements
of that method are still in evidence today and used for practical purposes within more
elaborated systems of diagnosis and action (e.g., Cox et al, 2000). In fact, its
elements are arguably part of other frameworks or models proposed.
Development of an action plan: Involves identifying specific target variables and
determining the techniques that will be used to bring about change. The action plan
specifies intervention strategy
Analysis and evaluation of the intervention choice: The analysis focuses on a
thorough examination of the project objectives through this existing literature, conceptual
models and the several competent, detailed reviews recently conducted. It also
throws light in context of the related literature for the choice, success or failure of
intervention activities. 25
OD Interventions Therefore the following objectives get fulfilled:
Objective 1 calls for a meaningful framework that integrates intervention strategies.
Accordingly, several frameworks are identified and are reviewed.
Objective 2 deals with evaluating the effectiveness and efficiency of organisational
intervention strategies.
Objective 3 corresponds to the implications of findings for research and organisational
practice regarding the intervention activities. In the recommendation and conclusion
section, the implications are examined.
Thus considering the following framework, issues assumptions and guidelines the
intervention strategies and activities are selected and designed to suit the organisation
and the individuals within.
1) What is the role of the change manager in OD Intervention activities?
a) Team functioning b) assessing the need for change
c) oversees design of intervention d) determining appropriate
intervention activities
2) Which of these is not a framework model for OD interventions?
a) Process model b) evidence- based framework
c) content model d) human resource model
3) Factors Related to the Target of Change include————
a) Strategic Issues b) Human Process Issues
b) Technology and Structure Issues d) Systems issues
2.4 ORGANISING OF OD INTERVENTION

ACTIVITIES
“Interventions” are principal learning processes in the “action” stage of organisation
development. Interventions are structured activities used individually or in combination
by the members of a client system to improve their social or task performance. They
may be introduced by a change agent as part of an improvement program, or they
may be used by the client following a program to check on the state of the
organisation’s health, or to effect necessary changes in its own behaviour. “Structured
activities” mean such diverse procedures as experiential exercises, questionnaires,
attitude surveys, interviews, relevant group discussions, and even lunchtime meetings
between the change agent and a member of the client organisation. Every action that
influences an organisation’s improvement program in a change agent-client system
relationship can be said to be an intervention.
Interventions range from those designed to improve the effectiveness of individuals
through those designed to deal with teams and groups, intergroup relations, and the
total organisation. There are interventions that focus on task issues (what people do),
and those that focus on process issues (how people go about doing it). Finally,
interventions may be roughly classified according to which change mechanism they
tend to emphasise: for example, feedback, awareness of changing cultural norms,
interaction and communication, conflict, and education through either new knowledge
or skill practice.
26
Michel Beer suggest some guideline for choosing and sequencing intervention activities Selection and Organising
such as maximize diagnostic data, maximize effectiveness, maximize efficiency, maximize
speed, maximize relevance and minimize psychological and organisational strain. There
are some ways to structure activities to promote learning and change are better and
some are worse. To structure activities in better ways some points help practitioner
such as:
 Structure the activity to include the relevant people, affected by the problem or
the opportunity.
 Structure the activity so that it is (a) problem oriented or opportunity oriented
and (b) oriented to the problems and opportunities generated by the clients
themselves.
 Structure the activity so that the goal is clear and the way to reach the goal is
clear.
 Structure the activity to ensure a high probability of success.
 Structure the activity so that it contains both experience- based learning and
conceptual learning,
 Structure the climate of the activity so those individuals are freed up rather than
anxious or defensive.
 Structure the activity so that the participants learn both how to solve a particular
problem and learn how to learn.
 Structure the activity so that individuals learn about task and process.
 Structure the activity so that individuals are engaged as whole persons, not
segmented persons.
INTERVENTION ACTIVITY
ORGANISATIONAL
WORK SETTING
Social factors
Organising arrangements Physical setting
Technology
ORGANISATIONAL
OUTCOMES
ORGANISATIONAL DEVELOPMENT
PERFORMANCE OF INDIVIDUAL
Fig. 1: Organisation and Implementation of Intervention for Organisational Development

and Change
The figure above explains how the intervention activity will go through the organisational
work setting and consider issues like social factors, physical setting, technology and
27
OD Interventions organising arrangements according to the requirements of the organisation to obtain
organisational outcomes in the form of individual development and effective
organisational performance.
Contingencies Related to the Change Situation: Researchers have identified a
number of contingencies present in the change situation that can affect intervention
success. These include individual differences among organisation members (for
example, needs for autonomy), organisational factors (for example, management
style and technical uncertainty), and dimensions of the change process itself (for
example, degree of top-management support). Unless these factors are taken into
account in designing an intervention, it will have little impact on organisational
functioning or, worse, it may produce negative results. For example, to resolve
motivational problems among blue-collar workers in an oil refinery it is important to
know whether interventions intended to improve motivation (for example, job
enrichment) will succeed with the kinds of people who work there. In many cases,
knowledge of these contingencies results in modifying or adjusting the change program
to fit the setting. In applying a reward-system intervention to an organisation, the
changes might have to be modified depending on whether the firm wants to reinforce
individual or team performance.
One of the most difficult tasks confronting the change agent is to help create in the
client system a safe climate for learning and change. In a favourable climate, human
learning builds on itself and continues indefinitely during man’s lifetime. Out of new
behaviour, new dilemmas and problems emerge as the spiral continues upward to
new levels. In an unfavourable climate, in contrast, learning is far less certain, and in
an atmosphere of psychological threat, it often stops altogether. Unfreezing old ways
can be inhibited in organisations because the climate makes employees feel that it is
inappropriate to reveal true feelings, even though such revelations could be constructive.
In an inhibited atmosphere, therefore, necessary feedback is not available. Also,
trying out new ways may be viewed as risky because it violates established norms.
Such an organisation may also be constrained because of the law of systems: If one
part changes, other parts will become involved. Hence, it is easier to maintain the
status quo. Hierarchical authority, specialisation, span of control, and other
characteristics of formal systems also discourage experimentation.
A few examples of interventions include team building, coaching, Large Group
Interventions, mentoring, performance appraisal, downsizing, TQM, and leadership
development.
The following are the different kinds of organisational development interventions:
 Sensitivity training
 Survey feedback
 Development discussion
 Goal setting and planning
 Team building and management objective.
 Managerial grid
 Job enrichment, participative management and quality circles.
 Process consultation intervention
28
 Inter-group Team-Building Interventions Selection and Organising
 Third-Party Peacemaking Interventions
 Structural Interventions
These kinds of intervention can be used in various settings depending on the need
of the organisation. Survey feedback intervention provides data and information to
all the managers. Information related to the attitude, structure, working conditions will
be included in the survey. Managers analyse the data pertaining to each and every
employee and takes appropriate action. They try to analyse the problem, evaluate
the result and correct the problem.
On the other hand, along the consultation process, the consultant meets all departments,
work teams, and observes the interaction and skill levels of those working in those
areas. Goal setting and planning goals are important for the overall strategic plans for
the profitability of the organisation. Managerial grid identifies management behaviour
on different ways. It looks into production-oriented factors as well as the employee-
oriented factors and combines them to interact with each other. It also gives the
structural view of the laboratory training. Managerial grid interventions also relate to
the leadership skills.
1) To structure activities in better ways practitioner do the following—————
a) Structure activity for individuals to learn b) Structure activity to ensure
success
c) Structure day to day activities d) Structure activity to
include relevant people
2) Which of these is not an intervention activity?
a) Diagnostic process b) Survey feedback
c) Development discussion d) Sensitivity training
3) Survey feedback intervention provides data and information to all the managers
about———
a) attitude b) structure
c) working conditions d) all of these
2.5 LET US SUM UP

The growth of any organisation pulls its peoples to change their thinking toward
organisational development interventions. People with planned and changed
interventions can grow in organisations. An intervention forms the front view of any
developed organisation. So it is important to follow and implement creative
interventions. In implementing OD interventions, it is important to apply criteria to
goals, experiment with alternative arrangements, establish inter unit task force, and
identify key communicators and fire-able offenses.
An intervention forms the appropriate relationship between strategy and organisational
development. So a development model is required to reflect the human resource
management and structure to build the organisational development intervention. At
29
OD Interventions last an intervention makes a way for the effective business development with lots of
competition.

1) How can you ensure the success of the implementation of organisational
development interventions in your organisation?
2) How will you know if you’re using the right kind of intervention?
3) Why is the role of a manager critical to the success of the intervention?
4) Discuss the framework of OD intervention activities in context to the various
related issues.
5) Describe the designing of OD intervention activities and the specific roles played
at different levels by people in designing and implementing these activities.

Thomson: Singapore.
Perspective, Macmillan: ND
Science Interventions For Organisational Improvement, Pearson ND (LDA)
30
UNIT 3 TYPOLOGY OF INTERVENTIONS
BASED ON TARGET GROUPS
Structure
3.0 Introduction
3.1 Objectives
3.2 Typology of Interventions
3.3 Classification of OD Interventions Based on Target Groups
3.3.1 Information Based Interventions
3.3.2 Consequence Based Interventions
3.3.3 Design Based Interventions
3.4 Description of OD Interventions Based on Target Groups

3.4.1 Interpersonal Interventions
3.4.2 Group Interventions
3.4.3 Intergroup Interventions
3.4.4 Rotating Membership Interventions
3.4.5 Comprehensive Interventions
3.5 Interventions Related To Total Organisations

3.5.1 Socio Technical System (STS)
3.5.2 Structural Change Interventions
3.5.3 Parallel Learning Structures
3.5.4 MBO (Participation Form)
3.5.5 Cultural Analysis
3.5.6 Confrontation Meetings
3.5.7 Visioning
3.5.8 Strategic Planning /Strategic Management Activities
3.5.9 Real Time Strategic Change
3.5.10 Grid OD 4, 5, 6
3.5.11 Interdependency Exercise
3.5.12 Survey Feedback
3.5.13 Appreciative Inquiry
3.5.14 Search Conferences
3.5.15 Quality of Work Life (QWL) Programme
3.6 Total Quality Management

3.7 Let Us Sum Up
3.0 INTRODUCTION
This unit deals with typology of interventions based on target groups. We start with
defining what is typology of interventions. We describe the various dimensions related
to typology of interventions and we discuss the results that will be obtained from OD
interventions. Then we take up classification of interventions and discuss the
classifications in terms of information based interventions, consequence based 31
OD Interventions interventions and design based interventions. Then we present the target groups like
individuals etc. and the related typology of organisational development (OD)
interventions. Then we take up description of OD interventions based on target
groups in which we discuss interpersonal interventions, group interventions, intergroup
interventions and comprehensive interventions. This is followed by the section in
which we discuss interventions related to total organistions. In this we discuss socio
technical systems, parallel learning structures, cultural analysis etc. Then we deal with
characteristics of OD practitioners role.
3.1 OBJECTIVES
 Define and describe typology of interventions;
 Describe the various dimensions of interventions;
 Describe target groups and the typology of interventions;
 Explain OD interventions based on target groups;
 Analyse different types of OD interventions in terms of the target groups; and
 Elucidate the characteristics of OD practitioners.
3.2 TYPOLOGY OF INTERVENTIONS

Blake and Mouton have continued to refine the nature of interventions and proposed
a theory and typology for the entire consultation field. The typology called the
Consulcube is a hundred/ cell cube depicting virtually all consultation situations. The
cube is built on three dimensions.
i) The first is what the consultant does, that is, which of five basics types of
intervention the consultant uses – acceptant (the consultant gives the client a
sense of worth, value, acceptance, and support); catalytic (the consultant helps
the client generate data and information to restructure the client’s perceptions);
confrontation(the consultant point out value discrepancies in the client’s beliefs
and actions); prescriptions (the consultant tells the client what to do to solve
the problem); and theories and principles (the consultant teaches the client
relevant behavioural science theory so the client can learn to diagnose and solve
his or her own problems.
ii) The second dimension is the focal issues causing the client’s problems. Blake
and Mouton identified four focal issue categories: power/authority, moral/cohesion,
norms/standard of conduct and goals/objectives.
iii) The third dimension of the cube is the unit of change that is the target of the
consultation. Five units are proposed: individual, group, intergroup, organisation,
and larger social systems such as a community or even a society. Blake and
Mouton’s Counsulcube represents a major contribution to developing a theory
of consultation and intervention.
Interventions do different things; they cause different things to happen. One
intervention’s major result may be increasing interaction and communication between
parties. Another intervention’s major result may be increasing feedback, or increasing
accountability. These differential results are often exactly what are needed to produce
32 change in the particular situation.
The results one can expect from OD interventions are: Typology of Interventions
Based on Target Groups
 Feedback referring to learning new data about oneself, others, group processes
or organisational dynamics;
 Awareness of changing Sociocultural Norms or dysfunctional current norms
helps people modify their behaviour, attitudes and values accordingly;
 Increased interaction and communication between individuals and groups;
 Confrontation with differences in beliefs, feelings, attitudes, values etc.;
 Education activities upgrade knowledge and concepts, beliefs and attitudes and
skills.
 Participation in problem solving, goal setting and generating new ideas;
 Increased accountability, energy and optimism.
Interventions ‘clump’ together in terms of (1) the objectives of the interventions and
(2) the targets of the interventions.
3.3 CLASSIFICATION OF OD INTERVENTIONS

The interventions include many activities involving both conceptual material and actual
experience with the phenomenon being studied. Some families are directed toward
specific targets, problems or processes. One way to classify OD interventions is by
the primary target of the intervention e.g. individuals, dyads and triads, teams and
groups, intergroup relations and the total organisation. Another way is on the basis
of the content of the intervention i.e. Information- based, consequences based and
design based.
3.3.1 Information-Based Interventions

1) Interventions that define : Activities that specify or clarify the vision, mission,
purpose, process, products, services, market position, roles, relationships,
responsibilities, outcomes, expectations, and so on. Examples: holding sessions
to create vision statements; confirming market direction and market niche; mutually
setting performance goals. This intervention is delivered when people are unclear,
disagree, or have different expectations; there are conflicting objectives; or
people do not have a shared understanding.
2) Interventions that inform: Activities that communicate goals, objectives,
expectations, results, discrepancies, and so on. Examples: producing internal
newsletters; holding debriefing sessions; giving feedback. This intervention is
delivered when information has changed, the people have changed, or the
people are uninformed, and the consequence is poor performance; or people
don’t get the information they need.
3) Interventions that document: Activities that codify information (to preserve
it and make it accessible. Examples: setting up libraries; creating manuals, expert
systems, job aids, and decision guides. This intervention is delivered when
information is not accessible over time or is too complex; job aids, manuals,
help screens, and so forth are lacking or inadequate, inaccurate, or hard to
access.
33
OD Interventions 3.3.2 Consequences-Based Interventions
1) Interventions that reward: Activities and programs that induce and maintain
desired behaviours, eliminate undesirable behaviours, and reward desired
outcomes. Examples: holding public ceremonies and annual recognition events;
paying for performance. This intervention is delivered when current incentives
either reinforce the wrong behaviours or ignore the desired behaviours; or there
are few incentives for people to-do beater, more, or differently.
2) Intervention that measure: Activities and systems that provide metrics and
benchmarks so people can monitor performance and have a basis to evaluate
it. Examples: developing a scorecard; tracking means and variance in performance
over time. This intervention is delivered when people don’t know what criteria
are being used to judge productivity, performance, value, and so on, and they
could better control their own performance if they knew what the criteria were;
measures of good performance are lacking; or measures are inappropriate.
3) Interventions that enforce: Activities that actualise consequences and achieve
compliance. Example: policing; reviewing; double-checking; suspending; removing;
withholding pay. This intervention is delivered when consequences for poor
performance or unacceptable behaviour are hidden or not enforced.
3.3.3 Design Based Interventions

1) Interventions that organise: Activities that change the structure or arrange
business units, reporting relationships, work processes, jobs, and tasks. Examples:
reengineering processes; merging functions; reorganising responsibilities. This
intervention is delivered when the current structure is inefficient, results in
redundancy, adds excess costs, overly burdens cycle times, and hides
accountability.
2) Interventions that standardise: Activities that systematise or automate
processes and standardise tasks, tools, equipment, materials, components, or
measures. Examples: adopting ISO 9000; implementing uniform standards. This
intervention is delivered when deviations in equipment, materials, specifications,
procedures, common practices, and so on add extra costs; result in low yields,
and cause variance in the quality of work.
3) Interventions that (re) design: Activities that result in useful, easy-to-use,
safe, and ergonomically designed environments, workplaces, equipment, and
tolls. Examples: building in safety features; designing for ease of installation,
service, maintenance, and upgrading. This intervention is delivered when the
current work space, equipment, tools, or materials encumber, result in non-
value adding activity, or put employees health and safety at risk.
4) Interventions that reframe: Activities and programs that generate new
paradigms so that people can experience new perspectives, find creative solutions,
integrate new concepts into their behaviour, and manage change. Examples:
challenging assumptions; engaging in dialogue/ entering into new alliances;
brainstorming; creating alternative futures. This intervention is delivered when
old attitudes about work are preventing innovation or growth.
5) Interventions that counsel: Activities and programs that help individuals,
either singularly or collectively, deal with work, personal, career, family, and
financial issue. Examples: offering on-site daycare, retirement seminars, on-site
34
physical fitness canters, and employee assistance programs. This intervention is Typology of Interventions
delivered when people are preoccupied with or distracted by personal and
career issues, and this is limiting productivity or adding unnecessary costs.
6) Interventions that develop: Activities and programs that expand skills and
knowledge. Examples: offering training, coaching, and structured on-the-job
experiences. This intervention is delivered when current performance is suffering
or future performance will suffer because people lack skills and knowledge.
7) Interventions that align: Activities and programs that work toward congruency
between purpose and practice. Examples: setting up cross-functional teams;
soliciting customer (internal and external) feedback. This intervention is delivered
when current messages, behaviours, systems, structures, or environments do not
support the organisations goals. Figure 1 shows the Typology of OD interventions
based on Target groups:
Individual Life and career planning activities
Coaching and counseling
T-group (sensitive training)
Education and training to increase skills, knowledge in the
areas of technical task needs, relationship skills, process skills,
decision making, problem solving, planning, goal-setting skills
Grid OD phase 1
Work redesign
Gestalt OD
Behavior modeling
Dyads/Triads Process consultation
Third party peacemaking
Role negotiation technique
Gestalt OD
Teams and Groups Team building-Task directed-Process directed
Gestalt OD
Grid OD phase 2
Interdependency exercise
Appreciative inquiry
Responsibility Charting
Process Consultation
Role negotiation
Role analysis technique
“Startup” team-building activities
Education in decision making, problem solving, planning, goal
setting in group settings.
Team MBO
Appreciations and concerns exercise
Sociotechnical systems (STS)
Visioning
Quality of work life (QWL) programs
Quality circles
Force-field analysis
Self-managed teams
35
OD Interventions
Intergroup relations Intergroup activities- Process directed

-Task directed
Partnering
Process Consultant
Third party peacemaking at group level
Grid OD phase 3
Survey feedback
Total Organisation Sociotechnical system (STS)
Parallel learning structures
MBO (participation forms)
Cultural analysis
Confrontation meetings
Visioning
Strategic planning/strategic management activities
Real-time strategic change
Grid OD 4,5,6
Interdependency exercise
Survey feedback
Appreciative inquiry
Search Conferences
Quality of Work life (QWL) programs
Total quality management (TQM)
Physical settings
Large scale systems change
Fig. 1: Typology of OD Interventions based on Target Groups

1) Which of these is not a part of the individual Organisation Development
Intervention?
a) Work redesign b) Grid OD phase 1
c) Team building d) Behaviour modification
2) a) Activities and programs that generate new paradigms so that people can
experience new Interventions that reframe
b) Interventions that standardise
c) Interventions that enforce
d) Interventions that organise
3) Which of these is not the dimension of Blake and Mouton’s proposed theory
and typology for the entire consultation field called Consulcube?
a) What consultant does b) Focal issues
b) Target groups d) Humanistic view
36
Typology of Interventions
3.4 DESCRIPTION OF OD INTERVENTIONS Based on Target Groups
The OD interventions discussed represent the major organisational development
methods used.
A set of persons who serve as the focal point for a particular program or service is
a target group. This is a smaller sample than the target population. It can be individuals,
dyads, triads, teams or groups, or the organisation in total. Interventions are conducted
with an aim to focus on the problems associated with the target group as every
intervention will be target group specific and designed accordingly.
OD interventions are plans or programs comprised of specific activities designed to
effect change in some facet of an organisation. Numerous interventions have been
developed over the years to address different problems or create various results.
However, they all are geared toward the goal of improving the entire organisation
through change. In general, organisations that wish to achieve a high degree of
organisational change will employ a full range of interventions, including those designed
to transform individual and group behaviour and attitudes. Entities attempting smaller
changes will stop short of those goals, applying interventions targeted primarily toward
operating policies, management structures, worker skills, and personnel policies.
Typically, organisation development programs will simultaneously integrate more than
one of these interventions. A few of the more popular interventions are briefly described
below:
3.4.1 Interpersonal Interventions

Interpersonal interventions in an OD program are designed to enhance individual
skills, knowledge, and effectiveness. This type of program utilises group dynamics by
gathering individuals together in loosely structured meetings. Subject matter is
determined by the group, within the context of basic goals stipulated by a facilitator.
As group members try to exert structure on fellow members, group members gain
a greater awareness of their own and other’s feelings, motivations, and behaviours.
Other types of interpersonal interventions include those designed to improve the
performance review process, create better training programs, and help workers
identify their true wants and set complementary career goals, and resolve conflict.
3.4.2 Group Interventions

OD group interventions are designed to help teams and groups within organisations
become more effective. Such interventions usually assume that the most effective
groups communicate well, facilitate a healthy balance between both personal and
group needs, and function by consensus as opposed to autocracy or majority rule.
Group diagnostic interventions are simply meetings wherein members of a team
analyse their unit’s performance, ask questions about what the team needs to do to
improve, and discuss potential solutions to problems. The benefit of such interventions
is that members often communicate problems of which their co-workers were unaware.
Ideally, such communication will spur problem-solving and improved group dynamics.
3.4.3 Intergroup Interventions

Intergroup interventions are integrated into OD programs to facilitate cooperation
and efficiency between different groups within an organisation. For instance,
departmental interaction often deteriorates in larger organisations as different unit’s 37
OD Interventions battle for limited resources or become detached from the needs of other units.
Conflict resolution meetings are one common intergroup intervention. First, different
group leaders are brought together to secure their commitment to the intervention.
Next, the teams meet separately to make a list of their feelings about the other
group(s). Then the groups meet and share their lists. Finally, the teams meet to
discuss the problems and to try to develop solutions that will help both parties. This
type of intervention, say supporters, helps to gradually diffuse tension between groups
that has arisen because of faulty communication.
3.4.4 Rotating Membership Interventions

These are used by OD change agents to minimize the negative effects of intergroup
rivalry that arise from employee allegiances to groups or divisions. The intervention
basically entails temporarily putting group members into their rival groups. As more
people interact in the different groups, greater understanding results. OD joint activity
interventions serve the same basic function as the rotating membership approach, but
these involve melding members of different groups to work together toward a common
goal. Similarly, common enemy interventions achieve the same results by finding an
adversary common to two or more groups and then getting members of the groups
to work together to overcome the threat. Examples of common enemies targeted in
such programs include competitors, government regulation, and economic conditions.
3.4.5 Comprehensive Interventions

OD comprehensive interventions are used to directly create change throughout an
entire organisation, rather than focusing on organisational change through subgroup
interventions. One of the most popular comprehensive interventions is survey feedback.
This technique basically entails surveying employee attitudes at all levels of the company
and then disseminating a report that details those findings. The employees then use
the data in feedback sessions to create solutions to perceived problems. A number
of questionnaires specifically for such interventions have been developed.
3.5 INTERVENTIONS RELATED TO TOTAL

ORGANISATIONS
These interventions involve getting a broad variety of stakeholders into a large meeting
to clarify important values, to develop new ways of working, to articulate a new
vision for the organisation, or to solve pressing organisational problems. Such meetings
are powerful tools for creating awareness of organisational problems and opportunities
and for specifying valued directions for future action.
3.5.1 Socio Technical Systems (STS)

These interventions focus on an organisation’s technology (for example, task methods
and job design) and structure (for example, division of labor and hierarchy). These
change methods are receiving increasing attention in OD, especially in light of current
concerns about productivity and organisational effectiveness. They include approaches
to employee involvement, as well as methods for designing organisations, groups,
and jobs. Techno-structural intervention are rooted in the disciplines of engineering,
sociology, and psychology and in the applied fields of socio-technical systems and
organisation design, practitioners generally stress both productivity and human fulfillment
and expect that organisation effectiveness will result from appropriate work designs
and organisation structures.
38
3.5.2 Structural Change Interventions Typology of Interventions
Structural change interventions are used by OD change agents to implement
organisational alterations related to departmentalization, management hierarchy, work
policies, compensation and benefit incentive programs, and other cornerstones of the
business. Often, the implemented changes emanate from feedback from other
interventions. One benefit of change interventions is that companies can often realise
an immediate and very significant impact in productivity and profitability (provided
the changes are warranted and implemented appropriately).
Sociotechnical system design interventions are similar to structural change techniques,
but they typically emphasise the reorganisation of work teams. The basic goal is to
create independent groups throughout the company that supervise themselves. This
administration may include such aspects as monitoring quality or disciplining team
members. The theoretic benefit of sociotechnical system design interventions is that
worker and group; productivity and quality is increased because workers have more
control over (and subsequent satisfaction from) the process in which they participate.
3.5.3 Parallel Learning Structures

Generally this consists of a steering committee and a number of working groups that
study what changes are needed in the organisation, make recommendations for
improvement, and then monitor the resulting change efforts. Use is made of facilitator
role, data gathering, data feedback and process consultation. It is used across a wide
array of change programs. These have included quality of work life (QWL) programs,
sociotechnical systems, work redesign efforts, open systems etc.
3.5.4 MBO (Participation Forms)

The concept of ‘Management by Objectives’ (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to
be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed. The
essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of
the employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of
action to be followed by them, they are more likely to fulfill their responsibilities.
The principle behind Management by Objectives (MBO) is to create empowered
employees who have clarity of the roles and responsibilities expected from them,
understand their objectives to be achieved and thus help in the achievement of
organisational as well as personal goals. Some of the important features and advantages
of MBO are: Clarity of goals . With MBO, comes the concept of SMART goals i.e.
goals that are: Specific, Measurable, Achievable, Realistic and Time bound. The
goals thus set are clear, motivating and there is a linkage between organisational goals
and performance targets of the employees. The focus is on future rather than on past.
Goals and standards are set for the performance for the future with periodic reviews
and feedback.
Motivation involving employees in the whole process of goal setting and increasing
employee empowerment increases employee job satisfaction and commitment. Better
communication and Coordination, Frequent reviews and interactions between superiors
39
OD Interventions and subordinates helps to maintain harmonious relationships within the enterprise and
also solve many problems faced during the period.
Define
organisational goals
Performance Defining employee

Appraisals objectives and
(Rewards /
punishments)
Continuous
Monitoring of
Providing performance and
Feedback progress
Performance
evaluation/reviews
Fig. 2: Management by Objectives (MBO) Process
3.5.5 Cultural Analysis

This intervention helps organisations develop cultures (behaviours, values, believes,
and norms) appropriate to their strategies and environments. It focuses on developing
a strong organisation culture to keep organisation members pulling in the same direction.
As a discipline, cultural analysis is based on using qualitative research methods of
the social sciences, in particular ethnography and anthropology, to collect data on
cultural phenomena; in an effort to gain new knowledge or understanding through
analysis of that data. This is particularly useful for understanding and mapping trends,
influences, effects, and affects within cultures. There are four themes to cultural
analysis:
1) Adaptation and Change: This refers to how well a certain culture adapts to
its surroundings through the use of its culture. Some examples of this are foods,
tools, home, surroundings, art, etc. that show how the given culture adapted.
Also, this aspect aims to show how the given culture makes the environment
more accommodating.
2) How culture is used to survive: How the given culture helps its members
survive the environment.
3) Holism, Specificity: The ability to put the observations into a single collection,
and presenting it in a coherent manner.
4) Expressions: This focuses on studying the expressions and performance of
40 everyday culture
3.5.6 Confrontation Meetings Typology of Interventions
This change method mobilizes organisation members to identify problems, set action
targets, and begin working on problems. It is usually applied when organisations are
experiencing stress and when management needs to organise resources for immediate
problem solving. The intervention generally includes various groupings of employees
in identifying and solving problems.
3.5.7 Visioning
This generates a common goal, hope, and encouragement. It offers a possibility for
fundamental change, and gives people a sense of control. It gives a group something
to move toward and generates creative thinking and passion. People in the organisation
are asked to visualise how they will like their organisation to be in the future or a
span of five to twenty years. All the employees can be involved in deriving the vision
of the organisation. Based on the vision certain missions are set along with specific
goals or targets to make it more concrete.
3.5.8 Strategic Planning/Strategic Management Activities

Interventions that link the internal functioning of the organisation to the larger environment
and transform the organisation to keep pace with changing conditions are among the
newest additions to OD. They are implemented organisation wide and bring about
a fit between business strategy, structure, culture, and the larger environment. The
interventions derive from the disciplines of strategic management, organisation theory,
open—systems theory, and cultural anthropology.
3.5.9 Real Time Strategic Change

Robert Jacobs’s real time strategic change is a process congruent with search
conferences and strategic management activities. “Real- Time” refers to simultaneous
planning and implementation of individual, group and organisation wide changes. A
critical mass of organisational members sometimes hundreds comes together for a
three day meeting to discuss organisation wide issues. This process requires a great
deal of planning and a great deal of facilitator’s assistance. Extensive follow up is
essential.
3.5.10 Grid OD 4, 5, 6
This normative intervention specifies a particular way to manage an organisation. It
is a packaged OD program that includes standardised instruments for measuring
organisational practices and specific procedures for helping organisations to achieve
the prescribed approach. In the Grid OD 4 the focus shifts to corporate strategic
planning, with the goal being to learn the concepts and the skills of corporate logic
necessary to achieve corporate excellence. Using the comparisons of ideal corporate
logic the top management team is better able to recognise what aspects of the culture
must be changed to achieve excellence. Grid OD phase 5 involves implementing the
ideal strategic model. Logical components of the corporation are designated. Each
component appoints a planning team whose job is to examine every phase of the
components operations. In Grid OD phase 6 systematic critiquing, measuring and
evaluating leads to knowledge of what progress has been made, what barriers still
exist and must be overcome and what opportunities have developed that may be
exploited.
41
OD Interventions 3.5.11 Interdependency Exercise
A shortened version of this technique can be used in a large group of say 60 people,
if clusters of ten people interview each other, each having a different question. Each
cluster has the same assignment and the same question. The participants interview
each other participant and then the consultant forms a new group of ten people again.
This procedure is a rapid way to gather great deal of data for diagnostic purpose.

In globally competitive environments, organisations are seeking information about
obstacles to productivity and satisfaction in the workplace. Survey feedback is a tool
that can provide this type of honest feedback to help leaders guide and direct their
teams. Obstacles and gaps between the current status quo and the desired situations
may or may not be directly apparent. In either case, it is vital to have a clear
understanding of strategies for diagnosis and prevention of important organisation
problems. If all leaders and members alike are clear about the organisational
development and change, strengths, weakness, strategies can be designed and
implemented to support positive change. Survey feedback provides a participative
approach and enables all members to become actively engaged in managing the
work environment.
Survey process steps: Identify project plan and objectives; Brief team leaders and
employees about the process; Administer survey; Conduct interviews and focus
groups; Train leaders on facilitating team discussions; Analyse the data and construct
a report; Provide feedback to leaders; Team leaders conduct feedback action planning
and meetings; Leaders present reports on progress and results to Senior Management;
Follow-up by senior leadership to ensure progress and accountability.
Once the data has been collected and observations have been clarified, it becomes
the leader’s responsibility to familiarise the team with the findings. Next the leader
involves the team in outlining appropriate solutions and strategies that members can
“buy into” and support over the long-haul. When leaders can facilitate collaborative
teaming and become an organisational development and change agent, people in the
team will contribute creative ideas to enhance their work environment. It is important
for leaders to not underestimate the time and facilitation skills needed to pass on the
information and foster an action-oriented environment. The initial meetings and
communication sessions are just the start of a development process, not a single
event. If the survey feedback is to be effective, it must be implemented into a
comprehensive strategy that includes goals, responsibilities, time frames, revisions,
and reviews. Prior to the action meetings, leaders need to gain a full understanding
of the survey data and begin to structure a plan for the first meeting. Once the
meeting begins, the leader should guide the group’s evaluation of the results and
development of solutions. Following the initial meeting, a summary should be
documented and action plans circulated. Follow-up meetings are necessary to
coordinate and evaluate changes and progress. Action plans are the means of fully
utilising the survey feedback, without it we simply have a snap shot of where the
organisation is, with no plan for positive change. If the team feedback meeting is
poorly handled, there will be low front-end commitment on the part of the team.
Of course group dynamics will be unique in every situation, and the leader will need
to consider this as the survey data is disseminated. Tailoring sessions to meet the
group characteristics will provide for a more effective discussion. In any case, consider
a few of these ideas: Be optimistic and excited about the information and how it can
42
be used to better the organisation; Verbally express positive points; Ask for Typology of Interventions
participation by all members and reinforce their openness and contributions; Invite
them to explore with you the areas that need improvement; Be supportive and clear
about action and follow-up plans; Establish a clear commitment to utilise the survey
feedback long-term and seek further feedback from the group. Most importantly,
help the group understand the purpose and mission of the survey feedback as a
leader feast on the opportunity of having clear data and truly listen and involve
members in your organisational development and change endeavor.

Appreciative Inquiry is an organisational development method that seeks to engage
all levels of an organisation (and often its customers and suppliers) in its renewal,
change and improved performance. It may be particularly applicable to organisations
facing rapid change or growth. The method is based on the fact that questions tend
to focus attention. Excessive focus on dysfunctions can actually cause them to multiply
or become intractable. By contrast, when all members of an organisation are motivated
to understand and value the most favourable features of its culture, it can make
surprisingly rapid improvements. Strength-based methods are now commonly used
in the creation of organisational development strategy and implementation of
organisational effectiveness tactics. The practice emphasises learning how to perceive
organisations as entities that are alive, vital, and dynamic. The appreciative mode of
inquiry often relies on interviews to explore the life of an organisation. It seeks to
enable members to inquire deeply into the essentials of an organisation’s experience
and it’s potential. The objective is to create an understanding of the assets and
personal motivations that are of fundamental value to the particular organisation. The
following sequence describes some of the distinctions between Appreciative Inquiry
and more traditional approaches to organisational development. Appreciative Inquiry
employs a particular way of asking questions and envisioning the future that fosters
positive relationships and builds on the basic goodness in a person, a situation, or
an organisation. In so doing, it tends to enhance a system’s capacity for collaboration
and change. Appreciative Inquiry utilises a cycle of 4 processes focusing on:
1) Discover: the identification of organisational processes that work well.
2) Dream: the envisioning of processes that would work well in the future.
3) Design: planning and prioritising processes that would work well.
4) Destiny (or deliver): The implementation (execution) of the proposed design.
The basic idea is to build organisations around what works, rather than trying to fix
what doesn’t. It is the opposite of problem solving. Instead of focusing on gaps and
inadequacies to remediate skills or practices, AI focuses on how to create more of
the exceptional performance that is occurring when a core of strengths is aligned. It
opens the door to a universe of possibilities, since the work doesn’t stop when a
particular problem is solved but rather focuses on “What is the best we can be?” The
approach acknowledges the contribution of individuals, in order to increase trust and
organisational alignment. The method aims to create meaning by drawing from stories
of concrete successes and lends itself to cross-industrial social activities. There are
a variety of approaches to implementing Appreciative Inquiry, including mass-mobilized
interviews and a large, diverse gathering called an Appreciative Inquiry Summit
(Ludema, Whitney, Mohr and Griffin, 2003). Both approaches involve bringing very
large, diverse groups of people together to study and build upon the best in an
organisation or community. 43
OD Interventions Appreciative Inquiry was adapted from work done by earlier action research theorists
and practitioners and further developed by David Cooperrider of Case Western
Reserve University and Suresh Srivastva in the 1980s. Cooperrider and Srivastva
say that an organisation is a miracle to be embraced rather than a problem to be
solved. According to them, inquiry into organisational life should have the following
characteristics: Appreciative, Applicable, Provocative and Collaborative. The basic
philosophy of AI is also found in other positively oriented approaches to individual
change as well as organisational change. As noted above, “ AI ...fosters positive
relationships and builds on the basic goodness in a person, or a situation ....” The
principles behind A.I. are based in the rapidly developing science of Positive
Psychology. The idea of building on strength, rather than just focusing on faults and
weakness is a powerful idea in use in mentoring programs, and in coaching dynamics.
It is the basic idea behind teaching “micro-affirmations” as well as teaching about
micro-inequities.
3.5.14 Search Conferences

According to Emery and Purser ‘the search conference is normally a two-and- a-
half day event usually held off-site in a retreat like setting. Ideally twenty to thirty-
five people are selected to participate based on such criteria as their knowledge of
the system and their potential for taking responsibility for implementation. The consultant
meet with a voluntary committee, participants are assigned tasks and they generate
data focusing on the past, present and future factors as well as the action steps.
Volunteers agree to document the meeting and communicate with others.
3.5.15 Quality of Work Life (QWL) Programme

Quality of work life (QWL) is viewed as an alternative to the control approach of
managing people. The QWL approach considers people as an ‘asset’ to the organisation
rather than as ‘costs’. It believes that people perform better when they are allowed
to participate in managing their work and make decisions. This approach motivates
people by satisfying not only their economic needs but also their social and
psychological ones. To satisfy the new generation workforce, organisations need to
concentrate on job designs and organisation of work. Further, today’s workforce is
realising the importance of relationships and is trying to strike a balance between
career and personal lives. Successful organisations support and provide facilities to
their people to help them to balance the scales. In this process, organisations are
coming up with new and innovative ideas to improve the quality of work and quality
of work life of every individual in the organisation. Various programs like flex time,
alternative work schedules, compressed work weeks, telecommuting etc., are being
adopted by these organisations. Technological advances further help organisations to
implement these programs successfully. Organisations are enjoying the fruits of
implementing QWL programs in the form of increased productivity, and an efficient,
satisfied, and committed workforce which aims to achieve organisational objectives.
The future work world will also have more women entrepreneurs and they will
encourage and adopt QWL programs.
3.6 TOTAL QUALITY MANAGEMENT (TQM)

OD intervention that became extremely popular during the 1980s and early 1990s
is total quality management (TQM). TQM interventions utilise established quality
techniques and programs that emphasise quality processes, rather than achieving
quality by inspecting products and services after processes have been completed.
44
The important concept of continuous improvement embodied by TQM has carried Typology of Interventions
over into other OD interventions. Sometimes called continuous quality improvement,
is a combination of a number of organisation improvement techniques and approaches
including the use of quality circles, statistical quality control, statistical process control,
self- managed teams and task forces and extensive use of employee participation.
The quality imperatives include; primary emphasis on customers, daily operational
use of the concept of internal customers, an emphasis on measurement using both
statistical quality control and statistical process control techniques, competitive
benchmarking, continuous search for sources of defects with a goal of eliminating
them entirely, participative management, an emphasis on teams and teamwork, a
major emphasis on continuous training and top management support on an ongoing
basis.TQM invites a major culture change of the organisation.
1) Physical settings: Some consultants have been active in working with clients
and in conceptualising about how to make physical setting congruent with OD
assumptions and OD process. Physical settings are an important part of
organisation culture that work groups should learn to diagnose and manage and
about which top management needs input in designing plants and buildings. If
physical settings are not at par with the requirements then it interferes with
effective group and organisational functioning. Consultants pay attention to the
physical arrangements for team building sessions where participative diagnosis
is a prerequisite.
2) Large scale systems change: When a number of OD and other interventions
are combined to create major changes in the total culture and operations of an
organisation, the term large scale change is used.
1) Which of these is not the part of the cycle of four processes focusing in
Appreciative Inquiry?
a) Dignity b) Destiny
c) Discover d) Dream
2) Which of the following Intervention considers people as an ‘asset’ to the
organisation rather than as ‘costs’?
a) TQM b) QWL
c) Large scale systems change d) Survey feedback
3) _____________say that an organisation is a miracle to be embraced rather
than a problem to be solved.
a) Cooperrider and Srivastva b) Mohr and Griffin
c) Peter Drucker d) Morgan and King
45
OD Interventions Characteristics of the OD Practitioners’ Role
Meta level characteristics Marginal position relative to client system
Collaboration through facilitating or
assisting clients with exploring issues,
problems, actions and strategies
Continuum of directive to non directive role
areas
Practitioner’s role Provider of expert advice in methods or
approaches to changeDiagnostician by
gathering, analysing, and summarizing
informatio n and drawing
conclusionsTrainer-educator, primarily in
behaviour science tools and techniques
Objective problem solver using problem
solving approaches Surfacer of alternatives
for approaching organisational issues
Process specialist with attention to
interpersonal and intergroup dynamics
Observer or coach actiong as a neutral
sounding board.
Example role activities and Assisting clients to describe and clarify
behaviours situations and issues Assisting clients to
understand and express their own views
and developing measures of success and
understanding of risks. Assisting clients with
information gathering and understanding
Challenging client thinking Collaboratively
developing a course of action Offering
theories to increase understanding Teaching
and modeling problem solving approaches
Contingent role Range of available role areas linked to the
needs of the client system at any given
time Role dependent on stage of
organisational development intervention
3.7 LET US SUM UP

Each of these families of intervention includes many activities. They involve both
conceptual material and actual experience with the phenomenon being studied. Some
families are directed toward specific, targets, problems or processes. Another way
to classify OD interventions is by the primary target of the intervention, for example,
individuals, dyads and triads, teams and group, intergroup relations, and the total
organisational.

1) Discuss the classification of OD Interventions on the basis of the content of the
intervention.
2) Describe the typology of OD Interventions based on target groups.
46
3) Discuss Management by Objectives and its process as an important participative Typology of Interventions
OD Intervention
4) What do you understand by Survey feedback? Why is it in extensive use these
days in organisations?
5) Discuss the characteristics of the OD practitioner’s role in conducting OD
Interventions.

Judith Hale, The Performance Consultant’s Fieldbook: Tool and Technique for
Improving Organisations and People, Jossey Bass Publication. explorehr.org/articles/
.../Types_of_OD_ Intervention.html
Cummings, T.G. &Worley, C.G., Organisational Development and Change,
Thomson: Singapore.
Thomson: Singapore.
Perspective, Macmillan:ND
Science Interventions For Organisational Improvement, Pearson :ND (LDA)
47
UNIT 4 HUMAN PROCESS
INTERVENTIONS: INDIVIDUAL
GROUP AND INTER-GROUP,
COACHING, COUNSELING,
TRAINING, BEHAVIOURAL
MODELING, MENTORING,
MOTIVATING ETC.
Structure
4.0 Introduction
4.1 Objectives
4.2 Human Process Interventions
4.2.1 Characteristics of OD Programme
4.2.2 Individuals and the OD Programme
4.3 Teams and Groups

4.3.1 Characteristics of Well Functioning Teams
4.3.2 Team Building, Task Directed, Process Directed
4.3.3 Gestalt OD
4.3.4 Grid OD Phase 2
4.3.5 Interdependcy Exercise
4.3.7 Responsibility Charting
4.3.8 Process Consultation
4.3.9 Role Negotiation
4.3.10 Role Analysis Technique
4.3.11 “Start up” Team Building Activities
4.4 Education in Decision Making, Problem Solving, Planning, Goal Setting in

Group Settings
4.4.1 Team MBO
4.4.2 Appreciations and Concerns Exercise
4.4.3 Scoio Technical Systems (STS)
4.4.4 Visioning
4.4.5 Quality Work Life (QWL) Programmes
4.4.6 Quality Circles
4.4.7 Force Field Analysis
4.4.8 Self Managed Teams
4.5 Intergroup Relations

4.5.1 Partnering
4.5.2 Third Party Peace Making At Group Level
48
4.6 Coaching and Counseling Human Process Interventions:
Individual Group and Inter-
4.6.1 Executive Coaching Group, Coaching, Counseling,
4.6.2 Training Training, Behavioural
Modeling, Mentoring,
4.6.3 Behaviour Modelling Motivating etc.
4.7 Mentoring
4.7.1 Accompanying
4.7.2 Sowing
4.7.3 Catalysing
4.7.4 Showing
4.7.5 Harvesting
4.7.6 Mentoring Relationship
4.7.7 Mosaic Mentoring
4.7.8 New Hire Mentorship
4.7.9 High Potential Mentorship
4.8 Motivation
4.8.1 Provide a Nurturing Environment
4.8.2 Encourage Personal Growth
4.8.3 Empower Employees
4.8.4 A Top Down Method
4.8.5 Incentives
4.8.6 Responsibility
4.8.7 Pleasant Working Environment
4.8.8 Interesting Work
4.8.9 Listen
4.8.10 Share Business Success
4.8.11 Job Security
4.8.12 Promotion / Growth
4.8.13 Competitive Salary
4.9 Let Us Sum Up
4.0 INTRODUCTION
In this unit we will be dealing with Human Process Interventions: Individual, Group
and Inter-group, Coaching, Counseling, Training, Behavioural modeling, Mentoring,
Motivating. We begin with human process intervention followed by teams and groups
and the interventions thereof. We discuss here the many OD interventions such as
Gestalt OD, Responsibility charting etc. This is followed by education in decision
making, problem solving etc. in which we discus the team management by objectives,
the socio technical systems, visioning and so on. The next section deals with intergroup
relationships in which we discuss partnering, third party peacemaking etc. Then we
take up coaching and counseling in which we deal with executive coaching, training
and behaviour modeling. Mentoring is the next section which deals elaborately with
what is mentoring and what are all involved in it. This si followed by how to motivate
employees in the organisation and the various measures that could be taken up are
considered. 49
OD Interventions
4.1 OBJECTIVES
 Define and describe human process interventions;
 Explain the various intervention in teams and groups;
 Elucidate the techniques involved in education in decision making, problem
solving etc.;
 Describe the intergroup relations and bring out the important aspects of the
same;
 Describe coaching and counselling and mentoring;
 Delineate the various aspects of mentoring;
 Elucidate the types of mentoring;
 Define motivation of employees; and
 Describe the various methods to motivate employees to perform at the highest
level.
4.2 HUMAN PROCESS INTERVENTIONS

Organisational development (OD) is an application of behavioural science to
organisational change. It encompasses a wide array of theories, processes, and
activities, all of which are oriented toward the goal of improving individual organisations.
Generally speaking, however, OD differs from traditional organisational change
techniques in that it typically embraces a more holistic approach that is aimed at
transforming thought and behaviour throughout an entity. Definitions of OD abound,
but they are all predicated on the notion of improving organisational performance
through proactive activities and techniques.
It is also worth noting that organisational development, though concerned with improving
workforce performance, should not be mistaken for human resource development.
“Organisation development is the planned process of developing an organisation to
be more effective in accomplishing its desired goals,” wrote Rima Shaffer in Principles
of Organisation Development. “It is distinguished from human resource development
in that HRD focuses on the personal growth of individuals within organisations, while
OD focuses on developing the structures, systems, and processes within the organisation
to improve organisational effectiveness.”
Although the field of OD is broad, it can be differentiated from other systems of
organisational change by its emphasis on process rather than problems. Indeed,
traditional group change systems have focused on identifying problems in an
organisation and then trying to alter the behaviour that creates the problem. But
Margaret Neale and Gregory Northcraft observed in “Organisational Behaviour: A
Management Challenge” , that OD initiatives focus on identifying the behavioural
interactions and patterns that cause and sustain problems. Then, rather than simply
changing isolated behaviours, OD efforts are aimed at creating a behaviourally healthy
organisation that will naturally anticipate and prevent (or quickly solve) problems.
4.2.1 Characteristics of OD Programme

OD programmes usually share several basic characteristics. For instance,
 They are considered long term efforts of at least one to three years in most
50 cases.
 OD stresses collaborative management, whereby managers and employees at Human Process Interventions:
different levels of the hierarchy cooperate to solve problems. Group, Coaching, Counseling,
 OD also recognises that every organisation is unique and that the same solutions Training, Behavioural
Modeling, Mentoring,
cannot necessarily be applied at different companies. Motivating etc.
 OD programs have an emphasis on the value of teamwork and small groups.
 OD systems use small teams or even individuals as a vehicle to implement broad
organisational changes.
Organisation development initiatives do not automatically succeed. The benefits of
effective OD programs are myriad, as many executives, managers, and business
owners will attest. But OD interventions that are pursued in a sloppy, half-hearted,
or otherwise faulty manner are far less likely to bring about meaningful change than
those that have the full support of the people involved. Ownership and all involved
personnel needed to be genuinely and visibly committed to the effort. People involved
in OD have to be informed in advance of the nature of the intervention and the nature
of their involvement in it. The OD effort has to be connected to other parts of the
organisation; this is especially true of such areas as the evaluation and reward systems.
The effort has to be directed by appropriate managers and guided by competent
change agents. The intervention should be based on accurate diagnosis of organisational
conditions. Owners and managers should show their commitment to OD at all stages
of the effort, including the diagnosis, implementation, and evaluation.
Evaluation is a key to success, and should consist of more than asking people how
they felt about the effort. Owners and managers need to show employees how the
OD effort relates to the organisation’s goals and overriding mission.
4.2.2 Individual and the OD Programme

These include individuals as their target group. It can be given on one to one basis
as well. These interventions focus on people within organisations and the processes
through which they accomplish organisational goals. These processes include
communication, problem solving, group decision making, and leadership. This type
of intervention is deeply rooted in the history of OD. It represents the earliest change
programs characterising OD, including the T-group and the organisational confrontation
meeting. Human process interventions derive mainly from the disciplines of psychology
and social psychology and the applied fields of group dynamics and human relations.
Practitioners applying these interventions generally value human fulfillment and expect
that organisational effectiveness follows from improved functioning of people and
organisational processes.
Some of the programmes include (i) Life and career planning activities (ii) T-group
sensitivity training (iii) Education and training (iv) Work redesign (v) Gestalt OD (vi)
Project consultation (vii) Thir party peace making and (viii) Role negotiation technique.
These are being dealt with in detail below.
i) Life and career planning activities: The intention of a life and career planning
exercise is to provide individuals with time for reflection, so that they can
identify important aspects of their life and work. It then provides with an
opportunity to consider other approaches to life and work which may better
meet their needs. The exercise involves mainly individual work, and discussion
in pairs.
There is no requirement that you discuss more than you want to. The important 51
OD Interventions part is the individual work. Pair discussion merely makes it easier for most
people to consider the issues more deeply. The most effective way of doing this
exercise is as part of a larger group. The size does not matter all that much,
though between 12 and 24 is easily manageable. We don’t really need the larger
group after the initial screening process. If we have ample time (the workbook
is presently intended to occupy about half a day) we may decide to compare
notes during some of the later stages too. This can be an advantage, as people
can learn from each others’ ideas and experience.
Edgar Schein has provided the concept of career anchors and hypothesized five
basic career anchors i.e. technical/ functional competence, managerial
competence, creativity, security or stability and autonomy. Career anchors are
the patterns of self perceived talents, motives and values that serve to guide
stabilize and integrate the person’s career.
ii) T-group (sensitivity training): This traditional change method provides
members with experiential learning about group dynamics, leadership, and
interpersonal relations. The basic T-group brings ten to fifteen strangers together
with a professional trainer to examine the social dynamics that emerge from their
interactions. Members gain feedback about the impact of their own behaviours
on each other and learn about group dynamics.
The T- group has high relevance for developing skills of importance in the
unfolding of an OD effort and for personal growth and development. T-group
is essentially unstructured, agendaless group session for about 10 to 12 members
and a professional trainer who acts as catalyst and facilitator for the group. The
data for discussion is the data provided by the interaction of the group members
as they strive to create a viable society for themselves. The actions, reactions,
interactions and the feelings accompanying them are the data for the group. The
group meets for three days to upto two weeks. Learning from T-group varies
from individual to individual.
iii) Education and training: to increase skills, knowledge in the areas of technical
task needs, relationship skills, process skills, decision making, problem solving,
planning, goal setting skills.
Grid OD Phase 1: Robert R. Blake and Jane S. Mouton designed Grid
organisational development. Basic to the Grid OD program are the concepts
and methods of the Managerial Grid a two dimensional schematic for examining
and improving the managerial practices of individual manager. The organisation
selects managers’ part of the first Phase or Grid seminar. In this Phase a Grid
seminar conducted by in company managers is given to all managers of the
organisation.
The focus of the training: Attention is given to assessing an individual’s managerial
styles; problem solving; critiquing and communication skills are predicted; skills
of synergistic teamwork are learned and practiced, managers learn to become
9,9 managers.
iv) Work redesign: Richard Hackman and Greg Oldham have provided an OD
approach to work redesign. Extensive use of the facilitator role in team
development is recommended. They used five core job characteristics i.e. skill
variety, task identity, task significance, autonomy and feedback from job and
then redesign jobs to maximize employee motivation. The first three are related
52
to experienced meaningfulness of the work; job autonomy related to experienced Human Process Interventions:
responsibility for the outcomes of the work; feedback related to the knowledge Group, Coaching, Counseling,
of the results of work activities. The expected outcomes are high work motivation, Training, Behavioural
high job satisfaction, high work effectiveness and growth. Modeling, Mentoring,
Motivating etc.
Dyads / triads: Two individuals or units regarded as a pair are known as dyads and
a group of three individuals or units is known as triads. Some interventions in
organisations include dyads and triads depending on the type of situation and problems.
1) ________________intervenes directly in the relationships of power, authority
and influence within the group.
c) Role negotiation technique d) Behaviour modification
2) _________________is based on the belief that persons function as a whole
and each person possesses positive and negative characteristics that must be
owned up to and permitted expression.
a) Gestalt Therapy b) Third party peacemaking
c) Open communication d) Survey feedback
3) The traditional change method provides members with experiential learning
about group dynamics, leadership, and interpersonal relations.
a) T-Group training b) Gestalt OD
b) Work redesign d) Grid OD
4.3 TEAMS AND GROUPS

Rensis Likert and McGregor identified some characteristics of well functioning, effective
groups/ teams. McGregor’s list of characteristics is as follows:
4.3.1 Characteristics of Well Functioning Teams

1) The atmosphere tends to be relaxed, comfortable and informal.
2) The group task is well understood and accepted by the members.
3) The members listen well to each other.
4) There is a lot of task relevant discussion in which most members participate.
5) People express both their feelings and ideas.
6) Conflicts and disagreement are present but are centered around ideas and
methods not personalities and people.
7) The group is conscious of its own operation.
8) Decisions are usually based on consensus, not majority vote;.
9) When actions are decided upon, clear assignments are made and accepted by
the members.
According to McGregor when these conditions are met the team is likely to be 53
OD Interventions successful in accomplishing its mission and simultaneously satisfying the personal and
interpersonal needs of its members. So, teams and work groups are considered to
be the fundamental units of organisations as well as key leverage points for improving
the functioning of the organisation.
4.3.2 Team Building, Task Directed, Process Directed

This intervention helps work groups become more effective in accomplishing tasks.
Like process consultation, team building helps members diagnose group processes
and devise solutions to problems. It goes beyond group processes, however, to
include examination of the group’s task, member roles, and strategies for performing
tasks. The consultant also may function as a resource person offering expertise
related to the group’s task. Human process interventions that are more system wide
(than those related to Interpersonal and Groups) typically focus on the total organisation
or an entire department, as well as on relations between groups.
4.3.3 Gestalt OD
Robert Harman lists the goals of Gestalt Therapy as awareness, integration, maturation,
authenticity, self- regulation and behaviour change. One must come to terms with
oneself, must accept responsibility for one’s actions, must experience and live in the
‘here and now’ and must stop blocking off awareness, authenticity and the like by
dysfunctional behaviours. Stanley Herman applies a Gestalt orientation to organisation
development, especially in working with leader- subordinate relations and team building.
The objective here is not to provide instructions on making the organisation culture
safer, more pleasant or easier for the individual, but rather to help the individual
recognise, develop and experience his own potency and ability to cope with his
organisation world whatever its present condition. People must be able to express
their feelings fully, both positive and negative. They must ‘get in touch’ with ‘where
they are’ on issues, relations with others and relations with selves. The Gestalt OD
practitioner fosters the expression of positive and negative feelings, encourages people
to stay with transactions, structures exercises that cause individuals to become more
aware of what they want from others and pushes toward greater authenticity for
everyone.
4.3.4 Grids OD Phase 2

Team work development: The focus of this phase is work teams in the organisation.
The goal is perfecting teamwork in the organisation through analysis of team culture,
traditions and the like and also developing skills in planning, setting objectives and
problem solving. Additional aspects of this phase include feedback given to each
manager about his or her individual and team behaviour; this allows manager to see
his or her strengths and weaknesses in the team’s working.
4.3.5 Interdependency Exercise

This is a useful intervention if team members have expressed a desire to improve
cooperation among themselves and among their units. This exercise is also useful for
assisting people in getting better acquainted, in surfacing problems that may be latent
and not previously examined and in providing useful information about current
challenges being faced in others’ areas of responsibility. It works well with up to
approximately ten people, but can become too cumbersome and time consuming if
more than that number are involved. This exercise requires the participants’ cooperation
and assumes no serious conflict situations. Serious intense conflict situations require
54 a different structure and more time.
4.3.6 Appreciative Inquiry Human Process Interventions:
An intervention developed by Frank Barrett and David Cooperrider and refined by Group, Coaching, Counseling,
Training, Behavioural
Gervase Bushe. This intervention is based on the assertion that the organisation ‘is Modeling, Mentoring,
a miracle to be embraced’ rather than ‘ a problem to be solved’. The central Motivating etc.
interventions are interviews and then discussions in small groups or organisation wide
meetings. Questions include ‘What have been the peak moments in the life of this
organisation?’, ‘What do staff members’ value most about themselves, their tasks
and the organisation as a whole?’ One of the important aspects that the approach
seems to generate is more attention by the consultant and the client organisation to
the strengths of the organisation and its member. AI can be productively combined
with other OD approaches.
4.3.7 Responsibility Charting

This helps to clarify who is responsible for what on various decisions and actions.
It is a simple, relevant and effective technique for improving team functioning. The
first step is to construct a grid; the types of decisions and classes of actions that need
to be taken in the total area of work under discussion are listed along the left-hand
side of the grid, and the actors who might play some part in decision making on those
issues are identified across the top of the grid. Then the process is one of assigning
a behaviour i.e. responsibility, approval required / right to veto, support and inform,
to each of the actors opposite each of the issues. A fifth behaviour is noninvolvement
of a person with the decision; this is indicated on the chart with a dash (-). Responsibility
charting is usually done in a work team context. Each decision or action is discussed
and responsibility is assigned. Then approval-veto, support and inform functions are
assigned. This can quickly identify who is to do what on new decisions as well as
help to pinpoint reasons why old decisions are not being accomplished as desired.
It helps to improve task performance of team work.
4.3.8 Process Consultation

PC represents an approach or a method for intervening in an ongoing system.
Process consultation consists of many different interventions it is not any single thing
the consultant does. The job of the process consultant is to help the organisation
solve its own problems by making it aware of organisational processes, the
consequences of these processes and the mechanism by which they can be changed.
The PC consultant works with the organisation, typically in work teams and helps
them to develop the skills necessary to diagnose and solve the process problems that
arise. Schein describes the kinds of interventions he believes the process consultant
should make agenda-setting interventions, feedback of observations or other data,
coaching or counseling of individuals and then give structural suggestions.
4.3.9 Role Negotiation

The first step in role negotiation is contract is contract setting. Here the consultant
sets the climate and establishes the ground rules starting with what you want others
to do more of or do better, to do less of or stop doing or maintain unchanged; all
demands and expectations must be written. The next step is issue diagnosis. Individuals
think about how their own effectiveness can be improved if others change their work
behaviours. Then each person fills out an issue diagnosis form for every other person
in the group. The next step is the influence trade or negotiation period, in which two
individuals discuss the most important behaviour changes they want from the other
and the changes they are willing to make themselves. Then the group breaks into
55
OD Interventions negotiating pairs, when the negotiated agreements have been made and written down,
the influence trade is concluded with a follow up meeting thereafter.
4.3.10 Role Analysis Technique

Role analysis technique (RAT) is used to help employees get a better grasp on their
role in an organisation. In the first step of a RAT intervention, people define their
perception of their role and contribution to the overall company effort in front of a
group of coworkers. Group members then provide feedback to more clearly define
the role. In the second phase, the individual and the group examine ways in which
the employee relies on others in the company, and how they define his or her
expectations. RAT interventions help people to reduce role confusion, which can
result in either conflict or the perception that some people are not doing their job.
A popular intervention similar to RAT is responsibility charting, which utilises a matrix
system to assign decision and task responsibilities.
4.3.11 “Startup” Team-Building Activities

Team building interventions are typically directed toward four main areas: diagnosis,
task accomplishments, team relationships and team and organisation processes. Major
approaches to team building or work groups are diagnostic meeting, the formal work
group team-building meeting, process consultation and Gestalt OD, as well as a
number of techniques and exercises used within team building sessions to address
specific issues.
4.4 EDUCATION IN DECISION MAKING,

PROBLEM SOLVING, PLANNING, GOAL
SETTING IN GROUP SETTINGS
These intervention involve skill development
4.4.1 Team MBO

MBO (Management by Objectives) programs evolve from a collaborative organisation
diagnosis and are systems of joint target setting and performance review designed to
increase a focus on objectives and to increase the frequency of problem solving
discussions between supervisors and subordinates and within work teams. MBO
programs are unilateral, autocratic mechanisms designed to force compliance with a
superior’s directives and reinforce one-on one leadership mode. Likert and Fisher
describe a participative team approach to MBO in use in a retail division of a
consumer products organisation and in an automobile plant. They report impressive
increase in contribution to corporate profits in the retail sales division and substantially
increased productivity and reduced scrap and rejects in the automobile plant. They
call the approach Management by Group Objectives (MBGO).
4.4.2 Appreciations and Concerns Exercise

Appreciations and concerns exercise is appropriate if interview data suggest that one
of the deficiencies in the interactions of members of a group is lack of expression of
appreciation and that another deficiency is the avoidance of confronting concerns and
irritations. The facilitator asks each member of the group to write the appreciation
and concerns relative to each member of the group. And then these are discussed
one by one to make improvements accordingly. If substantial conflict exists within the
56
group members then this exercise does not prove to be fruitful.
4.4.3 Socio Technical Systems (STS) Human Process Interventions:
This change process concerns the organisation’s division of labor—how to specialise Group, Coaching, Counseling,
task performances. Interventions aimed at structural design include moving from Modeling, Mentoring,
more traditional ways of dividing the organisations overall work (such as functional, Motivating etc.
self-contained-unit, and matrix structures) to more integrative and flexible forms
(such as process-based and networkbased structures). Diagnostic guidelines exist to
determine which structure is appropriate for particular organisational environments,
technologies, and conditions. These interventions focus on an organisation’s technology
(for example, task methods and job design) and structure (for example, division of
labor and hierarchy). These change methods are receiving increasing attention in OD,
especially in light of current concerns about productivity and organisational
effectiveness.
4.4.4 Visioning
This is a term used for an intervention, in which, group members in one or more
organisational groups, develop and describe their vision of what they want the
organisation to be like in the future. The time frame may be anywhere from six
months to five years in the future. The concept of visioning is credited to Ronald
Lippitt. It starts with writing down the characteristics they will like to see this organisation
have from one or two years in future, characteristics are made visible on a flip chart
paper and displayed, clarifications pertaining to questions are made, subjects then
extract themes from individual reports and report them to the total group. Visioning
uses mental imagery or cognitive maps to describe the organisation.
4.4.5 Quality of Work Life (QWL) Programmes

This Program has been applied to a wide variety of organisational improvement
efforts. The common element seems to be an attempt to restructure multiple dimensions
of the organisation and to institute a mechanism which introduces and sustains changes
over time. Aspects of the change mechanism are usually an increase in participation
by employees in shop floor decisions and an increase in problem solving between the
union and management. It includes voluntary involvement on the part of employees,
union agreement with the process and participation in it, assurance of no job loss,
training of employees in team problem solving, use of quality circles, work team
participation in forecasting, work planning and team leader/member selection, regular
plant and team meetings, encouragement of skill development and job rotation, skill
training and responsiveness to employee concern.
4.4.6 Quality Circles

Quality circle concept is a form of group problem solving and goal setting with a
primary focus on maintaining and enhancing the quality of the product. Quality circles
have been extensively used in Japan. It consists of a group of seven to ten employees
from a unit who have volunteered to meet together regularly to analyse and make
proposals about product quality and other problems. Supervisors who have volunteered
to participate are trained by quality control experts and facilitators. Favourable results
have been reported through the use of cross- functional quality circle teams.
4.4.7 Force-Field Analysis

Force- field analysis is a device for understanding a problematic situation and planning
corrective actions. The technique was first proposed by Kurt Lewin. It is essentially
vector analysis an analytical tool. It involves deciding upon problematic situation, 57
OD Interventions describing the desired condition, identifying the factors and forces operating in the
current force field, examine the forces, strategies to move the equilibrium from current
conditions to desired conditions, implement the action plans and describe what actions
must be taken to stabilize the equilibrium at the desired condition and implement
those actions.
4.4.8 Self-Managed Teams

Several problems are encountered in moving toward the use of self managed teams.
The first problem is what to do with the first-line supervisors who are no longer
needed as supervisors. Another is that the managers that are now one level above
the teams will likely oversee the activities of several teams and their roles will change
to emphasise planning, expediting and coordinating. Team members need to develop
new skills in running and participating in the team meetings as well as planning, quality
control and budgeting.
4.5 INTERGROUP RELATIONS

These interventions are designed to improve interactions among different groups or
departments in organisations. The microcosm group intervention involves a small
group of people whose backgrounds closely match the organisational problems being
addressed. This group addresses the problem and develops means to solve it. The
inter-group conflict model typically involves a consultant helping two groups understand
the causes of their conflict and choose appropriate solutions.
4.5.1 Partnering
Partnering is productive in situations, in which, two or more organisations are likely
to incur unnecessary conflict. It is a variation of team building, intergroup team
building and strategic planning having the objective of forming ‘an effective problem-
finding/ problem- solving management team composed of personnel from both parties,
creating a single culture with one set of goals and objectives for the project’.
Participants report better results than on non-partnered projects.
58
4.5.2 Third Party Peacemaking at Group Level Human Process Interventions:
A basic feature of third party peacemaking intervention is confrontation: the two Group, Coaching, Counseling,
principals must be willing to confront the fact that conflict exists and that it has Modeling, Mentoring,
consequences for the effectiveness of the two parties involved. The third party must Motivating etc.
be able to diagnose the conflict situations. A major distinction is drawn between
substantive and emotional conflict. This distinction is important for the third party
consultant. Intervention tactics for the third party consist of structuring confrontation
and dialogue between the principals. The third party will intervene directly or indirectly
in facilitating dialogue.

The focus of this phase is intergroup relations and the goal of this phase is to move
groups from their ineffective, win-lose actual ways of relating between groups toward
an ideal model of intergroup relations. The dynamics of intergroup cooperation are
explored. The phase consists of teams convening in twos to work on the previously
stated issues. Only the selected members of the teams take part in the exercises and
activities.

The process of systematically collecting data about the system and feeding back the
data for individuals and groups at all levels of the organisation to analyse, interpret
meanings and design corrective action steps. It has two major components – the use
of a climate or attitude survey and the use of feedback workshops – are called
survey feedback. The steps involved are organising top level members of the hierarchy
for preliminary planning, collecting data, feedback to top executives, each superior
discusses the data with subordinates and give feedback in presence of the consultant.
Survey feedback has shown as an effective change technique in OD.
1) Process consultation Intervention was developed by which of these practioners?
a) Stanley M. Hermann b) Kurt Lewin
c) Edgar Schein d) Peter Drucker
2) ____________identified characteristics of well –functioning, effective groups/
teams.
a) Rensis Likert and McGregor b) Kurt Lewin
b) Edgar Schein d) Stanley M. Hermann
3) ______________concept is a form of group problem solving and goal setting
with a primary focus on maintaining and enhancing the quality of the product.
a) Quality circle b) Socio-technical systems
b) Quality of Work Life d) Systems view
4.6 COACHING AND COUNSELING

Counselors and therapists were not in the vanguard of the coaching movement.
However, as coaching becomes more popular and more counselors discover it, more
counselors are found in various coach-training programs, and are either including
coaching as one of the services they offer or transitioning from a counseling practice
to a coaching practice. These activities frequently grow out of team- building and
59
OD Interventions intergroup interventions. In the aftermath of a team –building session an individual
may seek some attentive listening away from the group setting. Individuals may also
want feedback from the consultant or help in looking at optional behaviours that
might be more effective. Coaching, with a professional coach, is the practice of
supporting an individual, referred to as a client, through the process of achieving a
specific personal or professional result. Coaching is differentiated from therapeutic
and counseling disciplines
Coaching is performed with individuals and groups, in person, over the phone and
online. The facilitative approach to coaching in sport was pioneered by Timothy
Gallwey; hitherto, sports’ coaching was (and often remain solely a skills-based learning
experience from a master in the sport). Other contexts for coaching are numerous
and include executive coaching, life-coaching, emotional intelligence coaching and
wealth coaching. The basic skills of coaching are often being developed in managers
within organisations, specifically to up-skill their managing and leadership abilities,
rather than to apply in formal one-to-one coaching sessions. These skills can also be
applied within team meetings and are akin then to the more traditional skills of group
facilitation. Instructing, coaching and mentoring differ. Instructors disseminate
knowledge. Coaches help clients build skills. Mentors shape mental attitudes.
Alternately, instructors train to immediate tasks, coaches accompany achievements,
and mentors provide whole-life shaping.
In organisations today, coaching refers to a method of personal development or
human resource development (HRD). This field of coaching is becoming a distinct
area of practice for individuals and in organisations. A casual business practice of
coaching is the act of providing positive support and positive feedback while offering
occasional advice to an individual or group in order to help them recognise ways in
which they can improve the effectiveness of their business. Coaching is an excellent
way to attain a certain work behaviour that will improve leadership, employee
accountability, teamwork, sales, communication, goal setting, strategic planning and
more. It can be provided in a number of ways, including one-on-one, group coaching
sessions and large scale organisational work. Many corporations are instilling the
practice of 360 degree consulting before providing coaching, which permits employees
to utilise their own life or professional experiences in a positive way to create team
participation attitudes even with superiors. Coaching is not a practice restricted to
external experts or providers. Many organisations expect their senior leaders and
middle managers to coach their team members toward higher levels of performance,
increased job satisfaction, personal growth, and career development.
4.6.1 Executive Coaching

This can be grouped separately from business coaching, as there is a common
understanding that business coaching can be the equivalent of business planning, or
consulting, but the coach takes the lead in running the business process. Executive
coaching is the one-to-one relationship between a coach and a client, based around
the intrapersonal goals of the client within the organisational context. Global Executive
coaching deals specifically with the unique set of challenges created from crossing
cultures following an international or domestic relocation. Personal coaching is a
process which is designed and defined in a relationship agreement between a client
and a coach. It is based on the client’s expressed interests, goals and objectives. A
professional coach may use inquiry, reflection, requests and discussion to help clients
identify personal and/or business and/or relationship goals, develop strategies,
relationships and action plans intended to achieve those goals. A coach provides a
60
place for clients to be held accountable to themselves by monitoring the clients’
progress towards implementation of their action plans. Together they evolve and Human Process Interventions:
modify the plan to best suit the client’s needs and environmental relationships. Coaches Group, Coaching, Counseling,
often act as human mirrors for clients by sharing outside and unbiased perspectives. Training, Behavioural
Coaches may teach specific insights and skills to empower the client toward their Modeling, Mentoring,
Motivating etc.
goals.
Clients are responsible for their own achievements and success. The client takes
action, and the coach may assist, but never leads or does more than the client.
Therefore, a coach cannot and does not promise that a client will take any specific
action or attain specific goals. Professional coaching is not counseling, therapy or
consulting. These different skill sets and approaches to change may be adjunct skills
and professions. Further, counseling is the professional practice of behaviour analysis
is one domain of behaviour analysis: others are behaviourism, experimental analysis
of behaviour and applied behaviour analysis. The professional practice of behaviour
analysis is the delivery of interventions to consumers that are guided by the principles
of behaviourism and the research of both the experimental analysis of behaviour and
applied behaviour analysis. Professional practice seeks maximum precision to change
behaviour most effectively in specific instances. Behaviour analysts are mental health
professionals and are licensed as licensed behaviour analysts. The professional
practice of behaviour analysis is a hybrid discipline with specific influences coming
from counseling, psychology, education, special education, communication disorders,
physical therapy and criminal justice. As a discipline it has its own conferences,
organisations, certification processes and awards.
4.6.2 Training
Self diagnostic surveys are widely used in human relations training and in laboratory
training settings. They can be also useful for team building. For a successful training
session the consultant must have expertise in the use of a particular instrument. When
shared in a group whose members have relatively high trust in each other and
relatively high communications skills, this self-disclosed information can further tolerance
and understanding between members, can be used by individuals to enhance strengths
in deficient areas and in some instances can be useful in sorting out team assignments.
Using a questionnaire, participants can plot on a two- dimensional grid where their
practices appear to be in terms of ‘concern for production’ and ‘concern for people’.
Workshops focusing on diagnosed styles can be a springboard for developing more
effective leadership and team behaviours. The advantage of using self- diagnostic
instruments are probably greater in the context of training programs involving strangers
or persons from different units than in the context of team building. Some of the
dysfunctional consequences might be: Using the results to label or stereotype others,
distorting responses so that scores produce results assumed to be ‘socially acceptable’,
focusing on the analysis of behaviour rather than on addressing and solving more
fundamental issues facing the team and fostering overdependence on the OD consultant.
One of the dysfunctional aspects of using instrumented training techniques is OD
happens when an OD consultant lets his or her ‘kit bag’ of diagnostic surveys drive
the selection of interventions. The consultant must make an informed judgment as to
what intervention would be particularly useful to the client group at a given time. Yet,
a self diagnostic survey might or might not be appropriate at times.
4.6.3 Behaviour Modelling

This is a training technique designed to improve interpersonal competence. It is an
effective tool for problems of interpersonal relations in organisations. Based on Albert 61
OD Interventions Bandura’s Social Learning theory has been shown excellent way to make first-line
supervisors more effective to improve organisational performance. The basic premise
of Social Learning theory is that for persons to engage successfully in a behaviour,
they must perceive a link between certain behaviour and their outcomes must desire
those outcomes and must believe they can do it. It starts with behaviour description,
justification to explain the impact of the observed behaviour, active listening of content
and feelings, participative problem solving and positive reinforcement to compliment
other sincerely. It teaches the skills and behaviours needed to deal with interpersonal
problems. For improving interpersonal skills behaviour modeling is an important
training option. Many first line supervisors find it difficult to discipline employees.
To learn this behaviour they must see a link between successful disciplining and
desired outcomes. We tend to describe behaviour, explain the impact of an observed
behaviour on individual, the observer, or the organisation, actively listen to accurately
reflect the content and feelings of another’s communication, participative problem
solving and provide positive reinforcement in an authentic manner in behaviour modeling.
But we need to determine the most pressing problem, design training modules for
each of about ten problems, specific behaviours exhibited by the model that cause
success are highlighted and then weekly training of four hours each are scheduled for
each module for groups. At training session the problem situation is announced and
briefly discussed. Participants then observe a videotape in which the model successfully
solves the problem by enacting specific behavioural skills. The trainees discuss the
behavioural skills and then role play the situation receiving the feedback from the
group and the trainer on their performances. Role playing continues until each participant
successfully masters all the specific skills. At the beginning of the new session
participants report how their new skill worked on the job. Thus behaviour modeling
works better with any kind of interpersonal skills.
4.7 MENTORING
Mentor is a trusted friend, counselor or teacher, usually a more experienced person.
Some professions have “mentoring programs” in which newcomers are paired with
more experienced people, who advise them and serve as examples as they advance.
Schools sometimes offer mentoring programs to new students, or students having
difficulties. Today mentors provide expertise to less experienced individuals to help
them advance their careers, enhance their education, and build their networks.
Mentorship refers to a personal developmental relationship in which a more
experienced or more knowledgeable person helps a less experienced or less
knowledgeable person. The person in receipt of mentorship may be referred to as
a protégé (male), a protégée (female), an apprentice or, in recent years, a mentee.
Mentoring” is a process that always involves communication and is relationship
based, but its precise definition is elusive. One definition of the many that have been
proposed, is ‘Mentoring is a process for the informal transmission of knowledge,
social capital, and the psychosocial support perceived by the recipient as relevant to
work, career, or professional development; mentoring entails informal communication,
usually face-to-face and during a sustained period of time, between a person who
is perceived to have greater relevant knowledge, wisdom, or experience (the mentor)
and a person who is perceived to have less (the protégé)”.
The focus of mentoring is to develop the whole person and so the techniques are
broad and require wisdom in order to be used appropriately. A 1995 study of
mentoring techniques most commonly used in business found that the five most
62 commonly used techniques among mentors were:
4.7.1 Accompanying Human Process Interventions:
This is actually making a commitment in a caring way, which involves taking part in Group, Coaching, Counseling,
the learning process side-by-side with the learner. Modeling, Mentoring,
Motivating etc.
4.7.2 Sowing
Mentors are often confronted with the difficulty of preparing the learner before he
or she is ready to change. Sowing is necessary when you know that what you say
may not be understood or even acceptable to learners at first but will make sense
and have value to the mentee when the situation requires it.
4.7.3 Catalysing
When change reaches a critical level of pressure, learning can jump. Here the mentor
chooses to plunge the learner right into change, provoking a different way of thinking,
a change in identity or a re-ordering of values.
4.7.4 Showing
This is making something understandable, or using your own example to demonstrate
a skill or activity. You show what you are talking about, you show by your own
behaviour.
4.7.5 Harvesting
Here the mentor focuses on “picking the ripe fruit”: it is usually learned to create
awareness of what was learned by experience and to draw conclusions. The key
questions here are: “What have you learned?”, “How useful is it?” Different techniques
may be used by mentors according to the situation and the mindset of the mentee,
and the techniques used in modern organisations can be found in ancient education
systems, from the Socratic technique of harvesting to the accompaniment method of
learning used in the apprenticeship of itinerant cathedral builders during the Middle
Ages. Leadership authors Jim Kouzes and Barry Posner advise mentors to look for
“teachable moments” in order to “expand or realise the potentialities of the people
in the organisations they lead” and underline that personal credibility is as essential
to quality mentoring as skill.
4.7.6 Mentoring Relationship

There are two broad types of mentoring relationships: formal and informal. Informal
relationships develop on their own between partners. Formal mentoring, on the other
hand, refers to a structured process supported by the organisation and addressed to
target populations. In business formal mentoring is part of talent management address
to populations such as key employees, newly hired graduates, high potentials and
future leaders. In formal mentoring, matching of mentor and mentee is done by each
choosing the partner in order to avoid creating a forced and inauthentic relationship.
There are formal mentoring programs that are value-oriented, while social mentoring
and other types focus specifically on career development. Some mentorship programs
provide both social and vocational support. In well-designed formal mentoring
programs, there are program goals, schedules, training (for both mentors and protégés),
and evaluation. There are many kinds of mentoring relationships from school or
community-based relationships to e-mentoring relationships. These mentoring
relationships vary and can be influenced by the type of mentoring relationship that is
in effect. That is whether it has come about as a formal or informal relationship. Also 63
OD Interventions there are several models that have been used to describe and examine the sub-
relationships that can emerge. For example, Buell describes how mentoring relationships
can develop under a cloning model, nurturing model, friendship model and
apprenticeship model.
The cloning model is about the mentor trying to “produce a duplicate copy of him
or her.” The nurturing model takes more of a “parent figure, creating a safe, open
environment in which mentee can both learn and try things for him-or her.” The
friendship model are more peers “rather than being involved in a hierarchical
relationship.” Lastly, the apprenticeship is about less “personal or social aspects...
and the professional relationship is the sole focus”.
Davis and Garrison, undertook to study successful leaders of both genders and at
least two races. Their research presented evidence for the roles of: cheerleader,
coach, confidant, counselor, developer of talent, “griot” (oral historian for the
organisation or profession), guardian, guru, inspiration, master, “opener of doors”,
patron, role model, pioneer, “seminal source”, “successful leader”, and teacher. They
described multiple mentoring practices which have since been given the name of
“mosaic mentoring” to distinguish this kind of mentoring from the single mentor
approach.
4.7.7 Mosaic Mentoring

This is based on the concept that almost everyone can perform one or another
function well for someone else — and also can learn along one of these lines from
someone else. The model is seen as useful for people who are “non-traditional” in
a traditional setting, such as people of color and women in a traditionally white male
organisation. The idea has been well-received in medical education literature. There
is also mosaic mentoring programs in various faith-based organisations.
4.7.8 New-Hire Mentorship

In newcomers to the organisation (protégés) are paired with more experienced
people (mentors) in order to obtain information, good examples, and advice as they
advance. It is has been claimed that new employees who are paired with a mentor
are twice as likely to remain in their job as those who do not receive mentorship.
These mentoring relationships provide substance for career growth, and benefit both
the mentor and the mentee. For example, the mentor gets to show leadership by
giving back and perhaps being refreshed about their own work. The organisation
receives an employee that is being gradually introduced and shaped by the organisation’s
culture and operation because they have been under the mentorship of an experienced
member. The person being mentored networks, becomes integrated easier in an
organisation, gets experience and advice along the way. It has been said that “joining
a mentor’s network and developing one’s own is central to advancement” and this
is possibly why those mentored tend to do well in their organisations.
In the organisational setting mentoring usually “requires unequal knowledge”, but the
process of mentorship can differ. Bullis describes the mentoring process in the forms
of phase models. Initially, the “mentee proves himself or herself worthy of the mentor’s
time and energy”. Then cultivation occurs which includes the actual “coaching...a
strong interpersonal bond between mentor and mentee develops”. Next, under the
phase of separation “the mentee experiences more autonomy”. Ultimately, there is
more of equality in the relationship, termed by Bullis as Redefinition.
64
4.7.9 High-Potential Mentorship Human Process Interventions:
This is used to groom up-and-coming employees deemed to have the potential to Group, Coaching, Counseling,
move up into leadership roles. Here the employee (protégé) is paired with a senior Modeling, Mentoring,
level leader (or leaders) for a series of career-coaching interactions. A similar method Motivating etc.
of high-potential mentoring is to place the employee in a series of jobs in disparate
areas of an organisation, all for small periods of time, in anticipation of learning the
organisation’s structure, culture, and methods.
A mentor does not have to be a manager or supervisor to facilitate the process.
Mentorship in education is offered to support students in program completion,
confidence building and transitioning to further education or the workforce. There are
also many mentoring programs designed specifically to bring under-represented
populations into science and engineering. The blended mentoring is a mix of on-site
and online events, projected to give to career counseling and development services
the opportunity to adopt mentoring in their ordinary practice. In the reverse mentoring
situation, the mentee has more overall experience (typically as a result of age) than
the mentor (who is typically younger), but the mentor has more knowledge in a
particular area, and as such, reverses the typical constellation. Examples are when
young internet or mobile savvy Millennial Generation teens train executives in using
their high end Smart Phones. They in turn sometimes offer insight in business processes.
In Business mentoring the concept of mentoring has entered the business domain as
well. This is different from being an apprentice; a business mentor provides guidance
to a business owner or an entrepreneur on the entrepreneur’s business. An apprentice
learns a trade by working on the job with the “employer”. The experience of the
mentor can help the mentee overcome hurdles in business easily, given that the
mentor has faced similar situations in business himself.
Business professionals with a lot of experience and successful entrepreneurs are
lending their time to help others in business.
4.8 MOTIVATION
A major function of leaders is to support the motivation of other individuals and
groups. There are approaches to motivating people that are destructive, for example,
fear and intimidation. While these approaches can seem very effective in promptly
motivating people, the approaches are hurtful, and in addition, they usually only
motivate for the short-term. There are also approaches that are constructive, for
example, effective delegation and coaching.
These constructive approaches can be very effective in motivating others and for long
periods of time. Different people can have quite different motivators, for example, by
more money, more recognition, time off from work, promotions, opportunities for
learning, or opportunities for socialising and relationships.
Therefore, when attempting to help or motivate people, it’s important to identify what
motivates each of them. Ultimately, though, long-term motivation comes from people
motivating themselves. Motivating people is a myth. People cannot be motivated by
others. They are motivated from within. Leaders can however, set up an environment
in which people are able to motivate themselves. To set up an environment that
enables employees to be motivated, leaders need to understand what the motivational
needs of individuals and groups are. Determining the “what’s in it for me” for individual
employees and workgroups that is consistent with goals and strategies of the
organisation is the key to improving motivation for individuals and groups of employees. 65
OD Interventions A base for understanding what motivates human beings is found in the theories by
Maslow and Herzberg. When applying these theories, leaders must understand some
of the personal circumstances of the individuals and groups to develop the environment
that allows individuals and groups to motivate themselves and provide an overall
approach that reinforces the desired motivation. For employees whose basic needs
are fulfilled, it may be necessary to understand whether delegation of responsibility
and authority will cater to their self esteem needs. For example, giving them projects
for which they are accountable and have the resources and competence to complete.
Care has to be taken with processes and policies.
Processes and policies which are in contradiction of people’s motivators will depress
motivation. A study of Herzberg dis-satisfiers reveals that administration and policy
has the highest impact on motivation being a dis-satisfier on 36% of occasions.
However, processes and policies which motivate individuals may not be aligned to
an organisation’s strategy and objectives. Further, a robust performance management
system that recognises and rewards people in a way that fits their motivators is
necessary for developing an environment that allows individuals and groups to motivate
themselves. Developing an environment that improves employee’s motivation is hard
work. There is no one size fits all solution, as motivation is driven by “what’s in it
for me”.
Some of the basic principles guidelines to remember are:
1) Motivating employees’ starts with motivating ourselves. Enthusiasm is contagious.
If we’re enthusiastic about our job, it’s much easier for others to be, too. Also,
if we’re doing a good job of taking care of ourselves, we’ll have much clearer
perspective on how others are doing in theirs. A great place to start learning
about motivation is to start understanding your own motivations. The key to
helping to motivate your employees is to understand what motivates them.
2) Always work to align goals of the organisation with goals of employees.
Employees can be all fired up about their work and be working very hard,
however, if the results of their work don’t contribute to the goals of the
organisation. Therefore, it’s critical that managers and supervisors know what
they want from their employees. These preferences should be worded in terms
of goals for the organisation.
3) Key to supporting the motivation of our employees is, understanding what
motivates each of them. Each person is motivated by different things.
4) Recognise that supporting employee motivation is a process, not a task
Organisations change all the time, as do people. Indeed, it is an ongoing process
to sustain an environment where each employee can strongly motivate themselves.
5) Support employee motivation by using organisational systems (for example,
policies and procedures) — don’t just count on good intentions. Don’t just
count on cultivating strong interpersonal relationships with employees to help
motivate them.
Here are a few strategies to ponder while motivating employees:
4.8.1 Provide a Nurturing Environment

If one is only concerned about production and not about the people who can
produce, chances are, they will not produce. Motivating employees properly means
66
caring for more than just bottom-line results; this can often present a problem for Human Process Interventions:
you. Many supervisors believe that it is not their job to nurture their employees - that Group, Coaching, Counseling,
nurturing is something that should be done at home. Those supervisors are Training, Behavioural
wrong. When employees feel genuinely cared for, then you are motivating employees Modeling, Mentoring,
Motivating etc.
to increase productivity. Being a motivating supervisor means assessing what your
employees need. Some people may just need to work with other people who care
about them. However, as your organisation grows you may need to consider providing
counseling or pastoral care. There is a direct correlation between the health of your
employees and the health of your organisation.
4.8.2 Encourage Personal Growth

This is important for you and your employees. This can be difficult for many motivating
supervisors because it is not something that can be measured. Have employees write
down their thoughts in the following areas: First, their priorities and what is important
to them; Second, their goals and dreams for the future; Third, how you as a supervisor
can assist in motivating employees to meet each of their goals. In addition, offer
training and development in areas that will improve personal growth as well as
increase their effectiveness. When employees feel good about themselves, they will
perform. Encouraging personal growth is imperative for motivating employees.
4.8.3 Empower Employees

Employees need to be trained, and then empowered to make good decisions. Trusting
the people that report to you can help towards motivating employees to take on
more responsibilities. When people take on more responsibility they begin to take
ownership. This is a good thing. People do not like to be micromanaged. If we have
provided the proper training, we must trust our employees to use it.
4.8.4 A Top-Down Method

These are some of the essential strategies and skills possessed by a motivating
supervisor. It is up to them to start being proactive and implementing methods
towards motivating employees. It is important to remember that motivation is a top-
down method.
When considering ways to motivate employees keep in mind that each individual is
different and therefore everyone is motivated by different things. While one employee
may be motivated by money another may be motivated by working with supportive
coworkers. One way to find out what motivates your employees is to discover their
wants and needs. One way to do this is by performing surveys or questionnaires.
Below are several factors that can motivate employees.
4.8.5 Incentives
Incentives are one of the most common ways of motivating employees. Employee
incentives can be money, gift cards, gifts, vacation trips, etc. The best way to decide
what incentive to use to motivate employees is by asking them what they would like.
You may be surprised that it’s not always money that an employee seeks.
4.8.6 Responsibility
Show your employees that you trust them by giving them responsibilities. Employees
usually like having some control and making choices. It makes them feel as if they
are a necessary part of the business.
67
OD Interventions 4.8.7 Pleasant Work Environment
If an employee is working in an environment where there is a lot of negativity
between management and employees this can diminish his/her motivation. An employee
will be more motivated if he/she is working with supportive co-workers and
management.
4.8.8 Interesting Work

Performing the same tasks everyday will become boring and repetitive for employees
unless they enjoy what they do. Find out what tasks your employee is good at and
enjoys doing. Providing your employee with a task he/she enjoys can prove to be
an effective method of motivating employees.
4.8.9 Listen
Listen to your employee’s concerns and take them seriously. Employees can become
more motivated when they discover that you care about their concerns and problems.
Reward Good Work- Acknowledge employees who put in the extra effort. You can
have an “Employee of the Month” or Certificates of Appreciation. Employees like
to feel that their hard work is being acknowledged. Even a simple Thank You can
show appreciation and improve employee morale.
4.8.10 Share Business Success

Making employees feel like they are part of a bigger team can be a great tool for
motivating employees. Provide business performance reviews to let the employees
know how the business is doing. Encourage employees to strive to achieve success
and growing figures for the business. Reward the whole team when the business
reaches its goals and beyond.
4.8.11 Job Security

When motivating employees, job security is essential. If employees feel they might
be fired or laid off they are more likely not to put their best efforts into the job.
4.8.12 Promotion / Growth

Most employees have a natural wanting to improve. Everybody has dreams of where
they wish to be in the future. If there is no goal or growth to be achieved, there is
nothing to motivate them to work harder.
In addition to the above, one must be flexible and positive. Flexible means that one
should not make their employees come to work when they are sick. They should not
be penalised for emergency situations. If it’s possible be flexible with the employee’s
schedule. For example give them the option of choosing the day of the week they
want off. By doing this you show employees that you care and this will be appreciated.
As for positive attitude, as a manager and leader it is important to have a positive
attitude. Something as simple as a negative tone in your voice can be enough to
reduce employee morale. Increasing positive managerial behaviour and reducing
negative managerial behaviour will go a long way towards improving employee
engagement. When talented employees are engaged, they are able to perform
spectacularly and build and improve winning business.
68
4.8.13 Competitive Salary Human Process Interventions:
Though money is not always an employee’s main motivation, a competitive salary can Group, Coaching, Counseling,
help an employee feel that they are receiving what they deserve for their job description. Modeling, Mentoring,
If an employee is under-paid they will often go searching for other jobs that offer Motivating etc.
competitive salaries.
1) Helping to identify the skills and capabilities that are within the person, and
enabling them to use them to the best of their ability – and by that increasing
the independence within the individual, and reducing reliance is____________
a) Mentoring b) Behaviour modification
c) Managing d) Coaching
2) Behaviour Modeling is based on Theory of________________
a) McGregor b) Albert Bandura
c) Hertzberg d) Abraham Maslow
3) Mentoring based on the concept that almost everyone can perform one or
another function well for someone else — and also can learn along one of
these lines from someone else is_____________
a) High-potential mentorship b) New hire mentoring
c) Mosaic mentoring d) Blended mentoring
4.9 LET US SUM UP

OD efforts basically entail two groups of activities: “action research” and
“interventions.” Action research is a process of systematically collecting data on a
specific organisation, feeding it back for action planning, and evaluating results by
collecting and reflecting on more data. Data gathering techniques include everything
from surveys and questionnaires to interviews, collages, drawings, and tests. The
data is often evaluated and interpreted using advanced statistical analysis techniques.
Action research can be thought of as the diagnostic component of the OD process.
But it also encompasses the intervention component, whereby the change agent uses
action plans to intervene in the organisation and make changes, as discussed below.
In a continuous process, the results of actions are measured and evaluated and new
action plans are devised to effect new changes. Thus, the intervention process can
be considered a facet of action research.

1) What are the OD Interventions conducted for Individuals to bring about
improvement in their functioning?
2) Discuss the Group / Intergroup Interventions in brief and critically analyse their
role in Organisation Development.
3) What are self-managed teams? Describe their role and functioning in the
organisations.
4) Discuss the importance of mentoring in today’s organisations.
5) What is Motivation? Discuss the guidelines for the practioners to motivate the
69
employees.
OD Interventions
Cherrington, David J. (1994) Organisational Behaviour: The Management of
Individual and Organisational Performance. Boston: Allyn and Bacon,
Dove, Rick. (1997) “The Principles of Change.” Automotive Manufacturing
and Production. March.
Dyer, William G. (1989) “Team Building: A Microcosm of the Past, Present, and
Future of O.D.” Academy of Management OD Newsletter. Winter.
Gibson, James L., John M. Ivancevich, and James H. Donnelly Jr. (1994)
Organisations: Behaviour, Structure, Processes. 8th ed. Boston: Richard D. Irwin,
Goodstein, Leonard D., and W. Warner Burke. (1991)”Creating Successful
Organisation Change.” Organisational Dynamics. Spring.
Ivancevich, John M., and Michael T. Matteson. (1990) Organisational Behaviour
and Management. Homewood, IL: Richard D. Irwin, Inc.,.
Lippitt, Gordon L., Peter Longseth, and Jack Mossop. (1985) Implementing
Organisational Change. San Francisco: Jossey-Bass,.
Northcraft, Gregory B., and Margaret A. Neale. ( 1990)Organisational Behaviour:
A Management Challenge. Chicago: The Dryden Press,.
Recardo, Ronald J. (2000) “Best Practices in Organisations Experiencing
Extensive and Rapid Change.” National Productivity Review. Summer.
Shaffer, Rima. (2000) Principles of Organisation Development. American Society
for Training and Development,

QUESTIONS
SAQ 1: (1) c (2) a (3) a
SAQ 2: (1) c (2) a (3) a
SAQ 3: (1) d (2) b (3) c
70
Assessment of Human
UNIT 1 ASSESSMENT OF HUMAN RESOURCE Resource in Organisation
and Human Resource
IN ORGANISATION AND HUMAN Planning
RESOURCE PLANNING
Structure
1.0 Introduction
1.1 Objectives
1.2 Human Resource Planning
1.2.1 Strategic Business and Work Force Plan
1.2.2 Levels of Planning
1.2.3 Payoffs from Strategic Planning
1.2.4 Relationship of HR Strategy to Business Strategy
1.3 Talent Inventory
1.3.1 Obtaining and Updating Information
1.4 Forecasting Workforce Supply and Demand
1.4.1 External Workforce
1.4.2 Internal Workforce
1.5 Workforce Demand
1.5.1 Predictor Selection
1.5.2 The Historical and Project Relationships
1.5.3 Productivity Ratio
1.5.4 Projecting Workforce Requirements
1.5.5 How Accurate Must the Demand Forecast be?
1.5.6 Integrating Supply and Demand Forecasts
1.5.7 Matching Forecast Results for Action Plans
1.6 Let Us Sum Up
1.8 Glossary
1.0 INTRODUCTION
The most important asset for any organisation today is the human resource.
Organisations have come to understand that this resource needs to be nurtured
carefully if they have to stay in business and face the competition. Therefore
human resource planning is the process of getting the right kind and number of
qualified people into the right job at the right time so that the objectives of the
organisation can be met. This unit deals with the assessment of human resource
in organisation and human resource planning.
1.1 OBJECTIVES
After completing his unit, you will be able to:
• Define human resource planning;
• Describe the meaning of human resource planning;
5
Human Resource Planning • Explain the need for HR planning;
• Define forecast;
• What is external and internal supply of workforce; and
• The different procedures used in forecasting workforce demands.
1.2 HUMAN RESOURCE PLANNING

The most critical resource for any organisation is Human resource and obtaining
and using this resource is a perpetual problem in any society. It is rather very
difficult to procure specialised technical talent at the most specific time,
particularly when the organisation is planning for an expansion or to promote
employees to higher positions.
Therefore human resource planning is to anticipate and respond to the needs

emerging within and outside the organisation. It is concerned with the flow of
people into, through and out of an organisation. It also ensures that the organisation
will have the right mix of employees and skills when and where they are needed.
Management has recognised that talent plays a major role in gaining and sustaining
a competitive advantage in a global market place.
So, it is imperative that management should engage in assessing periodically

their basic missions and objectives.
However, organisations have to answer a few question before embarking on

using their human resources as for example the following questions:
• What talent, abilities and skills are available within the organisation today?
• Who are the people we can dependably build on for tomorrow?
• How are we blending the talent available with the organisation’s needs?
• What are the qualitative as well as quantitative of HR demands for our
growth plan?
Human resource planning is defined as a strategy for the acquisition, utilisation,
improvement and retention of an enterprise’s human resource. It is a process by
which the organisation ensures that it has the right number, right kind of people,
at the right place and at the right time capable of effectively and efficiently
completing those tasks that will help the organisation achieve its overall
objectives. In other words the human resource planning translates the
organisation’s objectives and plans into the number of workers needed to meet
those objectives.
Further, it is defined as an effort to anticipate future business and environmental
demands of an organisation and to meet the HR requirements dictated by these
conditions.
The general view of HR planning suggests that there are several interrelated
activities that can be called as HR systems.
Talent Inventory: To assess current resources (Skills, abilities and potential)
and analyse current use of employees.
6
Workforce Forecast: To predict future HR requirements (numbers, skills mix, Assessment of Human
Resource in Organisation
internal versus external labour supply). and Human Resource
Planning
Action Plans: To enlarge the pool of qualified individuals by recruitment,
selection, training, placement, transfer, promotion, development and
compensation.
Control and Evaluation: To provide closed-coop feedback to the rest of the

system and to monitor the degree of attainment of HR goals and objectives
As a result, strategic initiatives are adopted in recruitment, selection, development

individual performance management, team performance management, career
planning, diversity, employee attitude surveys and employee communication.
There are certain tactical business plans which serve as a basis for HR strategy,
i.e. to notice how labour markets affect the supply of and demand for labour.
When labour markets are ‘loose’ the supplies of available workers exceed the
demand and thus unemployment is high. For this reason there will be lesser
turnover of employees due to the fear of unemployment.
On the other hand when labour market is ‘tight’ demand for workers exceed
supplies and therefore unemployment will be less because jobs are plenty and
employee mobility will also increase.
Hence, when there is a clear understanding of this activity i.e. the surpluses and
deficits of employees in terms of their numbers, their skills and their experiences
that are projected at some future date, it is possible to initiate an action plan to
rectify the projected problems (i.e. the net workforce required can be easily
estimated).
Finally, control and evaluation procedures will also provide the feed back that
affects every aspect of HR planning process.
1.2.1 Strategic Business and Work Force Plan

Planning is a focal point of management as it helps the managers to reduce the
uncertainty of the future and thereby do a better job of coping with the future.
Hence the fundamental reason for planning is because planning leads to success-
though not always.
A second reason for planning is that it gives managers and organisations a sense
of being in control of their fate rather than leaving their fate to chance. Hence,
planning helps organisations do a better job of coping with change-technological,
social, regulatory and environmental.
A third reason for planning is that it requires managers to define the organisation’s
objectives and provide context, meaning and direction for the employees work.
The assumption behind this planning is that by defining, we can ensure that all
employees are aware of the over all goals, like why they are doing what they are
doing? By this it is easy for the employers to assess effectively what the employees
are doing to the organsiation’s over all objectives as all these lead to better
employee performance and satisfaction. The final reason for planning is that
without objectives, effective control is impossible.
7
Human Resource Planning 1.2.2 Levels of Planning
Planning take place at any of the three levels, viz., (i) strategic, (ii) operational
or (iii) tactical level. Strategic planning is long range and differs from the short
range operational or tactical planning. In strategic planning there should be
substantial commitments of resource for taking any decisions. Besides this, there
should also be a guarantee that these decisions will bring about fundamental
changes in the direction of the business or a change in the speed of development
of the business.
Therefore to make a strategic plan, there should be considerable data collection,

analysis and proper management reviews. Strategic planning decision may result
in new business acquisitions, new capital investments, or new management
approaches. Hence strategic planning is a process of setting organisational
objectives and deciding on comprehensive action programmes to achieve these
objectives. For this the following processes should be included.
1) Defining company philosophy, that is why the company exists, what are its
unique contributions and what business it should be in.
2) Formulating company and divisional statements of identity, purpose and

objectives.
3) Evaluating the company’s strength or weaknesses so that we can identify

the factors that may enhance or limit the choice of any future course of
action.
4) Determining the organisation design, including the structure, processes and

inter relationships. These should enable the organisation to manage the
company’s business properly.
5) Developing appropriate strategies for achieving objectives. In other words,

time based points of measurements both qualitative and quantitative sub
goals.
6) Devising programmes to implement the strategies.
1.2.3 Payoffs from Strategic Planning

One major benefit of strategic planning is the growth, as strategic planning
encourages the management to look for new opportunities instead of cutting
down on workers to reduce expenses. But the most important danger of strategic
planning is that the planning is usually for a future vision and usually the future
is not always predictable as it changes very quickly.
This is one of the dilemmas which are often faced by the manager. One way to
overcome this problem is to plan for a wide range of people , that is, from line
manager to customers and suppliers.
Besides this the top management should be ready to shift the plans in midstream
if conditions demand it. It would be easy for the company if it is watchful and
alert to the demands of the market so that it can immediately change itself to
meet these demands.
8
1.2.4 Relationship of HR Strategy to Business Strategy Assessment of Human
and Human Resource
Planning
Value Propositions
“How do we compete?” P
E L
X Business/Organisation Processes A
“What must we execute well?” N
E
C N
Moments of Truth I
U “What employee behaviours must
T Constitutes experience?” N
I G
People COM
O (Capability, opportunity, motivation)
N “What people elements must exist?”
Human resources Bundles

“What work practices support high
Performance?”
Fig. 1.1: Human Resource Strategy and Business Strategy
Figure above depicts the relationship of Human Resource strategy to the broader
business strategy. As you can see in the model, planning, proceeds top-down and
execution proceeds bottom-up.
There are five links in the model, beginning with a description of the “Value
propositions”– How do we compete? Firms compete on a number of non
independent dimensions such as innovation, quality, cost leadership or speed.
With the help of these, the business in organisational processes can be identified.
The firm will have to execute these to withstand the competition. (e.g. Speedy
order fulfillment) suppose a firm was able to deliver a particular product to the
customer on his/her demand, the customer will experience a positive feeling
“Moments of Truth”. For e.g, when an employee presents a timely cost effective
solution to the customer’s problem, a moment of truth is said to occur.
If an employee should enact a moment of truth, he should have the capability,
opportunity and motivation which are in other words ‘People COM’ (capability,
opportunity and motivation). To enhance People Com, there is a need for ‘Bundles
of Human Resource processes’ in the form of work practices, in the area of
staffing, training, rewards and performance management. Finally, execution
proceeds. This process goes on from 1st the bundles of high performance work
practices through People COM, to moments of truth, to execution of business/
organisational processes and back to the basic value propositions. Thus, high
performance work practices include the following five factors (Paauwe, Williams
Keegan, 2002). 9
Human Resource Planning 1) Pushing responsibility down to employees operating in flatter organisations,
2) Increasing the emphasis on line managers as Human Resource managers,
3) Instilling learning as a priority in all organisational systems,
4) Decentralising decision making to autonomous units and employees,
5) Linking performance measures for employees to financial performance
indication.
To meet these requirements work force plans must be outcomes of and be
consistent with the overall business and Human Resource strategies. Managers
will have to ask themselves the questions like what types of skills or competencies
will we need to run the business five years from now, and how do we make sure
we will have right kind of people for that?
At the broader level, the problem to procure the right kind of people can come
from rapid technological changes, more complex organisations (in terms of
products, locations, customers, and market) and more frequent changes in the
external forces such as legislation, litigation, demographic changes and
competition both from domestic and global fronts.
In such a kind of scenario, changes in the business environment will drive the
issues pertaining to it and these issues will drive actions to be taken to address
them and these actions will come in the form of programmes and processes to
encounter the business issues identified.
The two key elements which should be examined for any Human Planning are
“Forecasts and Action plans”.
The forecast of the net workforce is possible only after an analysis of the future
availability of labour (supply) and future labour requirements (demand) which
is done along with the analysis of the external conditions (i.e. Technologies,
markets, competition).

1) What is human resource planning?
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2) What are the reasons for planning?
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10
Assessment of Human
3) What are strategic Business and work force plan? Resource in Organisation
and Human Resource
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4) What are the various levels of planning?
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5) What benefits accrue to the organisation from strategic planning?
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6) Discuss the relationship of HR strategy to Business strategy.
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1.3 TALENT INVENTORY

To understand the future availability of people with the right skills, an inventory
of the current talent is most important. For this purpose firstly “A TALENT
INVENTORY” should be conducted. A talent inventory is an organised data
base of the existing skills, abilities career interests and experience of the current
workforce. Before data for the talent inventory can be obtained certain
fundamental questions should be addressed like:
• Who should be included in the inventory?
• What specific information must be included for each?
• How can this information best be obtained?
11
Human Resource Planning • What is the most effective way to record such information?
• How can inventory results be reported to the top management?
• How often must this information be updated?
• How can the security of this information be protected?
The answers to these questions will provide a direction and scope to the data
collection of Human Resource information. This information is stored
electronically and is linked to other data bases. Such information can be used to
form a complete human resource information system (HRM) that can be used by
the organisation in a variety of situations. The information that is gathered contains
a typical profile for each individual which runs in the following fashion.
• Current position information,
• Previous position in the company,
• Other significant work experience,
• Education (including degrees, licenses certifications),
• Language skills and relevant international experience,
• Training and development programs attended,
• Community or industry leadership responsibilities,
• Current and past performance appraisal data,
• Disciplinary action,
• Awards received.
Some voluntary information like limitations of the employees on mobility due
to health or family circumstances, as well as their willingness to relocate are also
obtained. Sometimes the preferences of the employees are obtained about the
future assignments and locations.
1.3.1 Obtaining and Updating Information

The information gathered thus, can be further updated as and when the employee
improves his qualifications or obtains licenses or certificates etc. To update the
information a standardised update form is given to the employee at periodic
intervals.
This information enables the company to identify the candidates for promotion,
assignments to special projects, transfer and training. Further it also allows to
identify the demographic trends in the workforce and to explore pertinent Human
Resource research questions. Beside this it is also helpful to conduct training
and workforce planning.
Therefore, talent inventories are potentially powerful tools in promoting the proper
use of human resource, that too more accurately. However, the organisations
have to take care that the employees’ privacy is safeguarded.
1.4 FORECASTING WORKFORCE SUPPLY AND

DEMAND
The organisations effort of obtaining workforce data will be useful only when
12 the talent inventories and workforce forecasts are complementary to each other.
The inventory of the present talent is possible to be utilised only when it can be Assessment of Human
analysed in terms of future workforce requirements. Similarly, the forecast of and Human Resource
workforce requirement is possible only when it is evaluated in relation to the Planning
current and project future supply of workers available internally (i.e. in the
organisation itself). Only when we are clear of what workforce we have and how
much more we require in terms of their number, their skill and their experience
that it would aid us in taking a decisions about future requirements.
Thus workforce forecasts are attempts to estimate future labour requirements.

There are two component processes in this task:
i) Anticipating the supply of human resources, both inside and outside the
organisation at some future time period.
ii) Anticipating organisational demands for various types of employees.
For the same reason forecasts of labour supply is generally considered as a separate
entity from forecasts of demand. Each of them depends on a different set of
variables and assumptions, in the sense that internal supply tend to relate much
more on the conditions inside the organisation such as average rates of turnover,
retirement, transfer, accidents, deaths and new hires within job classes, whereas
demand forecasts depend on the behaviour of some business factor like sales,
product volume etc.
Moreover there is slightly more stability in forecast of labour supply than demand
forecasts due to many uncertainties particularly in consumer behaviour, in
technology, and in the general economic environment.
There are two paradoxes in workforce forecast:

The techniques of forecasts are simple and easy to describe but are quite complex
and difficult to apply them successfully.
After the forecast has been made it may prove to be most useful when it prove to
be least accurate as a vision of the future.
To elaborate upon the second paradox, the organisation may envision a huge
project to be sanctioned to it in the near future and to meet the demands of
workforce for that period plans to equip itself with sufficient number of people.
Therefore the hiring of employees has taken place. But there is a delay in the
commencement of the project and the hired surplus employees are sitting on the
bench. Instead of wasting this resource, the organisation can utilise their services
for training, or transfer them to some other project or promote some internal
employees to other positions etc., so that the surplus does not develop. This way
the organisation can integrate the workforce into the total planning process and
forecasts can be of special value because they enable an organisation to extend
the range of other human resource planning and other functions.
1.4.1 External Workforce

There are many reasons why an organisation plans for its recruitment and hiring
new employees:
• When an organisation wants to expand
• The aging of the present workforce
13
Human Resource Planning • Attrition (turnover)
• Recruitment and selection is a virtual certainty for some firms.
Therefore, the organisation has to explore the external labour market for the
kinds of employees that will be needed.
There are some noteworthy agencies which make regular projections of external
labour market, conditions and future occupational supply.
Thus it is a constant effort on the part of organisation or the agency to gauge both
the future supply of workers in a particular field and the future demand for these
workers.
It is highly dangerous to just focus on the supply side for instance, suppose one
organisation is sure to procure its requirement from a particular institution at the
end of an academic year but does not analyse that there may be other organisations
who would need the same kind of supply. This could be a problematic situation,
as due to the sudden competition there may be a shortage of supply of the right
kind of workforce. The organisation should always consider wide spread and
sophisticated recruitment procedures. They also require projections of the external
labour market as a starting point for planning and dealing effectively with those
that are to some extent unavoidable.
1.4.2 Internal Workforce

As you may recall that each organisation makes its own talent inventory and that
serves as an organisation’s current workforce base from which a projection of
future supply of workers can be made. The routinely recorded items are the age,
gender, job title, organisational level, geographical location, training, performance
ratings and promotability. These help to determine the future supply. But the
most common type of internal supply forecast is the ‘management succession
plan’.
This is an activity which is pervasive, well accepted and integrated with strategic
business planning. It is considered as the sum and substance of Human Resource
Planning. In this method, the objective is to assure top quality and ready talent
for all executive positions in the corporation. The line executive from the division
are the main persons who have to conduct this exercise and an executive’s resource
staff located within the corporate Human Resource functions provides staff
support.
Each line executive makes a formal presentation to a corporate policy committee
consisting of the Chairman, the Vice Chairman and the President. The overall
assessment of the strengths and weaknesses of the unit’s executive resources,
the present performance and potential of key executives and potential
replacements (along with pictures of the individuals) and the rankings of all
incumbents of key positions in term of the present performance and expected
potential are presented.
The policy committee reviews this information critically and also provides
additional insights to the line managers on the strength and weaknesses of both,
the incumbents and their replacements, sometimes the committee may even direct
specific career development action to be accomplished by the incumbent before
the next review.
14
Assessment of Human
Self Assessment Questions Resource in Organisation
and Human Resource
1) What is talent inventory? Planning
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2) What are the ways in which this inventory is made and what are its
functions?
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3) Discuss forecasting of workforce supply and demand.
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4) Define and describe external workforce.
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5) How is the internal workforce different from the external workforce?
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15
Human Resource Planning
1.5 WORKFORCE DEMAND
As has been seen, supply forecasts are slightly simpler than the demand forecast.
Demand forecasts are more subjective and each organisation must be able to
identify the important variables and appropriate forecast strategies through
experimentation, experience and testing over time against the actual staffing
needs. There is a trend analysis procedure which can be followed for forecasting
workforce demand.
1) Find the appropriate business factor,
2) Plot the historical record of that factor in relation to employees employed,
3) Compute the productivity ratio,
4) Determine the trend,
5) Make necessary adjustments in the trend, past and future,
6) Project to the target year.
1.5.1 Predictor Selection

The business factors to which workforce needs will be related should be selected
e.g. for a company producing steel, it is the tons of steel produced per week. To
be useful the predictor should satisfy two requirements.
i) It must relate directly to the essential nature of the business so that business
planning can be done properly. E.g. if you want to produce steel in larger
volumes you should plan for workforce which are involved with production
of steel.
ii) Changes in the selected factor should be proportionally to the required staff
e.g. suppose you want 100 tons of steel by the end of a week you should
calculate how many people would be required to produce one ton in a week
and on the basis of this you should be able to say how many more you will
need and a forecast for workers should be made accordingly.
However, when organisations are involved in manufacturing different products,
the workforce projections should not be made for the total organisation, separate
projections must be made for different products or segments of the workplace
(e.g. technical and non technical). To calculate the workforce in this way the
people involved should have sound “judgment”, “experience”, and thorough
knowledge of the organisation and a sense of the future direction of technological
changes.
1.5.2 The Historical and Project Relationships

This is another method or technique of calculating the required workforce.
Selection of a business factor is only the first stage of the projection process.
What is more important over here is a quantitative understanding of the past, so
that an organisation can plan more accurately for the future. The past relationship
of the business factor to staffing levels must be determined accurately and the
future levels must be estimated e.g. 237 employees are needed to turnout 372,529
small electrical appliance per year (this is a calculation done on the basis of the
past years) i.e. approximately 1,572 appliances per individual were produced.
This ratio output per individual is known as labour productivity and to project
16
workforce requirements into the future, a calculation of the rate at which the Assessment of Human
productivity changes should be known and based on this, a target can be and Human Resource
established, which reflects the productivity anticipated in the future. Planning
1.5.3 Productivity Ratio

Productivity ratios should be computed for the previous 5 to 10 years so that we
can determine the average rate of productivity changes. If productivity changed
significantly, the causes for such changes (more efficient machinery, automation,
etc.) need to be identified.
However, to be safer, productivity ratio and average rates of change must be

tempered with the judgment of experienced line managers who are close to the
scene of operations. These people can help to interpret the reasons for past changes
in productivity and estimate the degree to which they will effect future projections.
1.5.4 Projecting Workforce Requirements

Once an appropriate business factor and the productivity ratio are computed, the
projection of workforce needs for the target year is quite straight forward. The
projected level of business factors are multiplied by the productivity ratio to
arrive at the effective number of employees required. Adjustments to the
projections for the influence of special factors can give a net figure for the
workplace demand at that time, for e.g. if a course work of a university department
is estimated at 75 hours of teaching per week. The total course work that the
existing regular teachers should engage is allocated to them and whatever is the
remaining workload will be distributed either to part time teachers or to contract
teachers. Depending upon the allotment of the number of hours for each category,
the number of teachers required would be calculated.
1.5.5 How Accurate Must the Demand Forecast be?

Certain factors like the duration of the planning period, the quality of the data
for which the forecasts are based and the degree of integration of Human Resource
Planning with strategic business planning all affects accuracy. The accuracy of
labour demand forecast depends on the degree of flexibility in staffing the
workforce. As long as people are willing to relocate geographically, they are
multi skilled and easily hired there is less need for precise forecasts. However 2
to 20 percent margin of error is always acceptable.
1.5.6 Integrating Supply and Demand Forecasts

The forecasts should be easily understandable and meaningful if they have to be
used by the managers. The manager should be given a concise statement of
projected staffing requirements that shows how the integration between the supply
and demand forecast have be done. If a senior manager has to make an informed
decision regarding the future direction of Human Resource initiative, this concise
statement is more than enough for him, instead of all the voluminous calculations
done during the initial stages.
1.5.7 Matching Forecast Results for Action Plans

These forecasts affects the company’s programme in different areas, including
recruitment, selection, performance managements, transfer and many other career
enhancement activity. All these are called as ‘action programmes’ which help
17
Human Resource Planning the organisation to adopt to change in their environments. In the past decade
there is a huge amount of workforce diversity in the form of women, minorities
and immigrants. To adapt to these changes, organisation are giving extensive
training programmes to the managers to develop their skills to manage diversity.
Besides this, training programmes are also given to handle human relations, so
that members of the organisation can deal more effectively with each others.
However, many organisations prefer to select workers who are already equipped
with these skills because they have realised that training a group of employees is
more expensive and unguaranteed of change. So the present trend is to insure
more expense on selecting the right kind of people rather than to rehabilitate
them and then plan programmes that are appropriate to increase the performance
further. They have found that providing training for high-ability employee is less
time consuming and is also cost effective. Thus training for employees should
also be a strategy for building sustained competitive advantage. They form a
deep reservoir of firm specific human capital.

1) Discuss workforce demand. What are its significances?
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2) What is predictor selection?
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3) Discuss critically the historical and project relationships.
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4) Define Productivity ratio and discuss its importance.
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18
Assessment of Human
5) How does an organisation forecast workforce requirements? Resource in Organisation
and Human Resource
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6) How does one ensure accuracy in such forecasts?
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7) Discuss integrating supply and demand forecasts.
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1.6 LET US SUM UP

By now, we have gained a clear understanding of what is human resource planning
and why it is imperative for the organisation to engage in to manage its resource
effectively. For drawing out a sound HR Plan the most important activity is to
conduct a talent inventory which provides comprehensive information about the
labour available within the organisation containing the required skills, abilities,
knowledge and experience. This data should be preserved and updated and used
whenever there is a need for upgrading employees or relocating them. Besides
this, the information regarding the supply and demand for the needed
competencies is also assessed in this activity. With the help of this the organisation
will be able to assess how much workforce can be had from within the organisation
and for how much more should it search in the labour market. Moreover for
making the forecast some noteworthy techniques have been shown which will
enable the HR planners to calculate the requirement of the organisation’s staff.

1) What is Human Resource Planning?
2) Discuss strategic planning and the three levels of planning.
3) Discuss the relationship between HR planning and business planning.
19
Human Resource Planning 4) What is Talent Inventory? How is it used and what are its advantages?
5) Describe the process of forecasting supply and demand of the workforce.
6) Elucidate the factors that constitute workforce demand.
7) What is the need for organisation to plan for its HR?
8) What is forecasting? What are the various methods of forecast?
1.8 GLOSSARY
Workforce planning : An effort to anticipate future business and
environmental demands of an organisation and
to meet the HR requirements dictated by these
conditions.
Strategic Plan : Means of competing through innovation, quality
and speed which leads to success.
People COM : It is a moment of truth which occurs in an
employee when he / she presents time or cost
effective solution to a customer’s problem.
Talent Inventory : It is an organised database of the existing skills,
abilities, career interests and experience of the
current workforce.
Forecast : An attempt to estimate future labour requirement
by anticipating the supply of human resource,
both from inside and outside the organisation.
External workforce supply : This is an activity where the organisation looks
for its labour supply in the external environment
/community.
Internal workforce supply : An organisation assesses the workforce existing
within the organisation and selections are made
on the basis of the skills and capabilities present
in them.

Armstrong.M, (2006) Handbook of Human Resource Management Practice, 10th
edition, London, Kogan Page.
Aswathappa.K., (2003) Human Resource and Personnel Management Text and

Cases, 4th Edition, New Delhi, Tata McGraw Hill.
Fisher, Cynthia D, Schoenfeld, L.E & Shaw.J.B (2004) Human Resource

Management, 5th Edition, New Delhi, Biztantra.
Rao, VSP (2005) Human Resource Management Text and Cases, 2nd Edition,
New Delhi, Excel Books.
Sharma. A.M, (2003) Personnel and Human Resource Management, 4th Edition
Himalaya Publishing House, Hyderabad.
20
Assessment of Human
UNIT 2 HUMAN RESOURCE MANAGEMENT Resource in Organisation
and Human Resource
Planning
Structure
2.0 Introduction
2.1 Objectives
2.2 Human Resource Development and Activities
2.3 Strategic Human Resource Management
2.3.1 Strategic HRM: Some Theoretical Perspectives
2.3.2 Universalistic Approach
2.3.3 Strategic Fit Perspectives
2.3.4 Internal Service Provider
2.3.5 Configurating Approach
2.3.6 Resource Based Model
2.3.7 Key Elements in Developing HRM
2.4 Transforming of HR Staff and Structure
2.4.1 Transforming HR People
2.4.2 Transforming HR Structure
2.5 Enhancing Administrative Efficiency
2.6 Integrating HR into Strategic Planning
2.6.1 The Strategic Planning Process
2.6.2 Mission, Goals and Value Statements
2.6.3 Environmental Threats and Opportunities
2.6.4 Organistional Strengths and Weaknesses
2.6.5 Goals and Objectives
2.6.6 Formulation of Strategies
2.6.7 Strategic Integration of HRM
2.7 Fitting HR Practices to Business Strategy
2.7.1 HR Practices Choices
2.7.2 HR Practices: Strategic Fit
2.7.3 HR Practices: Strategic Fit vs. Strategic Flexibility
2.8 Partnership
2.9 Measurement of HRM
2.9.1 Customer Reactions
2.9.2 HR Impact
2.10 Benchmarking HR Practices
2.11 Importance of Strategic Human Resource Management
2.12 Let Us Sum Up
2.13 Unit End Question
2.0 INTRODUCTION
In this unit we will be dealing with Human Resource Management. We start
with Human Resource Development and Activities within which we discuss
some of the theoretical perspectives of human resource management which
21
Human Resource Planning includes universalistic approach, strategic fit perspective, configuration approach
etc. This is followed by how to transform the HR staff and HR structure and
enhance administrative efficiency. This is followed by a discussion on integrating
HR into strategic planning which includes the planning process, mission goals
and value statements, how to overcome the environmental threats etc. Then we
discuss how to make use of the organisational strengths and weaknesses in HR
planning and how to formulate strategies.
2.1 OBJECTIVES
• Define Strategic Human Resource Management;
• Describe the various theoretical approaches to HRM;
• Explain transforming HR staff and structure;
• Analyse the processes of enhancing administrative efficiency;
• Explain how HR practices could be integrated into strategic planning;
• Discuss the processes of fitting HR strategies to business strategies;
• Elucidate Partnership in HRM;
• Delineate the various methods of measurement of HRM; and
• Analyse benchmarking HR practices.
2.2 HUMAN RESOURCE DEVELOPMENT AND

ACTIVITIES
The pattern of planned human resource development and activities is intended
to enable an organisation to achieve its goal. It is called as “Strategic Human
Resource Management”. While formulating the Strategic plan HR Management
plays a vital role, especially in identifying and analysing external threats and
opportunities that may be crucial to the company’s success. It also offers
competitive intelligence that may be helpful while giving shape to strategic plans.
Moreover, HR Management can also throw light on the company’s internal

strengths and weaknesses. Some firms even develop their strategies based on
their own HR based competitive advantage.
Over and above this HR has a great role to play in the execution of strategies. It
can help the firm carry out restructuring and downsizing efforts without rubbing
the employees on the wrong side. HR can also initiate systematic efforts to enhance
skill levels of employees so that the firm can compete on quality. HR practices
build competitiveness because they allow for strategic implementation; create a
capacity for change and instill strategic unity.
Strategic HR is transformational in nature, i.e. it helps people and organisations

to adopt, learn and act quickly. It will make sure that change initiatives that are
focused on creating high performance teams, reducing cycle time for innovation,
or implementing new technology are defined developed and delivered in a timely
way – Strategic HR is proactive and considers various time frames in a flexible
22
manner. It realises that an organisation can have competitive edge over its rivals Human Resource
Management
if it is able to attract and retain knowledgeable workers who can optimally utilise
and manage the organisation’s critical resource because people are after all the
organisation’s only sustainable competitive advantage.
Strategic HR offers three critical customers: increased performance enhanced

customer and employee satisfaction and increased share holder value. These
outcomes are accomplished through effective management of staffing, retention
and turnover process, selection of employees that fit with both the organisational
strategy and culture, cost effective utilisation of employees through investment
in identified human capital with the potential for higher return, integrated HR
programmes and policies that clearly follow, from corporate strategy; facilitation
of change and adaptation through a flexible, more dynamic organisation; and
tighter focus on customer needs, emerging markets and quality.
2.3 STRATEGIC HUMAN RESOURCE

MANAGEMENT (SHRM)
Organisation consultants, business academics and practicing managers have come
to accept the idea that constant change is a fact of organisational life in the present
days. They have come to understand that change is inevitable and human resource
management plays an important role in the process of change and human resource
managers play a key role in determining the competitive success of any firm.
Therefore in the generic sense, the new view of human resource management
has been referred to as “strategic human resource management (SHRM)”. The
trends in the present businesses have undergone a sea change and today the
customers or marketplaces are making demands on the organisations. Besides
these, there are changes in the job mix (i.e. proportion of permanent versus causal
labour), new technology and increasing pressures from competitors.
Each of the above places additional pressures on the firms to be innovative and
create new ways of doing business with new technologies, new products and
new services to meet an increasingly diverse and demanding customer base. The
firms now have to enhance the value of innovation and for this purpose they
have to attract, train and retain employees of the highest quality and in addition,
attempt to sustain the competitive advantage that the skills of these employees
provide.
For so doing, the organisations of the 21st century require a greater focus on the
human element in organisations. From this realisation has come the approach to
Managing Human Resources.
What is SHRM? The traditional personnel department is both physically and

psychologically separated from the ‘real work’ of the organisation whereas in
the strategic view besides the functions of hiring, training and providing pay and
benefits to employees, many organisations are developing new structural and
cultural patterns to meet the competitive demand of their dynamic and
international marketplace, implying that the role of the HR in these organisations
has changed to meet these new challenges. The new strategic view of HR is that
HR plays a central role in helping the organisations reach its strategic objectives
and interacts fully with other functional areas within the firm.
23
Human Resource Planning 2.3.1 Strategic HRM: Some Theoretical Perspectives
James Walker has suggested that the new role of HR can be described most
simply as one of helping managers maximize the contribution of employees in
achieving competitive advantage. Ian Clark defines strategic HRM as being
concerned with the promotion of efficiency and profitability. As you now
understand strategic HR management centers on how organisations can improve
their competitive performance by considering and utilising their human resources
more effectively.
A number of theoretical models have been developed to explain exactly what

SHRM requires in an organisation and the process by which SHRM contributes
to the bottom-line success of a firm.
2.3.2 Universalistic Approach

John Delery and Harold Doty described a “Universalistic Approach” to strategic
HRM. They say that managers should focus on adopting a set of universally
effective HR practices as they have a positive effort on organisational
performance, whatever is the firm’s particular business environment and strategy.
They say that there should be:
• High level of employment security
• Selective hiring practices
• A focus on teams and decentralised decision making
• High pay levels
• Extensive employee training
• Practices that reduce status distinctions among employees
• High level of information sharing.
2.3.3 Strategic Fit Perspectives

In contrast to the universalistic view, the ‘Strategic-Fit Perspective’ of SHRM
suggests that firm’s performance will be enhanced only when the firm adopts
human resource management practices that complement and support both; other
HR policies and practices and the other elements of the organisation’s strategic
plan. The main idea of this model is that there should be a horizontal, vertical
and external fit i.e. Horizontal refers to the consistency among various HR
practices within the firm. For e.g. if the company wants to hire highly innovative,
risk taking employees, the company’s performance appraisal and reward systems
should also assess and reward innovation and risk taking.
Vertical fit is the degree to which HR practices are consistent with the firm’s
overall business strategy. For e.g. Suppose a firm has decided to enhance its
competitive standing relative to other firms in its industry by becoming highly
“customer focused”, the training programme should be planned to develop better
customer relations skills which will be consistent with the overall business
philosophy instead of just procuring highly technical skills which may be unrelated
to employee - customer oriented business strategy.
External fit is about how well HR practices align with the specific aspects of the
external environment i.e. the demographical changes occurring within and outside
24 the organisation and compelling the workforce to become more multicultural in
nature, thus, diversity management training, remedial language training or new Human Resource
Management
approaches to selection of employees from non majority cultures should be
concentrated upon as a part of the overall HR systems in order to fit to the new
external environment and enhance the competitive value of employees.
2.3.4 Internal Service Provider

The next approach of SHRM is the ‘Internal Service Provider’ to the firm’s
individual business units. Over here the HR professionals have to improve the
quality and cost effectiveness of HR services to increase the satisfaction of
management “customers in various business units within the firm. When we say
‘customers’ it means the customers who have utilised the services of this business
unit managers to help solve their people related business problems and increase
the overall effectiveness of their units. E.g. the HR professionals can intervene
and solve conflicts, interpersonal problems etc. among employees and managers.
It can plan some training programmes to enhance certain skills in the employees
or counselling session to deal with individual employee’s problems.
2.3.5 Configurational Approach

The “configurational approach” to HRM, attempt at enhancing a firms competitive
advantage by focusing on a set of HR practices rather than on any single HR
program or policy e.g. quality circles which have addressed many organisational
problems. This approach is consistent with the long held view that employee’s
performance is determined by a number of factors such as motivation and ability.
To increase employee performance there is a need to enhance both motivation
and ability. An opinion that configurational view is an extension of universality
approach was afloat when, Pfeffer found a set of HR practices which seem to
have universally positive effects on employee’s performance. However, another
study on 62 manufacturing firms by John Mac Duffie found that team based,
high commitment HR practices increased the performance of manufacturing firms
using flexible production system but did not enhance performance in firms with
more traditional mass-production systems. Thus this study suggests that there is
no single HR bundle that works universally. So it was found that universalistic
and configurational approach are not the same. One of the major contributions
of the configurational view is that research showed that a number of different
bundles of HR practices which contain individual HR elements are internally
consistent with one another.
2.3.6 Resource Based Model

In 1995, Jay Barney discussed a “resource based model” of SHRM. He said that
this model is based on the idea that organisations gain competitive advantage
when they posses resources that are valuable, rare, difficult for competitors to
imitate and organised in such a way as to maximize their overall value of the
firm. Thus each firm comes up with innovative and unique ideas so that they can
address the needs of the customers with novelty.
2.3.7 Key Elements in Developing HRM

Now that we have considered the different theoretical approaches to HR functions,
we come to a point where we have to question which approach is correct. This is
not an easy question to be answered as each approach points to different aspects
of the process needed for developing an effective strategic HR function.
25
Human Resource Planning However six key elements required in developing HRM within a firm have
emerged from the above mentioned approaches. They are as follows:
• Internally transforming HR staff and structure
• Enhancing administrative efficiency
• Integrating HR into the strategic planning process
• Linking HR practices to business strategy and to one another
• Developing a partnership with line management
• Focusing on the bottom line impact of HR and measurement of that impact.
Though these processes seem to be independent of each other there is an obvious

overlap not only in the process but also in the approaches.
If an organisation intends to create a HRM perspective, it needs to transform the

existing staff that performs HR duties and also the structure in which they operate
since these are the individuals who have to enact the change to SHRM. The
focus over here would be to perform the administration task (like pay and benefits,
safety programmes etc.) in as efficient and cost effective manner as possible.
The next elements of HRM are concerned with the strategic fit perspectives in
which the HR has to be integrated into the strategic planning process. Only then
the HR planners can link business strategies and HR practices to one another. In
addition there should be an effective development of partnership between the
line managers and HR staff. With the help of the line managers only the HR
activities have a value adding effect.
The sixth essential HRM element is the importance of bottom-line, value adding
impact of HR practices. HRM activities must add value to the firm instead of
just doing its regular duties.
Before we go to examine how firms used these six elements to get transformed
into a strategic HRM, let us have a brief discussion about “pre-transformation”
activity. Michael Beer has suggested the following:
i) First the leader of any HR change effort must be a highly competent and
credible leader within the organisation.
ii) Second, he must create a shared need for change among top managers so
that they can easily identify.
iii) Third, he should be able to articulate a clearly defined ‘end-state-vision’ for

HR and the major steps that should be taken to achieve that vision.
Thus involvement of the top management will ensure their commitment to HR

change process.
Finally measures must be developed to monitor the progress which should focus
on the value added by HR and sustain them.
26
Human Resource
Self Assessment Questions Management
1) What is strategic HRM?

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2) Discuss the universalistic approach.
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3) Define strategic fit and explain its role.
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4) What do you understand by the term internal service provider in HR
context?
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5) Discuss the configurational approach.
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6) Describe the Resource based model.
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7) What are the theoretical perspectives of SHRM?
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2.4 TRANSFORMING OF HR STAFF AND

STRUCTURE
There are two aspects of this transformation.
i) Transforming the people
ii) Transforming the structure
2.4.1 Transforming HR People

The skills needed of HR staff to function effectively in the traditional and strategic
orientations differ significantly meaning that in the traditional role staff members
need to be specialists in certain personnel functional areas and must have skills
to perform activities such as training or recruitment. In contrast the largest skill
component of a strategic HRM role is the change management. These managers
should have the ability to focus on strategic planning, team building, quality
improvement and diversity management and training. They should also have
team leadership skills, the ability to have a global perspectives, financial and
marketing literacy and good consulting and presentation skills.
However, these competencies may vary depending on the strategy of the

organisation.The processes by which firms have attempted to transform HR staff
from traditional specialists to strategic generalists are quite varied. The line
managers wanted the HR to do the following functions:
• Share responsibility for performance and profitability.
• Be customer driven and a business partner with a broad focus.
• Focus on solutions, not activities.
28
• Be creative and strategic Human Resource
Management
• Initiate, lead and facilitate change
• Help develop global managers
• Act with urgency.
However, it is not easy to transform the HR skills within a large organisation.
Time, effort, money and patience are needed.
2.4.2 Transforming HR Structure

The aim of the organisational restructuring is to determine which activities should
be centralised and which should be decentralised. Some companies which have
created new HR organisation structures to realign roles in order to separate
transactional-fulfillment work (administrative role) and consultative business–
partnering work (strategic role) reported that significant improvements in
delivering strategic results were found when the traditional roles were replaced
with more consultative organisation – effectiveness roles.
However, the appropriate structure for the HR function will depend on the nature
of the firm’s business activity, its size and its overall business strategy. Whatever
particular structure is used, the key element is to find a structure which meets the
needs of the business strategy of the organisation and allows the HR unit to
provide services designed to help the firm achieve strategic objectives.
2.5 ENHANCING ADMINISTRATIVE EFFICIENCY

The important role of a HR manager is as an Administrative expert and as such
he/she must take an active role in re-engineering administrative and other
processes in the firm and find ways of improving services throughout the
organisation.
Several processes are needed to enhance the administrative expert if the

organisation wants him to function effectively. The focus should be on improving
administrative efficiency by targeting current processes for improvement.
Thus the role of HR unit is to examine the gaps between the ‘as is’ process and
what the system should be. Once this is identified, certain programmes can be
developed to close them.
In implementing the new programmes however, the HR unit must market them
throughout the organisation and then measure whether efficiency has been
enhanced.
Administrative efficiency can also be enhanced through development of

centralised HR services that are shared throughout the organisation. The
organisation can develop one stop shop for all its payrolls, benefits and other HR
administrative services. Another thing it can do is to establish a ‘core team’ of
experts who can be called on for assistance by HR staff throughout the
organisation.
Finally the administrative experts have to completely rethink how they can create
value for the firm through their administrative activities. Therefore, the HR units
29
Human Resource Planning can create programmes that give value as perceived by the customers of the
programmes and not as perceived by the provider of the programme.
2.6 INTEGRATING HR INTO STRATEGIC

PLANNING
There are two requirements for strategic integration:
i) That a strategic planning process occurs in the organisation; and
ii) That HR managers play important role in that process.
Generally most of the firms do not have a well written strategic plan. Their main
aim is to ‘simply make money and not go bankrupt’. Thus the following paragraph
will present a brief description of the actual strategic process.
2.6.1 The Strategic Planning Process

For the development of any strategic plan, there is a need to involve, the top
management and sometimes outside consultants also sit down together to analyse
the current and future state of the organisation. During this time they try to answer
some basic questions like, where is the organisation today and where do we
want it in the next five years? What are the strength and weaknesses? What
opportunities exist in the business environment and what challenges are we likely
to face i.e. SWOT analyses are done.
2.6.2 Mission, Goals and Value Statements

The major reasons for the organisation’s existence are shown in the ‘Mission
statement’. This should be operationalised, in the sense that, when proper
definitions are given to a mission only then it is clear and can be achieved.
Managers should be able to visualise the mission, produce a backward imaging
and also start working with the end result in their mind. The next is the “value
statement” which is a fundamental belief statement to guide strategic change.Just
as an individual behaviour is shaped by a personal value system; organisational
behaviour and success are influenced by employee’s perceptions of corporate
beliefs. The degree to which values create desired organisational outcomes is a
function of the extent to which beliefs are clearly articulated, successfully
communicated and integrated into the way of doing business.
2.6.3 Environmental Threats and Opportunities

This is another integral step in the development of a strategic plan. The
environmental factors that influence organisational objectives are analysed and
the “environmental threats” which may prevent the organisation from achieving
its strategic goals are identified. “Environmental opportunities” on the other hand
are the aspects of the surroundings that may help the organisation to achieve its
goals. Thus for any firm which is preparing a strategic plan, an environmental
scan is essential, in which, the analysis of technology, economic factors, the
legal/political environment, international market’s competitions, the labour supply
and its customers are included. Moreover, a strategic planning process should
help managers develop as, complete an understanding as possible of all the
features of the organisation’s environment and how they come together to affect
the enterprise.
30
2.6.4 Organisational Strengths and Weaknesses Human Resource
Management
The positive internal characteristics on which the organisation can draw its
strategic goals are the “organisational strengths” and “organisational weaknesses”.
These are characteristics that may stand in the way of the accomplishments. The
analysis of strengths and weaknesses focus on the specific functions such as
marketing, finance, production and research and development. Besides these the
management philosophy may become outdated to address the changing dynamics
and in the same way the contributions of the human resource may also fall short
of what is expected in a competitive market. Therefore without losing the sight
of the organisation philosophy, certain amendments can be made to strengthen
the organisation for its future needs.
2.6.5 Goals and Objectives

After all the above aspects have been carefully examined the organisation should
establish its goals and objectives more realistically so that the mission can be
furthered. These goals have to do with people, products, marketing, resources
citizenship and profitability and they have to be translated into “specific” “tactical”
and “operational goals”, only then a team orientation that emphasis on
accomplishment, involvement and provide the opportunity for employees to reach
their full potential can be achieved. These general goals in turn will have specific
implications for the structure of work, the appraisal of performance, rewards
and career progression. Besides these, the definitions of goals have several
important benefits to an organisation and its employees like:
Goals are a source of motivation as they describe the purpose of the organisation
to all involved.
Goals also provide the basis for decisions since managers and employees must
take many decisions in their day to day activities, knowing the goals would help
them to make decisions with the desired outcome in the mind.
Goals also become the basis for performance measurement and guide the
managers for future actions.
2.6.6 Formulation of Strategies

After, defining the mission and analysing the environmental threats and
opportunities, considering the strengths and weaknesses and finally establishing
the goals, the management undertakes the strategy of formulating the goals. The
task over here is to select the most effective game plan or course of action to
achieve the organisation’s goals and objectives. Thus strategy can be formulated
at the ‘corporate level’ and for “individual business units and functions”. However,
it is the HRM function which will be the critical element in the overall success
of any strategy formulation and implementation process. Thus to ensure the
success of the overall strategic planning process, HRM will have to be completely
integrated and be a full partner in the strategic planning team.
2.6.7 Strategic Integration of HRM

Integration simply does not mean that HR managers have to provide HR related
information to people who are making strategic decisions. To achieve full
integration HR managers must have the ability to influence the development and
31
Human Resource Planning selection of information used in making a decision as well as the ability to make
or influence the decision itself. There are various ways of integrating HR into
the strategic decision making process.
1) The process of HR integration can begin by changing the hierarchical position

of the senior HR manager which would automatically make the top HR
manager to be a member of the senior executive committee and thus ensure
that the HR issues are incorporated into the Strategic planning process.
However this is not as simple as it seems. The person who holds the position
should have the power and behave in accordance and see that the strategies
are voiced and implemented.
2) In addition to the power, the HR representative should also gather and present
information that is relevant to the making of overall business strategy. The
HR officials should review the key talents, the firm’s benefit structure and
the culture etc. before taking any decisions, otherwise it would prove
adversely.

1) What are mission goals and value statements?
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2) Discuss the integral steps in strategic planning.
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3) How do we overcome environmental threats in strategic planning?
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4) Discuss the organisational strengths and weaknesses from strategic
planning approach.
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5) Describe the goals and objective for strategic planning.
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Human Resource
6) How do we integrate strategic planning with HRM? Management
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2.7 FITTING HR PRACTICES TO BUSINESS

STRATEGY
The most relevant and important HR issue for the staff and line managers in the
modern business is the issue of fitting HR practice to business strategy. The HR
fit involves seeing that the HR activities “make sense” and help the organisation
achieve its goals and objectives. As mentioned earlier in this chapter there are
three aspects of HR fit i.e. the vertical fit, the horizontal fit and the external fit
(refer to earlier paragraphs).
If vertical fit occurs, then horizontal fit should follow but each of the fits should
be considered separately if one wants to ensure that both are managed effectively
within the organisation. However, to achieve, external, horizontal and vertical
fit, the HR staff members, working closely with line managers must make correct
choices about the nature and specific type of HR programmes that are used in
the organisation.
2.7.1 Human Resource Practices Choices

Turning to ensuring a proper fit between external, vertical and horizontal fit, the
HR practices should result in and continuously reinforce the behaviours which
are needed for accommodating specific aspects of the external environment and
to help achieve the organisation’s objectives. To attain these organisations may
have to indulge in downsizing the employees and also reduce the levels of
management hierarchy.
There are six categories of HR practice choices and the challenge is to develop
internally consistent configurations of HR practices choices that help implement
the organisation’s strategy and advance its competitiveness. The following are
some of the HR choices which should be understood to accomplish the objectives
of the organisations.
Staffing: Staffing is one of the most important decision for strategy

implementation i.e. whether the firm hires from external sources or relies in
promoting people from within the organisation to fill the vacant posts will
determine the opportunities for current employees and will also influence the
rewards, training and development and employment commitment. Related to
this the issue of whether the recruitment and career decisions will be open or
closed will also come up. Depending upon this the notification of the job
opportunities will be posted on the notice board or sometimes the upper-level
managers will simple announce the openings.
Appraising: Once the strategic goals are established, performance appraisals

become a ‘must’. Performance appraisal should evaluate the behaviours which
33
Human Resource Planning are needed to achieve these objectives and the methods should vary according to
the strategy.
Compensation: This is one area of HRM which communicates the overall

philosophy and strategy of the organisation. Besides, the choices with respect to
rewards overlap many other areas of human resource management. As with the
performance appraisal system, different reward systems are needed for different
strategies. Where firms look for operational excellence, the reward system should
focus on team productivity, profit sharing and skills-based pay and when customer
– intimacy is assessed, there should be individual rewards, non-financial rewards
and service award programmes.
Training and development: When the organisations have to adapt to fast growth
or rapidly changing technology they usually engage a skilled trainer from outside
the organisation because the needed expertise can be obtained. Some other times
they develop expertise in house. The training and development programmes must
be compulsorily tied to the overall strategic objectives of the organisation and to
other HR systems. Sometimes, there is a danger with in house training, like,
since the in house trainers are not rewarded for the work they have done, they is
a possibility that they do not expend enough time and effort to the task. In addition,
the development efforts will be counter productive if the employees who get
trained do not get any promotions after their training. If the employees cannot
use what they have learned or are not rewarded for it, there is a possibility that
they may leave the organisation for better opportunities elsewhere.
Employee influence: This concept has evolved from superficial participation

(suggestion system) in the decision making process. However it has contributed
to the empowerment of the employees who tend to manage their performance in
support of business objectives. The question is how much of influence is given
to the employee in matters such as organisational goals, rewards, working
conditions and the work itself, because organisations are finding that empowered
employees strengthen the organisation.
Work system: Another factor in individual productivity and organisational

effectiveness is the design of work. The jobs that give greater responsibility and
control over their work seem to motivate the employee as opposed to
simplification and overspecialisation. The use of work systems to influence
productivity has also been manifested in an emphasis on teams. The team approach
has contributed to de-layering i.e. fewer management levels and fewer managers,
due to which more authority and responsibility are delegated to self managed
teams or autonomous work groups to plan, organise, supervise and evaluate their
own work.

1) How do you fit HR practices to Business strategy?
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34
Human Resource
2) What are the six categories of HR practice choices? Management
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3) Define staffing, compensation.
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4) Describe training and development.
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5) How do empowered employees strengthen organisations?
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2.7.2 HR Practices: Strategic Fit

In 1991, Jerre Stead the president of AT&T Global Business Communication
Systems developed a new set of strategic business principles for the organisation:
• Make people a key priority
• Win customers for life
• Use the total quality management approach to run the business.
• Profitability grows by being the leader in customer led applications of
technology.
• Rapidly and profitability globalise the business.
• Be the best value supplier.
The process of transforming HRM at GBCS was done in 5 steps.
Step I : Identifying the basic business principles.
Step II : A set of HR ‘Strategic imperatives’ were derived directly from the
business principles which helped to translate the business principle
to a set of HR related outcomes pertaining to the daily operation of
GBCS.
Step III : The HR units used these imperatives to develop its own internal
mission statement, which identified areas in which it was essential
to focus HR activities.
Step IV : The focus was on cultural change i.e. in order to globalise
successfully, the organisation had to become sensitive to differences 35
Human Resource Planning in cultures. So the critical focus areas for HR were cultural change,
rewards and recognition and the development of ownership among
employees.
Step V : Once these areas have been clarified, the HR unit would then develop,
special programme, in partnership with management and employees,
to adapt to a new external environment, accomplish the mission
and contribute to the overall strategic success of the organisation.
Thus these principles showed how one can bring out a horizontal, vertical and
external strategic fit of HR practices with the help of a step by step analysis of
the overall mission, goals, and objectives of the organisation. Further the fit
process requires an active involvement of individuals in change of HR practices
and policies and also the meaningful participation of line staff.
2.7.3 HR Practices: Strategic Fit Vs. Strategic Flexibility

We assumed that strategic fit is the highly desirable end state of HR managers to
be achieved in any organisation. However, there is a danger when HR systems
become too well ‘fitted’ to a particular business environment and strategy. We
all know that the environment in which organisations function are all dynamic
and any changes in it has a direct impact on the organisation. The more the
perfect fit the more is the difficult for the organisation to modify to the changing
circumstances.
Thus several researchers have pointed out that both fit and flexibility are needed
for long term competitive advantage. They argue that fit and flexibility are two
independent concepts and each needs a close attention. They describe fit as a
‘temporary state’ and flexibility as a ‘characteristics of an organisation’ related
to its ability to meet the demands of a dynamic environment. There are two types
of flexibility: (i) Coordination flexibility and (ii) Resource flexibility. These are
discussed below.
Coordination flexibility: This is the extent to which an organisation has decision
making and other systems that allow it to quickly move resources from one use
to another.
Resource flexibility: It is the extent to which an organisation can apply its
resources to a variety of uses and purposes. It also involves the cost, difficulty
and time needed to switch resources from one use to another.
So to develop a strategic fit, the establishment of HR practices that provide both
fit and flexibility is something that HR managers cannot do alone. They can
accomplish this task only by developing a strong partnership between themselves
and line managers.
2.8 PARTNERSHIP
To become a business partner the HR manager must:
• Learn as much as possible about the firms business.
• Be more responsive to and more aware of the organisation’s needs and
direction.
• Move away from the traditional HR functions.
36
• Become more involved in supportive, collaborative relationships with Human Resource
Management
managers throughout the organisation.
• Demonstrate how critical HR is to the success of the business.
To build a good business partnership the HR managers should first consult the
line managers, who can provide information about where the support can be
given by HR managers. Generally, the support is needed in areas such as career
planning, education and training etc. Then depending on these requirements the
HR staff can focus on strategy focusing on:
i) Generating organisational excellence through selection and training.
ii) Reinforcing organisational excellence through performance management and
reward systems.
iii) Sustaining organisational excellence through continuous improvement
initiatives and constant communication of the vision of the organisation.
iv) Individual programmes can also be developed within each of these three
main focus areas and then to start implementing these programmes, a
conference can be held for all senior HR people.
Another way of building partnership is:
i) The HR staff’s, attending meetings of all the units of the firms, so as to
better understand the nature of the business.
ii) Then some HR practices which were not adding value to the business should
be removed and replaced by more apt ones.
iii) The HR staff should meet the top executive from other areas of the firm to
discuss and identify issues and develop ways in which HR can help them
grow.
This way the HR managers can identify the skills they need to be more effective
business partners.
Thus the ability of HR to measure its contribution to the organisation’s bottom
line or other relevant measures of firm effectiveness is, however an essential
final ingredient in the development of a lasting, meaningful partnership between
HR and line managers.
2.9 MEASUREMENT OF HRM

HR departments are generally criticized for not providing any results for the
organisation. There has been increasing pressure on the HR departments to
evaluate their returns on investment. In order to show how HR contributes to the
overall business success, the first requirement is to identify a means of measuring
HR’s performance. Some authors have suggested typologies of HR measurement
systems, which relate to four basic questions about HRM.
1) What did the customers of the HR practices or those who have same stake
in an HR activity think of it?
2) Did the HR activity have a measurable impact?
3) If the HR activity did have an impact, then what was the bottom line cost
benefit to the organisation?
4) How do our HR activities compare with the HR activities of others (HR
Bench marking)? 37
Human Resource Planning 2.9.1 Customer Reactions
This is an attempt of measuring HRM effectiveness by identifying those who
have a stake in the activities of HR in the organisation or some who are the direct
users of the product like the managers, the unions, customers, employees, suppliers
or even company shareholders. A survey is conducted on them about their
perception on whether the HR could supply the right kind of HR products in the
right way at the right time. If the answers to these are affirmative then we can say
that they have performed a satisfactory job.
2.9.2 HR Impact
In order to properly evaluate the impact of HR programme the HR units must
develop a strategic framework for assessing the effectiveness of their services.
The strategic objectives of the organisation at units should be identified along
with the human resource activities needed to accomplish those objectives. For
e.g. if an organisation is planning to hire R&D scientists and the HR staff have
an innovative method of selection and after hiring them into the organisation
they have proved to be good, it shows that the HR impact was good.
Value of HR programmes: This is about the monetary costs and benefits of HR

activities. There are many direct ways of assessing HR cost-benefits ratio of HR
activities.
1) The first step is to figure out how much some undesirable HR-related
situations in the organisation are costing.
2) Once this is known, the next step is to estimate the costs of the HR
programmes developed to set this problem right.
3) Thus when the actual cost of the HR activities to bring about a difference in
the staff behaviour is calculated and the benefits accrued by this changed
behaviour are compared, one can assess the cost-benefit ratio easily.
4) However, there is an enumerable pressure on the HR activities of all the
organisations because the HR practitioners always have to justify the bottom-
line impact of their practices.
2.10 BENCH MARKING HR PRACTICES

This is important because, to determine the true competitive advantage of HR,
an organisation must assess HR practices not only against same internal standard
but also against the HR practices of key competitors and firms that exemplify
excellence. Bench-marking is actually a generic term that can be defined as a
comparison with selected performance indicators from different organisations,
typically in the same industry, or with comparable organisations that are
considered to be the ‘best in class’. There are different types of bench marking:
Internal bench marking: This occurs when a firm compares practices in one
part of the organisation against those in other internal units.
Competitive bench marking: This is conducted against external competitors
in the same markets.
Generic HR Bench marking: This involves the comparison of HR processes
that are the same, regardless of industry.
38
Whatever type of bench marking is being conducted, the process is the same. Human Resource
Management
The firm must first understand its own performance by developing measures of
customer reactions,
HR impact and the cost benefits: The firm must then decide exactly what to
benchmark.
Measures that are obtainable in the comparison firms or business units should be
identified and then prioritized relative to their overall strategic importance to the
role of HR in the company.
An overall plan for the programme should be developed, including the allocation
of sufficient resources for the project and the establishment of a clear project
calendar.
The next step is to identify firms, that will be in the study, persuade them to
participate and then collect data.
Analyse the data collected to find out the ‘gaps’ between the firm which is being
compared and the target firm in the study.
Recommendations on how to close these gaps should be made and then
implemented
There are a number of ways of benchmarking, however which one should be
used will be left to the discretion of the firm that is involved.
In US, twenty five HR measurement ‘National standards’ were developed in
1984 by the Saratoga Institute. This would be useful for anyone who is
contemplating benchmarking process.

1) What is the HR practices strategic fit steps?
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2) Discuss strategic fit versus strategic flexibility.
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3) How do we measure HRM?
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39
4) What are the ways to understand the effectiveness of HR?
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5) Discuss the measures to be taken to benchmark HR practices
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2.11 IMPORTANCE OF STRATEGIC HRM

There are a variety of reasons why organisations have to transform from traditional
HRM to SHRM. But for adopting the SHRM, there is a need for highly competent
and persistent SHRM leader as well as committed and supportive top
management. Many firms do not really have this kind of HR leaders or even the
top management’s support. Political forces within the organisation accompanied
by competing coalitions with different interests may bar the adoption of many
SHRM practices. When the company thinks of downsizing, the HR staff is the
first to go because it is always seen as a non essential unit to the core business.
Unless HR managers are involved directly in the process of strategy formulation,
and the senior managers to link the HR activities to business strategy, the HR
cannot implement the HR components and therefore loses the credibility with
non HR managers, which will further isolate HR from the strategic planning
process. However, there is evidence that HR practices do have a direct bottom
line effect on the organisational profitability.
Research showed that it has a financial impact and there seems to be a strong
case for promoting the improvement of HR activities as a means of affecting the
financial results of many organisations. The business environment that has caused
organisations to focus on human resources as a potential enduring source of
competitive advantage is likely to continue. Thus, to the extent that HR
practitioners become adept at measuring aspects of customer reactions, HR
programme impact, and the cost benefit value of HR practices and also comparing
their own HR practices with those of their best competitors, the importance of
strategic human resource management is likely to continue to grow. Hence as a
last word we can say the strategic human resource management is really worth
all the trouble.
2.12 LET US SUM UP

In this unit we have discussed the process of how an organisation can move from
a traditionally personnel management perspective to a strategic approach. Since
the modern business environment is rapidly changing where technology, finance
and products and can be imitated easily by the competitors this move has become
essential. Human resources are one of the few enduring sources of competitive
40
advantage that remain for many firms. The traditional view of HR is that it is an Human Resource
Management
isolated, record-keeping function with the organisation. Strategic human resource
(SHRM) though is considered as a simple process of helping an organisation
achieve the competitive advantage through its people there are many different
perspectives on this definition.
People believe that there are universal set of HR practices that will always
contribute to a firm’s success, regardless of the business environment in the
company’s strategy. Therefore the role of the SHR managers is one of
incorporating these universally effective HR practices into their firm, besides
this it is also believed that their job is to match specific HR practices to particular
aspects of the firm’s strategy. They have to ensure a fit between HR practices
and business strategy besides a fit with the external environment and one another.
Another view of SHRM is that of a service provider’s role is to solve the problems
and serve the HR needs of managers within different business units in a firm.
Other HRM specialists believe that SHRM involves a process of putting together
configurations of HR practices that are logically consistent with and appropriate
for a particular business environment in which it operates. The final view is that
it is a means of gaining competitive edge by putting together a unique group of
human skills and abilities that other firms are unable to initiate and give the
firms special capabilities so that it can with stand competition. Each of these
perspectives adds to an overall view of HRM which suggest that HRM is a process
that involves.
• Internally transforming HR staff and structure.
• Enhancing HR administrative efficiencies.
• Integrating HR into the strategic planning process.
• Linking HR practices to business strategy and to one another.
• Developing a partnership with line management so that HR programmes
meet real business needs.
• Measuring the bottom line impact of HR activities.
Though each of these parts of SHRM process is complex, time consuming and
difficult, and research indicates that real financial benefits result from more progress
strategic and efficient use of human resources within modern organisation.

1) Discuss the contributions of the different perspectives of Strategic Human
Resource Management.
2) Explain how we can measure the effectiveness of HRM?
3) Explain what is SWOT analysis of an organisation?

Fisher, Cynthia. D, Schoenfeldt , Lyle .F and Shaw .J, B., (2004) Human Resource
Management. 5th Edition, Indian Adaptation, New Delhi, Biztantra
Birdwell,I. and Holden,L. (1994) Human Resource Management, A
Contemporary Perspective, New Delhi, Macmillan.
41
UNIT 3 PEOPLE DIMENSIONS IN HR AND
SHORT TERM HUMAN RESOURCE
PLANNING
Structure
3.0 Introduction
3.1 Objectives
3.2 People in Organisations
3.2.1 Psychological Contracts
3.2.2 The Person Job Fit
3.3 Personality and Organisation
3.3.1 Big Five Personality Traits
3.3.2 Myer- Briggs Framework
3.3.3 Other Personality Traits
3.4 Attitudes in Organisation
3.4.1 Formation of Attitudes
3.4.2 Basic Structure of Attitudes
3.4.3 Cognitive Dissonance
3.4.4 Key Words Related to Attitudes
3.4.5 Affect and Mood in Organisation
3.5 Perception in Organisations
3.5.1 Basic Perceptual Processes
3.5.2 Perception and Attributes
3.6 Creativity in Organisation
3.6.1 The Creative Individual
3.6.2 Enhancing Creativity in Organisations
3.7 Types of Workplace Behaviour
3.7.1 Performance Behaviour
3.7.2 Dysfunctional Behaviour
3.7.3 Method to Overcome Dysfunctional Behaviour
3.8 Short Term HR Planning
3.8.1 The Organisation’s Context of HR Planning
3.8.2 Resource Planning
3.8.3 Recruitment Planning
3.9 Employee Choice Plans
3.9.1 Flexibility Plan
3.9.2 Part Time Workers
3.9.3 Job Sharing
3.9.4 Home-working and Tele-working
3.10 Subcontracting
3.10.1 Flexible Hour Arrangement
3.11 The Downsizing Plan
3.12 Let Us Sum Up
3.14 Glossary
42 3.15 Suggested Readings
People Dimensions in HR
3.0 INTRODUCTION and Short Term Human
Resource Planning
This unit deals with people dimensions at work and short term human resource
planning. We start with people in organisations in which we discuss the
psychological contracts and the person job fit. Then we take up the personality
and organisation within which we discuss the big five personality traits, the Myer
Briggs framework and the various other personality traits which affect
organisation. Then we deal with attitude formation and structure of attitudes in
an organisation. We then point out how cognitive dissonance come about and
how the attitudes could be changed. Then we elucidate a few key work related
attitudes and show how affect and moods in organisation are formed and adversely
affect the work. This is followed by a discussion on creativity in organisations
and types of work behaviours including dysfunctional behaviours and how to
remedy the same. Then we take up Short term HR planning and discuss under
this the resource planning and recruitment planning. Then we take up employee
choice plans, the flexibility plan, job sharing process, the use of part time workers
and the possibility of working from home etc. Under short term HR planning us
take up subcontracting and flexible hour arrangements and as a last resort how
the organisation can resort to downsizing.
3.1 OBJECTIVES
• Describe the relationship between people and organisation;
• Define psychological contract;
• Elucidate the person job fit;
• Explain the personality of individuals and how it affects organsisation;
• Describe the Big Five personality traits and Myer Briggs framework;
• Explain how attitudes are formed in an organisation and their effects on the
organisation;
• Delineate the perceptual processes in an organisation;
• Elucidate how creativity can be enhanced in an organsation;
• Delineate the different types of workplace behaviours in an organisation;
• Explain how dysfunctional behaviours can be overcome;
• Discuss short term HR planning;
• Delineate the various choice plans of employees such as flexibility plans,
job sharing etc; and
• Define subcontracting and downsizing and their effects on organsiation
3.2 PEOPLE IN ORGANISATION

To manage people effectively the managers should necessarily understand the
factors that affect how people behave a work. As a starting point for understanding
the behaviour of people in organisation we need to examine the basic nature of
the individual and organisation relationship which helps us to appreciate the
43
Human Resource Planning nature of individual differences. These differences play a critical role in
determining various important workplace behaviours which are of special
relevance to managers. Besides these the gender, race and disabilities should
also be taken into account. Further the needs and wants of the individuals will
differ and these affect their levels of motivation. Due to the above differences,
people develop a set of expectations regarding what he/she will contribute to the
organisation and what the organisations will provide to them in return. All these
psychological and emotional process influence the working of an individual
employee and sometimes deter him/her from giving his/her total commitment to
the organisation. Therefore organisations are turning towards making alternative
arrangements in employment which is in other words known as short term
planning. Through this the organisation is offering the employees different timings
and opportunities, so that the employee can manage his/her job at the organisation
and other activities at home.
Since the most pertinent variable of any organisation is the human variable, it is
a huge challenge for the organisations’ managers to plan and maintain them.
There are many factors which operate on the people and each of them has an
immense influence on the employee. He/she is processing the information that
is emitting from the management side and if the individual perceives that the
management is concerned, empathetic and provides for need fulfillment, then
the established relationship or contract is satisfying and if he/she perceives it
otherwise then, there are other adversities the management has to encounter.
Thus it is imperative for the management to address the individual’s every need
to the utmost so that a ‘Psychological Contract’ gets established between the
worker and the organisation.
3.2.1 Psychological Contracts

The contract resembles a standard legal contract is some ways but is less formal
and well defined. However, nothing is written on a paper or any of the terms are
explicitly negotiated. The individual makes a variety of ‘contributions’ to the
organisation and in return the organisation provides ‘inducements’ to the
individual. Some of these inducements like pay and career opportunities are
tangible rewards and others such as job security and status are more intangible.
When the employee feels that he/she is receiving a fair and equitable compensation
for his/her efforts there will be satisfaction and a relationship will form and he/
she will continue to contribute in the same way. However if either party sees any
kind of inequity in the contract, that party may initiate a change. The employee
might ask for a pay rise or a promotion, put forth less effort or look for a better
job elsewhere. On the organisation side, they may initiate change by training the
worker to improve the skills, transfer the employee to another job or fire the
person.
All organisations strive to manage the psychological contracts. They want value
from their employees and they give their employees the right inducements.
Otherwise the employee starts stealing the resources as a way of balancing the
psychological contract.
Recent trends in downsizing and cut backs have actually complicated the process
of managing psychological contracts. Job permanence for most people started
seeming unlikely therefore the organisations are providing alternative inducement
44
in the form of sending the employees for additional training, increased flexibility People Dimensions in HR
and Short Term Human
in working schedules etc. Resource Planning
Increased globalisation of business also complicates the management of

psychological contracts because the values attached to the inducements are varying
extremely. For, e.g The U.S. workers value individual rewards and recognition
but Japanese workers are happy with group based rewards and recognition.
The more recent problem is due to international businesses. Managers who are
selected for a foreign assignment are usually given some estimate of the duration
of the assignments and receive various adjustments in their compensation package.
When the assignment is over the manager must then be integrated into the
domestic organisation. Thus, the problem here would be that during the tenure
of the employee’s assignment, many changes might have taken place in the
organisation and the returning manager may be coming back to quite a different
organisation and job from the one he/she has left.
3.2.2 The Person-Job Fit

The specific aspect of managing psychological contract is managing the person-
job fit. A good person-job fit is one in which the employee’s contribution match
the inducements the organisation offers. However, such a precise person- job fit
is not always possible. One reason is the hiring procedure is imperfect. Managers
can estimate employee skill levels when making hiring decisions and can improve
them through training, but to obtain an objective and valid performance dimension
is quite difficult.
Another consideration is that both people and organisations change. An employee

who finds the new job stimulating and exciting may consider the same job boring
and monotonous in a few years time. Finally, each person is unique, measuring
skill and performance is difficulty and assessing attitude and personality is far
more complex. Hence each individual difference, make matching workers with
jobs a difficult and complex process.
Since managers need to establish effective psychological contracts with their

employees and achieve optimum fit between people and jobs, they face a major
challenge in attempting to understand both individual differences and
contributions in relation to inducements and contexts. Let us start off by
developing an understanding of the role of personality in organisations.
As you all know individual differ on personal attributes that vary from one person
to another. They can be physical, psychological or emotional. The basic categories
of individual differences include personality, attitudes, perception and creativity.
However, we need to note the importance of the situation in assessing the
individual’s behaviour. The circumstances in which an individual operates
determine, whether an individual is dissatisfied, withdrawn and negative in one
job setting but satisfied, outgoing and positive in another. Working conditions,
co-workers, and leadership are also a few factors which affect how a person
performs and feels about a job. So whenever the managers attempt to assess or
account for individual differences, they must be sure to consider the situation in
which the behaviour occurs.
45
1) Discuss people in organisations and management of them by the
organisation.
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2) Define psychological contract.
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3) How does an organisation manage the psychological contract?
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4) What is meant by person-job fit?
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3.3 PERSONALITY AND ORGANISATION

Personality is the relatively stable set of psychological attributes that distinguish
one person from another. Both biological and environmental factors play an
important role in determining our personality, thus managers should strive to
understand the basic personality attributes and how they can affect peoples’
behaviour in organisational situations.
3.3.1 Big Five Personality Traits

Psychologists have identified literally thousands of personality traits and
dimensions that differentiate one person from another. But researchers in the
46
recent years have identified five fundamental traits that are especially relevant to People Dimensions in HR
organisation which are commonly called the ‘Big Five’ personality traits. Resource Planning
The five traits are:

• Agreeableness
• Conscientiousness
• Negative Emotionality
• Extraversion
• Openness
1) Agreeableness: It is the person’s ability to get along with others. People
with agreeableness are gentle, cooperative, forgiving, understanding and
good natured in their interaction with others. Research has found that highly
agreeable people are better at developing good working relationships with
co-workers, subordinates and higher level managers whereas less agreeable
people are not likely to have good working relationships. The same pattern
will extend to the customers, supplier and the other key organisational
constituents.
2) Conscientiousness: This means the number of goals on which a person

focuses. People who focus on few goals at a time are more organised
systematic, careful, thorough, responsible and self disciplined. Research in
this dimension showed that more conscientiousness people tend to be higher
performers than the less conscientiousness people in a variety of different
jobs. People high on conscientiousness take their jobs more seriously and
approach their jobs in highly responsible fashions.
3) Negative emotionality: The third dimension is ‘Negative Emotionality’

where people having this dimension in lesser measure are said to be relatively
poised, calm, resilient and secure. People with less negative emotionality
are better at handling job stress, pressure and tension. These people are
considered more reliable and stable.
4) Extraversion: This reflects a person’s comfort level with relationship. They

are more social, assertive and open to establishing new relationship.
Research suggests that extraverts tend to be higher in overall job
performance and they are more likely to be attracted to jobs based on
personal relationships, such as sales and marketing positions.
5) Openness: Finally openness reflects a person’s rigidity of beliefs and a

range of interests. People high on openness are willing to listen to new
ideas and to change their own ideas, beliefs and attitudes in response to
new information. They also tend to have broad interests and to be curious,
imaginative and creative. People who are low on openness are less receptive
and less willing to change their minds. They have fewer and narrower
interests and are less curious and creative. Because of their flexibility people
with more openness are better performers and are better accepted by others
in the organisation. Openness may also involve a person’s willingness to
accept change, whereas people with less openness resist change.
47
Human Resource Planning Researchers and managers are highly attracted to the big five framework as it
encompasses a set of traits which are predictors of behaviour in certain situations.
This framework enables the managers who are aware of it to understand their
employees better.
3.3.2 Myer- Briggs Framework

This is based on the Carl Jung’s classical work and differentiates people in terms
of four general dimensions: sensing, intuition, judging and perceiving. Higher
and lower positions in each of the dimensions are used to classify people into
one of the sixteen different personality categories. This is a popular questionnaire
and most organisations use it to assess personality type. It also serves as a selection
instrument. It allows determining the communication styles and interaction
preferences.
3.3.3 Other Personality Traits

Besides the above two frameworks, several other personality traits influence
behaviour in organisations. Among the most important are: Locus of Control,
Self efficacy, Authoritarianism, Machiavellianism, Self esteem and Risk
Propensity.
1) Locus of Control: It is the extent to which people believe that their behaviour
has a real effect on what happens to them. People who believe that individuals
are in control of their lives are said to have internal locus of control. Other
people think that fate, chance, luck or other people’s behaviour determines
what happens to them. People who think that forces beyond their control
dictate what happens to them are said to have an extreme locus of control.
2) Self efficacy: It is a person’s belief about his or her capabilities to perform

a task. People with high self efficacy believe that they can perform well on
a specific task. Individual’s personality and assessment of ability contribute
to self efficacy. It brings out more self assuredness and will be better focused
on performance.
3) Authoritarianism: Authoritarianism is the belief that power and status

differences are appropriate within hierarchical social systems such as
organisations. The persons who are highly authoritarian may accept directives
or orders from someone with more authority because he believes that the
other person is a ‘boss’ and he has a right. In contrast people who are not
authoritarian, though may carry out the order from the boss are more likely
to question things, express disagreement with the boss. A highly authoritarian
manager may also be more autocratic and demanding and the subordinates
will accept his behaviour. However a less authoritarian manager may allow
subordinates a bigger role in making decisions and the subordinate will
respond positively to his behaviour.
4) Machiavellianism: This is another important personality trait in which the

behaviour is directed at gaining power and controlling the behaviour of
others. More Machiavellian individuals tend to be rational and non
emotional, may be willing to lie to attain their personal goals, put little
emphasis on loyalty and friendship and enjoy manipulating other’s behaviour.
Less Machiavellian individuals are more emotional, less willing to lie to
48
succeed, value loyalty and friendship; highly and get little pleasure from People Dimensions in HR
manipulating others. Resource Planning
5) Self esteem: This is the extent to which a person believes that he/she is a
worthwhile and deserving individual. People with high self esteem are more
likely to seek higher status jobs, be more confident in their ability to achieve
higher levels of performance and derive greater intrinsic satisfaction from
their accomplishments. Among the major personality dimensions, self esteem
is the one that has been most widely studied and applied in organisations.
6) Risk propensity: This is the degree of which a person is willing to take

chances and make risky decisions. Managers with high risk propensity will
experiment with new ideas and gamble on new products. These can lead the
organisations to new and different directions. These managers might be
catalysts for innovation. However through low risk propensity managers
may not take the required risks, they can maintain stability and calm in
organisations. The potential consequence of a manager’s risk propensity
depends heavily on the organisation’s environment.

1) Discuss personality traits and how do they affect organisations.
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2) What are the Big Five Personality traits? Describe
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3) Elucidate Myer Briggs framework.
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4) Name the other personality traits that are relevant for organisation.
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49
3.4 ATTITUDES IN ORGANISATION
Attitudes are complexes of beliefs and feelings that people have about specific
ideas, situations or other people. People’s attitudes also affect their behaviour in
organisation, because they are the mechanism through which most people express
their feelings. E.g. If an employee thinks he is under paid by the organisation it
reflects his feeling about his pay.
3.4.1 Formation of Attitudes

A variety of forces including our personal values, our experiences and our
personalities, act on the formation of attitudes. We form a favourable attitude
about a person, an object or event when we have a pleasant experience with
them and we form an unfavourable attitude when our experiences were unpleasant
or negative. Sometime any of the dimensions dealt in the Big Five frame work
may also influence our attitude formation.
Let us consider the Basic structure of attitudes.
3.4.2 Basic Structure of Attitudes

Attitudes are usually seen as stable dispositions to behave toward objects in a
certain way, and we expect a person to express the same feeling consistently.
Thus attitude contains three components: ‘affect’, ‘cognition’ and ‘intention’. A
person’s affect can be said as his/her feeling towards something. It is similar to
emotion and we have little or no control over this. You may like something
extremely, do not like something and you may be indifferent to something else.
However if what you do not like so much is very important for your progress,
then some amount of anxiety develops in you.
1) Cognition: It is the knowledge that one has about something. This knowledge
may be true, partially true or totally false. Cognitions are based on
perceptions, truth and reality and perceptions agree with reality to varying
degrees.
2) Intention: This guides the person’s behaviour. Some attitudes and their
corresponding intentions are central and significant to an individual than
others. Like you may intend to do one thing, but later on alter you intention
because a more significant activity has come up.
3.4.3 Cognitive Dissonance

When two sets of cognitions or perceptions are contradictory or incongruent
with each other, a person experiences a level of conflict and anxiety. Cognitive
Dissonance also occurs when people behave in a fashion that is inconsistent
with their attitudes e.g. a person may realise that smoking and over eating are
dangerous for health but continue to do both. A certain amount of tension and
discomfort is experienced by the individual because the attitudes and behaviours
are inconsistent with each other. So to reduce this feelings the person may change
the attitude alter the behaviour or distort the circumstances.
This dissonance affects people in a variety of ways. They have frequent conflicts
with different attitude or with their own behaviour. In an organisation setting,
people thinking about leaving the organisation wonder why they continue to
50 stay and work hard and as a result of this conflict, they may conclude that the
company is not so bad after all, or that they have no immediate option else where People Dimensions in HR
or that they will leave soon. Resource Planning
Attitude change: Attitude change takes place in an individual as and how he/
she receives new information about the target person, object or event. For e.g. a
manager may have a negative attitude about a new colleague because of his lack
of job-related experience. After working with him for a while, the manager may
realise that the person is actually very talented and subsequently develops a more
positive attitude.
Attitudes can also change when the objects of the attitude becomes less important
or less relevant to the person e.g. suppose an individual is not very happy with
the insurance benefits of his company but later on if his spouse gets a job in an
organisation which offers good insurance benefits for the whole family, then his
feeling or attitude toward his company get moderated basically because his worries
are reduced.
Finally, individuals may change their attitudes as a way to reduce cognitive

dissonance because staying under dissonance can increase the tensions.
Attitudes are highly resistant to change because most often they are deeply rooted,
and developed over a long period, mainly out of our experiences and observation.
3.4.4 Key Work Related to Attitudes

There are many things in an organisation to form attitudes for the employees.
They have attitudes about salary, their promotion possibilities, their boss,
employee benefits, and the food in the company cafeteria etc. However some of
the attitudes are more important than others like job satisfaction and organisational
commitment.
Job Satisfaction: This attitude reflects the extent to which people find
gratification or fulfillment in their work. Individual’s needs and aspirations are
some of the important factors of job satisfaction. Along with this, group and
organisational factors such as relationships with co-workers and supervisors and
working conditions, work policies and compensation also influence job
satisfaction.
A satisfied employee tends to be more regular to work, makes positive contribution

and stays with the organisation. In contrast a dissatisfied employee will be
frequently absent, experiences stress which can have effect on his work and
other co-workers, and may be on the lookout for other jobs. However, high level
of satisfaction has not been found to lead to higher levels of productivity.
Organisational Commitment: This also called as job commitment and it reflects

an individual’s identification with and attachment to the organisation. A highly
committed person will see him/her self as a true member of the company, over
looks minor sources of dissatisfaction and remains a member of the organisation.
Organisations on their part take some measures to promote satisfaction and
commitment.
Like they must treat their employees fairly and provide reasonable rewards and
job security.
51
Human Resource Planning Allow employees to have a say a how things are done.
Design jobs that are stimulating.
Besides these some other factors that lead to commitment are extrinsic rewards,
role clarity and participative management.
3.4.5 Affect and Mood in Organisation

Turning to the effective component of attitudes, which reflect our emotions,
research shows that there are some short term fluctuations in the emotions and
feelings of people and they are also some underlying stable predispositions which
are fairly constant and predictable moods and emotional states. Some people
have positive affectivity which means that they are relatively optimistic and
possess an overall sense of well being. These people see things in a positive light
and are always in a good mood. People with negative affectivity are the opposite,
that is, they are pessimistic and usually see things in a negative way and are
mostly in bad mood.
However, as said earlier some short term variations can occur among both these
types and it does not mean that people who have positive affectivity will always
be in good mood, if something go wrong in their life like being laid off or did not
receive promotion they can suffer from bad mood.
3.5 PERCEPTION IN ORGANISATION

This is another important process by which individuals become aware and
interpret information about the environment. Thus perception is also another
important element in the workplace behaviours. People perceive the same thing
in many different ways.
These differences would arise primarily because of perception and therefore
managers should understand basic perceptual processes. As said earlier perception
is receiving information in many guises, and the receiver assimilates the varied
type of incoming information for the purpose of interpreting it.
3.5.1 Basic Perceptual Processes

The following are the two basic perceptual processes that are of particular
importance to the manager: Selective perception and Stereotyping.
Selective Perception: It is the process of screening out the information that is
uncomfortable or one that contradicts our beliefs. Because of selective perception
managers tend to ignore some important or disagreeable information about the
employees i.e. if they are in favour of an employee they may ignore some
behaviour which is not acceptable, and it is the vice-versa, if they are unfavourable
of an employee. This behaviour of the manager can be quite detrimental in running
the organisation.
Stereotyping: It is categorizing or labeling people on the basis of a single attribute.
Sometimes, certain forms of stereotyping are useful and efficient. Like attributing
that marketing executives are very forceful and go-getters. But when stereotypes
are made for race or sex then it is harmful.
These kinds of stereotyping are inaccurate for e.g. if a Human Resource manager
forms the stereotype that women can only perform certain tasks and men are
52
best suited for other tasks it affects the manager’s hiring practices. He/She is People Dimensions in HR
also costing the organisation valuable talent for both sets of jobs. This also Resource Planning
amounts to violating federal law and behaving unethically.
3.5.2 Perception and Attributes

The theory of attribution has enhanced our understanding of how perception
affects behaviour in organisation. This suggests that we observe a behaviour and
then attribute causes to it i.e. we try to explain why people behave as they do.
The process of attribution is based on perceptions of reality and these vary widely
among individuals. The process starts like this: we observe behaviours either
our own or someone else’s, we evaluate that behaviour in terms of its degrees of
consensus, consistency and distinctiveness.
‘Consensus’ is the extent to which other people in the same situation behave the
same way.
‘Consistency’ is the degree to which the same person behaves in the same way at
different times.
‘Distinctiveness’ is the extent to which the same person behaves in the same
way in different situations.
Thus ‘Consensus- means falling in line with others behaviour, consistency means,
repeatedly behaving in the same way, whereas distinctiveness means the ability
to read the situation and judge it and behave as required. So to form an attribution
as to the cause of behaviour, we have to analyse a person’s behaviour based on
various combinations of consensus, consistency and distinctiveness. We may
think that the behaviour is caused internally (i.e. by the forces within the person)
or externally (by forces in the person’s environment) For example suppose a
subordinate behaves as a rowdy, disrupting others work and making nuisance of
himself, the manager can change his behaviour if he/she can know the cause of
this behaviour. If the employee is the only one engaging in the disruptive behaviour
(low consensus), if he behaves like this many times in a week (high consistency)
and if the behaviour is the same in other settings (low distinctiveness) then a
logical conclusion can be drawn, that the employee is behaving this way due to
internal factors.
In another similar case, everyone in the employee’s work group is rowdy (high
consensus) and the particular employee is also a rowdy at work (high consistency)
but the manager has not seen him behave that way in other settings (high
distinctiveness) then the behaviour is said to be caused due to external factors.
i.e. this particular employee though is a rowdy he/she has the judgment and
distinction of analysing the situation and displaying a suitable behaviour, but in
this particular situation is governed by external factors (other’s force).
1) Define attitudes in organisation.
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53
2) How are attitudes formed?
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3) What is the basic structure of an attitude?
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4) What is cognitive dissonance?
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5) Elucidate the key words related to attitudes.
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6) Discuss affect and mood in organisation.
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7) What are basic perceptual processes? and Short Term Human
Resource Planning
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8) Relate perception to attributes.
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3.6 CREATIVITY IN ORGANISATION

Creativity is an ability to generate new ideas or to conceive new perspectives on
existing ideas. Let us examine how the process of creativity works? There are a
few general patterns which help us understand the sources of individual creativity
within the organisations.
3.6.1 The Creative Individual

The common attributes of creative individuals fall under three categories, Back
ground experiences, personal traits and cognitive abilities.
Background experiences and creativity: Research shows that creative people were
raised in environments which nurtured creativity.
1) Personal traits and creativity: Certain personal traits like openness, an

attraction to complexity, high levels of energy, independence and autonomy,
strong self confidence, and a strong belief of being creative are said be
some traits among creative people.
2) Cognitive abilities: The individual’s power to think intelligently and to

analyse situations and data effective are said to be the cognitive abilities of
a person. Intelligence may be a precondition for individual’s creativity, but
it is not necessary that person who is creative necessarily be intelligent.
Creativity is also linked with the ability to think divergently as people with
divergent thinking can see differences among situations, phenomena or
events whereas convergent thinking allows people to see similarities among
the same.
3) The Creative Process: Generally the ‘ideas’ of creative people come to

them ‘in a flash’ but creativity generally tends to progress through a series
of stages. However all creative activities may not follow these stages but
most of them go through these.
55
Human Resource Planning 4) Preparation: There is a period of ‘preparation’ for creativity to occur. To
make creative contributions to business management or business services,
people usually receive formal training and education in business, because it
helps the individual to think form different perspectives and this lateral
thinking can bring out some creative idea.
5) Incubation: This is a period of intense conscious concentration during which

the knowledge and ideas acquired during preparation, mature and develop.
Every idea or thought needs some time to grow.
6) Insight: It is a break through in which the creative person achieves a new

understanding of some problems or situation. All the scattered thoughts and
ideas that were maturing during incubation come together and represent
‘Insight’. It may occur suddenly, or develop slowly over a period of time. It
can get triggered by some external event, such as a new experience or new
data that forces the individual to think about old issues and problem in a
new way and generate new ideas.
7) Verification: Only verification of the insight would determine the validity

or truthfulness of the insight. To verify one must check and cross check the
available insight time and again and after it withstands the test of time, one
can publicize it as an innovation or creative idea.
3.6.2 Enhancing Creativity in Organisations

If managers intend to enhance and promote creativity in their organisations, they
can do it in many ways. One important method is to make it a part of the
organisation’s culture. For this the manager should set explicit goals and state
that the employees will enjoy some parts of the gains and profits which the
organisation has obtained because of their creative ideas. This statement
communicates that their creativity and innovation are valued.
Another method is to reward creative success but not punish creative failures.
Otherwise the other organisational members will not come forward with
innovative ideas for fear of failure.
3.7 TYPES OF WORK PLACE BEHAVIOUR

Turning our attention to work place behaviours, it is a pattern of action by the
members of an organisation that directly or indirectly influence the organisation’s
effectiveness. One way to discuss the work place behaviour is to describe its
impact on performance and productivity, absenteeism and turnover and
organisational citizenship. However, employees can exhibit dysfunctional
behaviours as well.
3.7.1 Performance Behaviour

These are the total set of work related behaviours that the organisation expects
the individual to display. For example, an assembly line worker’s performance
can be assessed quantitatively by counting how many products /units, he/she has
produced during the day.
56
But for many other jobs, performance behaviour can be very diverse and difficult People Dimensions in HR
to assess, e.g. a Research and development scientist. He/She works in a lab trying Resource Planning
to find new scientific break through. The desired breakthrough may take months
and years. Thus assessing the performance in this situation is quite difficult. So
organisation depends on different methods to evaluate performance, the purpose
of which is to match the evaluation mechanism with the job being performed.
3.7.2 Dysfunctional Behaviour

Behaviours which detract from the organisational performance are termed as
dysfunctional behaviours. Two most common ones are absenteeism and turnover.
1) Absenteeism: When an employee does not show up for work, it is called

absenteeism. Some absenteeism is legitimate like illness, jury duty, death
or illness in the family. But sometimes employees feign a legitimate cause
which could just be an exercise to stay at home. Thus when an employee is
absent, either legitimately and illegitimately, either his/her work gets stalled
or sometimes a substitute must be hired to do it. In either case the quality
and or quantity of the output suffers. Though absenteeism is an expected
feature of an organisation, it strives hard to minimize feigned absenteeism
and reduce legitimate absence as much as possible.
2) Turnover: This is another frequent problem experienced by the

organisations, i.e. people quit their jobs. It is usually a costly activity for the
organisation because when people quit an organisation they have to be
replaced. Particularly when the employee was a valued worker, it is even
worse because finding a good replacement may be difficulty. Turnover can
result from a number of factors such as, aspects of job, the organisation, the
individual, the labour market and family influences. Sometimes a poor person
job-fit can also be a cause of turnover.
Another important issue could be the inflexibility on the part of the

organisation and this makes it difficult for the employee to manage his/her
work, family and other personal matters. So employees may look for jobs
which enable them to balance their work and non work considerations.
3) Theft and sabotage: There are some more dysfunctional behaviour of the
employees which are even more costly for an organisation, e.g. Theft and
Sabotage. These result in direct financial costs for an organisation. Besides
these, sexual and racial harassments both indirectly (by lowering morale,
producing fear, and driving off valuable employees) and directly costs the
organisation if it respond inappropriately. Further work place violence also
seems to be a growing concern in many organisations. Violence by disgusted
workers or former workers can result in dozens of deaths and injuries each
year and some times they can cause other concerns for the organisations.
3.7.3 Method to Overcome Dysfunctional Behaviour

Organisation Citizenship: By trying to promote organisational citizenship
managers strive to minimize the dysfunctional behaviours of the employees.
Thus Organisational Citizenship refers to the behaviour of individuals who make
a positive overall contribution to the organisation. An employee is considered to
be an organisation’s citizen, when he/she contributes beyond the strict
57
Human Resource Planning performance of the job. Many a times an employee does work that is acceptable
in terms of both quantity and quality but refuses to work overtime, or is unwilling
to help new comers etc., and then he/she is seen as good performer but not as
good organisation citizen.
There is an interweaving of individual, social and organisational variables which

determine the organisational citizenship behaviour. For example, the personality,
attitudes and needs of the individual must be consistent with citizenship behaviour.
In the same manner, the social context or the work group must also facilitate and
promote such behaviour. In addition, the organisation itself, especially the culture
must promote, recognise and reward these types of behaviours, if they are to be
maintained. The study of organisation citizen is expected to play a powerful role
in organisational effectiveness.

1) Define creativity.
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2) How can creativity be enhanced in an organisation?
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3) Discuss the different types of workplace behaviours.
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4) What is performance behaviour?
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5) Elineate the various dysfunctional behaviours. and Short Term Human
Resource Planning
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6) What is organisational citizenship?
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7) How is it to be promoted?
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3.8 SHORT TERM HR PLANNING

Turning to the typical concept of why Human Resource planning as a matter of
forecasting the long term demand and supply for people fails, is because the
ability to make these estimates are severely limited by the difficulty of predicting
the influence of the external events. Most of the time, management runs the risk
of converting sensible anticipation, into foolish numbers, by making some loose
assumptions for need of labour supply in the future.
Thus Human Resource planning today is more likely to concentrate on what
skills will be needed in the future and may only provide a board indication of the
numbers required in the longer term. In some circumstances it might provide
short term forecasts whenever it is possible to predict activity, levels and skills
requirements with a reasonable degree of accuracy. Such predictions are based
on board scenarios rather than on specific supply and demand forecasts.
Rothwell (1995) points out the gap between theory and practice and suggests
that this usually arises from
i) Impact of change and the difficulty of predicting the future – the need for
planning may be in inverse proportion to its feasibility.
ii) The shifting of policy priorities and the strategies within the organisation.
iii) The distrust displayed by many managers about theory and planning.
iv) Lack of evidence that human resource works. 59
Human Resource Planning However, it is difficult to reject the belief that some attempts should be made to
forecast human resource requirements, bearing in mind that major changes in
the operations of an organisation can usually be foreseen and thus one must keep
track of developments so that the organisation is in a better position to deal with
resourcing problems when they arise.
3.8.1 The Organisations Context of HR Planning

Human Planning takes place within the context of the organisation. The extent
to which it is used and the approach adopted, will be contingent on the
management recognising that success depends on forecasting future people
requirements and implementing plans to satisfy those requirements. The approach
will also be affected by the degree to which it is possible to make accurate
forecasts. When organisations are operating in turbulent environments in which
future activity levels are difficulty to predict, they may have to rely on adhoc and
short-term measures to recruit and keep people.
Thus organisations develop some action plans which are derived from broad
resourcing strategies and more detailed analysis of demand and supply factor.
These plans however have to be short term and flexible because of the difficulty
of making firm predictions about human resource requirements in times of rapid
changes. Thus plans should be prepared in the areas of resourcing, flexibility
and downsizing.
3.8.2 Resource Planning

This is an ‘obtaining plan’ from within the organisation to recruiting them
externally and to attract high quality candidates. Thus the first step is to analyse
the availability of suitable people from within the organisation. They can be
identified by referring to the assessments of potential and a skills database. These
are essential information about the candidates which are regularly updated with
the sort of skills needed by the organisation. Decisions are then made on what
steps should be taken to promote, redeploy, and if necessary to provide additional
experience and training to eligible staff. Plans can also be made to make better
use of existing employees, which may include flexibility arrangements or home
working.
3.8.3 Recruitment Planning

This includes:
• The number and type of employees required to make up any deficits, when
they are needed.
• The likely sources of candidates – school, colleges of further education,

universities, advertising, internet etc.
• Plans for tapping alternative sources, such as part times, or widening the
recruitment procedure to include women.
• How the recruitment programme will be conducted.
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3.9 EMPLOYEE CHOICE PLANS and Short Term Human
Resource Planning
The recruitment plan should include plans for attracting good candidates. This
can be achieved by improving the image of the company as an employer of
choice, and by offering the following:
• Better remuneration packages
• More opportunities for learning, development and careers.
• Enhanced future employability because of the reputation of the organisation
as one that employees and develops high quality people and provides learning
opportunities.
• Employment condition which address work life balance issue.
• Better facilities and scope for knowledge workers.
• ‘Golden Hellos’ (some of the money paid in front to recruits).
• Generous relocation payments.
3.9.1 Flexibility Plan

The aims should be to:
• Provide for greater operational flexibility
• Improve the utilisation of employees skills and capabilities
• Reduce employment costs
• Help to achieve downsizing smoothly and in a way which avoids the need
for compulsory redundancies
• Increase productivity
For attaining this, there should be a radical look at traditional employment patterns.
This means identifying the scope for using alternatives to full time permanent
staff, which could include increasing the number of part times, job sharing, the
expansion of home working or tele-working or employing more temporary
workers. The two main new trends in temporary working are:
i) To establish permanent staffing levels to meet minimum or normal levels of

demand and rely on temporary staff to cover peaks.
ii) To develop a ‘two tier’ work force in order to provide greater job security
for the core workers, by employing a certain percentage of temporary staff
at the periphery. Sometimes, the organisation can make more use of sub -
contractors or outsourcing works and introduce more flexible working
arrangements.
3.9.2 Part Time Workers

There are some advantages of using part time workers like, there is:
• More scope for flexing hours worked
• Better utilisation of plant and equipment, e.g. introducing ‘twilight shift’.
• Lower unit labour costs because over time levels for full time workers are
reduced
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Human Resource Planning • Higher productivity on repetitive work because part time workers can give
more attention to their work during their shorter working day.
The disadvantages are:
• Part timers are generally less willing to undertake after noon or evening
work, they are less mobile and have difficulty in varying their hours of
work.
• Rates of labour turnover may be higher among part timers.
• Part timers may be less committed than full time employees.
3.9.3 Job Sharing

This is an arrangement where two employees share the work of one full time
position dividing pay and benefits between them according to the time each
works. Job sharing can involve splitting days or week, or less frequently working
alternate weeks, the advantages of job sharing include reduced employee turnover
and absenteeism because it suits, the needs of the individuals, greater continuity
results because if one-half of the job sharing team is ill or leaves, the shares will
continue working for at least half the time. Job sharing also means that wider
employment pool can be tapped, if those who cannot work full time but want
permanent employment. The disadvantages are the administrative costs involved
and the risks of responsibility being divided.
3.9.4 Home-Working and Tele-Working

The job, that we can give home based employees are that of consultants, analysts,
designers, programmers or various kinds of administrative work. The advantage
of these arrangements is Flexibility to respond rapidly to fluctuations in demand,
reduced over heads and lower employment cost if the home workers are self
employed.
The teleworking of people working at home are linked to the main company or
networked with other outworkers. Its aim is to achieve greater flexibility, rapid
access to skills and the retention of skilled employees who would otherwise be
lost to the company. Teleworkers can be used in a number of functions such as
marketing, finance and IT. The arrangement does, however depend for its success
on the involvement and education of all employees, the careful selection and
training of teleworkers, allocating adequate resources to them and monitoring
the operation of the system.
3.10 SUBCONTRACTING
This enables the following:
• Resources to be concentrated on core business activities
• Employment costs to be reduced
• Flexibility and productivity to be increased
• Job security for core employees to be enhanced
The potential drawbacks can be:
• The legal status of subcontractors has to be classified for the purpose of
62 income tax, national insurance etc.
• The degree to which subcontractors will be able to meet delivery and quality People Dimensions in HR
requirements, for, sometimes it may be difficulty to control quality. Resource Planning
• Negative reactions from employees and trade unions that prefer work to be
kept within the company.
However, the decision as to how much work can be subcontracted is mainly an
operational one, but the flexibility plan should cover the implications of
subcontracting on employment levels and employee relations.
3.10.1 Flexible Hour Arrangement

This can be included in the flexibility plan in one or more of the following ways:
• Flexible daily hours, these may follow an agreed pattern day by day according
to typical or expected work loads (e.g. flexitime systems).
• Flexible weekly hours, providing, for longer weekly hours to be worked at
certain peak periods during the year.
• Flexible daily and weekly hours:-Varying daily or weekly hours or a
combination of both to match the input of hours to achieve the required
output. Such working times, unlike daily or weekly arrangements, may
fluctuate between a minimum and a maximum.
• Compressed working weeks, in which employees work fewer than the five
standard days.
• Annual hours: Scheduling employee hours on the basis of the number of
hours to be worked, with provisions for the increase or reduction of hours
in any given period, according to the demand for goods or services.
• Shift Work Arrangement
These can be introduced or modified to meet demand requirements, reduce over

time or provide for better plant or equipment utilisation (dealt in detail else where).
1) What do you understand by short term HR planning?
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2) Discuss the organisation’s context of HR planning.
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3) Define and describe resource planning.
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4) What is recruitment planning?
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5) Discuss the employee choice plans in detail.
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6) What is meant by subcontracting?
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7) Discuss flexible hour arrangement.
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3.11 THE DOWNSIZING PLAN and Short Term Human
Resource Planning
If all the other methods of managing surplus employees fail it may be necessary
to deal with unacceptable employment costs which is in other terms known as
‘Downsizing’. The downsizing plan should be based on the timing of reductions
and forecasts of the extent to which these can be achieved by natural wastage or
voluntary redundancy. The plan should set out:
• The total number of people who have to go and when and where this needs
to take place.
• Arrangements for informing and consulting with employees and their trade
unions.
• A forecast of the number of losses that can be taken up by natural wastage.
• Any financial or other inducements to encourage voluntary redundancy.
• A forecast of the likely numbers who will volunteer to leave.
• A forecast of the balance of employees, if any who will have to be made
redundant.
• The redundancy terms.
• Any financial inducements to be offered to key employees whom the
company wishes to retain.
• Any arrangements for refraining employees and finding them work elsewhere
in the organisations.
• The steps to be taken to help redundant employees find new jobs by
counselling, contacting other employers or offering the services of
outplacement consultants.
• The arrangements for telling individual employees about the redundancies
and how they are affected, and for keeping the trade unions informed.
Thus Human Resource function can make a major contribution for developing
the resource capability of the firm. Its strategic capability is to systematically
review the firm’s strategic objectives, and see that plans are made to ensure that
the human resources are available to meet those objectives.
It focuses on the acquisition and development of the human capital required by

the organisations.
Therefore the heads of Human Resource and their colleagues in the Human
Resource functions need to:
Ensure that they are aware of the strategic plans of the business, and can provide
advice on the human resource implications of the plans.
Point out to management, the strengths and weaknesses of the human resources
of the organisation and the opportunities and threats they present, so that these
can be considered when developing business plans.
65
Human Resource Planning Be capable of scenario planning, i.e. they can identify future issues of acquisition,
retention and employment of people and advise on methods of addressing them.
Understand the extent to which quantitative assessments of the future demand

for and supply of people may be feasible, useful, and know the methods that can
be used to prepare such forecasts.
Be aware of the scope to deal with future requirements by introducing various

form of flexibility.
Be capable of preparing relevant and practical resourcing plans and strategies

for retaining people based upon an understanding of the internal and external
environment of the organisation and the implications of analyses of labour
turnover.
3.12 LET US SUM UP

It is highly important for a manager to understand the individuals in an
organisation. A basic framework for facilitating this understanding is the
psychological contract which is the people’s expectations regarding what they
will contribute to the organisation and what they will get in return. Organisations
constantly strive to achieve an optional person – job fit but sometimes this is
difficult due to the individual difference between the employees.
This unit has also dealt with personality which is said to be relatively stable sets
of psychological and behaviour attributes that distinguish one person from another.
The Big Five personality and Myers-Briggs Type Indicators have been extensively
discussed besides the other personality traits such as Locus of Control, Self
efficacy, Authoritarian, Machiavellianism, Self esteem and Risk propensity.
The impact of attitudes and the cognitive dissonance experienced by the employee
which, results from contradictory or incongruent attitudes, behaviour are
discussed. Besides these, the job satisfaction or dissatisfaction and organisational
commitment are found to be important work related attitudes. In addition to this,
the employee’s moods in terms of positive and negative affectively is discussed.
The perception and perceptual processes including selective perception and
stereotyping are dealt with and some amount of focus has also been devoted to
attributions.
Finally, the person’s ability to generate new ideas and become creative is also
explored in which the important steps of creativity are considered. Lastly but
definitely not the least the work place behaviour has been spoken about which is
a pattern of action by the members of the organisation which has direct and
indirect influence or organisational effectiveness. Over and above the people
dimensions in organisation, this unit also deals with short term planning. Thus
this unit talks about the work related behaviours and what it expects from the
individual, to display the psychological contract and it also tells as to what should
be considered as dysfunctional behaviours which should be controlled. Besides,
it also shows as to how organisation citizenship entails behaviours that make a
positive overall contribution to the organisation.
Further, since employees of the present day are working for long hours in their
organisations, due to the competition that the other organisations are posing to
66
them, they do not have sufficient time and energy to allocate to other personal People Dimensions in HR
activities. Due to this, there is frequent turnover in the organisations as employees Resource Planning
move in search of better opportunities and suitable working hours. To address
this issue organisations are making alternative arrangements at work place and
are also planning for short term human resource planning in the form of part
time, contract, job sharing, tele-working, shift working etc.

1) What is Psychological Contract, why is it important?
2) What are the components of individual’s attitude, how do managers manages
their short term requirement of human resources?
3) Discuss the relationship between personality and organisation.
4) What are the basic perceptual processes in organisation?
5) Discuss creativity in organisation and indicate how to enhance creativity
6) What are the various types of workplace behaviours?
7) Discuss the dysfunctional behaviours and indicate the remedial measure for
the same.
8) Elucidate short term HR planning.
9) Discuss the employee choice plans in detail.
10) What do you understand by the term subcontracting?
11) Would downsizing plan work? Critically evaluate.
3.14 GLOSSARY
People-Job fit : the extent to which the contributions made by
the individual match the inducements offered
by the organisation.
Psychological contract : a person’s set of expectations regarding what

he/she contributes to the organisation and what
he/she receives in return.
Risk propensity : is the degree to which a person is willing to

take chances and make risky decision.
Organisational commitment: is a person’s identification with and attachment

to an organisation.
Organisational citizenship : the extent to which the individual’s behaviour

makes a positive overall contribution to the
organisation.
Dysfunctional behaviour : behaviour which detract from organisational

performance.
Distinctiveness : the ability of an individual to display behaviour

appropriate to the situation.
67
Greenberg, J. and Baron, R. A. (2003) Behaviour in Organisations, 8th Edition,
New Delhi, Prentice Hall.
Luthans, F. (2005) Organisational Behaviour,10th edition, New York, Mc Graw

Hill.
Robins, S.P.(2006) Organisational Behaviour, 11th Edition New Delhi, Prentice

Hall.
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UNIT 4 SHORT TERM PROGRAMMES IN and Short Term Human
Resource Planning
HUMAN RESOURCE AND
EVALUATION
Structure
4.0 Introduction
4.1 Objectives
4.2 Short Term Programmes in Human Resource Planning
4.2.1 Cross Cultural Training
4.2.2 The Goals of Cross Cultural Training
4.2.3 Phases in Cross Cultural Training
4.2.4 Designing the Training Programmes
4.2.5 Diversity Training
4.2.6 Apprenticeship Training
4.2.7 Training for Interim Staff
4.2.8 Training for Team Building
4.3 Enhancing Emotional Intelligence in Teams for Improving Overall Performance
4.4 Assertiveness Training and Interpersonal Training
4.4.1 The Need for Assertive Training
4.4.2 Voice Training
4.5 Six Sigma Interventions in Human Relations Professions
4.5.1 Every Human Activity Contains Variations
4.5.2 Technical Definition of “Six Sigma” Management
4.6 Market Feasibility and Competitive Intelligence Market Research
4.6.1 Market Feasibility Studies
4.6.2 Needs Assessment and Environment Scans
4.6.3 The Agency that should Conduct Market Feasibility and Competitive Research
4.7 Managing Anger
4.8 Time Management
4.8.1 Set Priorities
4.8.2 Use a Planning Tool
4.8.3 Get Organised
4.8.4 Schedule Your Time Appropriately
4.8.5 Delegate: Get Help from Others
4.8.6 Stop Procrastinating
4.8.7 Manage External Time Wasters
4.8.8 Avoid Multitasking
4.8.9 Stay Healthy
4.9 Other Training Programmes
4.9.1 Evaluation of a Training Programme
4.9.2 Decision Points in Planning Training Evaluation
4.9.3 Methods of Evaluation
4.10 Let Us Sum Up
4.11 Unit Questions
4.12 Glossary
4.0 INTRODUCTION
This unit deals with short term programmes in human resource and evaluation.
It starts with short term programme of HR planning within which we discuss
cross cultural training, diversity training, apprentice training and training for
team building. This is followed by enhancing of emotional intelligence for
improving over all performance. Then we deal with assertiveness training and
interpersonal training within which we handle need for assertive training, voice
training etc. Then we take up six sigma in HR professions within which we deal
with the variations in human activities, the technical definition of six sigma
management, etc. This is followed by market feasibility and competitive
intelligence market research. Within this we take up market feasibility studies,
the needs assessments and environmental scans, and the agency that should
conduct market feasibility and competitive research. Then we take up anger
management followed by time management. We then end up with other training
programmes and how to evaluate training programmes.
4.1 OBJECTIVES
• Describe short term programme of HR planning;
• Describe cross cultural training;
• Explain apprentice training and training for team building;
• Elucidate enhancing emotional intelligence for improving performance;
• Describe assertiveness training;
• Explain six sigma management;
• Describe how to condict market feasibility studies;
• The importance of short term training programmes;
• Why it is important to conduct this training programme; and
• The various training programmes and the intricacies involved in them.
4.2 SHORT TERM PROGRAMMES IN HUMAN

RESOURCE PLANNING
By now you have come to understand the meaning and role of Human Resource
in the organisation and how managers are constantly attempting at gaining an
advantage over the competitors by inculcating new skills and knowledge in their
own Human Resource. The major resource as you have seen in any organisation
is the Human Resource and it has to be nurtured and developed with great
commitment on the part of the management. The managers plan a variety of
training programmes for their human resource to inculcate new learning and
expertise so that they can meet the various demands placed upon them regarding
relocation, mobility, interacting with employees from diverse cultures, and also
with other colleagues, who are from different ethnic groups, differently abled,
women workers, aged and younger colleagues etc. Besides these, the
organisation’s customers are pressurising the workers for better quality goods
70
and services , so training in Quality Control, Total Quality Management, Team Short Term Programmes in
Human Resource and
building, Communication Skills, Conflict managements, Interpersonal Evaluation
relationship, Assertive training are becoming essential. Besides these some
training programmes for self improvement are being imparted to modify the
employee’s behaviour and life style on all fronts, such as home, social life and
organisational life. The main objective of any training programme is to enhance
the skill, knowledge, abilities of an employee. However, this seems to be
achievable only when there is total cooperation from both the sides, that is the
employer and the employee, otherwise the idea remains as theory instead of
turning into practice.
Short term programmes are aimed at enhancing the competency levels of the
employees for a particular reason. These training programmes are planned
according to the skills that have to be instilled into the employee, for example:
the employee is assigned an oversea project, to interact efficiently and to
understand the culture of that particular country, he is given training, so that he
is informed about the geographical, socio cultural aspects, political scenario,
legal aspects, rituals etc., which aid in his adjusting well with the country, without
having any culture shocks.
Similarly, since a great variety of workforce is now entering into organisations,

the managers and the other colleagues need to be trained to handle different
kinds of demands that may crop up due to diversity and address them
appropriately. In the same way customers are placing high demands for quality
of the products and services provided by the organisations. If they do not derive
satisfaction from one organisation, they turn to other competing brands. Therefore
to stay in business and meet the competition managements are training their
employees to produce quality goods, and to work effectively in teams, maintain
good interpersonal skills etc. Sometimes, the organisation may not have sufficient
staff to cover the demand for specific products so they also engage interim staffs,
who have to be trained and rehabilitated into the organisation’s functioning. Thus
there are many training programmes which can be planned as per the requirement
of the organisation. Some of them have seen discussed in the following
paragraphs.
4.2.1 Cross Cultural Training

As companies are going global, there is a need for change, not only in the way
the employees have to perform to meet the competition but also in the overall
outwork toward certain major issues. Training employees to meet the international
assignments particularly in the area of habits and practices relating to the work
motivation, profit motivation negotiating skills, gift giving customs, eating,
dressing, body language, holidaying etc., is especially important. The employees
are trained in the area of etiquette, communication skills, business skills etc., to
handle these nuances before being posted on overseas projects.
These types of training are particularly essential because India is a country with
diversified cultures and Indians are sticklers to their beliefs. In takes a long time
for an Indian to change and adjust to the new methods and cultures and due to
this he/she may not be successful when on foreign assignments. Thus training
these “expatriates” has become imperative if organisations want to see success
because failures are costly with respect to goodwill, reputation and finances of
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Human Resource Planning the company. Despite its importance, training employees for overseas assignments
has not received enough attention. Companies have to plan for a preparatory
training for the expatriates and to develop and design an effective preparatory
training; companies must implement a systematic approach. The steps of any
training programmes are:
1) Training need of the target population.
2) Next is the establishment of training goals and
3) A careful design.
However before the preparatory training is planned for, the profiles required in
terms of competencies for success on international assignments should be assessed
as a basis for development of effective training.
An ‘ideal people’ concept can be drawn, on the basis of the training needs of
specific assignees, who have already served abroad and one can add or delete
depending upon the evaluation of their success.
The competencies that were perceived as important for success of international

managers are:
• Leadership skills
• Initiative
• Emotional stability
• Motivation
• Ability to handle responsibility
• Cultural sensitivity
• To handle stress
• Flexibility
The training and development of international staff should be seen as a process
and not as a onetime event just before embarking on the assignment. Many of
the competencies needed for international success lie in the areas of abilities and
attitudes and therefore require development and strengthening over an extended
period of time. The preparation for global assignments should begin much early
in the careers by means of a phased, or cumulative approach.
4.2.2 The Goals of Cross Cultural Training

The next step is translation of training needs into training goals and objectives.
As you know a goal is a fairly general statement of intent. Whereas objectives
are very specific statements of what a candidate should be able to do at the end
of training session.
Thus the goal of cross-cultural training should be to equip the trainees with
knowledge skills and attitudes which enable them to achieve the following three
adjustments and effectiveness which are indications of international success:
Personality adjustment i.e. he/she should feel happy and satisfied with situation
abroad.
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Professionally effective: He/she should perform the tasks, duties and Short Term Programmes in
Human Resource and
responsibilities on the job competently. Evaluation
Inter personal skills: adjustment and effective behaviour while interacting with
others.
The different methods that can be used for training are simulations, programmed
instructions, sensitivity training behaviour modification, field experiences and
on the job training.
Though cross cultural training is seen as short duration one-shot remedy, to

increase the effectiveness, it should be seen as a process and the trainer should
use a phased approach.
4.2.3 Phases in Cross Cultural Training

The first phase of the training should be given soon after the selection and should
focus on strengthening the abilities needed for international career and motivation
to work abroad.
The 2nd phase is usually for specific skills needed for the assignment and then
knowledge of specific cultural issues of the host country, logistical information
and business practices and procedures should be imparted. Besides this, training
should also be given in negotiation and conflict resolution skills to enable them
to cope with and resolve the unexpected issues and problems.
It would also be good if a partner from the host country is included in the cross-
cultural training. Besides this the cooperation local people with whom the
expatriate has to work is also important for the successful completion of the
expatriate’s assignment. For this purpose the host country nationals also need to
be trained.
The training of the expatriate includes the host country’s language, customs and
practices and if the company allows the employees wife/husband to be
accompanying her/him then she/he should also be included into the training.
4.2.4 Designing the Training Programmes

First level training is to focus on learning about host country’s culture, language,
policies, business geography, religious values and history. This can be given
through seminars, videos, meetings with a citizen of the country before the
assignment begins.
Second level is about the assignment itself, requirements of the position and
technical managerial knowledge needed. This can be done before leaving to the
country.
Third level is preparing the person for the new job at new location. This is done
by the person whom this person is replacing.
Fourth level is to teach him to adjust and adapt to new environments, by providing
assistance.
Fifth level is to address reentry back home and contact with people at home and
visit home during vacation.
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Human Resource Planning Thus training and development of international staff is viewed as complete
deployment cycle and it can serve as a career development plan.
4.2.5 Diversity Training

Off late there is an influx of different types of workforce to the organisations like
more number of women or people from different cultures, differentially abled
people, retired workforce and very young workers (aged between 19yrs to 22yrs)
are all coming to work in an organisation. The needs for these different types of
people are different and; the managers have to address each one carefully by
providing for every one sufficiently.
Thus managers have to be trained to handle diversity particularly in handling,

racism, ageism and sexism etc.
Legislative compliances: There should be equal opportunities provided for all

and no race or disability discrimination should be shown. There are gender, ethnic
status and disability diversity, governed by the laws of the country and sometime
age and sexual harassment also fall under this.
The organisation gains competitive advantage with diversity training as employees

can use increased heterogeneous markets and customers.
It helps to bring together mix of people where differences are valued and an
environment is provided where people can grow with innovative ideas and also
helps in improving productivity and solving problems of the organisation.
Components of diversity trainings: There are four elements which have been
identified by Frame (2001) and there have been highlighted by David Asbton;
this model is called as ASKE model relating to attitudes, skills, knowledge and
emotions
“Attitudes”, pertain to understanding our own attitudes and others’ attitudes and
being open to them.
“Skills” such as interpersonal, communication, problem solving, teamwork,

leadership, conflict resolution can be inculcated.
“Knowledge” about legislation, company policy and procedures, professional

standards can be gained.
Recognising and managing “emotions” can be instilled with the help of this
training.
The diversity training can be provided, to managerial personnel and also to non-
managerial staff because the whole organisation should be involved in managing
diversity.
4.2.6 Apprenticeship Training

This training is intended to provide on the job training and to increase availability
of trained technical manpower for the organisation. The apprentice act 1961
directs the employees of specified industries to place apprentices in the designated
jobs as per the standard terms laid down. During the training each apprentice is
given a basic training in that particular trade and a minimum stipend.
74
The Director General of Employment and Training (DGET) lays down the general Short Term Programmes in
Human Resource and
policies for training programmes, formulates standards, prepares syllabi, imparts Evaluation
training to institutions and industrial supervisors, conduct examinations and issues
the appropriate certificates. However, the responsibility of training lies with the
state government under whose wings fall the Industrial Training Institutes and
Apprenticeship Training Programme. The Government of India has established
two advisory bodies including the National Council for Training in Vocational
trades (constituted in 1957) and the Central Apprenticeship Council for the
apprenticeship scheme under the apprentice act 1961. These bodies advise the
government in formulating training policies, training standards, standardisation
of tool and equipment and related issues. They are actually tripartite in nature
and consist of representation of central and state government industry and labour.
The Union Minister of labour is the chairman of these councils.
The DGET conducts the training of craftsmen in Industrial Training Institute

from 6 months to 2 years. After the successful completion of the training the
trainees are awarded national trade certificates which are recognised by all
Government of India undertakings. Four model Industrial Training Institute were
established in 1981-82 to supplement craft training with a modular training.
The objectives of this training are to supplement the programme of institutional

training by on the job, training and increase availability of trained technical
personal for the industry. Regulate and control the training of apprentices in
designated trades. It also covers graduate engineers and diploma holders for
building their potentials for improving their employment opportunities.
Employment of Apprentices after training: There is no obligation to provide

a job to the apprentice and in the same way there is no compulsion on the
apprentice to accept employment under an employer who trained him.
Offences and Penalties: Any employer who fails his obligations under the
contract, does not engage the required number of apprentices, refuses to furnish
any information, obstructs any inspection, examination or inquiry and requires
an apprentice to work over time or to do any work not connected to the training
shall be punishable with imprisonment up to 6 months or with fine or with both.
1) Discuss short term programme of HR planning.
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2) What is cross cultural training?
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3) What are the goals of cross cultural training?
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4) How is the cross cultural training programme designed?
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5) What do you understand by diversity training?
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6) Discuss apprentice training.
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4.2.7 Training the Interim Staff

Contract employment, interim staff or man power outsourcing has become the
latest trend to meet the staffing problem of the present organisations. Outsourcing
is gaining popularity with large and medium sized companies, especially those
with seasonal products and those which cut costs on over heads and most
importantly those companies which are proactive and open to change.
Today organisations are turning toward ‘thinking team’, ‘acting smart’ and
‘concentrating as core competencies.’ Every organisation is aiming at achieving
productivity by enhancing returns on investments and achieving the economics
of scale. In this context, it makes sense when organisations think of concentrating
only on the core competencies and outsource non-critical business activities.
76
There are three most important drivers which prompt companies to outsource. Short Term Programmes in
Human Resource and
These are financial gains, lesser administrative hassles and focus on core areas. Evaluation
Share volumes of work when an outsource can tackle the work at a lesser price
and provide better quality, the in-house operations need not bother themselves
with it. Besides this when some critical yet non-core tactical and transactional
oriented operations are outsourced, it saves a great amount of time and energy
for the organisations HR.
HR is also now making a transition from backroom to boardroom and

concentrating more on productivity enhancement. The HR functionaries recognise
that they need to help align with business objectives of the organisation and play
a key role in delivering results and focus on core people functions.
Thus experts are outlining five top benefits of outsourcing which are given below:
• The opportunity for HR to focus on strategy and core competencies,
• Substantial reduction in operational and transactional costs,
• Sharing of risks and increase in mobility,
• Access to world-class services, and
• Option to convert fixed cost to variable cost.
Interim mode of staffing provide flexibility to the organisation to scale up its
manpower and take advantage of business opportunities and at the same time
allow to scale down in a short span of time and avoid the financial and emotional
costs of a large benched workforce when business is down. Through interim
staffing the organisation can bring on board the required skills at the most optimal
costs.
Besides these, outsourcing transfers various risks involved with compliance,

financial, technology, legislative and corporate restructuring issues to the vendor.
Further the companies need not incur expenses to maintain and upgrade high
quality, productively expensive HR systems and infrastructure.
Third party outsourcing agencies can offer leading edge technology, highly
developed programmes and software to manage employee data, along with
specialised, expertise, without the costs of hiring and retaining the best HR
professionals.
However, when the question of commitment crops up it is felt that the same kind
of commitment is not present in the contract labour as there is no permanency of
the job and also the benefits that are extended to the regular employees are not
meted out to the contract employees.
But since HR outsourcing grew at a time when permanent workforce were being
sent out by the corporate through voluntary, compulsory or early retirement
schemes, security in a job is considered a myth. Today employees have understood
that performance is the key and that if they are good they will have a career path
for themselves.
The handing over of the major responsibilities of the HR does not mean that the
HR department is absolute. They have an extra responsibility of supervising,
implementing and successfully carrying out the process of outsourcing. They
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Human Resource Planning have to continuously work toward employee retention especially at the key levels,
succession planning, fine tuning human resources, ensuring people to productivity
etc.
Some basic reasons of hampering the growth of HR outsourcing are attributed to
confidentiality and cost factors. The fear of losing jobs and losing control over
confidential data, ethics and quality of outsourcing vendors, security breaches
and overall confidence in the vendor, defers many organisations and forces them
to review and evaluate various aspects of confidentiality and prompts them to
chalk out an agreement on issues like, penalties etc.
Thus many outsourcing agencies ensure that the client data is not accessible to
anyone else except to the team which is working on it.
Future scenario: HR outsourcing agencies have consolidated its services across
the geographies and have begun to see the value addition in terms of expertise in
administration and superior experience in query resolution. Quality has become
the focal point in defining the parameters of success.
Thus training and self development are playing an important role as an individual
has to keep himself competitive. It is not just enough to be the best; one has to
keep evolving to stay the best. Individual has to assume responsibility and has to
make conscious effort to exploit his strengths. The competencies, contributions,
attitudes and values of the individual will have to be enhanced through proper
training programmes which will further enhance the value of the organisation.
4.2.8 Training for Team Building

Organisations today are focusing more on working as a team rather than
contributing as an individual. Team, process encourages high motivation and
consequent achievement. Moreover, it meets member’s social need to affiliate.
They also exert pressure for achievement of goals. Level of commitment of
members to team decision/goals is much higher and it has a collaborative strength.
Further the team members have a clear focus on ‘mission and vision’ of the
organisation.
The major concern about a team is how to build a team, because it is not an easy
task to bring people together and make them work as a team. Therefore certain
interventions are directed toward four main areas:
• Diagnosis
• Task accomplishment
• Team relationships
• Team and organisation process
In the diagnosis meetings the members are made to get ready to work as a team
and given, the task of joint data collection. Then feedback is given to them and
problem areas of the group are discussed.
Then team building focuses on:
• Task accomplishment, including problem solving, decision making, role
clarification, goal setting. Building and maintaining effective interpersonal
relationships, including, boss-subordinate and peer relationships,
78 communication and conflict resolution.
• Understanding and managing group process and culture, and identifying Short Term Programmes in
Human Resource and
barriers and seeking collaboration are also done in this place. Evaluation
• The members are also taught role negotiation techniques.

• Characteristics of effective work team.
• Clear purpose to all, like everyone share their goals, mission, vision.
• Participation, all members are heard and there is effective interaction.
• Consensus decision making, when problems arise the situation is diagnosed
by joint discussion and the problems are solved through cooperation and
supportive relationship.
• As and when a need for leadership arises, everyone volunteers and this role
is supportive and informal.
• Members trust and respect each other.
• Clear roles and work assignments, group is flexible in resources and seeks
new and better ways of growing.
• Teams are collectively creative and posses different task skill.
• They have a close sense of identity and have high degree of group loyalty,
group solidarity and cohesiveness.
Positive synergy: Team efforts results in a level of performance that is greater

than the sum of the individual inputs.
Self assessment: Members check their contributions and how well the team is
functioning periodically.
High performance team have all the above and strong personal commitment, are
more ambitious, have mutual accountability and are willing to interchange their
tasks and also have complementary skills.
Skills of leader for team work: Though there is no formal leader in a team,
there should be some linkpin and this person should possess certain qualities
because the success of the team rules on his effectiveness. Thus, a leader in the
teams should have good listening skills, he should be available and responds to
people’s problems. There should be open and honest communication. He should
allocate work based in the capabilities of the person. He should encourage, respect,
understanding and trust among members. He should empower his team and set
examples and accept only high quality work. Sets achievable targets for the
members and insists on improved performance, solicit participation in solving
problems on key issues.
4.3 ENHANCING EMOTIONAL INTELLIGENCE

IN TEAMS FOR IMPROVING OVERALL
PERFORMANCE
Emotional intelligence is the ability to manage one’s feelings, interact effectively
with others and communicate easily with others and is more important than
79
Human Resource Planning intellectual ability or job skills in determining team success. Thus to build a
foundation for emotional intelligence, a team must be aware of and constructively
regulate the emotions of the individual team members, the whole group and
other key persons with whom it interacts. Thus groups / teams are more creative
when their members collaborate unreservedly. When there is mutual trusts, and
freedom in interaction people adjust more easily to each other and hence the
output will be efficient.
4.4 ASSERTIVENESS TRAINING AND INTER

PERSONAL TRAINING
As most of us work as a part of the team and depend on each other to produce
results, it is not enough to possess the technical skills. It is also essential to know
how to work well with people. To be successful at work one should build into
oneself, flexibility to deal with a variety of people and situations. So developing
the interpersonal skills will help to a certain extent. Behaving assertively at work
situations is an important interpersonal skill because it is not enough to just deal
with people but it is also important to get them to perform. Therefore conflicts
arise due to ego clashes and most of them would react by rebelling in anger, or
by withdrawing from the situation. Both these reactions are not good or
productive. Employees need to be provided with ‘Assertive Training’ to make
them express themselves freely and properly. Assertiveness is described as the
extent of control; the leader tries to exercise over both the followers, as well as
the situation. It means expressing what you think or feel without endangering
the ego of others and at the same time maintaining our self respect. Hence an
Assertive individual
• Will express his views and opinions and convinces others. His approach is
to persuade by keep his self-respect.
• Will assert his rights by not being submissive and at the same time does not
force himself on to others.
• Will work on the principle of mutuality.
• Will listen to others and is sensitive to their needs.
• Will express his feeling openly.
4.4.1 The Need for Assertive Training

When a manager under goes an assertive training he can deal appropriately with
his subordinates. He can bring in a balance between people orientation and task
orientation.
Assertive Training builds one’s self-esteem and gives one the confidence.
It also helps to be more effective in giving negative feedback. When negative
feedback is given with concern and feelings, the employees change their negative
behaviour easily. Otherwise they will feel hurt and humiliated.
However, learning to be assertive does not mean that you must always behave
assertively. One should be judicious in ascertaining when and where assertiveness
is applied. The behaviour that is upsetting should be pointed out in a precise
specific manner without becoming judgmental. One should not draw inferences
80
about the motives. One must refer to the behaviour not the person. The expression Short Term Programmes in
Human Resource and
of feeling should be directed toward oneself instead of directed toward the Evaluation
opposite person, making him feel victimized.
Thus Assertiveness Training can be of great benefit as a means of self

development. People with good Assertiveness Skills will also have enhanced
self awareness, greater confidence and self esteem and will also be honest,
powerful and have effective communication skills. They will have respect for
themselves and others.
On the whole assertive people have positive outlook thinking and when faced
with a problem, they see that both the parties ‘win’.
4.4.2 Voice Training

Communication is an important means of conveying a message and the key tool
for this is the voice. If one wants to become a powerful communicator, the range
of tone, volume and pitch are very important.
Let us consider some techniques as to how to care for our voice. These techniques
are invaluable and applicable to all, viz; lecturers, professional speakers, and
trainers.
Seven areas impact the quality of voice and taking care of them would help
immensely.
1) Breathing: Long and deep breathing helps to calm down instantly.
2) Posture: an imbalance in posture can set-up tensions in the body, so when
standing balance your weight evenly, by keeping the feet a width apart.
3) Warm-ups: Make some vocal work outs at the start of each day to keep
you voice healthy and tuned.
4) Pitch: You natural pitch should be used so that it is comfortable.
5) Stress: The jaw is the most often used part of your body, so when stressed
drop it one or two times and you will feel relaxed.
6) Environment: Smoky, noisy environment can be very damaging to the voice
besides extreme temperature changes.
7) Habits of Drinking Water: You should keep a large glass of water handy
because a dry throat can strain and damage you speech.
Exercises: Some breathing and relaxation exercise will help to ease your tense
jaws.
Stretching the neck shoulders will promote good breathing and posture habits
and relieve tension.
Move your jaws as if you are chewing a sticky toffee.
To increase breadth control, begin by breathing in for three counts and out for
six counts, and repeat this pattern for ten times.
Increase the same to four and eight counts and add sounds to the outward breadth
like counting, speaking your name and address.
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Human Resource Planning Drink fluids as many times as possible (12 times a day)
Avoid iced water, or drinks
Speaking to large groups: Train yourself to be sensitive to each situation, so
that you know when to raise your pitch and when to lower.
Begin and End on a strong note.
Use your mouth energetically to produce the sound but do not shout.
Pay special attention to sentence endings because usually people tend to swallow
the last few words.
4.5 SIX SIGMA INTERVENTIONS IN HUMAN

RESOURCE PROFESSIONS
The greatest challenge for any Human Resource Professional is to meet their
customers’ expectations and add value to business in a very dynamic business
environment. Success of this function depends on the ability to understand the
customers’ expectations and align the people capability and process to achieve
these expectations. The best utilisation of people, process and technology ensures
high quality Human Resource services at lower costs, on time, which contributes
toward high level customer satisfaction. Companies today are turning to a quality
initiative called Six Sigma for help. The process limits, the number of defects in
the produced goods. It is a structured systematic, quantitative process for making
decisions. Businesses are required to identify customer requirements, measure
performance, analyse performance gaps, make improvements and ensure ongoing
compliance.
Thus in the simplest terms, Six Sigma is a quality improvement methodology

that provides a systematic approach to the elimination of defects that affect
something important to the customer. The tools associated with Six Sigma are
qualitative, statistical and instructional devices for ‘observing process variables
‘quantifying’ the impact on out comes as well as managing their character.
Six Sigma is based on simple principles:

1) What is important to the customers? A customer service or information. If
the quality is good there will be positive impact
2) What is an opportunity? A chance to get something right.
3) What defines success? Every result of an opportunity that meets that
customer’s satisfaction is a success.
Thus in Six Sigma’s words an indicator of success or failure is refined to as
defects per million opportunities.
4.5.1 Every Human Activity Contains Variations

The term ‘Sigma’ is a symbol of standard deviation which is a measure of
variation. Six Sigma refers to the idea of being able to achieve six standard
deviations between the mean performance of the process and the customer
determined specification limit. If Six sigma performances is achieved in a process,
then that process will generate less than four defects per one million opportunities.
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The idea of measuring the number of standard derivations that fit between the Short Term Programmes in
Human Resource and
mean performance of a process and the customer’s expectation is referred to as Evaluation
the process Z-Score. The Z-Score allows for comparative analysis of the
performance of dissimilar process based upon the tendencies of each to either
satisfy or disappoint their respective customers. The higher the Z-Score the less
probability of customer disappointment
Creating a Six Sigma company is an environment where all processes are designed
to meet customers’ requirements by using quality tools and techniques. It helps
in bringing down costs, improve productivity of resource, improve efficiency of
a system, reduce the time for producing and hence leads to high level customer
satisfaction. The approach of Six Sigma is aimed at performance improvement
and if utilised properly it will help the Human Resource systems to regain control
and realise substantial benefits. It helps in improving Human Resource service
quality.
4.5.2 Technical Definition of “Six Sigma” Management

The Normal Distribution – the term “Six Sigma” is derived from the normal
distribution used in statistics. Many observable phenomena can be graphically
represented as a bell-shaped curve or a normal distribution.
When measuring any process, it can be shown that its outputs (services or
products) vary in size, shape, look, feel or any other measurable characteristic.
The typical value of the output of a process is measured by a statistic called the
mean or average.
The variability of the output of a process is measured by a statistic called the
standard deviation. In a normal distribution, the interval created by the mean
plus or minus two standard deviations contains 95.44 percent of the data points,
or 45,600 data points per million ( or sometime called defects per million
opportunities denoted DPMO) are outside of the area created by the mean plus
or minus two standard deviations [(1.00-.9544=.0456)X1,000,000=45,600].
In a normal distribution the interval created by the mean plus or minus three
standard deviations contains 99.73 percent of the data, or 2,700 DPMO are outside
of the area created by the mean plus or minus three standard deviations [(1.00-
.9973=.0027)X1,000,000=2,700]. In a normal distribution the interval created
by the mean plus or minus six standard deviations contains 99.9999998 percent
of the data, or two data points per billion data points outside of the area created
by the mean plus or minus six standard deviations.
Six Sigma management promotes the ideal that the distribution of output for a
stable normally distributed process (Voice of the Process) should be designed to
take up no more than half of the tolerance allowed by the specifications limits
(Voice of the Customer). Although processes may be designed to be at their best,
it is assumed that over time the process may increase in variation. This increase
in variation may be due to small variation with process inputs, the way the process
is monitored, changing conditions, etc. The increase in process variation is often
assumed for the sake of descriptive simplicity to be similar to temporary shifts
in the underlying process mean.
The increase in process variation has been shown in practice to be equivalent to
an average shift of 1.5 standard deviations in the mean of the originally designed
and monitored process. 83
Human Resource Planning If a process is originally designed to be twice as good as a customer demands
(i.e., the specifications representing the customer requirements are six standard
deviations from the process target), then even with a shift, the customer demands
are likely to be met. In fact, even if the process shifted off target by 1.5 standard
deviations there are 4.5 standard deviations between the process mean (m+1.5s)
and closest specification ( m+6.0s), which result in at worst 3.4 DPMO at the
time the process has shifted or the variation has increased to have similar impact
as a 1.5 standard deviation shift.
4.6 MARKET FEASIBILITY AND COMPETITIVE

INTELLIGENCE MARKET RESEARCH
Conducting market feasibility and competitive intelligence marketing research
early in the development cycle can provide a “reality check” on one’s idea as
well as help define product of an organisation development to ensure its appeal
to the customers. This type of market research is used to determine:
How much of a demand is there for the product or service being considering?
What are your potential customer’s needs and price expectations?
Who are your competitors?
What are the strengths and weaknesses of your competitors from your potential
customer’s perspective?
How can you design your product or service most effectively, given the needs of
your target market and the competitive environment?
4.6.1 Market Feasibility Studies

Market feasibility marketing research studies involve collecting information about
a potential market that can be used in deciding how a product or service should
be designed, delivered, priced, and marketed. Market Street Research uses a
variety of tools to assess market feasibility ranging from collecting and analysing
secondary data to conducting primary research such as focus groups, telephone
surveys and other methodologies.
Secondary data is information that has already been collected and is available to
the public. Examples include population statistics from the Census, economic
indicators, health data and information published in newspapers, web sites,
magazines, government documents, and industry and trade journals. Many
businesses and organisations also collect information about their customers or
clients (such as where they live), and this is also considered secondary data.
Primary information is data that is gathered specifically for a research project-

the most familiar primary research methods are focus groups and telephone
surveys.
4.6.2 Needs Assessments and Environmental Scans

Needs assessments: This involves studying a geographic region or client
population to see if there are unmet needs or barriers to access that could be
addressed by changing or expanding existing services or by developing new
services.
84
Environmental scans: These are expanded needs assessments that include a Short Term Programmes in
Human Resource and
broad survey of community characteristics and needs. Evaluation
Market Street Research has considerable experience and expertise in conducting

community needs assessments for clients in many industries.
Competitive intelligence analysis: This is the process by which an organisation

or company assesses the evolution of its industry and the capabilities and
behaviour of its current and potential competitors to assist in maintaining or
developing a competitive advantage. Market Street Research works with clients
to ensure that the organisation has accurate, current information about its
competitors and a plan for using that information to its advantage.
4.6.3 The Agency that Should Conduct Market Feasibility and/

or Competitive Research
Any business or organisation facing a significant investment or risk in developing
a new product or service should consider conducting market feasibility, needs
assessment and/or competitive intelligence marketing research. If your risk
is high or your investment is likely to be large, conducting a feasibility study
and/or a competitive intelligence analysis can greatly improve your chances of
succeeding with your product or service. Market Street Research works with
you to collect and analyse information about:
• Unmet needs that could be addressed by a new product or service
• Overall demand for new products, services, or ideas
• Characteristics of likely customers (such as demographics and buying
behaviour)
• Characteristics of likely competitors
• How competitors are likely to react when your product or service is
introduced
• How your new product or service should be designed to best meet customer’s
needs
• How best to market, advertise, and communicate about your product or
service
• Likely barriers to successful introduction of your product or service.
Market feasibility studies and competitive intelligence analysis can provide
invaluable information about the likely success of new product or service ideas.
Any time you are considering changing your products or services, developing
new ideas, moving into new geographic markets, or expanding your business or
service offering, Market Street Research can provide accurate, timely, in-depth
information that will help you make the best possible decisions, given the
characteristics of your likely customer base and competitors.
4.7 MANAGING ANGER

One need not describe anger, elaborately as each one of us experience it one time
the other.
85
Human Resource Planning Anger is a very basic human emotion and the reasons for anger are many:
• Anger occurs when out personal needs are not being met or our personal.
• Rights are being violated. It can lead to either frustration or sublimation.
• It is a sense of righteousness.
• It is a defense against something we value.
• It is sometimes demonstration of power.
When a person gets very angry and cannot express it. It manifest in other forms
like, hypertension, headache, ulcers, asthma etc. Thus it is always better to
ventilate our angry rather than bottling up.
The general method employed to the feeling of anger express is displacement.

Many people make certain other people or objects the scapegoat of their anger.
Thus we find that we do not know how to manage our feelings and express them
appropriately.
Let us turn our attention to the issue of managing anger. Anger has both
constructive outcome and destruction outcome. For e.g. when a manager expresses
anger on his employees, there are chances that the employees will work toward
completing the task. In the other hand, if this same manager becomes violent,
using abusive language and frequently harasses the employees then an opposition
builds up and the employees may not cooperate with him/her and also protest
against the completion of the task. Thus, one should know how to use anger to
the optimum level and turn it into a positive outcome.
Positive Outcome: Anger helps us to move toward a specific action, by helping

us to identify the problem and lead towards problem-solving and decision making.
It also helps us to maintain a sense of virtue and righteousness. It further helps us
to provide justification to the beliefs that we value and uphold.
Tips for Managing Anger: Do not attack the personality of the person and
describe the behaviour of the person which has caused the anger by using ‘I’
response instead of using ‘you’ response. For e.g, when an employee is showing
inappropriate behaviour at the job and if you want to check him/her.
Negative expression: You make me anger, you are clumsy, you do not follow
the instructions correctly etc.
Positive expression: I am angry because of the way you are doing the job.
Thus when we attack a person you are putting a person into defense and by
insulting him/her you are blocking his thinking and the communication is cut off
because you already put him into a negative mind set. Instead when you explain
with some patience and give him clear instructions and ensure that he/she has
understood what you want him/her to do then that person will develop more
enthusiasm towards the work and will also respect you. Next time when he/she
has difficulty he/she will approach you to clarify his/her doubt.
Further, we should reconcile and forgive people and work out a mutual
understanding for our future relationships.
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Anger is considered as energy and if managed and directed correctly we can Short Term Programmes in
Human Resource and
reach great heights. It helps immensely when one is joyful; it has great effect on Evaluation
our life.
4.8 TIME MANAGEMENT

The term Time Management is misnomer. You cannot manage time; you manage
the events in your life in relation to time. You may often wish for more time but
you only get 24 hours, each day. How you use that time depends on skills learned
through self analysis, planning, evaluation, and self-control.
Much like money, time is both valuable and limited: it must be protected, used
wisely, and budgeted. People who practice good time management techniques
often find that they:
• Are more productive,
• Have more energy for things they need to accomplish,
• Feel less stressed,
• Are able to do the things they want,
• Get more things done,
• Relate more positively to others, and
• Feel better about themselves (Dodd and Sundheim, 2005).
Finding a time management strategy that works best for you depends on your
personality, ability to self motivate and level of self discipline. By incorporating
some, or all of the ten strategies below, you can more effectively manage your
time.
Keeping a time log is a helpful way to determine how you are using your time.
Start by recording what you are doing for 15 minute intervals for a week or two.
Evaluate the results. Ask if you did everything that was needed; determine which
tasks require the most time’ determine the time of day when you are most
productive; and analyse where most of your time is devoted job, family, personal,
recreation, etc. Identifying your most time-consuming tasks and determining
whether you are investing your time in the most important activities can help
you to determine a course of action. In addition, having a good sense of the
amount of time required for routine tasks can help you be more realistic in planning
and estimating how much time is available for other activities.
4.8.1 Set Priorities

Managing your time effectively requires a distinction between what is important
and what is urgent. But focusing on important activities allows you to gain greater
control over your time and possibly reduce the number of important tasks that
do become urgent. One of the easiest ways to prioritize is to make a “to do” list.
Whether you need a daily, weekly or monthly list depends on your lifestyle.
Rank the items on your “to do” list in order of priority (both important and
urgent). Keep in mind that your goal is not to mark off the most items; rather you
want to mark off the highest priority items. Having a prioritized ‘to do’ list allows
you to say ‘no’ to activities that may be interesting or provide a sense of
achievement but do not fit your basic priorities. 87
Human Resource Planning 4.8.2 Use a Planning Tool
Time management experts recommend using a personal planning tool to improve
your productivity. Writing down your tasks, schedules, and memory joggers can
free your mind to focus on your priorities. Some reminders when using a planning
tool are:
Always record your information on the tool itself. Jotting notes elsewhere that
have to be transferred later is inefficient.
• Review your planning tool daily.
• Carry your planning tool with you.
• Remember to keep a list of your priorities in your planning tool and refer to
it often.
• Synchronise electronic planners with your computer and recharge the
batteries in your planner on a regular basis.
• Keep a back-up system.
4.8.3 Get Organised

Professional organisers recommend that you first get rid of the clutter. Basically
you have 5 options for handling information:
• Throw it away, delete it, or otherwise get rid of it.
• Delegate it; give it to someone else to do, file, or respond.
• Act on it yourself. Then throw it away or file it.
• File it temporarily until it needs action or until additional information is
received. Follow-up: a ‘tickler’ file can be useful for holding temporary
information.
• File it permanently where you can easily find it later.
4.8.4 Schedule Your Time Appropriately

Good scheduling requires that you know yourself. Using your time log, you
should have determined those times during the day when you are most productive
and alert. Plan your most challenging tasks for when you have the most energy.
Block out time for your high priority activities first and protect that time from
interruptions. Try to limit scheduled time to about 3/4ths of your day, leaving
time for creative activities such as planning, dreaming, thinking, and reading.
4.8.5 Delegate: Get Help from Others

Delegation means assigning responsibility for a task to someone else, freeing up
some of your time for tasks that require your expertise. Delegation begins by
identifying tasks that others can do and then selecting the appropriate person(s)
to do them. You need to select someone with the appropriate skills, experience,
interest, and authority needed to accomplish the task. Be as specific as possible
in defining the task and your expectations, but allow the person some freedom to
personalise the task. Occasionally check to determine how well the person is
progressing and to provide any assistance, being careful not to take over the
responsibility. Finally, don’t forget to reward the person for a job well done or
make suggestions for improvements if needed.
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4.8.6 Stop Procrastinating Short Term Programmes in
Human Resource and
You may be putting off tasks for a variety of reasons. Perhaps the task seems Evaluation
overwhelming or unpleasant. Try breaking down the task into smaller segments
that require less time commitment and result in specific, realistic deadlines. If
you’re having trouble getting started, you may need to complete a preparatory
task such as collecting materials or organising your notes. Also, try building in a
reward system as you complete each small segment of the task.
4.8.7 Manage External Time Wasters

Your time may be impacted by external factors imposed by other people and
things. You can decrease or eliminate time spent in these activities by
implementing some simple tips:
• Keep your telephone conversations crisp
• Entertain visitors by scheduling appointments.
• Be on time to meeting and discuss a prepared agenda.
• Get aside specific time for viewing and responding to your mails and
e-mails.
• Family obligations should be scheduled according to the available time.
4.8.8 Avoid Multi-tasking

Recent psychological studies have shown that multi-tasking does not actually
save time. In fact, the opposite is often true. You lose time when switching from
one task to another, resulting in a loss of productivity. Routine multi-tasking
may lead to difficulty in concentrating and maintaining focus when needed.
4.8.9 Stay Healthy

The care and attention you give yourself is an important investment of time.
Scheduling time to relax, or do nothing, can help you rejuvenate both physically
and mentally, enabling you to accomplish tasks more quickly and easily. Learn
to manage time according to your biological clock by scheduling priority tasks
during your peak time of day, the time your energy level and concentration are at
their best. Poor time management can result in fatigue, moodiness, and more
frequent illness. To reduce stress, you should reward yourself for a time
management success. Take time to recognise that you have accomplished a major
task or challenge before moving on to the next activity.
Regardless of the time management strategies you use, you should take time to
evaluate how they have worked for you. Ask yourself a few simple questions:
Do you have a healthy balance between work and home life? Are you
accomplishing the tasks that are most important in your life? Are you investing
enough time in your own personal wellbeing? If the answer is “no” to any of
these questions, then reconsider your time management strategies and select ones
that work better for you. Remember that successful time management today can
result in greater personal happiness; greater accomplishments at home and at
work, increased productivity, and a more satisfying future.
89
4.9 OTHER TRAINING PROGRAMMES
Besides the above mentioned training programmes, the organisation can also
offer programmes in leadership training, motivation, change in attitudes,
counselling to enhance personality and remove irrational fears and beliefs,
Transactional Analysis, conflict management, stress management etc., which can
cater to the individual employee’s need for optimum adjustment. These aspects
are dealt in length and many books are available on the internet. If all of them
have to be discussed, this unit would become very lengthy. Therefore some of
the ones essentially needed in organisations have been considered and discussed
in the following paragraphs.
Interpersonal Skills: Employee’s work performance depends on their ability to

interact effectively with their coworkers and their boss. Thus, for effective
interaction employees should learn to be better listeners, communicate their ideas
more clearly and become an effective team player.
Problem solving Skills: When non-routine jobs have to be performed, managers

and employees alike have to solve problems on their jobs. This ability is quite
scarce in people and they require to participate in the problem solving training.
The activities included here are to sharpen the logic, reasoning and problem-
defining skills as well as the ability to assess causation, develop alternatives,
analyse alternatives and select solutions. Problem solving training has become a
basic part of almost every organisational effort to introduce self managed teams
or implement quality management programmes.
Ethics Training: The question whether ethics can be taught has been posed by
critics because ethics in most of us are established in the early age itself and we
carry our value system to the work. But critics have also pointed out that our
values are learned and changed after childhood and even if they didn’t, ethics
training would be effective because it helps employees to recognise ethical
dilemmas, become more aware of the ethical issues underlying the actions and
reaffirm an organisation’s expectations that members will act ethically.
4.9.1 Evaluation of a Training Programme

The specifications of values form a basis for evaluation. The basis of evaluation
and the mode of collection of information necessary for evaluation should be
determined at the planning stage itself. The process of training evaluation has
been defined as “any attempt to obtain information on the effects of training
performance and to assess the value of training in the light of that information”.
Evaluation helps in controlling and correcting the training programme. Hamblin
suggested five levels at which evaluation of training can take place, viz., reactions,
learning, job behaviour, organisation and ultimate value.
Reactions: Trainee’s reactions to the overall usefulness of the training including

the coverage of the topics, the method of presentation, and the techniques used
to clarify things. Potential questions to trainees might include:
• What were your learning goals for the programme?
• Did you achieve them?
• Did you like this programme?
90
• Would you recommend it to others who have similar learning goals? Short Term Programmes in
Human Resource and
• What suggestions do you have for improving the programme? Evaluation
• Should the organisation continue to offer it?

Learning: Training programme, trainer’s ability and trainee’s ability are evaluated
on the basis of quantity of content learned and time in which it is learned and
learner’s ability to use and apply the content learned.
Job behaviour: This evaluation includes the manner and extent to which the
trainee has applied his learning to his job.
Organisation: This evaluation measures the use of training, learning and change
in the job behaviour of the department/organisation in the form of increased
productivity, quality, morale, sales turnover and the like.
Ultimate value: It is the measurement of ultimate result of the contributions of

the training programme to the company goals like survival, growth, profitability,
etc. and to the individual goals like development of personality and social goals
like maximizing social benefit.
4.9.2 Decision Points in Planning Training Evaluation

John Dopyera and Louise Pitone identified eight decision points in planning
training evaluation. They are:
Should an evaluation be done? Who should evaluate?

What is the purpose of evaluation? There are mainly two purposes of doing
evaluation. They are justification evaluation and determination evaluation .These
purposes include training needs assessment, programme improvements and
impact evaluation.
What will be measured? The focus of the evaluation will be on training and
delivery, programme content, materials, impact of training on individuals through
learning.
Behaviour or performance change. Learning can be measured through pre-test
and post-test. Evaluate the effects of training after the trainee returns to the work
place, using changes in between or the work results as indicators.
How comprehensive will the evaluation be? The scope or the duration and
comprehensiveness of the valuation is influenced by the available support,
communication and evaluation purpose.
Who has the authority and responsibility? This will be determined by the factors
like personnel, credibility of internal staff, communication, objectivity of internal
staff to do an evaluation and regardless of results.
What are the sources of data? The most common sources of evaluation data are
reactions, opinions and/or test results of the participants, managers, supervisors
production records, quality control, financial records, personnel records, safety
records, etc.
How will the data be collected and complied? Data can be collected before training
for needs analysis or pre-testing purpose, during training programmes to make
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Human Resource Planning improvements along the way and after training for evaluation. Next step is
selection of treatment or control group and determination of nature of samples.
Data can be complied either m85anually or by computers.
How will the data be analysed and reported? First reporting issue is concerned
with audiences like participants or trainees, training staff, managers, customers
etc. second and third issues are concerned with analysis and results and accuracy,
policies and format respectively.
4.9.3 Methods of Evaluation

Various methods can be used to collect data on the outcomes of training. Some
of these are:
Questionnaires: Comprehensive questionnaires could be used to obtain opinions,

reactions, views of trainees.
Tests: Standard tests could be used to find out whether trainees have learnt
anything during and after the training
Interviews: Interviews could be conducted to find the usefulness of training

offered to operatives.
Studies: Comprehensive studies could be carried out eliciting the opinions and
judgments of trainers, superiors and peer groups about the training.
Human resource factors: Training can also be evaluated on the basis of employee
satisfaction, which in turn can be examined on the basis of decrease in employee
turnover, absenteeism, accidents, grievances, discharges, dismissals, etc.
Cost benefit analysis: The costs of training (cost of hiring trainers, tools to
learn, training centre wastage, production stoppage, opportunity cost of trainers
and trainees) could be compared with its value ( in terms of reduced learning
time, improved learning, superior performance) in order to evaluate a training
programme.
Feedback: After the evaluation, the situation should be examined to identify the
probable causes for gaps in performance. The training evaluation information
(about costs, time spent, outcomes, etc.) should be provided to the instructors,
trainees and other parties concerned for control, correction and improvement of
trainee’s activities. The training evaluator should follow it up sincerely so as to
ensure effective implementation of the feedback report at every stage.
4.10 LET US SUM UP

As you have by now understood that human resource planners are attempting to
address the short term needs to fulfill their long term goals. By providing training
in various aspects, the organisations are maximizing performance and minimizing
dissatisfaction and stress. This way they are attempting to enhance the skills and
abilities and retain valuable employees to meet the demands of the business
world. There is a growing awareness on the part of the organisation that
productivity must be improved, through quality and innovation which would be
possible only when the employees are satisfied and involved with the work.
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Human resource planners are being challenged to develop packages of practices Short Term Programmes in
Human Resource and
that fit the unique needs of their organisations and contribute to effectiveness. Evaluation

1) What is short term training? Delineate and explain the various training
programmes that can be planned for employees of organisation.
2) What is assertive training?
3) What are six sigma interventions?
4.12 GLOSSARY
Cross-Cultural Training : Imparted to expatriates who are delegated on
overseas assignments.
Diversity Training : Enhancing the skills of dealing with different
work groups and shedding away stereo types.
Interim Staff : When the organisation has to meet some seasonal
demands and wants to avoid over head costs they
engage agents to help them in its productions and
other activities.
Team : A group of people with complementary skill
whose output increases above the sum of inputs.
Six Sigma : This is a method of coming close to the target
produce without much deviation or wastage.

Bhatia, S.K. (2005) Training and Development Concepts and Practices, New
Delhi, Deep & Deep Publication.
Rao, V.S.P. (2005) Human Resource Management, Text and Cases. 2nd Edition;
New Delhi, Excel Books.
93
Introduction to Human
UNIT 1 INTRODUCTION TO HUMAN Resource Management,
Planning and Management
RESOURCE MANAGEMENT,
PLANNING AND MANAGEMENT
Structure
1.0 Introduction
1.1 Objectives
1.2 Human Resource Management
1.2.1 Building Human Organisation
1.2.2 The Essential Functions of a HR Manager
1.2.3 The Role of a HR Manager
1.3 Aims of Human Resource Management
1.3.1 The Need for Human Resource Management
1.3.2 Reservation about Human Resource Management
1.3.3 Levers for Change
1.3.4 HRM Strategy
1.4 Functions of Human Resource Management
1.5 Human Resource Development
1.6 The Objectives of Human Resource Management
1.7 Human Resource Planning
1.7.1 Human Resource Planning and Business Planning
1.7.2 Human Resource Planning and Man Power Planning
1.7.3 Limitations of Human Resource Planning
1.8 The Incidence and Rationale for Human Resource Planning
1.8.1 The Organisational Context of Human Resource Planning
1.8.2 The Labour Market Context
1.8.3 Aims of Human Resource Planning
1.8.4 The Process of Human Resource Planning
1.9 Management
1.9.1 Management and Administration
1.9.2 The Process of Management
1.9.3 Common Activities of Management
1.9.4 Principles of Management
1.9.5 Management as a Social Process
1.9.6 Other Definitions
1.9.7 A Popular view of Management
1.9.8 The Importance of Management
1.9.9 Management in Private Enterprise and Public Sector Organisations
1.10 General Problem of Management
1.11 Let Us Sum Up
1.13 Glossary
5
Step in Human Resource
Management 1.0 INTRODUCTION
In this unit we will be giving an introduction to human resource management
and management as such what is and its importance etc. We start with human
resource management within which we discuss building human organisations,
essential functions of a HR manager and his roles in an organisation. This is
followed by aims of human resource management within which we handle the
need for human resource management, reservation about the HRM and the levers
for change in human resource management. We then deal with the functions of
HR management, its objectives and then go on to discuss human resource
planning. Within this we differentiate between human resource planning and
business planning and manpower planning etc. Then we take up the incidence
and rationale for human resource planning and discuss under the title the
organisational context, the labour market context and point out the aim of human
resource planning and the process. Then we take up the definition and description
of management and differentiate it from administration. Then we discuss the
process of management followed by the common activities of management and
principles of management. Then we put forth the problems of management in
general.
1.1 OBJECTIVES
• Define HR management;
• Describe the aims of human resource management;
• Explain the functions of human resource management;
• Elucidate the development of human resource concept and the objectives of
human resource management;
• Describe human resource planning;
• Elucidate the incidence and rationale for human resource planning;
• Define management;
• Differentiate between management and administration;
• Elucidate the process of management;
• Delineate the principles of management; and
• Analyse the problems of management.
1.2 HUMAN RESOURCE MANAGEMENT

Organisation require the following to be effective that is, the Physical resources,
including the manufacturing facilities and equipment to produce a product or
provide a service, Financial Resources including equity, leverage and retained
earnings. Marketing capability to connect whatever products or services are
created with customers and Human resources, including the experience, skills,
knowledge, judgment and creativity belonging to the organisation along with
the means of organising, structuring and rewarding these capabilities. Thus Human
resource management involves all management decisions and practices that
6
directly affect or influence the people or the ‘human resource’ who works for the Introduction to Human
Resource Management,
organisation and this resource in particular needs to be nurtured. Planning and Management
Human Resource planning on the other hand deals with determining how much
human resources are required by the organisation to achieve its goals and
objectives. It is concerned with the flow of people into, through and out of an
organisation. Human resource planning involves anticipating the need for labour
and the supply of labour and then planning the programmes necessary to ensure
that the organisation will have the right mix of employees and skills when and
where they are needed.
Once the human resource has been brought together by the organisation, it needs
to manage them effectively. As you know, people are bundle of unconscious
motives, feelings, thoughts and complexes. When two or more people come
together to obtain a said objective, there are invariable problems. Thus managing
human resource turns out to be highly challenging job for a manager. His/her
effectiveness lies in how well he/she can take charge of people and realise the
objectives and goals of the organisation more efficiently. Therefore with the
process of planning, organising, directing and controlling the organisation’s
resources, the manager can achieve the organisation’s goals and objectives.
Man is by far the most critical resource of an organisation. No amount of money,

materials and machines can produce results by themselves. Men are needed to
manage them. Machines can be programmed to take over routine, repetitive jobs,
but only a human brain can design the machines.
1.2.1 Building Human Organisation

“Surround you with the best people you can find, delegate authority, and don’t
interfere” is the advice given by U.S. President, Ronald Reagan to practicing
managers. Certainly useful advice except for the drawback that good people,
leave alone the best, are so difficult to find “I just can’t seem to find the right
people” is an often heard lament from many a manager. It is indeed a paradoxical
situation that we have so much unemployment on the one hand and on the other
it is genuinely difficult to find the right sort of people. Therefore it is the people’s
dimension of the organisation that is taken into consideration, and we call it
Human Resource Management (HRM).
The emphasis of HRM is on considering the following:
• Employees as assets rather than as costs.
• Adopting a strategic approach to invest in them to achieve higher value.
• To develop and manage the performance.
• Gaining their commitment to achieve the objectives of the organisation.
It is a psychological contract between management and employees. It should
offer challenging and meaningful work in return for a loyal, committed and self
motivated employee.
Thus, the attempt is to manage employees through proper strategy and develop a
proper culture/climate in the organisation.
This only reinforces the fact that a good worker is a valuable asset to any company
and, every manager must constantly be on the look out for people with potential
and attract them to join his company. 7
Step in Human Resource An effective system of Human Resource Management (HRM) is the backbone
Management
of any efficient organisation. All business problems stem, directly or indirectly,
from people problems. Unlike technology, which is to a very high degree
controllable, unused or misused, human resources can turn out to be
counterproductive to the organisation. Therefore, human resource functions have
to be handled meticulously and efficiently to ensure the smooth working of any
system.
The most important job of the HR Department is to create and maintain an

atmosphere that facilitates performance and to develop an organisational culture
that brings out the best in the people working in it.
When organisations are made up of people it is important
• To acquire their services,
• Develop their skills,
• Motivate them to high levels of performance and also
• To ensure their commitment to the organisation.
This will help in achieving the objectives of the organisation be it government,
business, education, health, recreation or social activities.
Recruiting and keeping good people is very essential to the success of every
organisation. The organisation which can acquire, develop, stimulate and keep
outstanding workers will be both effective and efficient and do not face the risk
of stagnating or going out of business.
Competent managers and workers are the basic requirements of any organisation
so that they can co-ordinate their efforts toward an ultimate goal of the
organisation; they both must work as a team because of the reasons given below:
• Human Resource is the most important asset and only an effective
management can keep it successfully.
• The success can be achieved only if the personnel policies and the procedures
of the organisation are closely linked to the corporate objectives and strategic
plans.
• The corporate culture, the values, the organisation climate and the
management behaviour will exert a major influence on the achievement of
the excellence of the organisation functioning.
• HR must integrate all the members of the organisation to work with a sense
of common purpose towards the organisation’s goals.
Thus the HRM function is not restricted to the HR Department alone. It pervades
all other functional areas as all the activities in the organisation are linked to
people. This increases the responsibility of the HR managers. It is common to
make the HR Department responsible for the organisation’s failure and a higher
degree of commitment are expected from the HR manager than from any other
line manager.
1.2.2 The Essential Functions of a HR Manager

The essential features are:
• Human Resource Planning
8
• Human resource acquisition – recruitment, selection, induction Introduction to Human
• Human resource utilisation – direction, leadership, placement, performance Planning and Management
planning, performance appraisal.
• Human resource Maintenance/Sustenance – compensation, welfare, benefits.
• Human resource Exiting – Retrenchment, dismissal, retirement.
1.2.3 The Role of a HR Manager

In addition to the regular HR functions, HR manager has to perform the role of
a counselor, guide and change agent. Maintaining the psychological balance of
the employee by motivating and guiding him towards the goals in the best way
possible is the responsibility of the HR manager. The role as a change agent is
another sensitive function that the HR manager has to perform. Any change to
be effected in the organisation has to be preceded by a change in the attitudes of
the employees. The changes should first be made acceptable to the employees
and they should be able to adjust to the new environment. The HR manager has
to undertake this function to see that necessary help is available to the employees
in the form of counselling, re-training, etc., to enable them to adjust to the changed
situations.
Human Resource Management (HRM), more than any other area of management,
is situational in nature. A lot hinges on the personal efficiency of the practitioner.
The personal qualities of the manager play a more important role in HRM than
in any other functional area. A HR manager is expected to possess such qualities
as sensitivity, empathy, helpfulness, etc. A good understanding of people is
essential to a HR person, as he has to deal with the behaviour of people, which
has a direct bearing on organisational efficiency
Tom Peter (1985) says ‘that trust people, treat them like adults, enthuse them by
lively and imaginative leadership, develop and demonstrate an obsession for
quality, make them feel they own the business and your work force will respond
with total commitment’. Douglas Mc Gregor also made a similar observation
much earlier to this in 1960. He says that create the conditions such that the
members of the organisation can achieve their own goals best by directing their
efforts towards the success of the enterprise.
The roots of HRM can be traced to the work of Peter Ducker and Mc. Gregor
1950’s. Drucker was the person who invented Management by Objectives.
He wrote that an effective management must direct the vision and effort of all
members towards a common goal. i.e., goal directed leadership. Drucker claimed
that the personnel specialist tended to conceive his work as partly a file clerks
job, partly a housekeeping job, partly a social worker and partly a person who
can settle the union trouble. Actually to him, these are not the only role a HR
manager should do. There is more to his role and if he perform it well the
organisation can achieve great success.
Mc Gregor advocated “Management by integration and self control, partly as a
form of management by objectives but more importantly as a strategy for
managing people who affects the whole business.
He believes that management philosophy need to be built up based on attitudes
and beliefs about people and the managerial role of achieving integration.
9
Step in Human Resource Therefore both Mc Gregor and Drucker paved the way to HRM philosophy that
Management
Human Resource policies and programmes must be built into the strategic
objectives and plans of the business and must aim to get everyone involved in
the achievement of these objectives and plans.

1) Define HR management.
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2) What are the functions of HR manager?
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3) What is the role of HR managers?
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4) What is management by integration and self control?
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1.3 AIMS OF HUMAN RESOURCE MANAGEMENT

• To utilise people to their full capacity and potentials.
• To integrate human resources policies with business plans and reinforce an
appropriate culture and to reshape an inappropriate culture.
• Create an environment to release the latent talents (creativity and energy) of
10 employees.
• Create conditions in which innovation, teamwork and total quality if fostered. Introduction to Human
• To be flexible in pursuing excellence. Planning and Management
1.3.1 The Need for Human Resource Management

• Increasing international competition.
• Increasing complexities and size of the organisation need proper management
of people.
• The technological revolution.
• To offer proper advancement and opportunities to highly potential employees.
• Address the values of workforce, which now wants to become more involved
in the company’s affairs.
• Meeting the career needs and life satisfaction of the employees
• Providing quality of work life.
• The changing demography of the work force (workforce diversity).
1.3.2 Reservations about Human Resource Management

How can Human power be treated as a Resource? Whether it is morally correct?
It is felt that there is more manipulation of people in organisation and sometimes
the organisation may be working against some values and interests of the
employees’ (maintenance of the machine, and adulteration in producing goods,
etc.,). How are these sort of ethical dilemmas addressed?
Opportunities and Threats: Human Resource Management is considered as

an opportunity and not a threat.
Opportunity: Means to show one’s expertise in furthering the business objectives

and also meeting the needs, expectations and values of employees.
It provides an opportunity for HR Manager to be more involved in the formulation

of business strategy. HR Managers are the actual organisation culture builders so
they have to be creative and provide proper guidance and support to the workers.
Threat: It means that no manager should feel that he cannot handle the affairs of
the organisation because of the various responsibilities he has to shoulder. He
could consider these responsibilities as challenges and deal with them efficiently.
1.3.3 Levers for Change

With the help of this department a great amount of positive outcomes can be
expected. That is an effective manager would attempt at bringing about change
in the attitudes, behaviours, process, systems and structure. The personnel
specialist along with the line management can make a major contribution to
create and maintain an effective HR system. They have powerful levers on which
change can be based.
1.3.4 HRM Strategy

This gives clear direction for long term Organisational development. To
understand HRM strategy it is important to know some of the terms that we use
in HRM.
11
Step in Human Resource 1) Organisation: Restructuring the organisation and redesigning jobs to support
Management
strategic plans.
2) Culture Management: Practices, policies and styles of the management to
develop and maintain the culture.
3) Change Management: Bringing in new ideas and devising programmes
and methods of managing commitment, through training, counselling and
guidance.
4) Flexibility: Adapting to new methods and enabling people to learn and use
wide range of skills.
5) Team Working: Enhancing the ability of people to work with groups/teams
by adjusting themselves and removing conflicts.
6) Quality Management: Managing the quality of the product through
assessing the product frequently and improving the services.
7) Resourcing: Matching the human resources to the changing requirements.
8) Human Resource Development: Investing in developing the HR through
proper training and developmemt at all levels of the workforce.
9) Performance Management: This refers to evaluating the performance and
checking the progress against the objectives of the organisation.
10) Reward Management: It is used to define performance expectation and to
reward people for their contribution.
11) Employee Relation: to increase the co-operation between employees and
to allow direct communication to employees.
Thus Management is a process of efficiently getting the jobs completed with and
through other people.
The manager therefore has to plan, organise, lead and control the activities and
accomplish the objectives. The efficiency of any manager would be determined
by seeing as to how successful he/she is at completing the tasks given within the
limited resources and people.
1.4 FUNCTIONS OF HRM

There are two major functions which the Human Resource Manager should
perform.
Managerial Functions of HRM

1) Planning: Planning is the conscious determination of future course of action
to achieve the desired results as to what one wants to achieve, when to
achieve and how to achieve. Planning is related to objectives, setting of
rules and procedures, determining the projects, setting policies, strategies
and budgeting.
2) Organising: It is the process of dividing work into convenient tasks or

duties. Grouping these to form the positions, then grouping of various
positions into departments and sections, assigning duties to individual
positions, and delegating authority to each position so that the work is carried
12 out as planned.
3) Staffing: It involves manning the various positions created by the organising Introduction to Human
process. It includes preparing inventory of personnel available and identifying Planning and Management
the gap between manpower required and available, sources from where
people will be selected, selecting people, training and developing, fixing
financial compensation, and appraising them periodically.
4) Directing: When people are available in the organisation, they must know
what they are expected to do in the organisation. Directing includes
communicating, motivating and leadership.
5) Controlling: It involves identification of actual results, comparison of actual

results with expected results as set by planning process, identification of
deviation between the two, if any, and taking of corrective action so that
actual results match with expected results.
6) Operative functions: These are more specific activities like employment,

development, compensation and maintaining relations.
7) Employment: It is securing and employing people. This is done with the

help of the following:
8) Job Analyses: This is a process of analysing the needs of the job, who
should be employed, with what qualification etc.
9) HR Planning: This process where, the management sees that required

number of people and qualified people are available to the organisation
whenever the need arises.
10) Recruitment: This is a process of attracting suitable candidates to apply for

the jobs.
11) Selection: It refers to a process of selecting the right kind of people with
right qualifications, experience, skill, according to the job demands.
12) Placement: In this, the selected candidates are assigned to the most suitable
job.
13) Induction and Orientation: In this, the new employees are given an
orientation on how the organisation functions where they fit in the
organisation, the role they should play and they are also told about the
practices policies and purposes of the organisation.
1.5 HUMAN RESOUCE DEVELOPMENT

Here the main functions are performance appraisal, training and development,
career planning, transfers, promotion etc. It is also a process of enhancing the
skills, knowledge and aptitude, attitudes, values and commitment through training.
1) Compensation: The distribution of wages depending upon job evaluation,
qualification etc.
2) Human Relation: This focuses on integrating people into work situation
and to motivate them to work productively, co-operatively and with
economic, psychological and social satisfaction.
13
Management 1.6 THE OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT
In practice, human resource management achieves its purpose by meeting
objectives. Objectives are benchmarks against which actions are evaluated.
Sometimes these objectives are carefully thought out and expressed in writing.
More often, objectives are not formally stated. In either case, objectives guide
the human resources function in practice. To do this, objectives must recognise
and balance the challenges presented by society, the organisation, the human
resource function, and the people who are affected. Failure to address these
challenges can harm the firm’s performance, its profits, and even its survival.
These challenges are identified in four objectives that are common to human
resource management:
1) Societal objectives: To be ethically and socially responsible to the needs
and challenges of the society, while minimising the negative impact of such
demands upon the organisation. The failure of organisations to use their
resources for society’s benefit in ethical ways may result in restrictions. For
example, society may limit human resource decisions through laws that
address discrimination, safety, or other areas of societal concern.
2) Organisational objectives: To recognise that human resource management
exists to contribute to organisational effectiveness. Human resource
management is not an end in itself; it is only a means to assist the organisation
with its primary objectives. Simply stated, the department exists to serve
the rest of the organisation.
3) Functional objectives: To maintain the department’s contribution at a level
appropriate to the organisation’s needs. Resources are wasted when human
resource management is more or less sophisticated than the organisation
demands. The department’s level of service must be tailored to the
organisation it serves.
4) Personal objectives: To assist employees in achieving their personal goals,
at least insofar as these goals enhance the individual’s contribution to the
organisation. Personal objectives of employees must be met if workers are
to be maintained, retained, and motivated. Otherwise, employee performance
and satisfaction may decline, and employees may leave the organisation.
1.7 HUMAN RESOURCE PLANNING

When the strategic goals of an organisation have to be achieved, human resource
planning helps in determining how much human resource is required to achieve
them. Bulla & Scott(1994) have defined Human Resource as a process of ensuring
that the human resource requirements of an organisation are identified and plans
are made for satisfying those requirements. Organisations believe that their most
strategic resource is ‘people’ and human resource planning activities is concerned
with matching these resources to business needs in the longer term. Further it
addresses the human resource needs in both quantitative and qualitative terms.
Besides it also looks at broader issues relating to the ways in which people are
employed and developed in order to improve organisational effectiveness. Thus
it plays an important role in strategic human resource management.
14
1.7.1 Human Resource Planning and Business Planning Introduction to Human
Generally, the human resource planning is an integral part of business planning Planning and Management
i.e., The Strategic planning process should define projected changes in the scale
and types of activities carried out by the organisation. The core competencies
and skills needed by the organisation should also be identified.
However to make such kind of clear predictions for a long range plan is slightly
difficult and these may restrict the feasibility of making such plan.
Besides, to a certain extent it is possible to predict the number of people required

to achieve the strategic business plans, but it is difficult to interpret about the
ways in which people could be developed and deployed more effectively to further
the achievements of business goals. Moreover, focusing on any problems that
might have to be resolved in order to ensure that the people required will be
available and will be capable of making necessary contribution to the achievement
of the goals is also difficult. According to Quinn Mills (1983) human resource
planning is a “decision making process that combines three important activities.
• Identifying and organising the right number of people with proper skills.
• Motivating them to achieve high performance.
• Creating interactive links between business objectives and people planning
activities.
Thus, in situations where a clear business strategy does not exist, human resource
planning will have to rely more on making broad assumptions about the need for
people in the future, or the planning process could focus on specific areas of
activity within the organisation where it is possible to forecast likely future people
requirement.
Hard and Soft Human Resource Planning: The former is based on quantitative
analysis i.e., to see that the right number and sort of people are available whenever
and wherever needed. Soft human resource planning is concerned with ensuring
that people with right attitudes and motivation who are committed to the
organisation and engaged in their work and behave accordingly are available
when the organisation wants them. This planning is based on the assessments of
the requirements for these qualities and also on the measurements of the extent
to which they exist. Staff surveys, the analysis of the outcomes of performance,
management reviews and opinions generated by the focus groups will help in
obtaining these data.
The above information helps in planning for improving the work environment,
providing opportunities to develop skills and careers and adopting a total reward
approach which focuses on non-financial, ‘relational’ rewards as well as the
financial ‘transactional’ rewards. They also lead to the creation of a high
commitment management strategy which includes approaches such as creating
functional flexibility, designing jobs to provide intrinsic motivation emphasising
team work, doing away with hierarchies and status difference, increasing
employment security, rewarding people on the basis of organisational performance
and enacting organisational-specific values and a culture that bind the organisation
together and gives it a focus. Soft human resource planning creates and shapes
the culture, so that there is a clear integration between corporate goals and
employee values, beliefs and behaviours. 15
Step in Human Resource 1.7.2 Human Resource Planning and Man Power Planning
Management
In comparison to the traditional quantitative approaches of manpower planning,
human resource planning is concerned with broader issues about the employment
of people. Such approaches derive from a rational top-down view of planning in
which well tested quantitative techniques are applied to long term assessments
of supply and demand. Today, there has been a shift from reconciling to the
number of employees available with predictable stable jobs, towards a greater
concern with skills, their development and deployment.
1.7.3 Limitations of Human Resource Planning

Human Resource Planning consists of three steps:
• Forecasting future people needs.
• Forecasting the future availability of people.
• Drawing up plans to match supply to demand.
Casson(1978) suggests that human resource planning should be regarded as firstly
a regular monitoring activity through which human resource stocks and flows
and their relationship to business needs can be understood, assessed and
controlled, problems highlighted and a base established from which to respond
to unforeseen events.
Secondly, it should be regarded as an investigatory activity by which the human

resource implications of particular problems and change situations can be explored
and the effects of alternative policies and actions investigated.
According to him, there is no great need for making estimations for the staff,
because the ability to make these estimations become severely limited by the
difficulty of predicting the influence of the external events.
Further Heller (1972) says that there is a risk in the estimation of the staff because
sensible anticipation gets converted into foolish numbers, and their validity
depends on large, loose assumption.
Thus Human Resource Planning should concentrate more on what skill will be
needed in the future and provide a broad indication of the numbers required in
the longer term, and sometimes it is also good to make short term forecasts
keeping the activity level and skills requirements with a reasonable degree of
accuracy. These kinds of predictions will generally be based on broad scenarios
rather than on specific supply and demand forecasts.
1) Delineate the objectives of human resource planning.
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16
2) Discuss Human resource planning. Resource Management,
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3) Differentiate between human resource planning and business planning.
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4) What is meant by hard and soft human resource planning?
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5) What is the difference between Human Resource Planning and Man
Power Planning?
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6) What are the limitations of Human Resource Planning?
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17
Management 1.8 THE INCIDENCE AND RATIONALE FOR
HUMAN RESOURCE PLANNING
Rothwell (1997) has pointed out that there is no research evidence which has
pointed to the success of human resource planning, except in a few cases. She
say’s that there is a gap between the theory and practice and this is because of the
following reasons:
• The impact of change would make it difficult to predict the future – the
need for planning may be in inverse proportion to its feasibility.
• The shifting of policy priorities and strategies within organisations.
• The distrust displayed by the managers – they prefer pragmatic adaptation
to conceptualisation.
• The lack of evidence that human resource planning actually works.
Whatever, may be the disagreements, it is not possible not to make some forecasts
of human resource requirements as a basis for planning and action. A sensible
anticipation can be made bearing in mind the major changes in the operation of
an organisation because these can be usually foreseen. Thus, by keeping track of
developments in the organisation, it is to some extent worthwhile to make Human
Resource Planning, so that the organisation is in a better position to deal with
resourcing problems in good time.
On the basis of research conducted by the Institute for Employment studies Reilly
(1999) has suggested some reasons to why organisations should conduct some
form of Human Resource Planning. They are categorised under three groups.
i) Planning for Substantiative reasons: The resource acquired earlier than

needed can always be optimised by making them more flexible, by nurturing
skills that take time to develop, identify potential problems and minimise
the chance of making a bad decision.
ii) Planning because of the process benefits’: This involves understanding

the present in order to confront the future, challenging assumptions and
liberating thinking, making explicit decisions, which can be later challenged,
and ensuring that long term thinking is not driven out by short term focus.
iii) Planning for Organisational reasons’: This is linking Human Resource

Plans to business plans so as to influence the organisation, gain control over
operating units and coordinating and integration organisational decision
making and actions.
1.8.1 The Organisational Context of Human Resource Planning

The extent to which Human Resource Planning is used, and the approaches
adopted, will be contingent on the extent to which the management recognises
that success depends on forecasting future people requirements and implementing
plans to satisfy those requirements. This will also be affected by the degree to which
it is possible to make accurate forecasts. Thus organisations which work under
turbulent conditions may rely on ad hoc and short term measures to recruit and keep
people, but even here the organisation will benefit only when the Human Resource
Planning policies are concerned with attracting and retaining the key staff.
18
1.8.2 The Labour Market Context Introduction to Human
The markets in which the organisations are operating will be the actual internal Planning and Management
labour market – the stocks and flows of people within the organisation who can
be promoted, trained or redeployed to meet future needs – and then comes external
labour markets. The external- local, regional, national and international markets
from which different kinds of people can be recruited. There are usually a number
of markets and the labour supply in these can vary considerably. Likely shortages
will have to be identified so that steps can be taken to deal with them.
In these kinds of situations the organisations have to formulate ‘make or buy’

policy decisions.
• A ‘make’ policy means that the organisations prefers to recruit people at a
junior level and train them to take promotions and meet the future needs.
• A ’Buy’ policy means, the recruitment is done from outside – i.e., bring in
fresh blood into the organisation.
However, the organisations tend to mix the two choices in varying degrees,
depending upon the situation of the firm and the type of people involved. A
highly entrepreneurial company operating in turbulent conditions, or one which
has just started up, will rely totally on external recruitment. When dealing with
knowledge workers, there will be a problem in obtaining them because they are
highly mobile, and thus they are usually recruited from external source only. For
example, Management consultants. Generally firms which can predict their people
requirements accurately usually rely on developing their own staff once they
have been recruited.
1.8.3 Aims of Human Resource Planning

The aims in any organisation will depend largely on the context. However, they
will also be some typical aims for each organisation such as the following:
• Attract and retain the number of people required with the appropriate skills,
expertise and competencies.
• Anticipate the problems of potential surpluses or deficits of people.
• Develop a well trained and flexible workforce, which contribute to the
organisation’s ability to adapt to uncertain and changing environments.
• Reduces dependence on external recruitment particularly when there is
shortage of key skills by formulating retention, as well as employee
development strategies. Improve the utilisation of people by introducing
more flexible systems of work.)
1.8.4 The Process of Human Resource Planning

The Process of Human Resource Planning need not necessarily be a linear one
i.e starting from a business strategy and flowing logically through to resourcing
flexibility and retention plans. It can be a circular one i.e. the process can start
anywhere in the circle. For example, Scenario planning may impact on resource
strategy which may in turn influence business strategy. Alternatively, the starting
point would be demand and supply forecasts which form the basis for the
resourcing strategy. The analysis of the labour turnover may feed into the supply
forecast, but it could also lead directly to the development of retention plans.
19
Step in Human Resource Moreover, it cannot be always assumed that there will be a well articulated
Management
business plan as a basis of the Human Resource Plans. The Business strategy
may be evolutionary more than deliberate; it may be fragmented, intuitive and
sometimes incremental. So, resourcing decision may only be assumptions which
may not be correct or cannot be tested, Further, there will also be certain
reservations about the extent to which the process can be formalised. However,
with the help of these assumptions certain broad statements of intent could emerge
which may be sufficient to guide resourcing practice and would be better than
nothing at all. The degree to which human resource planning can be carried out
systematically will depend on the nature of the organisation i.e., If the future is
predictably then, formal planning will be useful and if it is not then the organisation
has to rely on broad scenarios rather than precise forecasts.
These processes are summarised below:
i) Business strategic plans: This refers to defining future activity levels and
initiatives demanding new skills.
ii) Resourcing strategy: This refers to planning to achieve competitive
advantage by developing intellectual capital - employing more capable people
than rivals, ensuring that they develop organisation specific knowledge and
skills, and taking steps to become an ‘employer of choice’.
iii) Scenario planning: This means assessing in broad terms where the
organisation is going in its environment and the implications for human
resource requirements.
iv) Demand/supply forecasting: This means estimating the future demand for
people (numbers and skills), and assessing the number of people likely to
be available from within and outside the organisation.
v) Labour turnover analysis: This refers to analysing actual labour turnover
figures and trends as an input to supply forecasts.
vi) Work environment analysis: analysing the environment in which people
work in terms of the scope it provides for them to use and develop their
skills and achieve job satisfaction.
Business
Strategic Plans
Resourcing
Strategy
Scenario Demand/Supply Labour Turnover

Planning Forecasting Analysis
Operational
Work Environment Human Resource
Effectiveness
Analysis Plans
Analysis
Resourcing Retention Flexibility Productivity
20 Work Environment
Self Assessment Questions Resource Management,
1) What is the rationale for human resource planning?
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2) What is the organisational context of human resource planning?
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3) Discuss labour market context of Human Resource Planning.
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4) What are the aims of Human Resource Planning?
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5) Discuss resourcing practice.
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21
Management 1.9 MANAGEMENT
Management is an integrating force in all organised activities. Whenever two or
more people work together to attain a common objectives, they have to coordinate
their activities. They also have to organise and utilise their resources in such a
way as to optimise the results.
Thus management is a generic term and can be subjected to many definitions.

However we are basically concerned with management as being responsible for
the attainment of objectives taking place within a structural organisation and
with prescribed roles. So this involves people working beyond themselves and
exercising formal authority over the activities and performance of other people.
1.9.1 Management and Administration

There is often confusion over different interpretations of the two terms
‘management’ and ‘administration’. One of the main reasons for this confusion
is because of the translation taken from Fayol’s book which was written in French.
In the original book there was a direct English translation of administration but
in later publications, the term management has been replaced with administration.
Urwick says Fayol’s meaning of the word ‘administration’ indicates a specific
function which enters all tasks involving supervision of the work of others. It is
not concerned with the status of those who exercise this function.
Dictionary definition also tends to see the two words as synonymous. Management
is sometimes referred to as ‘administration as business concerns’ and
administration as ‘management of public affairs’. There is a clear overlap between
the two terms and individual writers use these terms accordingly to their
convenience.
Administration is skills used to refer to the highest level of management and to

the functions of establishing the overall aims and formulating policy for the
organisation as a whole particularly in public sectors. However for our purpose,
administration is interpreted as part of the management process.
1.9.2 The Process of Management

Management is not a separate discrete function. It is undertaken at all levels of
the organisation and relates to all the activities of the organisation. It is a process
which is common to all other functions carried out within the organisation i.e. it
is essentially on integrating activity. The overall responsibility of the management
is to attain the given objectives of the organisation and within the framework of
objectives; policy provides the guidelines for the operations and activities of the
organisation.
Policy determines the manner in which the affairs of the organisation are to be
conducted and it is the job of the Board of directors to establish the objectives
and formulate the policy. It is their responsibility for determining the direction
of the organisation as a whole and for its survival, development and profitability.
Clarification of the objectives and policy is a prerequisite if the process of
management is to be effective. Now we come to the point where we want to
know what does the process of management actually involve and what activities
does it encompass?
22
Management is a complex and discursive subject and it is not easy to find Introduction to Human
agreement on a simple yet comprehensive definition of management. Further, it Planning and Management
is not homogeneous. It takes place in different ways and at different levels of the
organisation. One approach favoured by classical writers is to analyse the nature
of management and to search for common activities applicable to managers in
all organisations.
1.9.3 Common Activities of Management

Fayol analysed the activities of industrial undertakings into six groups, “technical”
(production manufacture and adaptation); “commercial”(buying, selling,
exchange and market information);”financial” (obtaining capital and making
optimum use of available funds); “security” (safeguarding property and persons);
“accounting” ( information on the economic position, stock taking, balance sheets,
costs, statistics); and “managerial” (management as in administration)
The managerial activity is divided into five elements of management, which are
defined as; to forecast and plan, to organise, to command, to coordinate and to
control; Fayol’s description of these are:
1) Planning: To foresee; i.e., examining the future, deciding what needs to be
achieved and developing a plan of action.
2) Organising: Providing the material and human resources and building the
structure to carry out the activities of the organisation.
3) Command: Maintaining activity among personnel, getting the optimum
return from all employees in the interests of the whole organisation.
4) Coordination: Unifying and harmonising all activities and effort of the
organisation to facilitate its working and success.
5) Control: Verifying that everything occurs in accordance with plans,
instructions, established principles and expressed command.
1.9.4 Principles of Management

Therefore Fayol suggests that a set of well established principles would help
concentrate general discussion on management. He also emphasises that these
principles must be flexible and adaptable to changing circumstances. Fayol has
advocated fourteen principles of management though he feels that there is no
limit to management principles. They are:
1) Division of Work: To produce more and better work from same efforts and
also gain advantages of the specilisation, Fayol feels that there should be
division of work. However there are certain limits one should not exceed in
division of work which will be known to us when we obtain sufficient
experience and a sense of proportion.
2) Authority and Responsibility: Responsibility invariably follows authority.
The application of sanctions is essential to good management and is needed
to encourage useful actions and to discourage their opposite. The best
safeguard of abuse of authority is the personal integrity of the manager.
3) Discipline: This is essential for the efficient operation of the organisation.
It is in essence the outward mark of respect for agreements between the
organisation and its members. The manager must decide on the most
appropriate form of sanction in cases of offences against discipline. 23
Step in Human Resource 4) Unity of Command: In any action an employee should receive orders from
Management
one superior only, if not authority is undermined and discipline, order and
stability are threatened. There would be perpetual conflict when there is
dual command.
5) Unity of Direction: There should always be one head and one plan for any
group of activities with the same objective, only then the organisation can
provide unity of action, co-ordination and focusing of effort.
6) Subordination of Individual interest to general interest: The interest of

the organisation should be the foremost, instead of the individual or group
interest.
7) Remuneration of Personnel: The remuneration should as far as possible

satisfy both employee and employer because methods of payment can
influence organisational performance. Besides the method should be fair,
encourage keenness by rewarding well directed effort, but not lead to over
payment.
8) Centralisation: This is always present to some extent in any organisation.

The degree of centralisation is question of proportion and will vary in
particular organisations.
9) Scalar Chain: The chain of superior from the ultimate authority to the lowest
ranks. Respect for line authority must be reconciled with activities which
require urgent action and with the need to provide for some measure of
initiative at all levels of authority.
10) Order: This includes material order and social order. The object of material
order is avoidance of loss i.e., there should be an appointed place for each
thing, and each thing in its appointed place, whereas social order involves
an appointed place for each employee and each employee in his/her appointed
place. Social order requires good organisation and good selection.
11) Equity: The desire for equity and for equality of treatment is aspirational to
be taken into account in dealing with employees throughout all levels of
scalar chain.
12) Stability of tenure of personnel: Generally, prosperous organisation has

stable managerial personnel. But changes of personnel are inevitable and
stability of tenure is a question of proportion.
13) Initiative: This represents a source of strength for the organisation and should
be encouraged and developed. Tact and integrity are required to promote
initiative and to retain respect for authority and discipline.
14) Espril-de-Corps: This should be fostered as harmony and unity among

members of the organisation is great strength n the organisation. The principle
of unity of command should be observed. It is necessary to avoid the dangers
of divide and rule of one’s own team; and the abuse of written
communication. Wherever possible verbal contacts should be used.
A number of these principles are directly influenced by the organisation structure

in which process of management takes place.
24
1.9.5 Management as a Social Process Introduction to Human
Brech was another person who defines management as: “A social process entailing Planning and Management
responsibility for the effective and economical planning and regulation of the
operations of an enterprise, in fulfillment of given purposes on tasks”. The
responsibility involves:
1) Judgment and decision in determining plans and in using data to control
performance and progress against plan;
2) The guidance, integration, motivation and supervision of the personnel
composing the enterprise and carrying out its operations.
Thus Brech identifies four main elements of management:
a) Planning: determining the broad lines for carrying out operations, preparing
methods by which they are carried out and setting standards of performance.
b) Control: checking actual performance against standards to ensure satisfactory
progress and performance, and recording as a guide to possible future
operations.
c) Co-ordination: balancing and maintaining the team by ensuring a suitable
division of work and seeing that tasks are performed in harmony.
d) Motivation or Inspiring Morale: getting members of the team to work
effectively, to give loyalty to the group and to the task, to carry out properly
their tasks and to play an effective part in the activities of the organisation.
Thus with this general inspiration, it is the process of supervision or
leadership to ensure the teams are carrying out their activities properly.
Drucker’s Definition
While describing management Drucker identified three tasks which are equally
important but essentially different, but they have to be performed:
• Fulfilling the specific purpose and mission of the institution, whether business
enterprise, hospital or university.
• Making work productive and the worker achieving.
• Managing social impact and social responsibilities.
Moreover, Drucker has also identified five basic operations in the work of the
manager:
1) Sets objectives: determines objectives and the goals of each area of objectives
and describes what needs to be done to achieve these objectives
2) Organises: analyses the activities, decision and relations required, classifies
and divides work, creates organisation structure and selects staff.
3) Motivates and communicates: creates a team out of people responsible
for various jobs
4) Measures: establishes targets and measurements of performance which focus
on both the individual and the organisation as a whole.
5) Develops people: directs, encourages, and trains; how well subordinates
develop themselves depends on the way a manager manages them.
25
Step in Human Resource These categories require a combination of analytical ability, synthesising ability,
Management
integrity, human perception and insight and social skills.
Drucker argues that the traditional definition of management based on the

responsibility for the work of other people is unsatisfactory and too narrow, and
emphasises a secondary rather than a primary characteristics. There are people,
who are in responsible positions – who are clearly ‘management’ but do not
have responsibility for the work of other people. According to Drucker who is a
manager can be defined only by that person’s function and by the contribution
he/she is expected to make. The one contribution a manager is expected to make
is to give others vision and ability to perform; only if he/she can do this, we can
call them managers.

1) Define management.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Discuss the relationship between management and administration.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) Describe the process of management.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
4) Elucidate the common activities of management.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
26
5) What are the principles of management? Resource Management,
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
6) Discuss management as a social process.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
7) Who according to Drucker is a manager?
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
1.9.6 Other Definitions

There are numerous other definitions and most of them reflect the influence of a
particular approach to management thinking. Simon for instance – sees
management as synonymous with decision making, others feel that management
is delegation or the tasks of management are to create teams out of individuals.
There as other definition such as the responsibility of management is to achieve

results or management is the ordering and co-ordination of functions to achieve
a given purpose. These definitions may all be correct as far as they go, but on
their own they are too narrow or too vague to provide an adequate description of
management.
1.9.7 A Popular view of Management

Whatever, Drucker expressed about management, one of the most popular ways
of defining management is that it involves getting work done through the efforts
of other people. Managers are judged, not just on their own performance but on
the results achieved by subordinate staff. Therefore, there are many ways of
looking at the meaning of management. The basic criteria established are by
compromising between the ideas of some of the writers on the subject.
Steward attempts to integrate the various definition of management and

summarises the manager’s jobs, like the following definition.
27
Step in Human Resource “Deciding what should be done and then getting other people to do it”. A longer
Management
definition would be concerned with how these two tasks are to be accomplished.
The first task would be of setting objectives planning (including decision making)
and setting up formal organisation.
The second consists of motivation, communication, control (including
measurement) and the development of people.
So, the definition of management as “getting work done through the efforts of
other people” may not perhaps meet all criteria, or satisfy everyone’s perception
of the nature of management work. It does, however, have the advantage of
simplicity and focuses on what is at the heart of management.
1.9.8 The Importance of ‘Management’

Drucker emphases that “The responsibility of management in our society is
decisive not only for the enterprise itself but for management’s public standing,
its success and status, for the future of our economic and social system and the
survival of the enterprise as an autonomous institution.
1.9.9 Management in Private Enterprise and Public Sector

Organisations
There are differences between management in the private and public sectors.
These differences arise due to particular features of the public sector organisation
such as:
• The aims are concerned with providing a service for and for the well being
of, the community rather than with just a commercial nature;
• The scale, variety and complexity of their operations;
• The political environment in which they operate and in the case of local
government, the relationship between elected members and permanent
officers.
• The high level involvement of the trade union.
• The difficulties in measuring standards of performance of services provided
compared with profitability.
• The demand for uniformity of treatment and public accountability for their
operations.
• The tendency of more rigid personnel policies.
A number of these features combine to result in increasing bureaucracy within
public sector organisations.

1) Discuss the importance of management.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
28
2) What is the popular view of management? Resource Management,
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) Differentiate between management in private and public sector
organisaations.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
1.10 GENERAL PROBLEM OF MANAGEMENT

Both private enterprise and public sector organisation face the same general
problems like both are concerned with the efficiency and effectiveness of their
operations, with clarification of aims and objectives, with the design of suitable
structure, and with carrying out essential administrative functions. Basic principles
of management apply in all activities of any organisation. However, the common
activities apply to a greater or lesser extent in both private enterprise and public
sector organisation.
Based on an anlaysis of management development in central and local

government, Bourn suggests management as a set of interrelated activities:
• Forecasting, setting objectives and planning;
• The definition of problem that need to be solved to achieve these objectives;
• The search for various solutions that might be offered to these problems;
• The determination of the best or most acceptable solutions;
• The securing of agreement that such solution should be implemented;
• The preparation and issue of instructions for carrying out the agreed solutions;
• The execution of the solutions;
• The devising of an auditing process for checking whether such solutions are
properly carried out and if they are, they should solve the problems for
which they are devised;
• The design, introduction and maintenance of the organisational structures
which are most appropriate for these activities;
• The selection, training, development and management of the appropriate
staff.
29
Step in Human Resource These sets of activities are of equal relevance to management be it business
Management
sectors or government sectors. Although greater emphasis might be placed on
certain activities this analysis helps to demonstrate that there is a greater degree
of commonality between the basic process of management in both private and
public sector organisations.
1.11 LET US SUM UP

Human Resource Management is defined as an activity of manager to see that
the functions of the organisation are completed efficiently with and through other
people, because when two or more people are involved, the management functions
become more complicated because the organisation has to develop employees’
skills, motivate them to high level of performance and ensure that they continue
to serve the organisation with the same commitment to achieve the organisation’s
objectives. Thus to obtain such committed workers and attain the objectives of
the organisation, human resource departments have to plan their resources. This
can be done either by estimating the skill, knowledge, and experience of the
internal resource or by checking out from where these virtues and qualities can
be found in the external market. For this purpose the HR planners have to conduct
extensive analysis and guide the organisation to procure the right kind and number
of people to meet either the short term goals or the long term goals. Once they
are procured, they must be managed. Thus let us examine what is management.
Management is a generic term and the subject to many interpretations. Our main
concern is with management taking place within a structured organisation and
with prescribed roles. It involves the exercise of formal authority over the work
of other people. The nature of management is variable and is seen best as a
process which permeates all other aspects of the organisation. Management can
be distinguished from administration and it is not easy to find an agreement on
the definition of management and since it is not homogeneous, it takes place in
different ways in different levels of the organisations. One approach is to analyse
the nature of management and to identity common activities. However the most
popular definition of management is, getting work done through the efforts of
other people. Although there are differences in management of the private &
public sectors, both face the same general problems of management and apply
the same basic principles.

1) What is Human Resource Management?
2) What is the need for Human Resource Planning?
3) State the meanings of Management and delineate the principle of
management.
1.13 GLOSSARY
Human Resource Management : This is the people dimension of the
organisation which has to be properly
nurtured if organisation wants to see
success and survive in a turbulent
30 environment.
Human Resource Planning : This is one activity of an organisation for Introduction to Human
procuring the right kind of people, in right Planning and Management
numbers and at the right places so that
the organisation can attain its objectives.
Management : An act of coordination between the

different units and people in an organisation,
so that the common objectives can be
obtained.

Armstrong M.(2006); A Handbook of Human Resource Management, Practices
10th Edition; Kogan Page, London.
Bulla. D.N & Scott. P.M. (1987); Manpower Requirements forecasting. A Case
Example in Strategic Human Resource Planning applications, Edition Richard,
J. Nichaus, New York; Plenum Press.
Jackson, Susan E and Sehuler, Randall,S., Human Resource Planning, Challenges

for Industries and Organisation Psychologists. American Psychologists, Feb.
1990 PP. 223-239.
Pierce J.L & Gardner. D.G.(2002) Management and Organisation Behaviour,

U.K., Thompson.
Mullins,L.J.,(1989) Management and Organisational Behaviour. 2nd edi,

Allahabad, Wheeler Publishing Com.
31
Management UNIT 2 TRAINING AND DEVELOPMENT
Structure
2.0 Introduction
2.1 Objectives
2.2 Meaning of Training and Development
2.2.1 Training is Activity Leading to Skilled Behaviour
2.2.2 Importance of Training and Development
2.3 Need for Training and Development
2.3.1 Advantages of Training and Development
2.3.2 Other Advantages of Training and Development
2.3.3 Training, Development and Knowledge Acquisition
2.3.4 Training and Development Promote Entrepreneurship
2.3.5 Training, Development and Advanced Technology
2.4 Techniques and Methods of Training and Development
2.4.1 Cognitive Methods
2.4.2 Behavioural Methods
2.4.3 Management Development Method
2.5 The Assessment of Training Needs
2.5.1 Methods of Need Assessment
2.5.2 Levels of Need Assessment
2.5.3 The Basis for Needs Assessment
2.6 Training and Development Methods
2.7 Computer Based Training
2.8 Selection of a Technique
2.9 Evaluation of Training Programme
2.10 Let Us Sum Up
2.0 INTRODUCTION
Human resource and manpower is thought of as the total knowledge, skills,
creative abilities, talents and aptitudes of an organisation’s workforce, as well as
the values, attitudes and benefits of an individual involved. An organisation’s
performance and productivity are directly related to the quality and quantity of
its human resources.
To maintain the quality of human resource i.e. to perform its activities well,
every organisation needs to have well trained and experienced people. As the
employment in the fast growing present society becomes more complex the
importance of training and development also increases. In this unit we will be
dealing with training and development which are to enhance the skills and
knowledge of the human resources in an organisation. In fact training and
development will cover a large number of areas in terms of definitions, need for
training and development and functions of such training and development. It
also deals with types of training and techniques of training.
32
Training and Development
2.1 OBJECTIVES
After reading the lesson, you should be able to:
• Understand the importance of training and development in the organisations;
• Appreciate the assessment of training needs;
• Know the various methods of training; and
• Get an idea about training procedure in an organisation.
2.2 MEANING OF TRAINING AND

DEVELOPMENT
Training is the act of increasing the knowledge and skills of an employee for
performing the job assigned to him. It is a short-term process. After an employee
is selected, placed and introduced in an organisation he must be provided with
training facilities so that he can perform his job efficiently and effectively.
Development is a long-term educational process utilising an organised and

systematic procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose. It covers not only those activities
which improve job performance but also those activities which improves the
personality of an employee.
Training is a learning process that involves the acquisition of knowledge,

sharpening of skills, concepts, rules or changing of attitudes and behaviours to
enhance the performance of employees.
2.2.1 Training is Activity Leading to Skilled Behaviour

Training knows how to reach what you want in life. It knows how to get where
you want to go. Training is having the knowledge to do what you are dream of
doing. It is a vision which one wants to achieve. Training is about knowing
where you stand at present and where you will be after some point of time.
Training is about the acquisition of knowledge, skills and abilities through
professional development.
Training is a process of learning a sequence of programmed behaviour. It is the

short term process which refers to instructions in technical and mechanical
operations.
Development is a related process which covers not only those activities which
improve job performance but also those which bring about personality
development, progress and actualisation of their potential capacities. It is a long
term educational process through which managerial personnel learn conceptual
and theoretical knowledge for general purpose.
2.2.2 Importance of Training and Development

1) It optimises human resource utilisation: Training and development helps
in optimising the utilisation of human resource that further helps the
employee to achieve the organisational goals as well as their individual
goals. It also helps to provide an opportunity and broad structure for the
33
Step in Human Resource development of human resources technical and behavioural skills in an
Management
organisation. It also helps employees attain their personal growth. It also
helps in increasing the job knowledge and skills of employees at each level.
It helps to expand the horisons of human intellect and an overall personality
of the employees.
2) Productivity: Training and Development helps in increasing the productivity
of the employees that helps the organisation further to achieve its long-term
goal.
3) Team spirit: Training and Development helps in inculcating the sense of
team work, team spirit, and inter-team collaborations. It helps in inculcating
the zeal to learn within the employees.
4) Organisation culture: Training and Development helps to develop and
improve the organisational health culture and effectiveness. It helps in
creating the learning culture within the organisation.
5) Organisation climate: Training and Development helps building the positive
perception and feeling about the organisation. The employees get these
feelings from leaders, subordinates, and peers.
6) Quality: Training and Development helps in improving upon the quality of
work and work-life.
7) Healthy work environment: Training and Development helps in creating
the healthy working environment. It helps to build good employee,
relationship so that individual goals aligns with organisational goal.
8) Health and safety: Training and Development helps in improving the health
and safety of the organisation thus preventing obsolescence.
9) Morale: Training and Development helps in improving the morale of the
work force.
10) Image: Training and Development helps in creating a better corporate image.
11) Profitability: Training and Development leads to improved profitability
and more positive attitudes towards profit orientation.
Training and Development aids in organisational development i.e. Organisation
gets more effective decision making and problem solving. It helps in
understanding and carrying out organisational policies.
Training and development helps in developing leadership skills, motivation,

loyalty, better attitudes and other aspects that successful workers and managers
usually display.
2.3 NEED FOR TRAINING AND DEVELOPMENT

2.3.1 Advantages of Training and Development
1) Optimum utilisation of human resources: Training and Development helps
in optimising the utilisation of human resource that further helps the
employee to achieve the organisational goals as well as their individual
goals.
2) Development of human resources: Training and Development helps to
provide an opportunity and broad structure for the development of human
34
resources’ technical and behavioural skills in an organisation. It also helps Training and Development
the employees in attaining personal growth.
3) Development of skills of employees: Training and Development helps in
increasing the job knowledge and skills of employees at each level. It helps
to expand the horisons of human intellect and an overall personality of the
employees.
4) Productivity: Training and Development helps in increasing the productivity
of the employees that helps the organisation further to achieve its long-term
goal.
5) Team spirit: Training and Development helps in inculcating the sense of
team work, team spirit, and inter-team collaborations. It helps in inculcating
the zeal to learn within the employees.
6) Organisation culture: Training and Development helps to develop and
improve the organisational health culture and effectiveness. It helps in
creating the learning culture within the organisation.
7) Organisation climate: Training and Development helps building the positive
perception and feeling about the organisation. The employees get these
feelings from leaders, subordinates, and peers.
8) Quality: Training and Development helps in improving upon the quality of
work and work-life.
9) Healthy work-environment: Training and Development helps in creating
the healthy working environment. It helps to build good employee,
relationship so that individual goals aligns with organisational goal.
10) Health and safety: Training and Development helps in improving the health
and safety of the organisation thus preventing obsolescence.
11) Morale: Training and Development helps in improving the morale of the
work force.
12) Image: Training and Development helps in creating a better corporate image.
13) Profitability: Training and Development leads to improved profitability
and more positive attitudes towards profit orientation.
2.3.2 Other Advantages of Training and Development

Training and Development aids in organisational development i.e. Organisation
gets more effective decision making and problem solving. It helps in
understanding and carrying out organisational policies.
Training and Development helps in developing leadership skills, motivation,
loyalty, better attitudes, and other aspects that successful workers and managers
usually display.
Training and Development demonstrates a commitment to keeping employees
on the cutting edge of knowledge and practice.
2.3.3 Training, Development and Knowledge Acquisition

Understanding the phenomenon of employee training and development requires
understanding of all the changes that take place as a result of learning. As the 35
Step in Human Resource generator of new knowledge, employee training and development is placed within
Management
a broader strategic context of human resources management, i.e. global
organisational management, as a planned staff education and development, both
individual and group, with the goal to benefit both the organisation and employees.
Employee Training and Development and the Learning Organisation increase

competitive advantage, the organisation needs to be able to create new knowledge,
and not only to rely solely on utilisation of the existing. Thus, the continuous
employee training and development has a singnificant role in the development
of individual and organisational performance. The strategic procedure of employee
training and development needs to encourage creativity, ensure inventiveness
and shape the entire organisational knowledge that provides the organisation
with uniqueness and differentiates it from the others.
Education is no longer the duty and privilege of those in higher positions and
skilled labour, but it is becoming the duty and need of everyone. The larger the
organisations, the more funds they spend on education and provide their
employees with greater and diverse possibilities of education and development.
Understanding the tremendous significance of education for the modern
organisation and confident that it represents a good and remunerative investment,
present day organisations set aside more and more resources for this activity.
Most of the organisations invest 3 to 5% of their revenue into adult education. It
is estimated that the organisations that desire to keep the pace with changes need
to provide their employees with 2% of total annual fund of working hours for
training and education. Thus, it is necessary to accept the model of permanent,
continuous learning. That truth has been known for more than two centuries.
Denis Diderot, a French philosopher and literate of the Age of Enlightment,
wrote the following:
‘Education shouldn’t be finished when an individual leaves school, it should

encompass all the ages of life...to provide people in every moment of their life
with a possibility to maintain their knowledge or to obtain new knowledge”.
The only way for present day organisations to survive is the imperative to innovate
or perish. Since this depends on the knowledge the organisation possesses, this
imperative could be read as: learn faster than competition. The logical sequence
is: knowledge creation – innovation – competitive advantage. If knowledge is
good, is it not true that the more knowledge we have, the better we are? Many
organisations which consider knowledge as a good thing are trapped into the
pitfall of gathering as much knowledge as possible.
Knowledge that is not necessary is exactly what it is: unnecessary. And the efforts
to obtain it are wasted efforts. The only important knowldege is the knowledge
with strategic importance to the company, knowledge that helps to increase the
value of the company, knowledge with significance to the strategy of the company.
It is not about knowledge for the sake of knowledge, but rather knowledge
according to the needs, applicable knowledge, knowledge to create innovation
and competitive advantage.
Obtaining knowledge, learning, education, all could have a real effect on the
quality of labour only if they are harmonised with the needs of a particular
organisation, its goals and the goals of its employees. The further choice of
36
educational contents and educational methods, and the efficiency of educational Training and Development
effectiveness control depend on clearly defined educational goals and needs,
answers to the questions of which knowledge is necessary to realise the strategy
and the survival of the organisation in general, which employees need to possess
this knowledge and will this knowledge solve certain problems.
2.3.4 Training and Development Promote Entrepreneurship

Employee training and development does not imply only obtaining new
knowledge, abilities and skills, but also the possibility to promote
entrepreneurship, introduce employees to changes, encourage the changes of
their attitude, introduce the employees to important business decisions and involve
them actively in the process of decision making. To precisely define expectations
and attract skilled workforce, more and more employment advertisings offer a
certain number of annual hours or days for education. The most wanted resources
are the people with particular knowledge, skills and abilities. Managers must
learn to manage them, and the organisations to employ and retain them.
Knowledge based organisations must preserve their competitive advantage by
retaining skilled workforce, workers of knowledge, strengthening their motivation
and improving the reward and compensation systems according to the workers’
performances.
Within the context of learning organisation, it is not sufficient for the worker
only to add value to the organisation based on his knowledge, but he also has to
receive knowledge. He gives as much knowledge as he receives. For the present
day employees the wage by itself is not a sufficient incentive, but they also need
investment into themselves in a sense of investing in their knowledge. Empolyees
no longer do not work for money alone, nor can they be influenced by traditional
attractive financial packages.
2.3.5 Training, Development and Advanced Technology

The need for training and development is because of the following reasons An
increased use of new technology: in the present modern organisations advanced
technology has come into use such as computers and equipment which need
technological knowledge. To be familiar with this kind of advanced technology
employees need to be trained.
1) To give refresher training for old employees: Employees are given refresher
course which consists of issues of current scenario. By updating old
employees about latest technology or present situations helps the
organisations a great deal.
2) To make the employees work in an effective way: An employee can work
effectively if his/her skills are matching with the requirements of the
organisations. When a gap is found between employee skills and
organisational needs training can help to remove it.
3) Organisational viability and transformation process: The capability of
the organisation is influenced by the external pressures and the external
environment is continuously changing. Therefore the organisation should
train its employees to adapt to the changing external environment.
4) To increase productivity and quality: The productivity and quality of the
organisation is increased when employees are up to date and skillful.
37
Step in Human Resource 5) To improve health and safety: Most of the accidents in an organisation
Management
occur because of the deficient skills of the employee. When proper training
is given to the employee to handle the equipment and machine in organisation
accidents are reduced.
1) Define and elucidate the meaning of training and development.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Elucidate the need for training and development.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3) What are the advantages of training and development?
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
4) How do training and development promote entreprenership?
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2.4 TECHNIQUES AND METHODS OF TRAINING

AND DEVELOPMENT
There are various methods of training, which can be divided in to cognitive
and behavioural methods. Trainers need to understand the pros and cons of
each method, also its impact on trainees keeping their background and skills in
mind before giving training.
38
2.4.1 Cognitive Methods Training and Development
Cognitive methods are more of giving theoretical training to the trainees. The
various methods under Cognitive approach provide the rules for how to do
something, written or verbal information, demonstrate relationships among
concepts, etc. These methods are associated with changes in knowledge and
attitude by stimulating learning.
The various methods that come under Cognitive Approach are:

1) Lectures : A lecture can be in printed or oral form. Lecture is telling someone
about something. Lecture is given to enhance the knowledge of listener or
to give him the theoretical aspect of a topic. Training is basically incomplete
without lecture. When the trainer begins the training session by telling the
aim, goal, agenda, processes, or methods that will be used in training that
means the trainer is using the lecture method. It is difficult to imagine training
without lecture format. There are some variations in Lecture method. The
variation here means that some forms of lectures are interactive while some
are not.
Straight Lecture: Straight lecture method consists of presenting information,
which the trainee attempts to absorb. In this method, the trainer speaks to a
group about a topic. However, it does not involve any kind of interaction
between the trainer and the trainees. A lecture may also take the form of
printed text, such as books, notes, etc. The difference between the straight
lecture and the printed material is the trainer’s intonation, control of speed,
body language, and visual image of the trainer. The trainer in case of straight
lecture can decide to vary from the training script, based on the signals from
the trainees, whereas same material in print is restricted to what is printed.
A good lecture consists of introduction of the topic, purpose of the lecture,
and priorities and preferences of the order in which the topic will be covered.
2) Demonstration: This method is a visual display of how something works
or how to do something. As an example, trainer shows the trainees how to
perform or how to do the tasks of the job. In order to be more effective,
demonstration method should be should be accompanied by the discussion
or lecture method.
To carry out an effective demonstration, a trainer first prepares the lesson

plan by breaking the task to be performed into smaller modules, easily learned
parts. Then, the trainer sequentially organises those modules and prepares
an explanation for why that part is required. While performing the
demonstration, trainer:
• Demonstrates the task by describing how to do, while doing
• Helps the focusing their attention on critical aspects of the task
• Tells the trainees what you will be doing so they understand what you
will be showing them
• Explains why it should be carried out in that way
• The difference between the lecture method and the demonstration
method is the level of involvement of the trainee. In the lecture method,
the more the trainee is involved, the more learning will occur.
39
Step in Human Resource The financial costs that occur in the demonstration method are as follows:
Management
• Cost of training facility for the program
• Cost of materials that facilitate training
• Food, travel, lodging for the trainees and the trainers
• Compensation of time spent in training to trainers and trainees
• Cost related to creating content, material
• Cost related to the organisation of the training.
After completing the demonstration the trainer provide feedback, both
positive and or negative, give the trainee the opportunity to do the task and
describe what he is doing.
3) Discussions: This method uses a lecturer to provide the learners with context
that is supported, elaborated, explains, or expanded on through interactions
both among the trainees and between the trainer and the trainees. The
interaction and the communication between these two make it much more
effective and powerful than the lecture method. If the Discussion method is
used with proper sequence i.e. lectures, followed by discussion and
questioning, can achieve higher level knowledge objectives, such as problem
solving and principle learning.
The Discussion method consists a two-way flow of communication i.e.

knowledge in the form of lecture is communicated to trainees, and then
understanding is conveyed back by trainees to trainer.
Understanding is conveyed in the form of verbal and non-verbal feedback

that enables the trainer to determine whether the material is understood. If
yes, then definitely it would help out the trainees to implement it at their
workplaces and if not, the trainer may need to spend more time on that
particular area by presenting the information again in a different manner.
Questioning can be done by both ways i.e. the trainees and the trainer. When
the trainees ask questions, they explain their thinking about the content of
the lecture. A trainer who asks questions stimulates thinking about the content
of the lecture. Asking and responding questions are beneficial to trainees
because it enhance understanding and keep the trainees focused on the
content. Besides that, discussions, and interactions allow the trainee to be
actively engaged in the material of the trainer. This activity helps in improving
recall.
4) Computer Based Training (CBT): With the worldwide expansion of

companies and changing technologies, the demands for knowledge and
skilled employees have increased more than ever, which in turn, is putting
pressure on HR department to provide training at lower costs. Many
organisations are now implementing CBT as an alternative to classroom
based training to accomplish those goals.
Some of the benefits of Computer Based Training are:
• Provides instructional consistency
40
• Reduces trainee learning time
• Increases access to training Training and Development
• Affords privacy of learning

• Allows learning at individual pace
• Allows the trainee to master the learning
• Reduces the cost of training
5) Intelligent Tutorial System: This Intelligent Tutorial system uses artificial
intelligence to assist in training or tutoring the participants. This system
learns through trainee responses.
Features of Intelligent Tutorial Systems (ITS)
• It selects the appropriate level of instructions for the participants
• It guides the trainees
• It is a text-based system
• It also evaluates the training program
• It also improves the methodology for teaching the trainee based on the
information
• It is an interactive system
• It determines the trainee’s level of understanding
Intelligent Tutorial System (ITS) comprises of five components:
i) A domain expert also called the expert knowledge base
ii) A trainee model – stores the information on how the trainee is
performing during the training program
iii) A scenario generator
iv) A training session manager – interprets trainees responses and responds
either with tutoring, more content or information
v) A user interface – allows the trainee to communicate with the Intelligent
tutorial System
6) Programmed Instruction (PI): Programmed instruction is a Computer-
based training that comprises of graphics, multimedia, text that is connected
to one another and is stored in memory.
Programmed instruction is the procedure of guiding the participants
strategically through the information in a way that facilitates the most
effective and efficient learning. It provides the participant with content,
information, asks questions, and based on the answer goes to the next level
of information i.e. if the trainee gives the correct answer; one branch moves
the trainee forward to the new information. And if the trainee gives the
wrong answer then different branch is activated, taking the trainee back to
the review relevant information in more elaborate manner.
This method allows the trainees to go through the content according to the
individual speed, and capability. Those trainees, who respond better, move
through the content rapidly.
41
Step in Human Resource Programmed Instruction also comes in
Management
• Printed form i.e. books
• Tape
• Interactive Video
• Other formats
In programmed instruction, trainees receive information in substantial
amount and then tested on their retention of information. If the trainees are
not able to retain the information, they are referred back to the original
information. If the trainees retain the information, they are referred to the
next log of information.
Some of the features of programmed instructions are:
• It provides immediate feedback to trainee response
• It frequently reviews the content
• It programs small learning steps that results in fewer response errors
• It allows trainees to move through the content at their own speed, or
capability
• It requires frequent active responses by the trainees
7) Virtual Reality : Virtual Reality is a training method that puts the participant
in 3-D environment. The three dimensional environment stimulates situations
and events that are experienced in the job. The participant interacts with
3-D images to accomplish the training objectives. This type of environment
is created to give trainee the impression of physical involvement in an
environment. To experience virtual reality, the trainee wears devices, like
headset, gloves, treadmills, etc.
Virtual Reality provides trainees with an understanding of the consequences

of their actions in the work environment by interpreting and responding to
the trainees’ actions through its accessories:
Headset – provides audio and visual information
Gloves – provides tactile information
Treadmills – is used for creating the sense of movement
Sensory devices – transmits how the trainees are responding in the virtual
workplace to the computer
This allows the virtual reality (VR) system to respond by changing the
environment appropriately.
8) Features of Virtual Reality (VR) System
Some of the features of Virtual Reality System are:
• It is poorly understood – requires technical understanding
• It is expensive
• It is time consuming
• It is flexible in nature
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• It does not incur traveling, lodging, or food cost Training and Development
• It requires excellent infrastructure
2.4.2 Behavioural Methods

Behavioural methods are more of giving practical training to the trainees. The
various methods under Behavioural approach allow the trainee to behaviour in a
real fashion. These methods are best used for skill development.
The various methods that come under Behavioural Approach are:
1) Games and Simulations: Games and Simulations are structured and

sometimes unstructured, that are usually played for enjoyment sometimes
are used for training purposes as an educational tool. Training games and
simulations are different from work as they are designed to reproduce or
simulate events, circumstances, processes that take place in trainees’ job.
A Training Game is defined as spirited activity or exercise in which trainees

compete with each other according to the defined set of rules.
Simulation is creating computer versions of real-life games. Simulation is
about imitating or making judgment or opining how events might occur in
a real situation.
It can entail intricate numerical modeling, role playing without the support
of technology, or combinations.
Training games and simulations are now seen as an effective tool for training
because its key components are:
• Challenge
• Rules
• Interactivity
These three components are quite essential when it comes to learning.
Some of the examples of this technique are:
Business games, role plays, in basket technique, equipment stimulators and
case studies.
Trainees can therefore experience these events, processes, games in a
controlled setting where they can develop knowledge, skills, and attitudes
or can find out concepts that will improve their performance.
The various methods that come under Games and Simulations are:
2) Behaviour Modeling: Behaviour Modeling uses the innate inclination for
people to observe others to discover how to do something new. It is more
often used in combination with some other techniques.
Procedure of Behaviour Modeling Technique
In this method, some kind of process or behaviour is videotaped and then is
watched by the trainees. Games and simulation section is also included
because once the trainees see the videotape, they practice the behaviour
through role plays or other kind of simulation techniques. The trainee first
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Step in Human Resource observes the behaviour modeled in the video and then reproduces the
Management
behaviour on the job.
The skills that are required to build up are defined:
• A brief overview of the theory is then provided to the trainers
• Then, trainees are given instructions that what specific learning points
or critical behaviour they have to watch
• Then the expert is used to model the suitable behaviours
• Then, the trainees are encouraged to practice the suitable behaviour in
a role play or through any other method of simulation
• Trainees are then provided with some opportunities to give
reinforcement for appropriate imitation of the model’s behaviour
In the end, trainer ensures that trainees appropriately reinforces the behaviour
on the work place
Behaviour modeling focuses on developing behavioural and interpersonal
skills. This type of method can be used for training in
• Sales training
• Interviewee training
• Interviewer training
• Safety training
• Interpersonal skills training
3) Business Games: With the increase in globalisation and changing
technologies, many organisations are now moving from board games to
computer based simulations, using interactive multimedia (IM) and virtual
reality (VR).
Business games are the type of simulators that try to present the way an
industry, company, organisation, consultancy, or subunit of a company
functions. Basically, they are based on the set of rules, procedures, plans,
relationships, principles derived from the research. In the business games,
trainees are given some information that describes a particular situation and
are then asked to make decisions that will best suit in the favour of the
company. And then the system provides the feedback about the impact of
their decisions.
Again, on the basis of the feedback they are asked to make the decisions
again. This process continues until some meaningful results do not came
out or some predefined state of the organisation exists or a specified number
of trails are completed.
As an example, if the focus is on organisation’s financial state, the game
may end when the organisation reach at desirable or defined profitability
level.
Some of the benefits of the business games are:
• It develops leadership skills
• It improves application of total quality principles
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• It develops skills in using quality tools Training and Development
• It strengthen management skills

• It demonstrates principles and concepts
• It explores and solves complex problem
Benefits of business games
• Leadership skills
• Management skills
• Quality tools
• Principles and concepts
• Total quality principles
• Solves complex problems
Many games and simulations examine the total organisation but only some
focus on the functional responsibilities of specific positions in an
organisation.
Business games simulate whole organisation and provide much better

perspective than any other training methods. They allow trainees to see how
their decisions and actions impact on the related areas.
4) Case Studies: Case Studies try to simulate decision making situation that
trainees may find at their work place. It reflects the situations and complex
problems faced by managers, staff, HR, CEO, etc. The objective of the case
study method is to get trainees to apply known concepts and ideologies and
ascertain new ones. The case study method emphasise on approach to see a
particular problem rather than a solution. Their solutions are not as important
as the understanding of advantages and disadvantages.
Procedure of the Case Study Method

The trainee is given with some written material, and the some complex
situations of a real or imaginary organisation. A case study may range from
50 to 200 pages depending upon the problem of the organisation
Focus of case study method
Case Study method focuses on:
• Building decision making skills
• Assessing and developing Knowledge, Skills and Attitudes (KSAs)
• Developing communication and interpersonal skills
• Developing management skills
• Developing procedural and strategic knowledge
5) In Basket Technique: It provides trainees with a log of written text or
information and requests, such as memos, messages, and reports, which
would be handled by manger, engineer, reporting officer, or administrator.
In this technique, trainee is given some information about the role to be
played such as, description, responsibilities, general context about the role.
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Step in Human Resource The trainee is then given the log of materials that make up the in-basket and
Management
asked to respond to materials within a particular time period.
After all the trainees complete in-basket, a discussion with the trainer takes
place.
In this discussion the trainee describes the justification for the decisions.
The trainer then provides feedback, reinforcing decisions made suitably or
encouraging the trainee to increase alternatives for those made unsuitably.
A variation on the technique is to run multiple, simultaneous in baskets in
which each trainee receives a different but organised set of information. It
is important that trainees must communicate with each other to accumulate
the entire information required to make a suitable decision.
This technique focuses on:
• Building decision making skills
• Assess and develops Knowledge, Skills and Attitudes (KSAs)
• Develops of communication and interpersonal skills
• Develops procedural knowledge
• Develops strategic knowledge
Benefits of this In Basket Technique
• Decision making skills
• Knowledge, skills and Attitudes
• Communication and interpersonal
• Strategic knowledge
• Procedural knowledge
6) Role Plays : Role play is a simulation in which each participant is given a

role to play. Trainees are given with some information related to description
of the role, concerns, objectives, responsibilities, emotions, etc. Then, a
general description of the situation, and the problem that each one of them
faces, is given. For instance, situation could be strike in factory, managing
conflict, two parties in conflict, scheduling vacation days, etc. Once the
participants read their role descriptions, they act out their roles by interacting
with one another.
Role Plays helps in
• Developing interpersonal skills and communication skills
• Conflict resolution
• Group decision making
• Developing insight into one’s own behaviour and its impact on others
Benefits of Role Plays
• Interpersonal skills
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• Communication skills Training and Development
• Conflict resolution
• Developing insights
• Group decision making
There are various types of role plays, such as:
a) Multiple Role Play: In this type of role play, all trainees are in groups, with
each group acting out the role play simultaneously. After the role play, each
group analyses the interactions and identifies the learning points.
b) Single Role Play: One group of participants plays the role for the rest,
providing demonstrations of situation. Other participants observe the role
play, analyse their interactions with one another and learn from the play.
c) Role Rotation: It starts as a single role play. After the interaction of
participants, the trainer will stop the role play and discuss what happened
so far. Then the participants are asked to exchange characters. This method
allows a variety of ways to approach the roles.
d) Spontaneous Role Play: In this kind of role play, one of the trainees plays
herself while the other trainees play people with whom the first participant
interacted before.
2.4.3 Management Development Method

The more future oriented method and more concerned with education of the
employees. To become a better performer by education implies that management
development activities attempt to instill sound reasoning processes.
Management development method is further divided into two parts:
i) On the job training and
ii) Off the job training.
i) On the Job Training
The development of a manager’s abilities can take place on the job. The four
techniques for on the job development are:
• Coaching
• Mentoring
• Job Rotation
• Job Instruction Technique (JIT)
ii) Off the Job Training
There are many management development techniques that an employee can take
in off the job. The few popular methods are:
• sensitivity training
• transactional analysis
• straight lectures/ lectures
• simulation exercises
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Management Self Assessment Questions
1) Discuss the cognitive methods of training.
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2) Elucidate and describe the behavioural methods of training.
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3) What are the important characteristics of management method of
training.
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2.5 THE ASSESSMENT OF TRAINING NEEDS

The success of training depends on the systematic needs assessment programme.
Needs assessment finds out which employee needs to be trained and for what
purpose they are trained. Therefore assessment phase sets the objectives for the
purpose of training and the competencies required in trainees after completion
of the training program.
2.5.1 Methods of Needs Assessment

The basis for needs assessment and source for gathering information and depend
mainly on purpose of training.
1) Performance deficiency: When the purpose of training is to develop

employees’ performance in their present job, then the trainer looks at the
present performance and identifies the performance deficiency or the areas
where there can be a development. Sources of information here are
supervisors, client’s complaints, performance appraisal data objective
measures of output or quality and special tests given to find out the present
knowledge and skill of the employee.
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2) Individual or Group interviews: These interviews are used to understand Training and Development
performance discrepancies and perceived training needs. They are helpful
for anticipating future training needs, for prioritising training demands, or
for ambiguous situations. The sources to gather information here includes
supervisors, the trainees themselves and clients.
3) Assessment centers: This method is used when training is planned for

current employees who are going for a promotion or transfer. The trainer
will measure the demands of the future job and also assess if the ability of
the employees to meet those demands. This is done by tests or supervisory
ratings of relevant abilities.
4) Trainings for new employees: For new entrées training is designed based
on analysis of job content and assumed characteristics of employees. The
sources of collecting information here is scores on a job knowledge selection
test given to applicants for the job.
2.5.2 Levels of Need Assessment

The success of training depends on the systematic needs assessment programme.
Needs assessment finds out which employee needs to be trained and for what
purpose they are trained. Therefore assessment phase sets the objectives for the
purpose of training and the competencies required in trainees after completion
of the training program.
2.5.3 The Basis for Needs Assessment

The basis and source for gathering information depend mainly on purpose of
training.
1) Performance deficiency: When the purpose of training is to develop

employees’ performance in their present job, then the trainer looks at the
present performance and identifies the performance deficiency or the areas
where there can be a development. Sources of information here are
supervisors, client’s complaints, performance appraisal data objective
measures of output or quality and special tests given to find out the present
knowledge and skill of the employee.
2) Individual or Group interviews: These interviews are used to understand

performance discrepancies and perceived training needs. They are helpful
for anticipating future training needs, for prioritising training demands, or
for ambiguous situations. The sources to gather information here includes
supervisors, the trainees themselves and clients.
3) Assessment centers: This method is used when training is planned for

current employees who are going for a promotion or transfer. The trainer
will measure the demands of the future job and also assess if the ability of
the employees to meet those demands. This is done by tests or supervisory
ratings of relevant abilities.
4) Trainings for new employees: For new entrées training is designed based
on analysis of job content and assumed characteristics of employees. The
sources of collecting information here is scores on a job knowledge selection
test given to applicants for the job.
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Step in Human Resource 5) Individual analysis: The individual analysis attempts to determine which
Management
employees should receive training and what their current levels of skills
and knowledge are. This can be done on an individual basis or on the entire
work group with a specific job title. The trainer should keep in mind that
that training should not be too simple or too complex. Attention must be
focused on the prerequisites of basic skills as well as on existing job related
skills and knowledge. Further, if individual analysis indicates a wide range
of trainee skills and knowledge, the trainer can group employees into
remedial groups and advanced groups and choose a training method that
allows for self paced training or individualised instruction. This kind of
variance should be recognised and planned before the training begins so
that all trainees can have an appropriate and satisfying learning experience.
2.6 TRAINING AND DEVELOPMENT METHODS

Training and development techniques fall into three categories
1) Content techniques: to provide knowledge or information at cognitive level
i.e. information processing techniques
2) Process techniques: to change attitudes, develop self-awareness and improve

interpersonal skills. These are based on theoretical models of learning and
behaviour change. e.g.; roles play behavioural modification and transactional
analysis.
3) Mixed techniques: to provide both information-transmitting function and

an attitude change function e.g.: conference, discussion, simulation and on
the job training.
Another simple classification of training method is into two categories:
i) On -the -job training methods and
ii) Off -the –job training methods
i) On- the–Job Training Methods
These methods are more popular and most commonly used method used
both in basic skills training and in management training and development.
Under this method, the individual is placed on a regular job and taught the
skills necessary for that job. The trainee learns under the supervision and
guidance of a qualified worker or instructor. This method includes the
following:
Job Rotation: In this type of training the trainees will shift from one job to
another. It enables the employees to gain knowledge and experience from
the trainers of the different job assignments. This method is common for
training managers for general management positions. It facilitates the trainee
to understand the problems of employees on the other jobs.
Coaching: The trainee employee will undergo training under a particular

coach or supervisor. This coach provides feedback for the trainees on their
performance and also gives suggestion for improvement. A major
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disadvantage of this method is the trainee may not have the freedom or Training and Development
opportunity to express his own ideas.
Job instruction: This is also known as step by step. Here the trainer explains
the trainee the way of doing the jobs and provides feedback to improve the
performance of the trainee.
Team assignments: In this method a group of trainees are given and asked
to solve an actual organisational problem. The problem is solved jointly by
the team of trainees. This method helps to develop team work.
ii) Off-the-Job Training Methods

In this method trainee is separated from the job and is made to learn the
information that is related to the job. Here the trainees are not disturbed by
the job requirements as in on the job training methods. Therefore they can
concentrate on the learning and get trained before starting the job. The
following methods are part of off-the-job training:
Vestibule training: In this method the real work setting is simulated .the
files and equipment used in actual work situation are also used here. Later
the skills learned in the simulated setup are used in actual job.
The case method: Here the job situation is presented on the paper, and the
group of trainees identifies the problems and offer solutions. Here trainees
learn from each other and receive feedback on one another’s performances.
The incident method: This is similar to the case method. In this method
trainees only get know the outline of a particular incident. The trainees have
an interaction with the trainer and seek information on the incident by asking
questions. After seeking adequate information trainees attempt to solve the
problem. Later at the end of the session the trainer gives all the information
and trainees compare their solution based on the complete information.
Role playing: This method is the human interaction that involves realistic
behaviour in imaginary situations. The members play a role of certain
characters such as manager, supervisor, workers etc. this method is mostly
used for developing inter-personal interactions and relations.
Experiential exercises: This technique incorporates elements of both case

study and role playing. Trainees examine their responses first as individuals,
then with the members of their own groups or teams, and finally with larger
group and with the trainer.
Conference or Discussions: This involves a group of people who give ideas,

examine and share information which help the trainee to improve his job
performance.
Programmed Instruction: This is a popular method of recent times. In this

the subject matter which has to be learned is presented in a series of carefully
planned sequential units. These units are arranged from simple to complex
levels of instruction. The trainee goes through these units by answering
questions or filling the blanks.
51
1) Discuss on the job training methods.
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2) Describe the off the job training methods.
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3) How do we assess the training needs?
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2.7 COMPUTER BASED TRAINING

In the present advanced technological society the medium of training is shifting
from classroom training towards learner centered, technology mediated training
that is Computer Based Training.
Computer Based Training is presentation of text, graphics, video, audio via
computer for the purpose of building job relevant knowledge and skill. Common
forms of CBT includes multimedia learning environments, intranet and web-
based instruction, e-learning, virtual reality training etc.
This method consists of two features: 1) Customisation: in which programs can
be adapted based on characteristics of the learners, and 2) learner control: in
which learners may modify the learning environment to suit their own purposes.
Therefore CBT represents adaptive learning, its flexibility, and its potential cost
savings is making this method of training more popular.
2.8 SELECTION OF A TECHNIQUE

A training method is only successful if it is used suitably. For effectiveness of a
method it should first define what trainees need to learn and then choose a
52
particular method that best fits these needs. If the trainers choose the method Training and Development
first and then try to fit in the needs of the employees it will result in wastage of
time, money and human resources.
In order to select a particular training method or technique they following checklist

can be useful. A technique is adequate to the extent that it provides the minimal
conditions for effective learning to take place. To do this, a technique should
Motivate a trainee to improve his or her performance.
Clearly illustrate desired skills
Provide for learner’s active participation
Provide an opportunity to practice
Provide feedback on performance while the trainee learns
Provide some means to reinforce the trainee while learning
Be structured from simple to complex tasks
Be adaptable to specific problems
Enable the trainee to transfer what is learned in training to other situations.
The trainers can apply this checklist to all proposed training methods. After
selecting the appropriate training method the prior planning, design and actual
implementation is an important aspect for the success of the training technique.
After selection of technique the final step is to evaluate the training programme
which is discussed in the next section.
2.9 EVALUATION OF TRAINING PROGRAMME

The basis of evaluation and the mode of collection of information necessary for
evaluation should be determined at the planning stage. The process o training
evaluation has been defined as “any attempt to obtain information on the effects
of training performance and to assess the value of training in the light of that
information.
The need for evaluation of training programme
There are four reasons to evaluate training
• To make decisions about the future use of a training program or
technique(e.g.: continue, modify, eliminate)
• To make decisions about individual trainees(e.g.: certify as competent,
provide additional training)
• To contribute to a scientific understanding of the training process, and
• To further political or public relations purposes (e.g.: to increase the
credibility and visibility of the training function by documenting success)
The above reasons may be summarised as decision making, feedback and

marketing, the need for evaluation is also important to know the efficiency or
cost effectiveness of the training method.
53
Management 2.10 LET US SUM UP
Training is a vital part of the organisation. With the changing technology and
globalisation training has become imperative. This lesson explains the assessment
of training needs. The various methods of training are also discussed and the
method of evaluating the training is studied.

1) What is the meaning of training and development?
2) How does training lead to skilled behaviour?
3) Elucidate the needs for training and development in an organisation
4) Describe the various methods of training and development.
5) What methods do we use to assess the training needs?
6) Describe computer based training.
7) What criteria will use for selection of a technique of training?
8) Discuss evaluation of a training programme.

Armstrong, M., (2006) Human Resource Management Practice. 10th edition,
London, Kogan Page
Cascio. W,F.,and Agunis. H., (2008) Applied Psychology in Human Resource

Management, 6th edition New Delhi, Prentice Hall.
54
Training and Development
UNIT 3 WORKFORCE DIVERSITY AND
MULTICULTURAL FACTORS
Structure
3.0 Introduction
3.1 Objectives
3.2 Diversity in Organisations
3.2.1 Nature and Definition of Diversity
3.2.2 Reasons for the Emergence of Diversity
3.3 Specific Characteristics and Dimension of Diversity
3.3.1 Age
3.3.2 Gender
3.3.3 Ethnicity
3.3.4 Education
3.3.5 Others
3.4 Secondary Dimension of Diversity
3.5 The Value of Diversity
3.6 Managing Diversity
3.6.1 Individual Approaches to Managing Diversity
3.6.2 Organisational Approach to Managing Diversity
3.6.3 Identification of Skills, Interest and Aspiration of the Person
3.7 Multicultural Factors
3.7.1 Creating a Multicultural Organisation
3.7.2 Characteristics of Multicultural Organisation
3.8 Stages in the Creation of a Multicultural Organisation
3.8.1 Exclusionary Organisation
3.8.2 Club Organisation
3.8.3 Compliance Organisation
3.8.4 Affirmative Action Organisation
3.8.5 Redefining Organisation
3.8.6 Multicultural Organisation
3.9 Multicultural Organisation as a Competitive Advantage
3.10 Let Us Sum Up
3.0 INTRODUCTION
Organisations are becoming increasingly global and diverse, as a result of which
the composition of the workforce is changing. It is the responsibility of the
management to deal with the increasingly diverse workforce and develop ways
to manage the issues that come with it. In this unit we will discuss the nature of
diversity, the reasons for its emergence, the specific characteristics and dimensions
of diversity and its value in organisations. We will also discuss the management
of diversity in a multicultural organisation and how diversity can be used for
competitive advantage in the business world. 55
Management 3.1 OBJECTIVES
• Define and describe diversity in organisations;
• Explain the reasons for the emergence of diversity;
• Elucidate the specific characteristics and dimension of diversity;
• Explain secondary dimension of diversity;
• Analyse the value of diversity;
• Explain how to manage diversity;
• Define and describe multicultural factors;
• Delineate the stages in the creation of multicultural organisation; and
• Analyse multicultural organisations as a competitive advantage.
3.2 DIVERSITY IN ORGANISATIONS

3.2.1 Nature and Definition of Diversity
Workforce Diversity is defined as “the similarities and differences in such
characters as age, gender, ethnic heritage, physical abilities and disabilities,
race and sexual orientation among the employees of organisations”.
Workforce diversity is also known as ‘cultural diversity’ and ‘cultural variety’.

Diversity in the organisational context refers to the differences in gender, race
and ethnicity in the composition of the workforce. In a broader context, it refers
to a mixture of items, objects or people that are characterised by differences and
similarities i.e. diversity refers to the recognition of the fact that people are
essentially different from each other. People may be similar but no two people
are the same. Therefore, managers have to be able to deal with both similarities
and differences among the employees. Diversity influences employees’
conceptions of work, expectations of rewards from the organisation and practices
in relating to others in the organisation. One of the key challenges for managers
in the 21st century will be to manage the opportunities and difficulties that form
a part of multicultural organisation.
Two important concepts in the management of diversity in organisations are

‘stereotypes’ and ‘prejudices’. A stereotype is a generalisation about a person
based on certain characteristics and traits. Managers could stereotype people on
the basis of age, race, gender, ethnic origin, etc. and treat them accordingly.
However, stereotyping is dangerous as it causes managers to ignore individual
differences between people and to judge them without taking into consideration
the current situation. Stereotyping can lead to prejudices, which can be explained
as the judgments that people make about others that reinforce beliefs about
inferiority and superiority. Prejudices cause managers to make assumptions about
the nature of others that may or may not be true. It becomes even more dangerous
when managers build job descriptions, reward systems and policies based on the
stereotypes and prejudices. Therefore, it is very important to avoid stereotypes
and prejudices in a diverse organisation for its effective functioning
56
3.2.2 Reasons for the Emergence of Diversity Workforce Diversity and
Multicultural Factors
There are broadly five main reasons for the emergence or organisational diversity
in recent years.
These include changing workforce, legislation and lawsuit, rapidly growing

increase in international business, The recognition and desire for diverse
viewpoints, and competitive pressures. These are depicted in the diagram given
below.
Changing Workforce
Demographics (age, gender,
ethnicity, and education)
The Recognition and Legislation

Desire for Diverse and
Viewpoints Lawsuits
Increasing
Diversity in Tody's
Organisations
Competitive Rapidly Growing

Pressues Increase in
International Business
1) Changing Demographics: Over the years, the composition of the workforce

has changed in the business world. Older workers, women and ethnic
minorities have entered the workforce. This causes managers to have to
deal with a workforce that is quite different from a traditional workforce of
young, male employees. The needs of all these different categories of workers
have to be kept in mind in developing policies as work.
2) Legislation and Lawsuits: Several laws have been passed in different

countries to prevent discrimination between employees, and to provide equal
opportunities to all without differentiating on the basis of age, gender or
ethnicity. Therefore organisations are legally required to accommodate a
diverse workforce.
3) Growth of International Business: More and more organisations are

entering the international business arena. This results in greater cultural
diversity because as companies expand, they have to become accustomed
to working with different cultures, customs and social norms.
4) Competitive Pressures: Diversity places an important role in giving

companies competitive advantage in the market. Companies that hire and
work with a diverse workforce have a greater chance of understanding their
57
Step in Human Resource markets better because of the availability of diverse view points and therefore,
Management
are able to develop products and services that meet market requirements.
5) Desire for Diverse Viewpoints: As described in the previous point,

companies that actively try to develop a diverse work force gain a competitive
advantage in terms of being able to develop better products and services for
the market. In addition to this, organisations that have a reputation for
‘celebrating diversity’ attract better quality of workers. Diverse organisations
show that they desire and value of diverse points of view, which allows
them to not only develop better products and services but also to develop a
richer work culture.
3.3 SPECIFIC CHARACTERISTICS AND

DIMENSIONS OF DIVERSITY
Diversity is composed of a number of demographic characteristics, of which the
most commonly recognised primary dimensions are age, gender, ethnicity and
education. An understanding of these characteristics is necessary for a complete
understanding of the nature of diversity.
3.3.1 Age
Workers in organisations have a wide age range. We find workers as young as in
their early 20s and also people nearing 60. In private organisations, there may be
people working even after they have crossed 60, as many private organisations
do not have a mandatory retirement age. This results in a diverse workforce with
diverse needs. The way young workers perceive their jobs and rewards is quite
different from the way older workers perceive them. Therefore, organisations
and managers have to make an effort to ensure that they do not discriminate on
the basis of age.
3.3.2 Gender
Gender roles have been changing in society and a large number of women, who
as as educated as men have entered the workforce. By a general estimate, women
make up about half of the workforce in organisations. Organisations therefore
must guard against discriminating on the basis of gender. Two important concepts
in gender diversity as Equal Pay for Equal Work and the Glass Ceiling effect.
The Equal Pay for Equal Work concept indicates that men and women who do
the same work should also be paid the same salary. There should not be a
discrimination against women because of their gender. Many developed countries
have passed laws to enforce the equal pay for equal work concept. The Glass
Ceiling effect is a term used in reference to women’s being prevented from
receiving promotions into top management positions. Although this is not done
openly, it is seen in some sectors that women cannot progress beyond a certain
level of seniority within organisations.
3.3.3 Ethnicity
As organisations become more global in nature, there is bound to be a greater
mix of people from different races in the workforce. Changing racial patterns of
the workforce indicate greater diversity. Managers are challenged to deal with
ethnic factors in terms of policies and practices concerning pay and promotions
58
and ensure that people of given equal opportunities, regardless of their ethnic Workforce Diversity and
origin. Managers must also try to create a culture of inclusiveness where people
of all races feel supported and comfortable.
3.3.4 Education
The workforce in an organisation consists of people of different qualities and
qualifications. On one side are the employees who are highly educated and on
the other are the lower rung or blue collared workers. But regardless of the level
of education, it is responsibility of organisations to keep all their workers abreast
of the latest technology and knowledge requirements. Managers need to identify
the skill and competence level of each employee in order to design programmes
for the development.
3.3.5 Others
In addition to the basic aspects like age, gender, ethnicity and education, there
are other factors associated with diversity. Some of the other factors are language,
sexuality and disabilities. An inclusive organisation is one which recognises these
differences in people and creates a culture which embraces and promotes diversity
to the advantage of all.
3.4 SECONDARY DIMENSIONS OF DIVERSITY

In addition to the above described primary dimensions, there are secondary
dimensions. Secondary factors are those aspects that matter to employees as
individuals, and to some extent define them to others but which are less permanent
than the primary dimensions and can be changed or adapted. These include factors
like marital status, geographic location, socio-economic status, religious beliefs,
military experience, etc. The impact of secondary experiences varies at various
times of our lives. For example, a married person with children may find it difficult
to travel frequently on work, while a single person may find the travel exciting.
Managers need to keep all these differences between employees in view in trying
to design jobs and managerial policies.
1) Elucidate nature and definition of diversity in organisations
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2) Discuss the reasons for emergence of diversity.
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59
Management 3) What are the specific characteristics and dimensions of diversity?
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4) What is secondary dimension of diversity?
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3.5 THE VALUE OF DIVERSITY

For several years in the past, organisations have had a fixed culture, and expected
all their employees to conform to the existing culture and value system. Uniformity
in the workforce was given importance and employees who were different from
the majority were expected to change to fit in with the organisational requirements.
This is known as ‘assimilation’. Assimilation can be defined as a process through
which members of a minority group are forced to learn the ways of the dominant
group. Within the organisational context, assimilation happens when people of
different types and backgrounds are hired and then made to mold themselves
into the existing organisational culture. For example, an organisation may enforce
an English-only policy, where all employees are expected to speak and use only
English in the workplace, regardless of their background.
Many organisations develop performance evaluation and incentive programmes

that reinforce the values of the dominant group. The dominant group generally
reflects the majority composition of the workforce. For instance, for an
organisation in Germany, the dominant group is likely to be composed of
Germans. Over time, the dominant group could become representative of the
workforce and the needs of the other employees are ignored.
However, since the late 1970 s, organisations have been becoming more diverse
as different kinds of people from different kinds of backgrounds have started
entering the workforce. Organisations also realised that expecting all employees
to commit to a set of predetermined systems was unpractical, as people are
essentially different, and what works for one person may not work for another.
Besides, employees were usually slow to change and showed a certain amount
of resistance to change. Therefore, it became necessary for organisations to not
only accept diversity but also to embrace it as a positive factor.
Today, organisations have come to realise that the composition of the workforce
affects organisational productivity. Managers can try to improve organisational
60
performance by taking advantage of the variety of talents, perspectives and Workforce Diversity and
backgrounds of their employees. In other words, organisations have started valuing
diversity.
Valuing diversity means putting an end to the belief that any person who is not a
member of the dominant group must assimilate. Organisations that truly value
diversity, not only tolerate differences in the composition of the workforce, but
also encourage it. Valuing diversity is an opportunity for an organisation to develop
and utilise all the human resources available to the organisation in the best possible
way. Valuing diversity allows the organisation to benefit from the richness of
ideas and perspectives that give it an advantage over competitors. Fresh
perspectives can result in the development of a new product, opening of new
markets or improving service to existing customers. Another advantage in valuing
diversity is that there is less interpersonal conflict between the employees of the
organisation as all employees feel valued and needed. This creates better teamwork
and a greater commitment to organisational goals.
3.6 MANAGING DIVERSITY

There are a number of approaches that organisations can take to manage diversity.
These can be divided into individual approaches and organisational approaches.
3.6.1 Individual Approaches to Managing Diversity

There are two main aspects that come under the individual approaches to
managing diversity. These are ‘learning’ and ‘empathy’.
1) Learning: Learning involves gaining real or simulated experience in

situations that involve dealing with diversity. Many managers are unprepared
to deal with diversity, either because they have had no experience in managing
diversity or because they are unsure of how to respond to a situation. In
order to meet this challenge managers but make a conscious effort to learn
and experience as much as they can about developing appropriate behaviour.
2) Communication: One very important factor, which helps managers learn

how to deal with diversity, is communication. Managers must continuously
communicate with people of different ages, racial backgrounds and those
with disabilities in order to understand them better. This way they can gain
valuable insights into the different personal values of people and thereby
understand how different people like to be treated. For example, it has been
observed that people with disabilities usually do not like to be treated
differently from other employees. They only want to be given equal
opportunities as other employees. Communication can help managers
understand this better. Another important part of the learning process is
feedback. Managers should be open to feedback from employees and take
the feedback in a positive way. This can go a long way in helping managers
learn how to deal with diversity.
3) Empathy: Empathy is the ability to put oneself in another person’s place
and see things from that person’s point of view. Empathy goes hand in hand
with learning in helping managers deal with diversity. This is all the more
important as members of different groups feel that only they can truly
understand the problems and challenges they face. Empathy places an
61
Step in Human Resource important role in understanding problems that are of a more subtle nature.
Management
For example, women in offices often resent being asked to make or fetch
coffee for their male colleagues. They say that they do not mind doing it
once in a while as long as the male employees also do it for them in equal
part. However, just because they are women, they should not be expected to
do such things. Similarly, certain minorities may have strong feelings about
certain aspects of work, which they may not be comfortable with (like Jews
are forbidden to work on Sundays). Managers should be able to understand
such problems which may not be obvious at first glance, but could potentially
become serious.
3.6.2 Organisational Approaches to Managing Diversity

A variety of techniques form a part of the organisational approaches to managing
diversity. The most common ones are testing, training, mentoring and programmes
designed to promote work-life balance.
1) Testing: Organisations often use tests for selecting and evaluating people
during the recruitment process. However, it has been observed that most of
the tests used were designed keeping in mind the dominant group (for
example, white males). As a result, women and minorities who may be as
capable as white males of doing that particular job get low scores on the
test, which eliminates their chance of getting the job. Most of the traditionally
used evaluation tests are not suited to a diverse workforce. Therefore in
recent years a deal of attention has been given to developing tests valid for
diverse employees. One way in which tests can be made more relevant to a
diverse workforce is to use job specific tests rather than general aptitude or
knowledge tests. For example to hire a computer programmer, the company
should give a test which tests only programming knowledge. General aptitude
tests need not be included. However, if they are included, the management
must make sure that they are culturally unbiased and that all types of people
will be able to handle them. Another way in which the problem of tests can
be dealt with is to give more weightage to personal interviews and role play.
This way each candidate can be evaluated individually to determine his/her
capabilities. However, if pencil and paper tests are used, then scientific
norming should be done. Scientific norming is a process that ensures that
tests are equivalent across cultures. This way, all the test questions will
have the same meaning regardless of a person’s cultural background.
2) Training: Many companies now include diversity training as a part of their

regular training programmes. There are two parts to diversity training. The
first one concerns providing training to employees from diverse backgrounds
to help them perform better at their existing jobs or for promotion. The
other part of diversity training concerns training managers or employees
who deal with other employees from diverse backgrounds to handle diversity
more effectively.
Most of the diversity programmes get employees directly involved in the

training. One popular method used in diversity training is to divide people
into groups based on certain common factors. Then each group is asked to
describe other groups and also to listen to other groups describe them. The
purpose of this method is to help people of one group gains insights into
62
how they are perceived by other groups. The groups are also asked to describe
the difficulties they face in working with other groups and to identify the Workforce Diversity and
reason for these problems. This helps the groups develop a better rapport.
Trainers also use diversity board games in diversity training. The players of
diversity board games have to answer a series of questions related to areas
such as gender, race, age, sexual orientation, etc. On the basis of the response,
the players are either able to advance in the game or forced to backup. Mostly
diversity related games are used as supplements to other forms of diversity
training. They are used especially during the ice-breaking sessions of training
programmes.
One important condition for the success of diversity training programmes is

the support of the top management. It is also important to make attendance
of diversity training programmes compulsory for all managers and to include
suitable organisational rewards for promoting diversity in the organisation.
A major problem with diversity training programmes is the transfer problem.

That is to say, during the training programme employees see the value of
diversity training, but one the programme has ended they find it difficult to
transfer the knowledge gained during the training back to the job. This
problem needs to be addressed before diversity training programmes can
become truly successful.
3) Mentoring: Mentoring is another organisational level diversity initiative,

and many companies today use mentoring to meet the challenges of a diverse
workforce. A mentor is a trusted counselor, coach or advisor who guides an
employee at the workplace. The main purpose of a mentor is to support
members of a diverse group in their jobs, socialise them in the cultural
values of the organisation and help their chances for development and
advancement. Some of the main functions of a mentor are listed below:
3.6.3 Identification of Skills, Interests and Aspirations of the

Person
Instruct the person in the specific skills and knowledge critical to job performance
Help the person understand the unwritten rules of the organisation and guide
him or how to avoid saying or doing the wrong things.
Answer questions and provide important insights into the working of the
organisation
Offer emotional support
Serve as a role model
Create an environment in which the person can make mistakes and learn from
them without losing self confidence.
There are several steps to be followed in establishing a mentoring programme.
These are as follows:
• Secure the support of the top management
• Identify the mentors and their protégées. Care should be taken at this step to
pair people who will benefit in the best possible way through their association
with each other
63
Step in Human Resource • Provide orientation to both the mentor and the protégée. Mentors should be
Management
training in how to conduct themselves and protégées should be given
guidance on the types of questions they can ask their mentors in order to
benefit from the experience
• Throughout the duration of the mentoring programme, which usually lasts

about a year, the mentors and the protégées should meet regularly with the
support staff of the programme (diversity trainers and experts) to evaluate
their progress.
• At the end of the programme, both mentors and protégées should give their
feedback on how the programme went, so as to identify any shortcomings
and improve the programmes for the future.
1) Work/Family Programmes: Today as a large number of women have

entered the workforce, both men and women feel the need to achieve work
life balance. With the growth of nuclear families, and families where both
parents work, it has become necessary for organisations to implement
programmes that support work life balance. Some of the important work
life balance initiatives are flextime, the compressed workweek, job sharing
and telecommuting.
2) Flexi time: This is a system which allows employees greater autonomy by

permitting them to choose their daily start and finishing time within a given
period. Organisations that follow flexible working hours define the earliest
possible starting time and the latest possible quitting time i.e. no one may
work before 7 am and in the same way, no one can work beyond 5 pm. This
is called ‘band-width’. Within the band-width, time is divided into ‘core
hours’ and flexi-hours. Everyone must be at work during the core hours so
that the activities which are of an interdependent nature do not get disrupted.
The flexi-hours on the other hand give the employee the freedom to choose
to be at work or not.
3) Compressed workweek: The compressed work week is a system where the

work week is compressed into a fewer number of working days per week.
For example, organisations could choose to have four working days per
week instead of five, while keeping the total number of working hours per
week constant. This effectively means that people will have to work for
fewer days in the week but for longer hours each week. This gives employees
more free days with their families.
4) Job sharing: This is the splitting of a full time position between two people,
each of whom works part-time. The salary is also divided proportionately.
This system is generally useful for people who want to work, but need time
to fulfill other family obligations (like women with very young children).
5) Telecommuting: This involves working partly from home and partly from
office. This system works on the premise that what is important is that the
job gets done. It does not matter whether the employee works in the office
or from home. Sometimes, companies adopt a system where employees
come to office certain days of the week (for instance on Monday and Tuesday)
and telecommute the rest of the days. However, this cannot be practically
applied for all kinds of jobs.
64
Research has found that work life balance programmes help decrease family Workforce Diversity and
conflict, job dissatisfaction and stress-related problems. In addition to alternative
work schedules, many companies have initiated other family friendly programmes.
The table below gives the details.
Table 3.4: Innovative Work Family Programme

1. Child or elder care benefits These may include child care facilities at
the work site and transportation of aging
parents to a senior citizens center
2. Adoption benefits These include leave policies and
reimbursement for legal fees, medical
expenses, agency or placement fees,
temporary foster care and or travel
expenses.
3. Convenience benefits This refers to onsite services such as dry
cleaning, ATM machines, [postal services
and video rentals]
4. Life cycle accounts These are savings accounts designed to
pay for specific life events such as a
college education. Often employers will
match employee contribution.
5. Health promotion benefits These include such things as fitness
centers, health screenings, flu shots and
stress management clinics.
6. Education assistance benefits Examples include tutoring programmes,
tuition reimbursement and scholarships
7. Housing assistance This refers to such items as relocation
assistance, seminars and preferred
mortgage arrangements
8. Group purchase programme These include legal and financial planning
and discounts with local merchants, group
auto and home owners insurance and fleet
arrangements for auto purchase
9. Casual day programme This would be dress down days to have
everyone relaxed in an on the job family
atmosphere.
(Source: Adapted from Carol Sladek,(1995). A guide to offering work / life benefits. .
Compensation and Benefits Review. Jan-Feb PP 43-44.
3.7 MULTICULTURAL FACTORS

3.7.1 Creating a Multicultural Organisation
The creation of a multicultural organisation is essential for the effective
management of diversity. A multicultural organisation is one where employees
of mixed backgrounds, experiences and cultures can contribute and achieve their
fullest potential to benefit both themselves and the organisation. A multicultural
organisation is one which: 65
Step in Human Resource • Reflects the contributions and interests of diverse cultural and social groups
Management
in its mission, operations and product or service
• Acts on a commitment to eradicate social oppression in all forms within the
organisation
• Includes the members of diverse cultural and social groups as full participants
especially in decisions that shape the organisation.
• Follows through on broader external social responsibilities including support
of other institutional efforts to eliminate all forms of social oppression.
3.7.2 Characteristics of a Multicultural Organisation

There are six main characteristics of a multicultural organisation and these are
given below:
1) Pluralism: A pluralistic organisation is one that has a mixed membership
and takes steps to fully involve all people who differ from the dominant
group. Creating pluralism involves developing training and orientation
programmes to promote diversity, ensuring minority group input in all general
organisational decisions and including diversity in the organisation’s mission
statement.
2) Full Structural Integration: When an organisation has minority group
members serving at all levels, performing all functions and participating in
all work groups, an organisation can be said to have achieved full structural
integration. In order to achieve this, the organisation must ensure an equal
distribution of educational specialties and skill differences equally across
the organisation. Performance appraisal, rewards systems, benefits and work
schedules must also be equally distributed.
3) Integration of Informal Networks: Mentoring programmes, conducting
special social events and support groups for minorities can foster integration
in informal networks. These events give minority group members an
opportunity to express themselves and interact with dominant group members
with a view to achieving better understanding.
4) Absence of Prejudice: In a multicultural organisation, all organisation
members work in harmony without prejudices. There is a distinct absence
of stereotyping and biases. The organisation promotes this through the
conduct of Equal Opportunity Seminars, having in-house focus groups to
examine attitudes and biases related to diversity and having a task force to
monitor organisational policies and practices for evidence of discrimination
5) Equal Identification with Goals: Employees across the organisation
develop a sense of identity with the organisation’s goals and objectives.
Members of different groups share equally in taking ownership of the
achievement of organisational goals. This is achieved by taking the input of
minority group members in formulating and defining organisational goals,
so that all groups of employees can identify with them.
6) Minimal Intergroup Conflict: In a multicultural organisation, there is no
conflict based on cultural differences. Employees as provided with training
in developing positive attitudes as well as given the tools for effective conflict
resolution. Managers are also trained in mediation and listening which play
66 an important role in conflict resolution
Workforce Diversity and
3.8 STAGES IN THE CREATION OF A Multicultural Factors
MULTICULTURAL ORGANISATION
Several stages have been identified in leading up to the creation of a multicultural
organisation and these are presented below.
3.8.1 Exclusionary Organisation

This type of organisation is almost the opposite of a multicultural organisation.
In an exclusionary organisation, the dominance of one group (usually the majority)
is clearly seen. The organisation also follows exclusionary hiring practices and
other forms of discrimination.
3.8.2 Club Organisation

In this type of organisation, the few who have traditionally help power, retain
most of the privileges. They may put up an appearance of hiring women and
minorities, but they only hire people who are deemed to have the ‘right’ kind of
credentials.
3.8.3 Compliance Organisation

A compliance organisation is better that the exclusionary and club organisations
as it hires people from diverse backgrounds. However, the commitment to
diversity is not proactive. In other words, diversity exists in these organisations
only because it required by law to hire people without discriminating on the
basis of background.
3.8.4 Affirmative Action Organisation

This type of organisation is proactively committed to eliminating discriminatory
practices and promoting diversity. The organisation actively supports and it
committed to hiring women, minorities, older employees and those challenged
by a disability. However, there is a perception that employees who benefit from
affirmative action are less competent in some way. This can lead to a form of
discrimination against affirmative action hires within the organisation. Thus,
this organisation falls short of the ideal of a multicultural organisation.
3.8.5 Redefining Organisation

A redefining organisation is characterised by an examination of all activities for
the purpose of evaluating their impact on all employees’ opportunities for growth
and success within the organisation. This organisation goes beyond being just
anti-racist and anti-sexist. It questions the core values that form the culture of
the organisation. It not only deals effectively with diversity, but understands the
value of diversity and takes steps to tap the potential advantages accruing from
having a diverse workforce.
3.8.6 Multicultural Organisation

A true multicultural organisation is one which has core cultural values committed
to diversity and where there is an ongoing commitment to eliminate all forms of
discrimination throughout the organisation. All members of the organisation,
regardless of their background, are involved in the decisions that shape the
mission, structure and culture of the organisation and are fully committed to
organisational goals. 67
Management 3.9 MULTICULTURAL ORGANISATION AS A
COMPETITIVE ADVANTAGE
There are a few general reasons for the emergence and growth of multicultural
organisations:
• Some organisations grow very rapidly and hence, are required to hire more
and more people, which make it obligatory for them to hire people from
different backgrounds and learn to manage them better.
• Some organisations want to recruit the best talent from the market regardless
of background or age to give the best quality employees.
• Some organisations need to develop and sell products in diverse markets. In
this situation, it makes more sense for them to recruit and manage employees
who represent their different markets in order to obtain a better understanding
of the market.
• There are six main ways in which a diverse workforce can bestow competitive
advantage on an organisation. This is shown in the following table:
Advantage Contribution
1. Cost Managing diversity well can trim the sots of
integrating diverse workers
2. Resource Acquisition Companies that have the best reputation for
diversity will have the best chance of hiring the
most talented workers from the market
3. Marketing Diverse organisations gain a better insight into
their markets and cultural sensitivity will
improve the development and marketing of
products and services to different segments of
the population
4. Creativity Diversity of perspectives will improve levels of
creativity throughout the organisation
5. Problem Solving Problem solving and decision making will
improve through groups with more diverse
perspectives
6. System Flexibility Tolerance and valuing of diverse perspectives
throughout the organisation will make the
organisation more fluid, flexible and more
responsive to environmental changes.
Therefore, developing multicultural organisational practices is essential for any

organisation for its long term benefit
3.10 LET US SUM UP

In this chapter we have dealt with the nature and meaning of diversity, the reasons
for the emergence of diversity and the specific characteristics of diversity. We
68
have also understood the value of diversity to organisations and the ways in
which organisations manage diversity at an individual and organisational level. Workforce Diversity and
In the second part of the chapter we have dealt with the multicultural organisation,
its creation and the stages of its development. We have also discussed the
competitive advantages of a multicultural organisation.

1) What is diversity in organisation context?
2) What are the organisational approaches to managing diversity?
3) What are the competitive advantages with multicultural organisations?

Luthans. F., Organisation Behaviour, 10th edition New Dehli, McGraw-Hill, Inc.
Moorhead, G. & Griffin, R. W (2004) Organisational Behaviour, 7th edition

New York, Houghton Mifflin Company.
69
Management UNIT 4 GLOBALISATION AND CHANGING
ECONOMY AND THEIR EFFECTS
ON HRM
Structure
4.0 Introduction
4.1 Objectives
4.2 Globalisation
4.3 Driving Factors
4.3.1 Impact of Globalisation on the Functions
4.4 HRM: Role in Changing Environment
4.5 Competence of HR Managers
4.6 Dilemmas Faced By HR Head
4.6.1 Align HR to Business (Recruitment etc.)
4.6.2 Training and Development
4.6.3 Factors Affecting HRM in Global Market
4.6.4 HR Functions in International Firms
4.6.5 International HRM and Global HRM
4.6.6 New Trends in International HRM
4.6.7 Steps to be Taken By HR Managers
4.7 Future Role of HR Professionals
4.7.1 HR Manager as Strategic Partner
4.7.2 HR Manager as Employee Advocate
4.7.3 HR Manager as Change Champion
4.8 Let Us Sum Up
4.0 INTRODUCTION
In this unit we are going to deal with globalisation and changing economics.
We start with the definition and meaning of globalisation and discuss how it
came about and its importance. This is followed by driving factors in human
resource which includes cost drivers, competitive drivers and government drivers.
This is followed by a discussion of the impact of globalisation on the functions
of human resource manager. Then we present how the HR manager’s role has
been changing due to the changed environment. Then we discuss the competence
required of HR managers. We point out the various dilemmas faced by HR
managers especially interims of how to align HR to business and how to make
the training and development lead to success of Human resource management.
Then we discuss all about the factors that are affecting HRM in global market.
Then we elucidate the HR function in the international firms and point out the
role of HR professionals in the future.
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Globalisation and Changing
4.1 OBJECTIVES Economy and their
Effects on HRM
• Define globalisation;
• Describe globalisation and elucidate its characteristics;
• Delineate the driving factors of HR;
• Explain the impact of globalisation on the functions of HR;
• Describe HRM in the context of changing environment;
• Elucidate the competence required of HR managers;
• Analyse the challenges faced by HR manager;
• Elucidate the HR functions in the international firms;
• Explain the new trends in international HRM; and
• Delineate the future roles of HR Managers.
4.2 GLOBALISATION
When foreign markets are entering the Indian territories and posing a challenge
before the domestic firms, many Indian firms are compelled to think globally.
Managers who have been all along working in a sheltered markets with minimum
or no competition at all either from domestic or foreign firms have to suddenly
become alert and address issues such as new methods in hiring practices, training,
compensation packages, motivational practices etc. The composition of workforce
also changed and managers are expected to address, the different needs of these
diversified workforce. Besides these Indian nationals are also going abroad to
work with foreign collaborations. Training needs are to be taken care off.
Thus the HR executives need to develop an international orientation. Discharging

these and other functions effectively and by helping the best qualified people
execute the company’s strategy on a global scale the managers can gain a
competitive advantage which will have an impact upon our economy.
Managing in a global economy poses many different challenge and opportunities

as there is a wild demand for property ownership arrangements and also the
availability of natural resources. Besides the components of infrastructure, the
role of the government in business also varies. But for our purpose, the very
important considerations are how behaviour processes vary widely across cultural
and national boundaries and how values, symbols and beliefs differ sharply among
cultures. Different work norms and the roles work plays in a person’s life influence
patterns of both work related behaviour and attitudes towards work. They also
affect the nature of supervision relationships, decision-making styles and
processes and organisation configuration, group and inter-group processes,
responses to stress and the nature of political behaviours also differ from culture
to culture.
The term globalisation means integration of business activities across geographical

and organisational boundaries. In broader perspective it can also be defined as
doing business with a worldwide focus rather than doing business in an
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Step in Human Resource international market with the focus from a home-country viewpoint. Globalisation
Management
symbolises the structural making of the world characterised by the free flow of
technology and human resources across national boundaries presenting an ever-
changing and competitive business environment.
A vital aspect of globalisation is the way diverse challenges are being faced by
nations in an increasingly inter dependent world. No country can meaningfully
progress today without efficiently responding to demands and pressures generated
by international organisations and processes.
Globalisation is not just a recent phenomenon. Some analysts have argued that
the world economy was just as globalised 100 years ago as it is today. Yet the
term is used since the 1980’s, reflecting technological advances that have made
it easier and quicker to complete international transactions, both trade and financial
flows. The most striking aspect of this has been the integration of financial markets
which is made possible by modern electronic communication. At a political and
economic level, globalisation is the process of denationalisation of markets,
politics and legal systems i.e. the use of the so-called global economy.
Globalisation refers to an extension beyond national borders of the same market
forces that have operated for centuries at all levels of human economic activity
(village markets, urban industries, or financial centers). It means that world trade
and financial markets are becoming more integrated.
At a business level, globalisation is when organisation decides to take part in the
emerging global economy and establish themselves in foreign markets. First they
will adapt their products or services to the customer’s linguistic and cultural
requirements. Then, they might take advantage of the internet revolution and
establish a virtual presence on the international market place with a multilingual
corporate website or even as an e-business. When going global, an organisation
has to reconsider the following factors:
• Employment Laws
• Culture
• Terminology
• Corporate Social Responsibility
• It is also said that Globalisation is associated with four major aspects. They
are:
– Trade
– Capital movements
– Movement of people
– Spread of knowledge
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2) What factors should one consider when going global? Economy and their
Effects on HRM
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4.3 DRIVING FACTORS

Researchers believe that there are few driving factors of globalisation. These
Driving factors can be divided into four groups:
1) Market Drivers
• Convergence of per capita income
• Convergence of life styles
• Organisations behaviour as global customers
2) Cost Drivers
• Push for economics of scale
• Advances in transportation
• Emergence of newly industrialised countries with productive capability
and low labour costs
3) Competitive Drivers
• Growth of global networks making countries interdependent
• Rise of new competitors intent on becoming global competitors
• Increased formation of global strategies alliances
4) Government Drivers
• Reduction on tariffs and other trade barriers
• Privatisation of industry in many parts of the world
• Creation of trading blocks (i.e. EU)
4.3.1 Impact of Globalisation on the Functions

Globalisation has elevated the importance of HRM development in organisation.
These changes have led to the notion of the HR system as a strategic asset. Many
73
Step in Human Resource of the arguments about processes of globalisation within the HR function rest on
Management
the assumption that there has and continues to be longitudinal change in the
conduct of HR. In the intervening few years a wide range of contextual changes
have led to significant globalisation of activity, including: the transfer of work
abroad, either to outsourced providers or on a global in-sourcing basis; the e-
enablement of many HR process; greater sophistication in the HR information
technology, new structures for international HR functions; greater competition
for talented staff at all levels of organisation; more protracted and strategic talent
pipelines. In particular, there has been a very strong marketing, corporate
communication and IT influence on the HR function. The HR function is
realigning itself in response to this process of cross-function globalisation
(building new alliances with these functions) creating new activity streams and
new roles and skills required of the HR function (Sparrow, Brewster and Harris,
2004).
4.4 HRM: ROLE IN CHANGING ENVIRONMENT

With the advent of globalisation, the face of HRM is expected to transform
drastically, like for instance: Workplace flexibility is expected to be on the rise
as the future workplace, the ‘virtual office’ is characterised by creative and flexible
work arrangements. As more employees work off-site there will is an increase in
emphasis on performance and results as opposed to the number of hours worked.
In addition, off-site employees can expect to attend fewer meetings. Specified
work will become much more collaborative and management will spend nearly
all its time managing cross-functional work teams who enjoy a lot of autonomy.
In essence, there will be a movement, a trend towards a decentralised model of
HR. HR managers will have to accommodate employees in their virtual work
locations and find ways to manage corporate culture, socialisation and employee
orientation. In order to obtain and maintain a competent workforce, they must
act as organisational performance experts and shape employees behaviour without
face to face meetings.
Another expected change in HR is the ‘Global Business’. Organisations will be

required to develop and manage an international workforce, maintain written
and unwritten corporate polices for transportability to other cultures, keep top
management informed of the costs of not paying attention to the transnational
issues and provide their services to a variety of locations worldwide. Concerning
the recruitment in the above mentioned ‘global business’ it will be important
which strategy will be adopted by the management. Globalisation will make HR
managers; adopt new skills such as language capabilities, tolerance towards other
cultures etc. For example, in order to recruit employees from other cultures, HR
managers will either have to learn new languages or else they will certainly have
to have foreign language speakers on staff. However in order to facilitate
communication among people coming from a wide range of language
backgrounds, in most multinationals, it is preferred to speak English. Organisation
must take into account cultural differences that shape managerial attitudes, when
developing multinational management programs. For e.g., British managers value
individual achievement and autonomy, whereas French managers appreciate
competent supervision, fringe benefits, ble to access the information on the
security and comfortable conditions, while Indian managers gives more
importance of their culture and tradition.
74
HR managers must therefore be familiar with and understand other cultural norms Globalisation and Changing
Economy and their
to promote organisation diversity. An organisation that recognises and promotes Effects on HRM
cultural diversity will benefit because it will be employing the market that it
serves. With increasing globalisation and competition within the market, a diverse
workforce is conducive to attracting and retaining a strong client base. While
competing in an international market, employees from diverse national
backgrounds provide language skills and understanding of other cultures. HR
professionals will also be responsible for providing cultural sensitivity training
for the organisation’s employees and for managers throughout the entire
organisation. (Czebter, Anamaria, 2002)
4.5 COMPETENCE OF HR MANAGERS

In order to effectively deal with all the changes, HR professionals must develop
competencies that will allow them to carry out their roles, competences like:
• Flexibility
• Team work
• Communication
• Decisiveness
• Leadership
• Strategic planning
• Network building
• Client service orientation
• Organisational awareness
• Self confidence
• Sharing of expertise
• Global and cultural understanding
• Multiple language competencies
In addition to increasing and sustaining technological skills relating to
communication developments, HR professionals will also be required to increase
their numerical and data compilations skills. In addition to delivering specific
measurable developments, managers will also need to know what contributed to
the results declared. This may mean that HR professionals will be required to be
familiar with and administer employee survey and provide for accurate data
compilation and regression analysis.
As a result of the increase in technology, innovation and globalisation over the

last 20 years, HR professionals around the world are forced to be more efficient,
more effective and more competitive. They need to respond to the demands of
global competitiveness by becoming more familiar with language skills, cultural
awareness and diversity promotion. Additionally, HR professionals must be
committed to continuous learning, being familiar with cutting edge
communication. If HR managers won’t pay enough attention to their changing
role, serious consequences could result, including the deterioration or even
perhaps the elimination of the HR department. (Halcrow A, 1998).
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1) What are the driving factors? Elucidate the same
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4.6 DILEMMAS FACED BY HR HEAD Economy and their
Effects on HRM
The coming of the 21st century, globalisation poses distinctive HRM challenges
to businesses especially those operating across national boundaries as
multinational or global enterprises. Global business is characterised by the free
flow of human and financial resources especially in the developed economies of
European Union (EU), the North American Free Trade Agreement (NAFTA),
other regional groupings such as the Association of South East Asian Nations
(ASEAN), the Economic Community of West African States (ECOWAS), the
Southern African Development Community, etc. These developments are opening
up new markets in a way that has never been seen before. Unlike the other
industries where HR is considered as a functional need, there is a need to view
HR as a partner or a business enabler in the perspective of globalisation.
4.6.1 Align HR to Business (Recruitment etc.)

One of the constant challenges faced in this area is to align HR to business. The
five R’s therefore, assume utmost significance in HR strategy. The HR team
needs to get in right from the stage of defining the business strategy to Resourcing,
Recruiting the right talent, Retaining the talent, Retraining and Restructuring.
However, flexibility appears to be the key for success and survival as many
companies have become dynamic field due to the constant developments and up
gradation in the area of technology and changing customer requirements. Topping
all these reasons is also the trend of globalisation, which tries the HR test of
endurance. The ability and the willingness to modify job structure, job
classification and the organisational structure as often and as quickly as necessary
are important elements in a successful recruitment and retention strategy for
workforce. This challenges of managing expectations and change puts constant
pressure on the professionals.
The challenge does not stop with recruiting the right person but with how they
are going to manage the performance of the employees. The challenge would be
to create a performance culture where in opportunities are provided for enhanced
performance and where giving out optimum performance becomes a way of life.
The HR Strategy aligned with the business strategy is about the growth of the
business, increasing the performance of the employees and keeping the costs
under a control. The HR Strategy aligned with the business strategy is not much
about the employee satisfaction and benefits provided to the population as they
are not the strategic goals, but they are tools to reach the goals important for the
whole organisation.
The process of the alignment of the HR Strategy with the business strategy is
about going deeper and finding the real root components of the successful human
capital management in the organisation. The HR Managers have to identify the
real goals of the business, the business way how to reach the goals and the real
needs of the business from Human Resources. The HR tends to take care of
employees, but it is not what the business asks for usually.
The HR Strategy alignment with the business strategy needs many discussions
inside Human Resources about the real goals of the organisation and how the
77
Step in Human Resource organisation will utilise its human capital to reach the goals. It is not about the
Management
employee satisfaction, it is a side effect. The HR Management has to understand,
how the business wants to reach the goals and then the HR Strategy can be
developed and fully aligned with the business strategy.
The aligned HR Strategy misses the nice words about the retention, the employee
satisfaction and other nice HR initiatives. These are the tools, the real business
goals are different. The HR Strategy has to respect it.
4.6.2 Training and Development

Nature of Training and Development
In simple terms, training and development refers to the imparting of specific
skills, abilities and knowledge to an employee. A formal definition of training
and development is… it is any attempt to improve current or future employee
performance by increasing an employee’s ability to perform through learning,
usually by changing the employee’s attitude or increasing his or her skills and
knowledge.
The need for training and development is determined by the employee’s

performance deficiency, computed as follows:
Training and Development Need = Standard Performance – Actual Performance.
We can make a distinction among training, education and development. Such

distinction enables us to acquire a better perspective about the meaning of the
terms. Training, as was stated earlier, refers to the process of imparting specific
skills. Education, on the other hand, is confined to theoretical learning in
classrooms.
Table 4.2: Difference between Training and Education
Training Education
Job experience Classroom learning
Specific tasks General concepts
Narrow perspective Broad perspective
Process of imparting specific skills Theoretical learning in the classroom
Application Theoretical orientation
Though training and education differ in nature and orientation, they are
complementary. An employee, for example, who undergoes training is presumed
to have had some formal education. Furthermore, no training programme is
complete without an element of education. In fact, the distinction between training
and education is getting increasingly blurred nowadays. As more and more
employees are called upon to exercise judgments and to choose alternative solutions
to the job problems, training programmes seek to broaden and develop the individual
through education. For instance, employees in well paid jobs and/or employees in
the service industry may be required to make independent decision regarding their
work and their relationship with clients. Hence, organisation must consider elements
78
of both education and training while planning their training programmes.
Development refers to those learning opportunities designed to help employees Globalisation and Changing
Economy and their
grow. Development is not primarily skill-oriented. Instead, it provides general Effects on HRM
knowledge and attitudes which will be helpful to employees in higher positions.
Efforts towards development often depend on personal drive and ambition.
Development activities, such as those supplied by management developmental
programmes, are generally voluntary.
This is another area. In any organisation currently training takes on a new

connotation. It is not just about identifying training needs and giving the required
training. It is foreseeing and anticipating the requirements and developing suitable
training so that the employees are well-equipped to handle the challenges.
Another major challenge is how managers are able to incorporate all the sub-
systems in HR and help them in achieving the ultimate goal – exceptional
performance. People have to be groomed to get in tune with the performance
culture. Creating an environment that stimulates the creation of knowledge and
its sustenance throughout the organisation is big challenge. No longer can the
HR department carry on with its traditional functions.
However, Human Resource Information Systems (HRIS) is to be put in place –

to build and sustain a performance driven culture. The role will shift to that of
facilitator. HR will have to involve the whole organisation in this process and
act as a counselor and facilitator and that is the most gigantic challenge the HR
of any organisation faces.
4.6.3 Factors Affecting HRM in Global Market

A number of factors have been found to affect HRM in global markets. They are
identified as:
1) Culture
2) Economic System
3) Political System – the legal framework and
4) Human capital (Noe, et al, 2000: 536). In the case of developing countries,
globalisation poses distinct challenges to governments, the private sector
and organised labour.
These challenges, which must be addressed through a strategic approach to human
resource management, include
1) Partnership in economic recovery especially in South East Asia
2) Dealing with the “big boys”, the fund managers
3) Concerns over possibility of fraud in E-commerce (such as issues of
confidence and trust) and
4) Implementing prescriptions for recovery and growth taking in to
consideration the development agenda and unique circumstances of
individual country.
4.6.4 HR Functions in International Firms

Three key conclusions about the role of HR professionals working in the field of
international recruitment selection and assessment can be drawn:
79
Step in Human Resource The added value of the HR function in an international firm lies in its ability to
Management
manage the delicate, balance between globally coordinated systems and sensitivity
to local needs, including cultural differences, in a way that align with both business
needs and senior management philosophy.
4.6.5 International HRM and Global HRM

There appear to be a classification made between international HRM and global
HRM.
In this transition, the old functional divides, between international recruitment,

international management development and international reward management,
have become increasingly weak.
Human resource management is a process of bringing people and organisations

together so that the goals of each other are met. The role of HR manager is
shifting from that of a protector and screener to the role of a planner and change
agent. Personnel directors are the new corporate heroes. The name of the game
today in business is personnel. Nowadays it is not possible to show a good
financial or operating report unless your personnel relations are in order.
Over the years, highly skilled and knowledge based jobs are increasing while
low skilled jobs are decreasing. This calls for future skill mapping through proper
HRM initiatives.
Indian organisations are also witnessing a change in systems, management cultures

and philosophy due to the global alignment of Indian organisations. There is a
need for multi skill development. Role of HRM is becoming all the more
important.
Some of the recent trends that are being observed are as follows:
• The recent quality management standards ISO 9001 and ISO 9004 of 2000
focus more on people centric organisations. Organisations now need to
prepare themselves in order to address people centered issues with
commitment from the top management, with renewed thrust on HR issues,
more particularly on training.
• Charles Handy also advocated future organisational models like Shamrock,

Federal and Triple I. Such organisational models also refocus on people
centric issues and call for redefining the future role of HR professionals.
• To leapfrog ahead of competition in this world of uncertainty, organisations

have introduced six- sigma practices. Six- sigma uses rigorous analytical
tools with leadership from the top and develops a method for sustainable
improvement. These practices improve organisational values and helps in
creating defect free product or services at minimum cost.
• Human resource outsourcing is a new accession that makes a traditional

HR department redundant in an organisation. Exult, the international pioneer
in HR BPO already roped in Bank of America, international players BP
Amoco & over the years plan to spread their business to most of the Fortune
500 companies.
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• With the increase of global job mobility, recruiting competent people is also Globalisation and Changing
Economy and their
increasingly becoming difficult, especially in India. Therefore by creating Effects on HRM
an enabling culture, organisations are also required to work out a retention
strategy for the existing skilled manpower.
4.6.6 New Trends in International HRM

International HRM places greater emphasis on a number of responsibilities and
functions such as relocation, orientation and translation services to help employees
adapt to a new and different environment outside their own country.
• Selection of employees requires careful evaluation of the personal
characteristics of the candidate and his/her spouse.
• Training and development extends beyond information and orientation
training to include sensitivity training and field experiences that will enable
the manager to understand cultural differences better. Managers need to be
protected from career development risks, re-entry problems and culture
shock.
• To balance the pros and cons of home country and host country evaluations,
performance evaluations should combine the two sources of appraisal
information.
• Compensation systems should support the overall strategic intent of the
organisation but should be customised for local conditions.
• In many European countries - Germany for one, law establishes
representation. Organisations typically negotiate the agreement with the
unions at a national level. In Europe it is more likely for salaried employees
and managers to be unionised.
4.6.7 Steps to Be Taken By HR Managers

Managers should do the following things to ensure success.
• Use workforce skills and abilities in order to exploit environmental
opportunities and neutralise threats.
• Employ innovative reward plans that recognise employee contributions and
grant enhancements.
• Indulge in continuous quality improvement through TQM and HR
contributions like training, development, counseling, etc.
• Utilise people with distinctive capabilities to create unsurpassed competence
in an area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc.
• Decentralise operations and rely on self-managed teams to deliver goods in
difficult times e.g. Motorola is famous for short product development cycles.
It has quickly commercialised ideas from its research labs.
• Lay off workers in a smooth way explaining facts to unions, workers and
other affected groups e.g. IBM , Kodak, Xerox, etc.
HR Managers today are focusing attention on the following:
i) Policies: HR policies based on trust, openness, equity and consensus.
ii) Motivation: Create conditions in which people are willing to work with
zeal, initiative and enthusiasm; make people feel like winners. 81
Step in Human Resource iii) Relations: Fair treatment of people and prompt redress of grievances would
Management
pave the way for healthy work-place relations.
iv) Change agent: Prepare workers to accept technological changes by clarifying
doubts.
v) Quality Consciousness: Commitment to quality in all aspects of personnel
administration will ensure success.
Due to the new trends in HR, in a nutshell the HR manager should treat people
as resources, reward them equitably, and integrate their aspirations with corporate
goals through suitable HR policies.
The next decade will bring even greater change, impacting all facets of the
workplace, including major changes for the HR department and HR managers
requiring them to be strategic business partner, supportive of the overall corporate
strategy.
4.7 FUTURE ROLE OF HR PROFESSIONALS

The future role of HR professional will change from a less administrative role to
more of a strategic role. HR managers will continually be required to prove their
effectiveness and their existence. They will be expected to understand international
business practices and promote cultural diversity within the organisation. They
will need to understand the core business of the organisation and become partners
with line managers. They will need to prove that their initiatives and programs
are result-oriented, providing specific measurable results in terms of business
competitiveness that contribute positively to the bottom-line of the organisation.
They will be required to stay current with leading edge as more and more
organisations are faced with the demands of globalisation and strategic alliances
with other organisations around the world.
Traditionally, the role of the Human Resource professional in many organisations

has been to serve as the systematising, policing arm of executive management.
In this role, the HR professional served executive agendas well, but was frequently
viewed as a road block by much of the rest of the organisation. While some need
for this role occasionally remains one does not want every manager to put his
own spin on an issue where automatically things are taken care of because HR
itself is changing. As for example, sexual harassment policy, much of the HR
role is transforming itself.
The role of the HR manager must parallel the needs of his or her changing
organisation. Successful organisations are becoming more adaptive, resilient,
quick to change direction and customer-centered. Within this environment, the
HR professional, who is considered necessary by line managers, is a strategic
partner, an employee sponsor or advocate and a change mentor.
4.7.1 HR Manager as Strategic Partner

In today’s organisations, to guarantee their viability and ability to contribute,
HR managers need to think of themselves as strategic partners. In this role, the
HR person contributes to the development of and the accomplishment of the
organisation-wide business plan and objectives.
82
The HR business objectives are established to support the attainment of the overall Globalisation and Changing
Economy and their
strategic business plan and objectives. The tactical HR representative is deeply Effects on HRM
knowledgeable about the design of work systems in which people succeed and
contribute. This strategic partnership impacts HR services such as the design of
work positions; hiring; reward, recognition and strategic pay; performance
development and appraisal systems; career and succession planning; and employee
development.
4.7.2 HR Manager as Employee Advocate

As an employee sponsor or advocate, the HR manager plays an integral role in
organisational success via his knowledge about and advocacy of people. This
advocacy includes expertise in how to create a work environment in which people
will choose to be motivated, contributing, and happy.
HR Manager through fostering effective methods of goal setting, communication

and empowerment, builds employee ownership of the organisation. The HR
professional helps establish the organisational culture and climate in which people
have the competency, concern and commitment to serve customers well.
In this role, the HR manager provides employee development opportunities,

employee assistance programs, gain sharing and profit-sharing strategies,
organisation development interventions, due process approaches to problem
solving and regularly scheduled communication opportunities.
4.7.3 HR Manager as Change Champion

The constant evaluation of the effectiveness of the organisation results in the
need for the HR professional to frequently champion change. Both knowledge
about and the ability to execute successful change strategies make the HR
professional exceptionally valued. Knowing how to link change to the strategic
needs of the organisation will minimise employee dissatisfaction and resistance
to change.
The HR professional contributes to the organisation by constantly assessing the

effectiveness of the HR function. He also sponsors change in other departments
and in work practices. To promote the overall success of his organisation, he
champions the identification of the organisational mission, vision, values, goals
and action plans. Finally, he helps determine the measures that will tell his
organisation how well it is succeeding in all of this.

1) Discuss the dilemmas faced by HR manager.
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Management 2) How do we align HR to business?
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globalisation?
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4.8 LET US SUM UP

Communication and transportation have advanced dramatically over the past
few decades, telephone services have improved the communication network span
of the globe and can interact via satellite and once-remote areas have become
accessible. Telephone services in some developing countries are now entirely by
cellular phone technology, fax machines and electronic mail and allow managers
to send documents around the world in seconds. In short it is easy to conduct
international business today.
Thus globalisation started after world war-II. Inspite of the war the US economics
were strong and intact, only the Europe and Far East were the ones who suffered
84
the most. However, they hopped back into business very soon and the business Globalisation and Changing
Economy and their
was the major source of economic security for most of the citizens of these Effects on HRM
countries. So these economics grew in strength and each developed competitive
advantage and threw themselves open to the world. When business expands
internally, they have to understand the many different ways, various countries
conduct business, i.e., differences in laws, local customs, tariffs and exchange
rates,etc.
The role of the HR manager also changes with the effect of globalisation i.e. he/
she now needs to address not only the different type of people but also learn new
language, culture, and legal aspect and management skills. The competency levels
of the HR managers should go beyond the boundaries of the country and should
develop innovative methods of dealing with business and people. However, they
are bound to face some dilemmas, which they have to address depending upon
the situations that arise at the moment.

1) What are the dilemmas faced by HR manager?
2) What is the role of manager in the changing environment?
3) What are the challenges that the HR manager faces due to globalisation?
4) What is the future role of HR professional?
5) What factors affect HRM in global market?

Stoner, A.F.J., Freeman, R.E., and Gilbert, Jr.D.R. (2000) Management, 6th edi,
New Delhi, Prentice Hall of India.
Wilson, M. Foina.,(2004) Organisational Behaviour and Work- A Critical

Introduction, 2nd edi, Oxford, Oxford University Press, Inc.
85
Intellectual Property Rights
UNIT 1 INTELLECTUAL PROPERTY
RIGHTS
Structure
1.0 Introduction
1.1 Objectives
1.2 Concept of Intellectual Property
1.3 Concept of Intellectual Property Rights
1.4 A Sample of Intellectual Property Form
1.5 Nature of Intellectual Property Rights
1.6 Objective of Intellectual Property Rights
1.7 Types of Intellectual Property Rights
1.8 Emerging Issues of Intellectual Property Rights
1.9 Significance of Intellectual Property Rights
1.10 The Indian Patent Act
1.11 Let Us Sum Up
1.0 INTRODUCTION
Intellectual property (IP) is a term which refers to those creations of individual’s
mind which are distinct and different and for such creativity the individuals’
property rights are recognised. This unit will discuss the term and other related
topics in detail. In order to respect and regard the human resource, it is legal and
compulsory that the individuals are provided property rights for the originality
of their creations, inventions and discoveries as well as innovations. The unit
will also discuss the various issues and agenda of the intellectual property rights.
The unit starts with intellectual property and intellectual property rights and their
definition and description. We then delineate the concept of intellectual property
rights. We put for the form for intellectual property and discuss the nature of
intellectual property. This is followed by the nature and objective of intellectual
property rights and then we analyse the various issues emerging out of the
intellectual property rights.
1.1 OBJECTIVES
• Define intellectual property rights;
• Delineate the concept of intellectual property and property rights
• Explain the concept and significance of intellectual property rights;
• Discuss the different types of intellectual property rights;
• Describe the issues and agenda of the intellectual property rights; and
• Explain the nature and objectives of the intellectual property rights. 5
Human Resource Laws
1.2 CONCEPT OF INTELLECTUAL PROPERTY
Intellectual property (IP) refers to creations of the mind which are original in
nature and have not been duplicated from any one or any where. Some of the
examples of intellectual property can be for example inventions, literary and
artistic works, symbols, names, images and designs used in commerce. The term
intellectual property has been used since centuries. In one of the court cases in
1845 Justice Charles L. Woodbury wrote that “only in this way can we protect
intellectual property, the labours of the mind, productions and interests are as
much a man’s own...as the wheat he cultivates, or the flocks he rears.” (1 Woodb.
& M. 53, 3 West.L.J. 151, 7 F.Cas. 197, No. 3662, 2 Robb.Pat.Cas. 303,
Merw.Pat.Inv. 414). The statement that “discoveries are...property” goes back to
an earlier period. Subsequently, the World Intellectual Property Organisation
(WIPO) was established in 1967.
The concept of intellectual property can be broadly categorised in to two major
categories, viz., (i) Individual property and (ii) Copyright.
Individual property: The properties which are original and intangible in nature
and are related to commercial as well as industry related products which includes
inventions (patents), trademarks, industrial designs, and geographic indications
of source comes under the category of individual property.
Copyright: The creations which are original and intangible in nature, such as
the literary and artistic works such as novels, poems and plays, films, musical
works, articles as well as artistic works such as drawings, paintings, photographs
and sculptures, and architectural designs. Rights related to copyright include
those of performing artists in their performances, producers of phonograms in
their recordings, and those of broadcasters in their radio and television programs.
Like any other tangible property, an individual has the right to own and protect
the original creation of its mind. Such a right is called intellectual property. An
intellectual property right provides an ownership and others need to take
permission from the concerned owners before using it. If such creations are used
without taking prior permissions, legal action can be taken against such persons.
1.3 CONCEPT OF INTELLECTUAL PROPERTY

RIGHTS
Intellectual property rights is on of the most spoken word in scientific circles
and the importance of protecting scientific discoveries, with commercial potential,
is one of the most crucial aspects. In this era, when the humans are being treated
as valuable resources to the organisations, their knowledge is equally worth which
can lead the organisations’ progress to immense heights.
Box-A
Form for Intellectual Property Rights (Source: www.recordingmedia.org)
Intellectual Property Rights (IPR) Form
To be submitted with every order.
Rev. 3-14-01
International Recording Media Association
6
www.recordingmedia.org
APCP-12
• Letters of Indemnity are not adequate.
• LICENSED content requires proof of licensing for replication.
• OWNED content indicates the individual/organisation completing this
form is the IPR owner.
• Must be completed by the organisation soliciting replication and not a
broker or intermediary.
Album/Project
Title_____________________________________________
Distribution Within an organisation___ Retail___ Free to public___ Other___
Countries Where Distributed _____________________________________
Are you the IPR owner for the entire disc contents? ____ YES ____ NO*
Complete the section(s) below describing the content that is applicable to
the media you have ordered.
MP3 or Enhanced Disc content requires completion of both ROM and Audio
sections.
1) CD-ROM / DVD-ROM Content
*If Not IPR owner, list all included non-owned software, freeware, and
shareware products.
Attach necessary distribution licensing documentation from the IPR
owner. Some shareware and freeware products require distribution
licensing. Consult the software vendor for what is necessary.
_________________________________________________________________________________
2) CD / DVD Audio Content Check Here if COMPILATION _____
Artist(s) _________________________________________ Content/
Music Type _________________
An attached list of track title, artist, and IPR owner is REQUIRED.
Sampling/mixing of additional recordings not owned (regardless of type,
quantity, and length) requires licensing of those original recordings.
*If Not IPR owner, proof of replication licensing from IPR owner for
licensed tracks is REQUIRED.
3) CD / DVD Video Content (if Audio is separately licensed, complete Audio
section and provide necessary Audio/Video Synchronisation licensing)
*If Not IPR owner, proof of replication licensing from IPR owner is
REQUIRED.
I affirm that all information provided herein is true and that all disc contents
indicated as being “licensed” are properly licensed for replication under
the terms of the original rights holder(s) with proof of such licensing and/or
trademark authorisation attached. I affirm that I am the intellectual property
rights owner for all contents indicated as being “owned” and approve of
replication. I agree to abide by the current version of the Anti-Piracy
Compliance Program procedures and standards of the International
7
Human Resource Laws
Recording Media Association (available at www.recordingmedia.org). The
replicator reserves the right to refuse the processing of any order not
complying with the Anti-Piracy Compliance Program guidelines.
Print Organisation Name & Telephone # of Party Soliciting Order _________
Signature of Representative from Party Soliciting Order ________________
Print Name, Title, & Date _______________________________________
Knowledge is considered to be the product of individual creativity, based on

western scientific thought and systems of knowledge creation. In this paradigm
the intellectual property rights can be referred as property rights to the products
of mind, which are a result of an individuals’ knowledge and creativity. Intellectual
property rights there by gives legal rights over creations of the mind, including
both artistic and commercial creations. Intellectual property law provides owners
with certain exclusive rights to a variety of intangible assets, as well the financial
incentive of monopoly profits.
1.4 A SAMPLE OF INTELLECTUAL PROPERTY

FORM
In order to protect and recognise one’s originality and creations, the individual needs
to claim the ownership of right over the intellectual property. The individual or the
related concerns can claim for such ownership by filling a standard form and
submitting it to the concerned person or authority (for example, government of India
is the concerned authority who protects such rights in India). One of the sample of
such standardised format of the intellectual property rights form is as follows:
The box-A in the previous page gives a sample of intellectual property right
form.

Fill in the blanks
i) Knowledge is considered to be the product of ____________________
ii) Intellectual property (IP) refers to ______________________________
iii) The World Intellectual Property Organisation (WIPO) was established
in 1967.
1.5 NATURE OF INTELLECTUAL PROPERTY

RIGHTS
IPR are largely territorial or geographical based rights (that is it may differ from
nation to nation) except copyright, which is global in nature in the sense that it is
immediately available in all the members of the Berne Convention. These rights
are awarded by the State and are monopoly rights meaning there by that no one
can use these rights without the consent of the right holder. Except the copy
rights and trade secrets, all the other intellectual property rights needs to be
regularly renewed. IPR can be assigned, gifted, sold and licensed like any other
property. It would however, be possible to utilise geographical indications for
protecting some agriculture and traditional products.
8
1.6 OBJECTIVE OF INTELLECTUAL PROPERTY
RIGHTS
The following are the objectives of intellectual property rights:
1) It helps in protecting the ownership and originality of the individuals’
creation.
2) It provides recognition to the concerned person or authority.
3) It allows owners of intellectual property to have financial benefits from the
property they have created.
4) They are provided financial incentive for the creation of and also to incur
the cost of investment in intellectual property.
5) Such rights motivate individuals’ creativity and thus also contributes to
economic growth.
6) It can also offer some economic aid to the holder of the right, through the
monopoly of their creations.
7) It improves the financial status of the individual as well as of the economy
of the country.
Intellectual property rights in India
INTELLECTUAL PROPERTY RIGHTS
General
The importance of intellectual property in India is well established at all levels-
statutory, administrative and judicial. India ratified the agreement establishing
the World Trade Organisation (WTO). This Agreement, inter-alia, contains an
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
which came into force from 1st January 1995. It lays down minimum standards
for protection and enforcement of intellectual property rights in member countries
which are required to promote effective and adequate protection of intellectual
property rights with a view to reducing distortions and impediments to
international trade. The obligations under the TRIPS Agreement relate to provision
of minimum standard of protection within the member countries legal systems
and practices.
The Agreement provides for norms and standards in respect of following areas
of intellectual property:
• Copyrights and related rights
• Trade Marks
• Geographical Indications
• Industrial Designs
• Lay out Designs of Integrated Circuits
• Protection of Undisclosed Information (Trade Secrets)
• Patents
• Plant varieties
9
Human Resource Laws Transition Period
India, as a developing country, had a transition period of five years (with effect
from 01 January, 1995), i.e., till January 01,2000 to apply the provisions of the
Agreement. An additional transition period of five years, i.e., till January 01,2005,
is also available for extending product patent protection to areas of technology
not protected so far. This would be mainly in the areas of pharmaceuticals and
agricultural chemicals.
Copyrights
India’s copyright law, laid down in the Indian Copyright Act, 1957 as amended
by Copyright (Amendment) Act, 1999, fully reflects the Berne Convention on
Copyrights, to which India is a party. Additionally, India is party to the Geneva
Convention for the Protection of rights of Producers of Phonograms and to the
Universal Copyright Convention. India is also an active member of the World
Intellectual Property Organisation (WIPO), Geneva and UNESCO.
The copyright law has been amended periodically to keep pace with changing
requirements. The recent amendment to the copyright law, which came into force
in May 1995, has ushered in comprehensive changes and brought the copyright
law in line with the developments in satellite broadcasting, computer software
and digital technology. The amended law has made provisions for the first time,
to protect performer’s rights as envisaged in the Rome Convention.
COPYRIGHTS
• The Indian copyrights law, laid down in the Indian Copyright Act, 1957,
fully reflects the Berne Convention on Copyrights, to which India is a party.
India is also an active member of the World Intellectual Property
Organisation, Geneva.
• The Act protects literary, artistic works and performance rights by making
it unlawful to reproduce such works without the owner’s permission.
• The author of the work is the first owner of the copyright in the work.
• Registration of the copyright is not compulsory either for acquiring copyright
or for enforcing by way of suit against the infringement of the copyright.
• The Copyrights Act protects the following classes of work:
– Original literary, dramatic, musical and artistic works
– Cinematography films
– Sound recording
Infringement of copyright
Illegal use or Violation by way of exploitation within authorisation of the author
of the copyright amounts to infringement. The governing principles for deciding
the infringement of copyright are as under:
• There can be no copyright in an idea, subject matter, themes, plots or
historical or legendary facts and violation in such cases is confined to the
form, manner and arrangement and expression of the idea by the author of
the copyrighted work.
10
Where the same idea is being developed in a different manner it manifests that Intellectual Property Rights
the source being common, similarities are bound to occur. In such cases, the
Courts should determine whether or not the similarities are on fundamental or
substantial aspects of the mode of expression adopted in the copyright work. If
the defendant’s work is nothing but a literal limitation of the copyright variations
of the copyrights. In other words, in order to be actionable, the copy must be a
substantial and material one, which at once leads to the conclusion that the
defendant is guilty of an act of piracy.
• One of the surest and safest tests to determine whether or not there has been
a violation of copyright is to see if the reader, spectator or the viewer after
having read or seen both the works is clearly of the opinion and gets an
unmistakable impression that the subsequent work appears to be a copy of
the original.
• Where the theme is the same but is presented and treated differently so that
the subsequent work becomes a completely new work, no question of
violation of copyright arises.
• Where, however, apart from the similarities appearing in the two works,
there are also material and broad dissimilarities which negate the intention
to copy the original and the co-incidences appearing in the two works are
clearly incidental, no infringement of the copyright comes into existence.
• Piracy must be proved by clear and cogent evidence after applying the various
tests laid down.
Fair dealing with any work has been kept out of the mischief of the Copyright
Act.
Court may take the assistance of an expert in complicated and technical aspects
of the violation of copyright(s).
• The test to detect piracy is to see whether mistakes and deviations occurring
in the original have also been reproduced.
• Law restraining human enterprise should be liberally construed and therefore
Copyright Act should not be interpreted so as to shut out research and
scholarship.
• The burden lies on the plaintiff to satisfy the court that the defendant has
infringed his copyright.
• Innocence is no defence to a charge of infringement.
• An infringement is in the nature of an invasion of a right of property and
therefore intention of the infringer is immaterial provided there is
infringement.
• For determination of the question of infringement, the result and not the
intention is relevant.
• The owner of the literary work could bring action for infringement of
copyright even though the literary work was not registered. Non-registration
of work does not prevent an action for infringement.
Exceptions to infringement of copyright
The following acts, amongst others, do not constitute infringement:
11
Human Resource Laws • Fair dealing with a literary, dramatic, musical or artistic work not being
computer programmes for the purposes of private use including research,
criticism or review, making copies of computer programmes for certain
purposes, reporting current events in newspaper magazines or by
broadcasting or in a cinematography film or by means of photographs.
• Reproduction of judicial proceedings and reports thereof, reproduction
exclusively for the use of Members of Legislature, reproduction (artistic
work excluded) in a certified copy supplied in accordance with law.
• Reading or recitation in public of extracts of literary or dramatic work.
• Publication in a collection for the use in educational institutions in certain
circumstances.
• Reproduction by teacher or pupil in the course of instruction or in question
papers or answers.
• Performance in the course of the activities of educational institutions in
certain circumstances.
• The causing of a sound recording to be heard in public utilising it in an
enclosed room or in clubs in certain circumstances.
• Performance in an amateur club given to a non-paying audience or for
religious institutions.
• Reproduction in newspapers and magazine of an article or current, economic,
political, social or religious topics in certain circumstances.
• The owner of the copyright in an existing work or the prospective owner of
the copyright in a future work may assign the copyright to any person either
wholly or partially, generally or subject to any limitation and for the whole
term of the copyright or any part thereof.
• The owner of the copyright in any existing work or the prospective owner
in any future work may grant any interest in the right by license in writing
signed by him or by his duly authorised agent.
Several measures have been adopted to strengthen and streamline the enforcement
of copyrights. These include the setting up of a Copyright Enforcement Advisory
Council, training programs for enforcement officers and setting up special policy
cells to deal with cases relating to infringement of copyrights.
Trade Marks
Trade marks have been defined as any sign, or any combination of signs capable
of distinguishing the goods or services of one undertaking from those of other
undertakings. Such distinguishing marks constitute protectable subject matter
under the provisions of the TRIPS Agreement. The Agreement provides that
initial registration and each renewal of registration shall be for a term of not less
than 7 years and the registration shall be renewable indefinitely. Compulsory
licensing of trade marks is not permitted.
Keeping in view the changes in trade and commercial practices, globalisation of

trade, need for simplification and harmonisation of trade marks registration
systems etc., a comprehensive review of the Trade and Merchandise Marks Act,
12
1958 was made and a Bill to repeal and replace the 1958 Act has since been Intellectual Property Rights
passed by Parliament and notified in the Gazette on 30.12.1999. This Act not
only makes Trade Marks Law, TRIPS compatibility but also harmonises it with
international systems and practices. Work is underway to bring the law into force.
The Trade and Merchandise Marks Act, 1958

An Act to provide for the registration and better protection of Trade Marks and
for the prevention of the use of fraudulent marks on merchandise.
1.7 TYPES OF INTELLECTUAL PROPERTY

RIGHTS
Intellectual property refers to the right over the intellectual work and not the
work itself. Intellectual property rights can be categorised into various types as
per the nature of work. The most common types of intellectual property are
copyrights, trademarks, patents, industrial design rights and trade secrets which
can be explained as follows:
1) Copyright: It is a right that is provided to the owner of a literary or artistic

work. It is an exclusive right to control the publication, distribution and
adaptation of creative works. Copyright laws deal with the intellectual
property of creative works like articles, books, music, software, painting,
etc.
The right lies with the owner cum copyright holder for a certain period of
time. As time lapses, the work can be republished or reproduced by others.
Usually, the timespan of a copyright extends through the entire life of the
owner and lasts up to a period of about 50 to100 years after death.
In case of anonymous works, the right lasts for 95 years after publication or
120 years after the creation.
2) Trademarks: Companies, political parties, governmental bodies and several

running institutions can be identified or recognised on basis of certain
symbols assigned by them. These symbols are nothing but the trademark,
which is generally used to identify a particular product, which indicates its
source. A trademark can be a combination of words, phrases, symbols, logos,
designs, images or devices, used by an individual, legal entity or business
organisation to distinguish their products from that of others. For example,
one can identify the products of Reebok/LG/Whirlpool/Godrej through their
logo, which is embossed on their products. Another example can be the
logo of NGO’s like WHO, UNICEF and so on which differentiates these
institutions with each other.
The organisations get their trademarks registered and these trademarks are
protected legally. If these trademarks are ever misused, then the owners can
claim legal actions against those persons who use their trademarks. The
right of trade marks defend the products and services of the company
or institutions which helps in developing their brand, including
pharmaceuticals.
13
Human Resource Laws They can be registered nationally or internationally, enabling the use of the
symbol ®. An unregistered trade mark is followed by the letters ™. This
can also be enforced in court if a competitor or any one else uses the same
or similar name to trade in the same or a similar field.
3) Patents: Patents are rights related to new discoveries. Patents are used to
protect new product, process, apparatus. The right to patent says that the
invention is not obvious in light of what has been done before or has not
been duplicated and has not been disclosed anywhere in the world at the
time of the application. But of course the patent can only be given to those
inventions which have a practical purpose. This right is conferred on persons
who invent any new machine, process, article of manufacture or composition
of matter, biological discoveries, etc.
There are certain set criteria of patent which may differ from country to
country and ones’ invention should meet the set criteria in order to get their
rights protected. In general, the invention must be new, inventive and should
be useful or can be applied in industries.
The person needs to get registered in order to receive the patent for his/her
invention. Once the individual has been granted the patent for the invention
then he or she has an exclusive right to control others from making, using,
selling, or distributing the patented invention without permission. Generally,
the time limit of a patent is 20 years from the date of filing the application
(for the patent).
4) Industrial design rights: These rights also come under intellectual property
and protect the visual design of objects. These rights are assigned to the
products distinguished by their novel shape or pattern. The design may be
in form of a shape, colour, pattern or a combination of all these things. It
can be an industrial commodity or a handicraft. The design can be either
two-dimensional (based on pattern, colours and lines) or three-dimensional
(as per shape and surface).
The right is assigned on basis of several factors like, novelty, originality

and visual appeal. The person who has an industrial design right has the
exclusive right to make or sell any objects in which the design is applicable.
The right is conferred for a period of 10 to 25 years. The design is required
to be registered either nationally or under an EU (European)-wide single
right.
5) Trade secrets: Trade secrets are the rights assigned to the designs, practice,
formulas, instrument, processes, recipes, patterns or ideas being used or
owned by a company to gain economic advantage over its competitors.
The owner of a trade secret does not possess any right over anyone who gains
access to that secret independently, but he can prevent the use of trade secret by
anyone who has learned it through the owner. For example, an employer can
protect trade secrets through contracts with his employees. It differs from other
types of intellectual property, because it is the responsibility of the owner to
keep the secret and it is not protected through government policies. Once the
trade secret is disclosed, it can be applied as well as exploited by any other
person.
14
State whether the following are true or false-
i) The owner of a trade secret does not possess any right over anyone who
gains access to that secret independently ( )
ii) Copyrights are assigned to the products distinguished by their novel
shape or pattern. ( )
iii) Intellectual property rights helps in protecting the ownership and
originality of the individuals’ creation. ( )
iv) Trademark is a right that is provided to the owner of a literary or artistic
work. ( )
1.8 EMERGING ISSUES OF INTELLECTUAL

PROPERTY RIGHTS
Having a copy right over one’s intellectual contribution, no doubt is a significant
matter not only for the individual or the organisation, it is a significant contribution
as well as a matter of repute to the concerned nation. Yet there are certain
unresolved issues or agenda which question the process as well as concept of
intellectual property rights. Some of them can be pointed out as follows:
1) Issue of resource piracy: In order to build up global economies, the countries

adopt as well as take up the biological as well as natural resources of other
countries. These resources which may have an origin some where else might
be reconised as well as patented somewhere else, just because of negligence
or ignorance of the home country. For example, the transfer of basmati
varieties of rice from India to build up the rice economy of the US; the free
flow of neem seeds from the farms, fields and commons to corporations
like W. R. Grace for export. There exist no laws or legal actions against
such piracies/ ignorance.
2) Intellectual and cultural piracy: With an objective to compete and gain

recognition as well as better financial conditions, the unique activities,
cultural and intellectual heritage of communities and the country is freely
taken. Many a times the nations and communities claim for such intellectual
property rights which does not originally belong to them and neither have
been taken with prior recognition or permission from the actual place. For
instance, the use by US corporations of the trade name ‘basmati’ for their
aromatic rice, or Pepsi’s use of the trade name ‘Bikaneri Bhujia’. Such
activities are debatable and questionable.
3) Economic piracy: At several circumstances the domestic and international

markets are seized or taken over by using the trade names, thereby
demolishing the local economies and national economies where the original
innovation took place. This also adversely affects the livelihoods and
economic survival of millions. For example, US rice traders usurping
European markets; Grace usurping the US market from small scale Indian
producers of neem based biopesticides.
15
Human Resource Laws 4) Internet piracy: In this digital world, it is really difficult for nations and
organisations to maintain their originalities and trade secrets. Internet and
intranet are two basic ways which may lead to leakage of confidential and
original information.
5) Infringement of copyrights: Many a times, there are severe violations of

laws, where the competitors without taking prior permission to the concerned
person, uses the domestic and literary work.
1.9 SIGNIFICANCE OF INTELLECTUAL

PROPERTY RIGHTS
An intellectual property right is an important right and values the creativity and
originality which is a result of an individual’s mind and intelligence. Therefore,
it has several significance and importance. Some of them include the following:
• Intellectual property rights provides incentives as well as recognition to the
concerned persons/ authorities/ nations/institutions/ or organisations.
• Intellectual property rights encourages innovations and ensures a better
quality of life. Industrial designs are what make a product attractive and
appealing; hence, they add to the commercial value of a product and increase
its marketability
• Just like the elements of a good product or service, the elements of a good
advertisement are likely to be imitated or copied by others. So, it is hardly
surprising that one or more types of IP rights come into play in creating
content for an advertisement, or while deploying an advertising campaign.
1.10 THE INDIAN PATENT ACT

The first Indian patent laws were first promulgated in 1856. These were modified
from time to time. New patent laws were made after Independence in the form
of the Indian Patent Act 1970.
During the process of such amendments, India became a member of the Paris
Convention, Patent Cooperation Treaty and Budapest Treaty.
The salient and important features of the amended Act are that an invention may
satisfy the conditions of novelty, inventiveness and usefulness, but if you claim
a compound without spelling out its utility, you may be denied a patent.

Fill in the blanks.
i) Intellectual propoerty rights provides incentives as well as __________
__________________ to the concerned persons/ authorities/ nations/
institutions/ or organisations.
ii) In this digital world, it is really ____________________________ for
nations and organisations to maintain their originalities and trade secrets.
iii) The first Indian patent laws were first promulgated in ____________
_________________________________________
16
1.11 LET US SUM UP
It can thus be concluded that there exists an immense significance of originality
and creativity of human beings. The intellectual property rights is one of the way
by which the worth of human resource is being valued. It also says that no one
can duplicate the intellectual property without prior permission from the
concerned persons. Such misuses or violations will be considered as a criminal
activity and may lead to penalties or imprisonment.

1) Define the concept, meaning and significance of intellectual property and
intellectual property rights.
2) Discuss the different types of intellectual property rights.
3) Describe the issues and agenda of the intellectual property rights.
4) Explain the nature and objectives of the intellectual property rights.

Intellectual Property Licensing: Forms and Analysis, by Richard Raysman,
Edward A. Pisacreta and Kenneth A. Adler. Law Journal Press, 1999-2008. ISBN
973-58852-086-9
Property as a common descriptor of the field probably traces to the foundation of
the World Intellectual Property Organisation (WIPO) by the United Nations.” in
Mark A. Lemley, Property, Intellectual Property, and Free Riding, Texas Law
Review, 2005, Vol. 83:1031, page 1033, footnote 4.
Brad, Sherman; Lionel Bently (1999). The Making of Modern Intellectual
Property Law: the British Experience, 1760-1911. Cambridge University Press.
pp. 207.
Mark A. Lemley, “Property, Intellectual Property, and Free Riding” (Abstract);
see Table 1: 4-5.
Mossoff, A. ‘Rethinking the Development of Patents: An Intellectual History,
1550-1800,’ Hastings Law Journal, Vol. 52, p. 1255, 2001
Levine, David; Michele Boldrin (2008-09-07). Against Intellectual Monopoly.
Cambridge University Press..
Schechter, Roger E., and John R. Thomas. Intellectual Property: The Law of
Copyrights, Patents and Trademarks. New York: West/Wadsworth, 2003, ISBN
0-314-06599-7.
References
Economic Effects of Intellectual Property-Intensive Manufacturing in the United
States, Robert Shapiro and Nam Pham, July 2007 (archived on archive.org).
Measuring the Economic Impact of IP Systems, WIPO, 2007.
Lo, S-T. (2004). “Stregthening (sic) Intellectual Property Rights: Experience from
the 1986 Taiwanese Patent Reforms”. UCLA, Dept. of Economics.. http://
www.international.ucla.edu/article.asp?parentid=10985. 17
Human Resource Laws Richard M. Stallman. “Did You Say “Intellectual Property”? It’s a Seductive
Mirage”. Free Software Foundation, Inc. http://www.gnu.org/philosophy/not-
ipr.xhtml. Retrieved 2008-03-28.
On patents - Daniel B. Ravicher (August 6, 2008). “Protecting Freedom In The

Patent System: The Public Patent Foundation’s Missi...”. http://
www.youtube.com/watch?v=d0chez_Jf5A.
Joseph Stiglitz (October 13, 2006). “Authors@Google: Joseph Stiglitz - Making

Globalisation Work.”. http://www.youtube.com/watch?v=UzhD7KVs-
R4#t=16m05s.
Arai, Hisamitsu. “Intellectual Property Policies for the Twenty-First Century:

The Japanese Experience in Wealth Creation”, WIPO Publication Number 834
(E). 2000. [1]
Boldrin, Michele and David K. Levine. “Against Intellectual Monopoly”, 2008.

[2]
Hahn, Robert W., Intellectual Property Rights in Frontier Industries: Software

and Biotechnology, AEI Press, March 2005.
Branstetter, Lee, Raymond Fishman and C. Fritz Foley. “Do Stronger Intellectual
Property Rights Increase International Technology Transfer? Empirical Evidence
from US Firm-Level Data”. NBER Working Paper 11516. July 2005. [3]
Connell, Shaun. “Intellectual Ownership”. October 2007. [4]

Farah, Paolo and Cima, Elena. “China’s Participation in the World Trade
Organisation: Trade in Goods, Services, Intellectual Property Rights and
Transparency Issues” in
Aurelio Lopez-Tarruella Martinez (ed.), El comercio con China. Oportunidades

empresariales, incertidumbres jurídicas, Tirant lo Blanch, Valencia (Spain) 2010,
pp. 85-121. ISBN: 978-84-8456-981-7. Available at SSRN: http://ssrn.com/
abstract=1527992
Gowers, Andrew. “Gowers Review of Intellectual Property”. Her Majesty’s

Treasury, November 2006. [5] ISBN 9-780118-4083-9.
Kinsella, Stephan. “Against Intellectual Property”. Journal of Libertarian Studies

15.2 (Spring 2001): 1-53. [6]
Lai, Edwin. “The Economics of Intellectual Property Protection in the Global

Economy”. Princeton University. April 2001. [7]
Lee, Richmond. Scope and Interplay of IP Rights ACCRALAW offices.
Lessig, Lawrence. “Free Culture: How Big Media Uses Technology and the Law
to Lock Down Culture and Control Creativity”. New York: Penguin Press, 2004.
[8].
Lindberg, Van. Intellectual Property and Open Source: A Practical Guide to

Protecting Code. O’Reilly Books, 2008. ISBN 0-596-51796-3 | ISBN
9780596517960
18
Maskus, Keith E. “Intellectual Property Rights and Economic Development”. Intellectual Property Rights
Case Western Reserve Journal of International Law, Vol. 32, 471. journals/jil/
32-3/maskusarticle.pdf
Mazzone, Jason. “Copyfraud”. Brooklyn Law School, Legal Studies Paper No.
40. New York University Law Review 81 (2006): 1026. (Abstract.)
Miller, Arthur Raphael, and Michael H. Davis. Intellectual Property: Patents,

Trademarks, and Copyright. 3rd ed. New York: West/Wadsworth, 2000. ISBN
0-314-23519-1.
Mossoff, A. ‘Rethinking the Development of Patents: An Intellectual History,

1550-1800,’ Hastings Law Journal, Vol. 52, p. 1255, 2001
Rozanski, Felix. “Developing Countries and Pharmaceutical Intellectual Property

Rights: Myths and Reality” [9]
Perelman, Michael. Steal This Idea: Intellectual Property and The Corporate
Confiscation of Creativity. Palgrave Macmillan, 2004.
Rand, Ayn. “Patents and Copyrights” in Ayn Rand, ed. ‘Capitalism: The Unknown
Ideal,’ New York: New American Library, 1966, pp. 126–128
Reisman, George. ‘Capitalism: A Complete & Integrated Understanding of the

Nature & Value of Human Economic Life,’] Ottawa, Illinois: 1996, pp. 388–389
Schneider, Patricia H. “International Trade, Economic Growth and Intellectual

Property Rights: A Panel Data Study of Developed and Developing Countries”.
July 2004. [10]
Shapiro, Robert and Nam Pham. “Economic Effects of Intellectual Property-

Intensive Manufacturing in the United States”. July 2007. [11]
Vaidhyanathan, Siva. The Anarchist in the Library: How the Clash Between
Freedom and Control Is Hacking the Real World and Crashing the System. New
York: Basic Books, 2004.
Burk, Dan L. and Mark A. Lemley (2009). The Patent Crisis and How the Courts
Can Solve It. University of Chicago Press. ISBN 9780226080611.
Websites:
http://www.xrml.org/
http://www.indiaserver.com/betas/vshiva
http://www.sae.org/about/intelproperty/ippolicy.pdf
http://europa.eu/legislation_summaries/customs/l11018c_en.htm
www.morphius.com/manufacturing/pdf/ipr_form.pdf
http://www.dlib.org/dlib/september03/gadd/09gadd.html
http://www.lboro.ac.uk/departments/ls/disresearch/romeo/index.html>.
http://www.rdn.ac.uk/projects/eprints-uk/docs/simpledc-guidelines/
http://www.openarchives.org/OAI/2.0/guidelines-eprints.htm
19
Human Resource Laws http://www.openarchives.org/OAI/openarchivesprotocol.html
http://cogprints.soton.ac.uk/documents/disk0/00/00/16/39/index.html
www.gulf-ip.com
www.Copyright.in/CopyrightOffice
www.rambus.com
www.VeracityLegal.com
www.censere.com
http://EzineArticles.com/?expert=Joseph_Devine
20
UNIT 2 LABOUR LAWS (INDIAN AND
INTERNATIONAL)
Structure
2.0 Introduction
2.1 Objectives
2.2 Concept of Labour Law
2.2.1 Collective Labour Law
2.2.2 Individual Labour Law
2.3 Labour Law in India
2.4 Categories of Industry/Organisation under Indian Labour Laws
2.4.1 Factory
2.4.2 Shops and Commercial Establishments
2.5 Statutory/ Legislative Regulation of Condition of Service within Indian
Organisations
2.6 Distinctive Feature of Indian Labour Laws
2.7 The Indian Labour Laws
2.7.1 List of Indian Labour Acts
2.7.3 The Industrial Disputes Act (1947)
2.7.4 Trade Union Act (1926)
2.7.5 Provisions of the Factories Act (1948)
2.7.6 Mines Act (1952)
2.7.7 Workmens Compensation Act (1923)
2.7.8 Weekly Holidays Act (1942)
2.7.9 Minimum Wages Act (1948)
2.7.10 The Payment of Bonus Act (1965)
2.7.11 The Contract Labour Act (1970)
2.7.12 Child Labour Act (1979)
2.8 Emergence of the International Labour Laws
2.9 Objectives of the International Labour Organisation (ILO)
2.10 Global Instruments of International Labour Law
2.10.1 ILO Conventions
2.10.2 Core Conventions
2.11 Examples of Global Instruments
2.11.1 United Nations Instruments
2.11.2 European Instruments
2.11.3 African Instruments
2.12 Let Us Sum Up
2.0 INTRODUCTION
Constitutions of all nations formulate, amend and propagate different acts and
laws, in order to have a proper, systematic and well disciplined functioning of all
21
Human Resource Laws systems. As a unit of human resource in organisational behaviour, this unit will
discuss about the various laws which have been constituted for welfare and
protection of labour in organisations. The unit will depict how the government
of India as well as other nations tries to prevent the exploitation of labour with
the help of certain acts and amendments.
2.1 OBJECTIVES
• Define labour laws;
• Elucidate the concept of labour laws;
• Explain the various labour laws of India;
• Delineate the distinctive feature of Indian labour laws;
• Describe the emergence of international labour laws; and
• Delineate the convention of International Labour Organisation.
2.2 CONCEPT OF LABOUR LAW

Law can be defined as a complete system of rules that every individual of a
country/ institution/organisation/community/workplace must obey. Violation of
laws may lead to a criminal offence. In order to protect the interest and rights of
labour work force, the government formulates and keeps on amending the labour
laws. Basically, labour law consists of a collection of laws, administrative rules
and precedents which reflect or explains the legal rights as well as legal restrictions
on the work force and their organisations. It differentiates as well as creates links
between the employers, employees as well as trade unions.
In several countries like, Canada, the laws of employment at unionised workplaces

are differentiated ( that is, they are different) from those related to particular
individuals. Whereas, in several countries, no such distinction is made. The labour
laws can be broadly classified in to the following two major categories.

The collective labour law contains the laws related to the tripartite relationship
between employee, employer and the trade union. It shows all the rules and
restrictions which should be followed to resolve any issues or problems which
exists, or appears to exist between the three major bodies (employee, employer
and the trade union) of the organisation.
2.2.2 Individual Labour Law

The individual labour law is more concerned about the rights of an individual
employes at his or her workplace. It also shows the standard conditions for the
contract or agreement that will be agreed upon by the employee and the employer.
The laws for protecting the rights of the labour has activly been the result of the
labour movements that has occurred in the 19th and the 20th centuries. Labour
rights have been integral to the social and economic development since the
industrial revolution.
22
Labour Laws (Indian and
2.3 LABOUR LAW IN INDIA International)
Since long time, India has also been active in implementing and amending acts
and laws for the workforce of the organisations in India. Approximately, there
are over fifty national laws and many more state level laws.
Our country, India equally ensures that the rights of workers within the
organisations of the country are higly protected. In one of the case, also known
as Uttam Nakate case,the Bombay High Court held that dismissing an employee
for repeated sleeping on the factory floor was illegal, a decision which was
overturned by the Supreme Court of India.
Moreover, it took two decades to complete the legal process (Source: Wikipedia,
the free encyclopedia).
The labour laws in India also highlights the importance of a better labour
ecosystem with the help of better education and training, infrastructure,
governance and the legal/regulatory structure and so on.
2.4 CATEGORIES OF INDUSTRY/ORGANISATION

UNDER INDIAN LABOUR LAWS
The labour laws of India, has broadly categorised the Indian organisations in to
the following two specific categories, viz., (i) Factory and (ii) Shops and
commercial establishments. Let us take up these and discuss.
2.4.1 Factory
According to the Indian labour law, factories consists of all such industrial
establishments which has employed atleast 10 or more persons and carry
manufacturing activities. The factories in India are regulated by the provisions
of the Factories Act, 1948 (the said Act). The act deals with the required terms
and conditions related to health, safety, welfare, working hours and leave of
workers in factories. The Factories Act, 1948 empowers the State Governments
to frame rules, so that the local conditions prevailing in the State are appropriately
reflected in the enforcement. The act of 1948 emphasises mainly on the welfare,
health and safety of workers. The act also provides the do’s and don’t’s against
use and handling of hazardous substance by the labours of the factories and also
lays down certain emergency standards and measures.
2.4.2 Shops and Commercial Establishments

The second broad category of Indian organisations, according to the Indian labour
law is the shops and commercial establishments. It refers to those entire places
where the ultimate products or goods are sold to its end users- the customers and
consumers. These outlets are regulated by Shops and Commercial Establishments
Act which are formulated at state level and differ from state to state. The acts
predominantly contains the terms and conditions related to the opening and closing
timings, leave, weekly off, time and mode of payment of wages, issuance of
appointment letter etc.
23
Human Resource Laws
2.5 STATUTORY/ LEGISLATIVE REGULATION OF
CONDITION OF SERVICE WITHIN INDIAN
ORGANISATIONS
The constitution of India provides a legal provision for regulating and codifying
conditions of service of the work force within all those industrial establishment
which has employed more than 100 workmen under the provisions of Industrial
Employment Act, 1946. Under the provisions of this Act every employer of an
Industrial Establishment employing 100 or more workmen needs to precisely
define and point out the conditions of employment within the work place. Such
establishments needs to get those conditions verified and certified by the certifying
authorities provided under Section 3 of this Act. It is compulsory for the
organisations to follow those conditions throughout the term of contract of
employment.

Fill in the blanks
i) The labour laws of India, has broadly categorised the Indian organisations
in to ______________ and ______________ category.
ii) Approximately, there are over ______________ national laws and many
more state-level laws.
iii) ___________ refers to those entire places where the ultimate products
or goods are sold to its end users – the customers and consumers.
iv) Factories consist of all such industrial establishments which has employed
at least ________ persons and carry manufacturing activities.
2.6 DISTINCTIVE FEATURE OF INDIAN

LABOUR LAWS
A unique or distinctive feature of Indian labour law and laws of employment are
that they categorise the employees in to three main categories:
Employees of
India
Government Employees in government Private sector

employees controlled corporate bodies employees
known as Public Sector
Undertakings (PSUs)
Fig. 2.1: Categories of employees of India according to the Indian labour law and laws of
employment
24
It is the Constitution of India which governs the rules and regulations of the Labour Laws (Indian and
International)
government employees. This gives an opportunity to the government employees
to have job security, statutory (that is, legal) service contentions and a regular
increment in the salary.
Where in, the employees of the public sector are governed by their own service
regulations, which either has statutory force, in the case of statutory corporations,
or are based on statutory orders.
Distinctively, in the private sector, employees can be classified into two broad
categories namely management staff and workman. Managerial, administrative
or supervisory employees drawing a salary of Rs.1600/- or more per month are
considered management staff and there is no statutory provisions relating to their
employment and accordingly in case of managerial and supervisory staff/employee
the conditions of employment are governed by respective contracts of employment
and their services can be discharged in terms of their contract of employment.
Workmen category is covered under the provisions of the Industrial Disputes
Act.
2.7 THE INDIAN LABOUR LAWS

With an aim to protect the rights of employees, to motivate them, retain them as
well as maintain their limits in organisations or at their work place, there have
been certain formulations of certain laws. The urgency of making labour laws
came from the workers’ demand for a suitable work environment, right to organise,
and also from the demand of employers to delimit the powers of labour in order
to have a disciplined and goal oriented work force. The origin of labour rights
began from the era of the industrial revolution. These laws take care of many
features of employers, employees and the unions. The labour laws in India has
been divided in to two major categories.
2.7.1 List of Indian Labour Acts

Below in the table are given the labour laws related to Indian context. These
include laws related to industrial relations, laws related wages, laws related to
working hours and conditions of services etc., laws related to equality and
empowerment of law.
Laws related to Industrial Relations

1 The Trade Unions Act, 1926
The Trade Unions (Amendments) Act, 2001
2 The Industrial Employment (Standing Orders) Act, 1946
The Industrial Employment (Standing Orders) Rules, 1946
3 The Industrial Disputes Act, 1947
Laws related to Wages

1 The Payment of Wages Act, 1936
The Payment of Wages Rules, 1937
The Payment of Wages (AMENDMENT) Act, 2005
25
Human Resource Laws
2 The Minimum Wages Act, 1948
The Minimum Wages (Central) Rules, 1950
3 The Working Journalist (Fixation of Rates of Wages) Act, 1958
Working Journalist (Conditions of service) and Miscellaneous
Provisions Rules, 1957
4 The Payment of Bonus Act, 1965
The Payment of Bonus Rules, 1975
Laws related to Working Hours, Conditions of Services and Employment

1 The Factories Act, 1948
2 The Dock Workers (Regulation of Employment) Act, 1948
3 The Plantation Labour Act, 1951
4 The Mines Act, 1952
5 The Working Journalists and other Newspaper Employees’
(Conditions of Service and Misc. Provisions) Act, 1955
The Working Journalists and other Newspaper Employees’
(Conditions of Service and Misc. Provisions) Rules, 1957
6 The Merchant Shipping Act, 1958
7 The Motor Transport Workers Act, 1961
8 The Beedi & Cigar Workers (Conditions of Employment) Act, 1966
9 The Contract Labour (Regulation & Abolition) Act, 1970
The Contract Labour Regulation Rules
10 The Sales Promotion Employees (Conditions of Service) Act, 1976
The Sales Promotion Employees (Conditions of Service) Rules, 1976
11 The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979
12 The Shops and Establishments Act
13 The Cinema Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
The Cinema Workers and Cinema Theatre Workers (Regulation of
Employment) Rules, 1984
The Cine Workers’ Welfare Fund Act, 1981.
14 The Dock Workers (Safety, Health & Welfare) Act, 1986
15 The Building & Other Construction Workers (Regulation of
Employment & Conditions of Service) Act, 1996
16 The Dock Workers (Regulation of Employment) (inapplicability to
Major Ports) Act, 1997
26
Laws related to Equality and Empowerment of Women International)
1 The Maternity Benefit Act, 1961

2 The Equal Remuneration Act, 1976
Laws related to Deprived and Disadvantaged Sections of the Society

1 The Bonded Labour System (Abolition) Act, 1976
2 The Child Labour (Prohibition & Regulation) Act, 1986
3 The Children (Pledging of Labour) Act, 1933
Laws related to Social Security

1 The Workmen’s Compensation Act, 1923
The Workmen’s Compensation (Amendments) Act, 2000
2 The Employees’ State Insurance Act, 1948
3 The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
The Employees’ Provident Fund & Miscellaneous Provisions
(Amendment) Act, 1996
4 The Payment of Gratuity Act, 1972
The Payment of Gratuity Rules
5 The Unorganised Workers’ Social Security Act, 2008
The Unorganised Workers’ Social Security Rules 2008
Laws related to Labour Welfare

1 The Mica Mines Labour Welfare Fund Act, 1946
2 The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972
3 The Beedi Workers Welfare Fund Act, 1976
4 The Beedi Workers Welfare Cess Act, 1976

The Beedi Worker’s Welfare Cess Act Rules, 1977
5 The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Fund Act, 1976
6 The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Cess Act, 1976
7 The Cine Workers Welfare Fund Act, 1981
8 The Cine Workers Welfare Cess Act, 1981
9 The Employment of Manual Scavengers and Construction of Dry

latrines Prohibition Act, 1993
27
Human Resource Laws
Laws related to Employment and Training
1 The Employment Exchanges (Compulsory Notification of Vacancies)
Act, 1959
The Employment Exchanges (Compulsory Notification of Vacancies)
Rules, 1959
2 The Apprentices Act, 1961
Others
1 The Fatal Accidents Act, 1855
2 The War Injuries Ordinance Act, 1943
3 The Weekly Holiday Act, 1942
4 The National and Festival Holidays Act
5 The War Injuries (Compensation Insurance) Act, 1943
6 The Personal Injuries (Emergency) Provisions Act, 1962
7 The Personal Injuries (Compensation Insurance) Act, 1963
8 The Coal Mines (Conservation and Development) Act, 1974
9 The Labour Laws (Exemption from Furnishing Returns and Maintaining

Register by Certain Establishments) Act, 1988
10 The Public Liability Insurance Act, 1991

The laws which maintain the link and relationship between the employers,
employees and the union are included under this category. Some of the major
collective labour laws are as follows:
2.7.3 The Industrial Disputes Act (1947)

The act of industrial disputes was constituted in 1947 in order to limit/ prevent
or restrict the unfair labour practices, by employers, workers or trade unions
through imposition of fines and imprisonment. According to the law, workers
can form or join unions of their choice. The Act says no company can fire
employees or close down without having a government approval from at least
100 workers/ employees.
An industrial dispute may be defined as a conflict or difference of opinion between

management and workers on the terms of employment. It is a disagreement
between an employer and employees’ representative; usually a trade union, over
pay and other working conditions and can result in industrial actions. When an
industrial dispute occurs, both the parties, that is the management and the
workmen, try to pressurise each other. The management may resort to lockouts
while the workers may resort to strikes, picketing or gheraos.
28
As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in Labour Laws (Indian and
International)
defined as any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and which is connected with the
employment or non-employment or the terms of employment or with the
conditions of labour, of any person. This definition includes all the aspects of a
dispute. It, not only includes the disagreement between employees and employers,
but also emphasises the difference of opinion between worker and worker. The
disputes generally arise on account of poor wage structure or poor working
conditions. This disagreement or difference could be on any matter concerning
the workers individually or collectively. It must be connected with employment
or non-employment or with the conditions of labour.
From the point of view of the employer, an industrial dispute resulting in stoppage
of work means a stoppage of production. This results in increase in the average
cost of production since fixed expenses continue to be incurred. It also leads to a
fall in sales and the rate of turnover, leading to a fall in profits. The employer
may also be liable to compensate his customers with whom he may have
contracted for regular supply. Apart from the immediate economic effects, loss
of prestige and credit, alienation of the labour force, and other non-economic,
psychological and social consequences may also arise. Loss due to destruction
of property, personal injury and physical intimidation or inconvenience also arises.
For the employee, an industrial dispute entails loss of income. The regular income
by way of wages and allowance ceases, and great hardship may be caused to the
worker and his family. Employees also suffer from personal injury if they indulge
in strikes, picketing etc. The psychological and physical consequences of forced
idleness, the threat of loss of employment in case of failure to settle the dispute
advantageously, or the threat of reprisal action by employers also exists. Prolonged
stoppages of work have also an adverse effect on the national productivity, national
income. They cause wastage of national resources. Hatred may be generated
resulting in political unrest and disrupting amicable social/industrial relations or
community attitudes.
2.7.4 Trade Union Act (1926)

The act provides an opportunity to the workers to form their own unions and get
their unions registered. Further, a registered Trade Union of workmen shall at all
times continue to have not less than ten per cent or one hundred of the workmen.
2. Definitions - In this act the appropriate Government means in relation to
Trade Unions whose objects are not confined to one State, the Central
Government, and in relation to other Trade Unions State Government, and unless
there is anything repugnant in the subject or context,
a) “Executive” means the body, by whatever name called to which the

management of the affairs of a Trade Union is entrusted;
b) In the case of a Trade Union, the trade union members include any member
of the executive thereof, but does not include an auditor;
“Registered Trade Union” means a Trade Union registered under this Act;
Trade dispute means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected
with the employment, or non-employment, or the terms of employment or the
29
Human Resource Laws conditions of labour, of any person, and “workmen” means all persons employed
in trade or industry whether or not in the employment of the employer with
whom the trade dispute arises; and
“Trade Union” means combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen, or between employers and
employers, or for imposing restrictive condition on the conduct of any trade or
business, and includes any federation of two or more Trade Unions;
2.7.5 Provisions of the Factories Act, (1948)

According to this act, the in order to maintain the interest and effeciency of the
employees/ workers, the employers will provide several provisions like – training
facility, occupational health center, promotional opportunities, etc., to them within
the factories/ industries.
There are three major legislations relating to occupational health and safety in
India. They are related to the health and safety of persons employed in factories,
mines and Ports.
The Factories Act 1948

For health
Ventilation and temperature Disposal of wastes

Cleanliness Dust and fumes
Artificial humidification Overcrowding
Lightening Drinking water
Latrines and urinals Spittoons
For Safety
Fencing of machinery Work on machines in motion
Cashing of new machines Protection of eyes
Hoists and lifts Self acting machinery
Excessive weights Pressure plant
Precaution against dangerous fumes Floors, stairs, means of access
Precaution in case of fire Explosives of inflammable gas
Safety ofbuilding and machinery Maintenance of buildings
For Welfare
Washing facilities Facilities for sitting
First Aid Appliances Canteens
Rest rooms and shelters Creches
Facilities for storing and drying clothing

30
2.7.6 Mines Act (1952) Labour Laws (Indian and
International)
Persons employed in the coal and oil mines.
It provides the following provisions for health and safety of mine workers
Drinking water Conservancy

Medical appliances Working hours
Notice about accidents Notice of certain diseases
Dock workers (Safety, Health and Welfare ) Act, 1986. The following provisions
are made
Surfaces Fencing of dangerous places
Passage to be kept clear Railings and fences
Staging construction and maintenance Work on staging
Life saving appliances Illumination
Fire protection Excessive noise
Access between deck and hold Stairs
Floor loading Construction
Access between deck and vessel Access between shore and ship
Individual labour law

All India Organisation of Employers points out that there are more than 55 central
labour laws and over 100 state labour laws. Some of these laws are as in given
below.
2.7.7 Workmen’s Compensation Act (1923)

Other than a person whose employment is of a casual nature and who is employed
otherwise than for the purposes of the employer’s trade or business shall be
compensated with salary, bonus, leaves and holidays according to the norms of
the organisation. Workmen’s Compensation (Amendment) Bill, 2009 has been
passed by both the Houses of the Parliament. It is to take form of an Act after
getting the President’s assent.
The main recommendations of the Bill were –

• Renaming the Workmen’s Compensation Act, 1923 as the Employee’s
Compensation Act to make it gender sensitive.
• Raising the compensation paid to the workers and their family members in
case of death to Rs. 1.2 lakh from current Rs. 80,000.
• Raising the compensation for permanent disability to Rs. 1.4 lakh from
present Rs. 90,000. Also the funeral expenses were proposed to be raised to
Rs. 5,000 from Rs. 2,500.
The Bill also proposed to empower the Central Government to specify monthly
wages for the purpose of compensation and timely enhancement of the minimum
rates of compensation.
31
Human Resource Laws Besides this the Bill even contained a provision for actual reimbursement of
medical expenses incurred on account of injury caused during course of
employment. There were provisions for disposal of compensation cases by
Commission within a time period of 3 months.
2.7.8 Weekly Holidays Act (1942)

An Act which was formulated for the grant of weekly holidays to persons
employed in shops, restaurants and theatres. The employees will compulsory be
given holiday within every week.
2.7.9 Minimum Wages Act (1948)

The act says that the employees should be given a minimum wage with which
they can meet the daily needs of their life.
The Minimum Wages Act, 1948 was enacted to safeguard the interests of workers,
mostly in the unorganised sector by providing for the fixation of minimum wages
in certain specified employments. It binds the employers to pay their workers
the minimum wages fixed under the Act from time to time.
Under the Act, both the Central Government and the State Governments are the
appropriate Governments to fix, revise, review and enforce the payment of
minimum wages to workers in respect of ‘scheduled employments’ under their
respective jurisdictions. There are 45 scheduled employments in the Central sphere
and as many as 1530 in State sphere.
In the Central sphere, the Act is enforced through the Central Industrial Relations
Machinery (CIRM). CIRM is an attached office of the Ministry of Labour and is
also known as the Chief Labour Commissioner (Central) [CLC(C)] Organisation.
The CIRM is headed by the Chief Labour Commissioner (Central). While, the
State Industrial Relations Machinery ensures the enforcement of the Act at the
State level.
The appropriate Government is required to appoint an Advisory Board for advising

it, generally in the matter of fixing and revising minimum rates of wages. The
Central Government appoints a Central Advisory Board for the purpose of
advising the Central and State Governments in the matters of the fixation and
revision of minimum rates of wages as well as for co-ordinating the work of
Advisory Boards.
Minimum wage and an allowance linked to the cost of living index and is to be
paid in cash, though payment of wages fully in kind or partly in kind may be
allowed in certain cases. The minimum rate of wages consists of a basic wage
and a special allowance, known as ‘Variable Dearness Allowance (VDA)’ linked
to the Consumer Price Index Number. The allowance is revised twice a year,
once in April and then in October.
Under the Minimum Wages Act, there are two methods for fixation/revision of
minimum wages, namely:
• Committee method: Under this method, committees and sub-committees
are set up by the appropriate Governments to hold enquiries and make
recommendations with regard to fixation and revision of minimum wages,
32 as the case may be.
• Notification method: Under this method, Government proposals are Labour Laws (Indian and
International)
published in the Official Gazette for information of the persons likely to be
affected thereby and specify a date not less than two months from the date
of the notification on which the proposals will be taken into consideration.
2.7.10 The Payment of Bonus Act (1965)

According to this Act, the workers in any industry for any skilled or unskilled
labour, including manual, supervisory, managerial, administrative, technical or
clerical should receive yearly bonus.
2.7.11 The Contract Labour Act (1970)

The act prohibits companies from hiring temporary workers. Women are not
permitted to work night shifts.
2.7.12 Child Labour Act (1979)

The child labour laws got an existence since 1979. The laws made it illegal for a
child to work in hazardous industries, like factories with heavy and dangerous
machinery.

State whether the statements are true or false:
i) The act of industrial disputes was constituted in 1947 in order to delimit
the unfair labour practices. ( )
ii) The minimum wages act says that the employees should be given a
minimum wage. ( )
iii) The employees of the public sector are governed by their own service
regulations, which has a statutory force. ( )
iv) The Contract Labour Act, 1970 encourages companies from hiring
temporary workers. ( )
2.8 EMERGENCE OF THE INTERNATIONAL

LABOUR LAWS
In the late 19th century it was realised all over the world that there should be
ways to promote international regulation of labour matters. In 1897, an
International Association for the Legal Protection of Workers was set up in Basle.
The activity of this private organisation led several governments to bring out
changes and protect the rights of workers at international level. This section of
the treaties provided for the establishment of an International Labour Organisation
in ‘Peace conference.
The international labour organisation was proposed to hold meetings and
conferences from time to time and would be attended by its member countries.
Since then, the International Labour Conference has met regularly in general
once a year, except during the Second World War.
The most important entity which takes care of such protection of rights and laws
of labour at an international level is – the ‘International Labour Organisation’
(ILO). 33
Human Resource Laws
2.9 OBJECTIVES OF THE INTERNATIONAL
LABOUR ORGANISATION (ILO)
In order to maintain the values and principles, the ILO has formulated the
following objectives:
• It aims at providing full employment and raising of the standards of living
of the employees.
• With the help of formulating the laws, the ILO facilitates training policies
in regard to wages, hours of work and other conditions of work the effective
recognition of the right of collective bargaining.
• It aims at enhancing the cooperation of management and labour in the
continuous improvement of productive efficiency, and
• With the help of the collabouration between the workers and employer in
the preparation and application of social and economic measures, it aims to
provide basic income to all.
• It tries to prevent international competition from taking place to the
disadvantage of workers.
• It purports to provide social justice to all labours.
2.10 GLOBAL INSTRUMENTS OF

INTERNATIONAL LABOUR LAW
ILO has constituted several objectives, numerous conventions and
recommendations in order to maintain the efficiency of workers. While the
Constitution of the ILO mainly contains provisions relating to the functioning of
the organisation, it also lays down a number of general principles which have
come to be regarded in certain respects as a direct source of law.
Such principles are contained in the Preamble of the Constitution and in the
Declaration concerning the Aims and Purposes of the Organisation, adopted by
the Conference in Philadelphia in 1944 and incorporated in the ILO Constitution
in 1946.
2.10.1 ILO Conventions

Conventions are instruments designed to create international obligations for the
states. In addition to its Conventions, the ILO has adopted a number of
Recommendations, which are different from the point of view of their legal
character. Recommendations do not create obligations, but rather provide
guidelines for action.
Conventions have a number of specific features

Conventions are adopted within an institutional framework.
The conventions of ILO are such that they do not require type of diplomatic
negotiation which is usual in the case of treaties. They are rather prepared in
discussions in an assembly that has many points in common with parliamentary
assemblies.
34
The International Labour Conference, which adopts Conventions, is constituted Labour Laws (Indian and
International)
by representatives of governments, employers and workers, each delegate being
entitled to vote individually.
A two-thirds majority is sufficient for the adoption of a Convention, and

governments of the member nations should submit the Convention to their
competent authorities for further approval, i.e. as a rule to their parliaments.
Also, the governments have the obligation, when requested, to supply reports on
various issues related to Conventions.
Usually the Conventions have flexibile clauses, because they are generally directed
towards countries with very different economic, social and political conditions,
as well as different constitutional and legal systems.
2.10.2 Core Conventions

Some of core Conventions of the International Labour Organisation are as given
below:
1) Freedom of Association and Protection of the Right to Organise

Convention, 1948
The Convention provides a right to all workers and employers to form and
join organisations of their own choosing without prior authorisation, and
lays down a series of guarantees for the free functioning of organisations
without interference by the public authorities. In December 1997, 121
countries had ratified this convention.
2) Right to Organise and Collective Bargaining Convention, 1949

The Convention protects the workers and employers against acts of
interference by each other, and for measures to promote collective bargaining.
In December 1997, 137 countries had ratified this convention.
3) Abolition of Forced Labour Convention, 1957

The convention prohibits the use of any form of forced or compulsory labour
as a means of political coercion or education, punishment for the expression
of political or ideological views, workforce mobilisation, labour discipline,
punishment for participation in strikes, or discrimination. In December 1997,
130 countries had ratified this convention.
4) Discrimination (Employment and Occupation) Convention, 1958

This convention calls for a policy which will try to eliminate any kind of
discrimination in employment, training and working conditions, on grounds
of race, colour, sex, religion, political opinion, national extraction or social
origin and to promote equality of opportunity and treatment. In December
1997, 129 countries had ratified this convention.
5) Equal Remuneration Convention, 1951

The convention says that there will be an equal pay for men and women
performing the same or similar work. In December 1997, 135 countries had
ratified this convention.
35
Human Resource Laws 6) Minimum Age Convention, 1973
This convention aims at the abolition of child labour, stipulating that the
minimum age for admission to employment shall not be less than the age of
completion of compulsory schooling, and in any case not less than 15 years
(14 for developing countries). In December 1997, 59 countries had ratified
this convention.
2.11 EXAMPLES OF GLOBAL INSTRUMENTS

The members of the ILO accept the Conventions constituted by the International
labour organisation, keeping their economic and several other conditions in view.
Following are some of the regional examples which have accepted the
Conventions of the ILO accordingly.
2.11.1 United Nations Instruments

While the United Nations does not deal with labour matters as such, and
recognises the ILO as the specialised agency responsible for taking appropriate
action for the accomplishment of the purposes set out in its Constitution, some
UN instrument of more general scope have also covered labour matters. In the
America, the North American Free Trade Area (NAFTA) has accepted the North
American Agreement on Labor Cooperation, and the Caribbean Community and
Common Market (CARICOM) has an Agreement on Social Security. However,
the instruments of the Organisation of American States (OAS) are still the main
source of international labour law in the region.
The UN General Assembly has adopted also a number of legally binding

Conventions concerning labour matters. The most important ones are:
1) The Convention on the elimination of all forms of racial discrimination
(1969)
2) The Convention on the elimination of all forms of discrimination against
women (1979)
3) The Convention on the rights of the child (1989)
4) The Convention on thethe status of the Refugees (1954)
5) The Convention on the status of the stateless persons (1960)
2.11.2 European Instruments

The most comprehensive instrument adopted by the Council of Europe is the-
‘European Social Charter’ (1961). The Charter stipulates that any State wishing
to become a Party must accept at least five basic rights – namely: the right to
work, the right to organise, the right to bargain collectively, the right to social
security, the right to social and medical assistance, the right to the social, legal
and economic protection of the family, and the right to protection and assistance
for migrant workers and their families.
The most original feature of the Charter is that it recognises the rights of workers
and employers to collective action in case of conflicts of interest, including the
right to strike, subject to obligations that might arise out of collective agreements
previously entered into and to some further restrictions.
36
2.11.3 African Instruments Labour Laws (Indian and
International)
The Organisation of African Unity adopted the African Charter on Human and
Peoples’ Rights (1981) which includes the right to work under equitable and
satisfactory conditions, the right to equal pay for equal work and the right to free
association. Later on it also the African Charter on the Rights and Welfare of the
Child (1990) according to which each child will be equally protected from any
kind of economic exploitation:

Fill in the blanks
i) With the help of formulating the laws, the ______________facilitates
training policies in regard to wages, hours of work and other conditions
of work.
ii) Conventions are instruments designed to create ___________
obligations for the states.
iii) In the America, the _______________ has accepted the North American
Agreement on Labor Cooperation.
iv) According to the African Charter on the Rights and Welfare of the Child
(1990), _________________________________________________
2.12 LET US SUM UP

It can be summed up from the above discussion that, for the betterment of
employers as well as employees, several acts and amendments have been
formulated and constituted both at national and international level. Labour laws
try to protect the interest as well as fundamental rights of the employers and
employees.

1) Keeping the distinctive feature of Indian labour, briefly explain the various
labour laws.
2) What do you understand by the terms – ‘individual labour law’ and ‘collective
labour law’?
3) What are the basic features of International Labour Organisation?
4) Explain the important Core Conventions of ILO. Illustrate few examples.

E. Hill, The Indian Industrial Relations System: Struggling to Address the
Dynamics of a Globalising Economy’ (2009) 51 Journal of Industrial Relations
395-410
Websites
http://www.southasiaexperts.se/pdf/Indian%20Labour%20Law%20
PDF.pdf.
http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/
37
Human Resource Laws SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:20195738~menu
PK:295591~pagePK:141137~piPK:141127~theSitePK:295584,00.html.
http://www.siliconindia.com/shownews/World_Bank_criticizes_India%E2%
80%99s_labour_laws_-nid-29498.html.
http://economictimes.indiatimes.com/news/news-by-industry/jobs/India-may-
boast-of-25-of-worlds-workforce-by-2025-Survey/articleshow/6075470.cms.
http://www.ccsindia.org/interns2006/How%20Wrong%20is%20left%
20about%20 ecoonimic%20reforms%20in%20India%20-%20Aditya.pdf.
http://news.indiainfo.com/2006/04/20/2004imf-labour-laws.html.
http://www.worldbank.org/html/prdph/downsize/docs/india.pdf.
http://www.state.gov/g/drl/rls/77593.htm#4.
http://atlmri.googlepages.com/RCD_MILI.pdf.
http://www.oecd.org/dataoecd/17/52/39452196.pdf.
http://news.bbc.co.uk/2/hi/south_asia/4103554.stm.
http://www.economist.com/specialreports/displayStory.cfm?story_id=12749735.
http://www.foreignaffairs.org/20060701faessay85401-p0/gurcharan-das/the-
india-model.html.
http://www.hindu.com/2005/12/10/stories/2005121011760100.htm.
http://www.ehow.com/about_6670311_labour-law-act-india.html
http://www.blurtit.com/q528407.html
http://indiacode.nic.in/fullact1.asp?tfnm=200046
38
UNIT 3 LAWS RELATED TO WORK PLACE International)
VIOLENCE AND HARASSMENT
Structure
3.0 Introduction
3.1 Objectives
3.2 Definition and Meaning of Work Place Violence
3.3 Types of Work Place Violence
3.3.1 Criminal Violence
3.3.2 Service User Violence
3.3.3 Worker on Worker Violence
3.4 Effects of Work Place Violence
3.4.1 Physical Effects
3.4.2 Psychological Effects
3.4.3 Business Effects
3.5 Preventing and Stopping Work Place Violence
3.5.1 Formulate Norms and Policies Regarding Work Place Behaviour
3.5.2 Training Programmes
3.5.3 Recruitment Policies
3.5.4 Identify Warning Signals
3.5.5 Steps for Detecting and Avoiding Work Place Violence
3.5.6 Counselling
3.6 Work Place Harassment
3.6.1 Determining Factors of Work Place Harassment
3.6.2 Types of Work Place Harassment
3.7 Work Place Bullying
3.7.1 Types of Work Place Bullying
3.7.2 Acts or Behaviour Involved in Bullying
3.8 Work Place Discrimination
3.8.1 Determining Discrimination
3.8.2 Effects of Discrimination in Work Place
3.8.3 Sexual Harassment in Work Place
3.8.4 Steps to Prevent Sexual Harrassment
3.9 Laws against Work Place Violence and Harassment
3.9.1 Workers Compensation Act of 1951
3.9.2 Indecent Representation of Women (Prohibition) Act (1987)
3.9.3 Federal Law against Age Discrimination in Employment Act
3.9.4 Federal Law through Equal Pay Act
3.10 Let Us Sum Up
3.0 INTRODUCTION
Like the previous units of this block, this unit will also be discussing about the
various human resource laws. But, primarily the present unit will focus on the
39
Human Resource Laws different types of violence and harassment happening at work place and also the
different ways to protect the human rights at work places and organisations. This
unit will also discuss about the various expectations of the employers as well as
the employees and the issues generated from such expectations at work places.
In order to get the maximum utilisation from the potentials of employees, but at
the same time, prevent the human resource from getting exploited the government
has constituted several rules and laws. It is the duty of the employers as well as
employees to follow these rules and understand the significance of these laws.
Particularly the employers or the organisations have to understand the importance
of these laws in order to safe guard the interest of its employees. The present unit
will also deal with the different technical jargons or terms that come under the
instances of violence and harassment in work place.
3.1 OBJECTIVES
• Define work place violence and harassment;
• Explain the meaning of work place violence etc.;
• Describe the various types of work place violence;
• Explain the ways of preventing as well as avoiding violence at work place;
• Analyse the different types of harassment at work place; and
• Describe the role and importance of organisation as well as constitution of
India in dealing with work place violence and harassment.
3.2 DEFINITION AND MEANING OF WORK

PLACE VIOLENCE
The legal definition of work place violence is as follows:
Incidents where people are abused, threatened or assaulted in circumstances
relating to their work, involving an explicit or implicit challenge to their safety,
well being or health.
(Source- http://en.wikipedia.org, accessed on 27/12/2010)
Technically speaking, work place violence refers to any kind of an act that involves
aggression, physical assault, or threatening behaviour which may take place in
between employees or the employer and the employees and vice versa in work
place settings. These kinds of acts are of serious concern as they cause physical
as well as emotional harms to self and other related persons (like the customers,
co workers, boss, manager, as well as the subordinates) at the work place. Broad
definitions of work place violence also often include acts of sabotage on work
site property.
Work place violence has emerged as a severe alarm, as it ultimately affects the
quality and service of employees as well as the out put of organisation as well as
country.
Unavoidably, these acts of violence is used by individuals in order to get what
they want which may include tangible (which can be touched) e.g., money as
well as intangible e.g., respect, recognition (which can not be touched) benefit.
40
They may want faster or better service, or they may desire attention or alternatively Laws Related to Work Place
Violence and Harassment
to be left alone or scare people off.
Any how, the Indian constitution has taken several steps and amended several
laws in order to avoid people from creating as well as suffering from such types
of violence and protect the quality of out put of the organisations as well as the
country.
3.3 TYPES OF WORK PLACE VIOLENCE

It is clear from the above sections that, work place violence is a kind of behaviour
that is being done within the work environment, with an objective to create harm
to the target person or group. This includes shaking fists, throwing objects, or
other overt physical acts, as well as any verbal or written threats to cause harm to
anyone or anything.
Occupational Health and Safety Administration (OSHA) reports that on average

they estimate that 2 million employees are victimised annually while at work.
People within and outside of the work place can commit violence in the work place.
Work place violence can take place in different forms and ways. Some of these
types of work place violence have been explained in terms of (i) Criminal violence
(ii) Service User violence (iii) worker on worker violence. Let us take up each of
these and explain.
3.3.1 Criminal Violence

A criminal violence takes place within the context of organisation by a person
who is in no way related to any employee or the employer. This may take place
in form of snatching away cash, drugs, immortal wealth. In such an act robbery
is the main motive of the person.
3.3.2 Service User Violence

Service user violence occurs when the employee is unsatisfied in any aspect
with the working conditions or services of the organisation or the employer. It is
generated as result of frustration or an emotional conflict being felt by the
employee due to the service provided in the work place or by the victim.
3.3.3 Worker on Worker Violence

Whenever violence is generated by the employees against their own colleagues,
supervisors, managers within the work place or the organisation, then such an
aggressive act is known as worker-on-worker violence. This is often linked to
protests against enforced redundancies, grudges against specific members of staff,
or in response to disciplinary action that the individual perceives as being unjust.
Depending upon the types of harm done through brutality, violence can also be
categorised as follows:
• Non physical violence (intimidation, abuse, threats etc.)
• Physical violence (punching, kicking, pushing etc.)
• Aggravated physical violence (use of weapons, e.g. guns, knives, syringes,
pieces of furniture, bottles, glasses, etc.)
41
Human Resource Laws
Fill in the blanks
i) The _______________ kind of violence takes place when the employee
is unsatisfied in any aspect with the working conditions or services of
the organisation or the employer.
ii) Work place violence refers to any kind of an act that involves
_______________ between two or more than two persons within an
organisation or work place.
iii) The act of work place violence is used by individuals in order to get.
_________________________________________________________
3.4 EFFECTS OF WORK PLACE VIOLENCE

Work place violence occurs more often than employees and employers may
realise. Such violence can have serious physical and psychological effects. The
levels of work place violence can encompass a wide range of severity. Types of
violence can include threats, bullying, verbal abuse, physical abuse, sexual
harassment and even murder.
3.4.1 Physical Effects

Serious physical trauma, even death, can result from work place violence.
The obvious and potentially most dangerous effect of work place violence is
physical trauma. If the violence is of a physical nature, injuries, scarring, pain,
hospitalisation and even death may result. Threats of physical violence should
not be taken lightly. It is the manager’s responsibility to ensure the safety of all
employees by eliminating risks due to threats. Investigation, counseling,
termination and security might be necessary actions taken with regard to the
person making the threats.
3.4.2 Psychological Effects

Long-term psychological problems often occur in victims of work place violence.
Victims of work place violence are more likely to suffer the long-term effects of
post traumatic stress disorder (PTSD). PTSD is a common psychological disorder
that usually affects veterans, victims of terrorism, rape and other violent crimes.
Other long-term psychological effects may include self-doubt, depression, fear,
insomnia, irritability, relationship conflicts, lack of motivation and self-blame.
If victims do not get the support and psychological help they need when reporting
violence in the work place, it will deter them and other witnesses from ever
reporting violence again. There are a number of approaches that can help victims
of work place violence, including counseling, emotional support, time off, and
medication.
3.4.3 Business Effects

Work place violence can permanently close a business.
The damage to the company as a result of work place violence is not nearly as
important or severe as the emotional or physical harm done to the victims, but it
42
is still a matter of concern. Work place violence can damage company morale. Laws Related to Work Place
Some employees might require extended time off, or may even resign. Other
problems that may occur include lower productivity and damage to the company’s
image. There may also be a loss of funds due to legal costs, compensation, pension
payments and providing better insurance premiums.
In no way, violence can yield any positive result to the work or output of the
organisation. It is a kind of an act that leads to physical or non physical harm to
the person, group or the organisation concerned. Work place violence is an issue
of which all businesses should be aware. An average of 16 people per day died
while at work during 2004. There are yet several negative outcomes or harmful
effects of the work place violence-
An act of violence can lead to poor morale and a poor image for the organisation,
making it difficult to recruit and keep staff.
It can also mean extra costs, to the organisation as a result of the after effects of
the violence for example – absenteeism, higher insurance premiums and legal
fees, fines and compensation payments.
None the less for the victims who may be the employees, violence can cause
pain, distress and even disability or death. Physical attacks are obviously
dangerous but serious or persistent verbal abuse or threats can also damage
employees’ health through anxiety or stress.
The non physical violence can also result in domestic violence. The victims may
try to get rid of the frustration at the home front (they may be abusive or physically
harmful to their family members and other relatives).
3.5 PREVENTING AND STOPPING WORK

PLACE VIOLENCE
Experts believe that businesses can take a number of steps to dramatically reduce
their likelihood of an employee carrying out an act of work place violence. Many
of these are proactive in nature, designed to minimise the business’s exposure to
violent acts by employees:
3.5.1 Formulate Norms and Policies Regarding Work Place

Behaviour
The best method to avoid work place violence is to form and adopt certain rules
and norms which would be compulsory to be followed by each and every
employee of the organisation. Such a policy should clearly state that threats,
intimidation, destruction of company property, and violence in any form will not
be tolerated and disciplinary actions may be taken against them.
3.5.2 Training Programmes

The organisations should periodically schedule and organise training programs
which would help in generating awareness amongst the employees. They need
to be aware of the different types of work place violence, how to raise voice
against such violence and the after effects of work place violence.
43
Human Resource Laws 3.5.3 Recruitment Policies
While recruiting potential candidates for a particular position, the organisation
should screen out the biodata of the applicants in advance. Those having a criminal
back ground, irregular employment history or violent in nature should be avoided.
3.5.4 Identify Warning Signals

The signs of violence can easily be detected in the vicinity of the organisation. If
the management gets a sign of any arguments or unwanted behaviour that might
be taking place within a group, between two group or in between two employees
it is the responsibility of the management to identify them and give them the
warning signals in advance.
3.5.5 Steps for Detecting and Avoiding Work Place Violence

No matter if you are in an office environment, or lab environment the red flags
remain the same. The same goes for Principal Investigators at work.
Certain characteristics and behaviour constitute a profile that personify the likely
candidates and should trigger a red flag:
• Male between 35 and 55 years old
• Mid life transition, dissatisfied with life!
• Loner without a true! support system
• Low self esteem!
• Generally works in jobs with high! turnover
• History of being disgruntled during employment!
• Tends to! project his shortcomings to others
• History of intimidating coworkers and! supervisors
• Feels persecuted and views efforts to help with suspicion!
• Watches others for violations and may keep records!
• Interested in! weapons, may be a collector or marksman
• Probably does not have a police! record
Take potential warning signs seriously. When a person displays several of these
characteristics or behaviour traits, an employer must take such warning signs
seriously. Management, at all levels, who lack the necessary experience and
expertise to handle this type of potentially explosive situation should rely on
appropriate outside resources. For example, these types of situations may call
for specialised psychological counseling or extra security measures on a temporary
or even permanent basis.
In the health care and research fields it has been noted that nonfatal assaults
occur nearly four times more often in health care than in all private sector
industries combined.
Ideally, the workplace is free of violence, in terms of threats or actions, either

verbal or physical.
44
A comprehensive organisational violence prevention program begins with a zero Laws Related to Work Place
tolerance for violence policy and is supported by a data collection mechanism to
monitor violence, ongoing prevention initiatives, and a post-event support plan.
Work place violence monitoring tools typically capture the type, mode, and
severity of the incident and, like safety monitoring tools, support the identification
of trends for ongoing intervention and education.
In the event of a severely violent event, the organisational response should

encompass a variety of group and individual efforts to support and stabilise the
staff and work environment immediately, and in the many months to follow.
Indicators that an individual has potential work place violence:
• Attendance Problems
• Impacts on Supervisor Time
• Decreased Productivity
• Inconsistent Work Patterns
• Poor On-The-Job Relationships
• Concentration Problems
• Safety Issues
• Poor Health/Hygiene
• Continual Excuses – Blame
• Unusual Behaviour
• Fascination with Guns – Weapons
• Possible Drug Alcohol Abuse
• Stress in Personal Life
• Unshakable Depression
• Warning signs that an individual may become violent
• Verbal Threats
• Physical Actions
• Bizarre Thoughts
• Physical Actions
• Inappropriate - Repeated Boundary Crossing
• Angry Confrontations
• Restlessness and Agitation
• Bizarre thoughts:
• Self-Centered Fantasies
• Irrational Violent Associations or Thoughts
• Delusional Commands to Act Violently
• Workplace violence cycle
• Obsession
45
Human Resource Laws • Escalation
• Stated Intentions
• Repeated Statements Multiple Reports
If you or a co worker see any of these signs. Please take appropriate actions to
report them. Work place violence is becoming a norm. Education is the Key to
stopping it.
3.5.6 Counselling
The organisations should hold employee assistance programs or training programs
which can be very valuable to workers who are struggling with stress at home
and/or in the office.

i) An act of violence can help in boosting the image of the organisation
( )
ii) The work place violence can also result in domestic violence. ( )
iii) The best method to avoid work place violence is to form and adopt
certain rules and norms. ( )
3.6 WORK PLACE HARASSMENT

Work place harassment refers to any kind of an action towards one employee or
a group of targeted employees, which makes them uncomfortable at their work
place. Such kind of unwanted actions not only hampers the work performance of
employees, it also make the employees feel that they are working in a hostile
environment. The harassment may be based on such factors as race, gender,
culture, age, sexual orientation, or religious preference.
3.6.1 Determining Factors of Work Place Harassment

There are certain factors which act as signs of work place harassment. If these
factors are present or is being felt by the employee, then the employee is said to
be undergoing an unwanted and uncomfortable harassment. These factors can
be pointed out as follows.
The action or conduct of the supervisor, boss or any one concerned in the
organisation should be uncomfortable or offensive to the employee.
The employee feels and tries out ways to raise his voice against the unwanted
behaviour or the conduct of the concerned person at the work place
The behaviour or the conduct of the concerned person might be having a
significant impact on the work performance of the employee. It should be having
a negative effect on the work efficiency of the employee.
3.6.2 Types of Work Place Harassment

Work place harassment can target on the age, sex, religion, belief, culture or
many other areas of the employee. There can be many forms or types of work
46
place harassment. The major types of work place harassment are – Work place Laws Related to Work Place
Bullying, Work Place Discrimination and Sexual Harassment.
Work place
harassment
1. Work place 2. Work place 3. Sexual

bullying discrimination harassment
Fig. 3.1: Diagrammatic chart showing different types of work place harassment
3.7 WORK PLACE BULLYING

Work place bullying is an act which can be defined as the behaviour of the boss,
supervisor or peer which is harmful for the subordinate or the colleague. Bullying
behaviours may differ from humiliation to several other tactics which would in
a way try to embarrass or dishonour the target employee or subordinate at the
work place. According to certain learned scholars it involves repeated, health-
harming mistreatment, verbal abuse, or conduct which is threatening, humiliating,
intimidating, or sabotage that interferes with work or some combination of the
three. Bullying is characterised by (Einarsen, 1999; Keashly & Harvey 2004;
Lutgen-Sandvik, 2006):
• Repetition (occurs regularly)
• Duration (is enduring)
• Escalation (increasing aggression)
• Power disparity (the target lacks the power to successfully defend themself).
• Attributed intent
This distinguishes bullying from isolated behaviours and other forms of job stress
and allows the term workplace bullying to be applied in various contexts and to
behaviours that meet these characteristics.
3.7.1 Types of Work Place Bullying

On the basis of several researches, the act of bullying at work place can be
categorised as:
1) Pair bullying: This type of bullying takes place between two people, in
which one person is very active and uses all verbal techniques to bully the
target person and the other person is silent and just keeps on observing the
targeted person.
47
Human Resource Laws 2) Sequential bullying: This is just like the act of a serial killer, in which
there is an individual who serially targets one employee after the other and
keeps on attacking and destroying them one by one.
3) Group bullying: Usually formal or informal groups are formed within

organisations. Many a times, these groups act as active gang in mistreating
or bullying with employees.
4) Pressurising or coercive bullying: Under this type of bullying, the boss or

the supervisor forces the subordinates to work, beyond the prescribed time
schedule or without appropriate resources.
5) Cyber bullying: When the mode of information technology is being used

with an intention to harm an individual employee or a group of employee
via e mails, short notices, and junk mails and so on, then such an act of
bullying is known as cyber bullying.
3.7.2 Acts or Behaviours Involved in Bullying

There are certain typical acts or behaviours which are more or less involved in
each and every type of bullying. Evidences show that the following behaviours
are typically involved in acts of bullying:
Threat to Professional status: Some of the types of bullying usually involve a

kind of humiliation to the target person’s efforts or work. It may include claims
regarding lack of effort, blame of lower competency skills of the target employee.
Threat to personal standing: Certain acts of bullying try to personally harm

the targhet employee. It may involve sarcasm, making inappropriate jokes, teasing
or insulting the employee under target.
Seclusion: The persons who try to bully or harm certain employee may completely
keep the target individual in an isolated environment. They may withhold
necessary information; prevent access of opportunities to the target employee.

State whether the following statements are true or false:
i) Under coercive type of work place bullying, the boss or the supervisor
forces the subordinates to work, beyond the prescribed time schedule
or without appropriate resources. ( )
ii) Group bullying is a kind of work place bullying which specifically uses
the mode of information technology. ( )
iii) Work place bullying never involves humiliation to the target person’s
efforts or work. ( )
3.8 WORK PLACE DISCRIMINATION

Discrimination at work place refers to any kind of conduct, action, behaviour or
decision which is taken against an employee on basis of some prejudice or filthy
beliefs. The employees may be discriminated on the basis of age, sex, race, culture.
Discrimination occurs when an employee suffers unfavourable or unfair treatment
48
due to their race, religion, national origin, disabled or veteran status, or other Laws Related to Work Place
legally protected characteristics. This group could also include employees who
suffer reprisals for opposing work place discrimination or for reporting violations
to the authorities.
3.8.1 Determining Discrimination

The employer or co-workers can be charged and sued on a number of legal theories
that cover discrimination on the job. According to Nolo.com, specific acts of
work place discrimination include intentional or negligent infliction of emotional
distress, harassment, assault, battery, invasion of privacy, defamation, interference
with an employment contract, and wrongful termination. In all such case it is the
duty or responsibility of the victim employee to resolve such kind of
discriminations. They may directly talk to the employer or superior or may also
file a complaint against them under the grounds of right to work.
3.8.2 Effects of Discrimination in the Work Place

Work place discrimination has several adverse outcomes. Some of them are:
1) It has a negative effect on the transactions of the organisation and also
hampers the company’s reputation.
2) It restricts the advancement to certain groups or types of employees.
3) It lowers down the empoloyee commitment and increases the rate of turnovers
4) It categories and creates a strata or group of people which may turn out to be
hostile in nature.
3.8.3 Sexual Harassment in Work Place

Sexual harassment is a kind of threat, pressure, coercion or bullying and is totally
on basis of the sex of the victim employee or employees. It can also be in form of
a promise of rewards in exchange for sexual favors. The act of sexual harassment
may also be in form of an unwelcome sexual gesture or behaviour whether directly
or indirectly as sexual remarks; physical contact and advances; showing
pornography; a demand or request for sexual favours; any other unwelcome
physical, verbal/non-verbal conduct being sexual in nature. According to India’s
constitution, sexual harassment invades the fundamental right of a woman to
gender equality under Article 14 of the Constitution of India and her right to life
and live with dignity under Article 21 of the Constitution. Although there is no
specific law against sexual harassment at workplace in India but many provisions
in other legislations protect against sexual harassment at workplace, such as
Section 354, Indian Penal Code (IPC) deals with “assault or criminal force to a
woman with the intent to outrage her modesty, and Section 509, IPC deals with
“word, gesture or act intended to insult the modesty of a woman”.
3.8.4 Steps to Prevent Sexual Harassment

No doubts there are certain articles and amendments done in order to protect the
act of sexual harassment at work place. But as said, ‘prevention is always better
than cure’. Then instead of waiting for the incidents to happen, the organisation
as well as employees can take care of several factors in advance. Some of the
steps which can be followed in order to avoid such unwanted actions can be as
follows:
49
Human Resource Laws i) The management may place notices, publish articles as well as circulate
notifications against the prohibition of sexual harassment
ii) As regards private employers, steps should be taken to include the aforesaid
prohibitions in the standing orders under the Industrial Employment
(Standing Orders) Act, 1946.
iii) The work environment as well as the work conditions should be as such that
there is no hostile environment towards women at work places and no
employee woman should have reasonable grounds to believe that she is
disadvantaged in connection with her employment.
iv) The organisations should formulate certain policies norms as well as
disciplinary actions against such misconducts.
v) The organisation should form certain committee which can facilitate victim
employees to complain and deal with such kind of harassment.
3.9 LAWS AGAINST WORK PLACE VIOLENCE

AND HARASSMENT
The constitution of India has enacted several laws in order to protect the employees
against exploitation, violence and harassment at work place. Some of them can
be pointed out as follows.
3.9.1 Workers Compensation Act of 1951

The Workers Compensation Act of 1951 act provides reimbursement for time
off work as well and medical costs associated with medical conditions arising
from injuries which might have occurred due to the incident of work place
violence. A claim form must be completed and lodged with the worker’s employer.
The employer is obligated to forward the claim to their insurer for consideration.
The sections of the IPC have declared the act of sexual harassment at work place
to be a criminal offence. Though, no laws have been amended against sexual
harassment at work place, yet certain sections of IPC have regulated certain
rules and guidelines against it. They can be mentioned as follows:
1) Section 294: This section mentions that a person or a group of person will
be punished with imprisonment of either description for a term that may
extend to three months, or with fine, or with both to the annoyance of others,
if the person (a) does any obscene act in any public place, or (b) sings,
recites and utters any obscene songs, ballads or words, in or near any public
space’.
2) Section 354: The section mentions that an individual or group of individuals
shall be punished with imprisonment for a term which may extend to two
years, or with fine, or with both if they assault or use criminal force on any
woman, intending to outrage her modesty or knowing it likely that he will
thereby outrage her modesty.
3) Section 509: The section holds that who ever intends to insult the modesty
of a woman, utters any word, makes any sound or gesture, or exhibits any
object, intending that such word or sound shall be heard, or that such gesture
is seen by such woman, or intrudes upon the privacy of such woman, shall
be punished with simple imprisonment for a term which may extend to one
50 year, or with fine, or with both.’
3.9.2 Indecent Representation of Women (Prohibition) Act Laws Related to Work Place
(1987)
According to this act, if an individual harasses another with books, photographs,
paintings, films, pamphlets, packages, etc. containing the “indecent representation
of women”, they are liable for a minimum sentence of 2 years. Section 7 (Offenses
by Companies) further holds companies where there has been “indecent
representation of women” (such as the display of pornography) on the premises,
guilty of offenses under this act, with a minimum sentence of 2 years.
3.9.3 Federal Law against Age Discrimination in Employment

Act
The ADEA’s broad ban against age discrimination prohibits statements or
specifications in job notices or advertisements of age preference and limitations.
An age limit may only be specified in the rare circumstance where age has been
proven to be a bona fide occupational qualification (BFOQ) and also prohibits
the denial of benefits to older employees.
3.9.4 Federal Law through Equal Pay Act

The EPA prohibits discrimination on the basis of sex in the payment of wages or
benefits, where men and women perform work of similar skill, effort, and
responsibility for the same employer under similar working conditions.

Fill in the blanks
i) Sexual harassment is a kind of threat, pressure, coercion or bullying
and is totally on basis of _______________ of the victim employee or
employees.
ii) Discrimination at work place refers to any kind of __________________
which is taken against an employee on basis of some prejudice or filthy
beliefs.
iii) Work place discrimination has a ____________ effect on the transactions
of the organisation and also hampers the company’s reputation.
3.10 LET US SUM UP

The above explanations thereby explain that, no two individuals can have a same
kind of thinking. It is because of these individual differences, there happens to
be clashes, conflicts, violence and acts of harassment at work place or
organisations. Keeping this in mind, the organisation has to take all required
steps which can help in minimising as well as preventing such incidences to
occur. The constitution of India is also readily amending acts and laws which
might help in dealing with such cases.

1) What do you understand by the term ‘work place violence’? Explain the
different types of work place violence.
51
Human Resource Laws 2) How can you stop the occurrence of work place violence?
3) Describe the different types of harassment at work place.
4) Suggest different ways through which an organisation can try to cope up
with the incidences as well as outcomes of work place violence and
harassment.

Hare, Robert and Babiak, Paul(2006). Snakes in Suits: When Psychopaths Go to
Work. Harper Collins, NY
Oade, Aryanne (2009). Managing Workplace Bullying: How to Identify, Respond
to and Manage Bullying Behaviour in the Workplace”. Palgrave Macmillan,
References
Flynn, Gillian. “Employers Can’t Look Away from Workplace Violence.”
Workforce. July 2000.
Fogleman, Dannie B. “Minimising the Risk of Violence in the Workplace.”
Employment Relations Today. Spring 2000.
Gips, Michael A. “Transitioning Problem Employees.” Security Management.
November 2000.
Gurchiek, Kathy. “Workplace Violence on the Upswing.” HR Magazine. July
2005.
Johnson, Kari R. “Workplace Violence: Is Your Business at Risk?” Business
North Carolina. September 2000.
McDonald, Jane. “Murder at Work.” Risk Management. March 2001.
Meyer, Pat. “Preventing Workplace Violence Starts with Recognising Warning
Signs and Taking Action.” Nation’s Restaurant News. 28 February 2000.
Neville, Haig. “Workplace Violence Prevention Strategies.” Memphis Business
Journal. 8 September 2000.
U.S. Department of Justice. Bureau of Justice Statistics. “Crime and Victims
Statistics.” Available from http://www.ojp.usdoj.gov/bjs/cvict.htm. Retrieved on
11 May 2006.
U.S. Department of Labor. Bureau of Labor Statistics. “Lost-Worktime Injuries
and Illnesses, Characteristics and Resulting Time Away from Work.” News Press
Release. 13 December 2005.
Mattice, C.M., & Garman, K. (2010, June). Proactive Solutions for Workplace
Bullying: Looking at the Benefits of Positive Psychology. Paper to be presented
at the International Association for Workplace Bullying & Harassment, Cardiff,
Wales.
Beale, D. (2001). Monitoring bullying in the workplace. In N. Tehrani (Ed.),
Building a culture of respect, managing bullying at work.
Board, B.J. & Fritzon, Katarina, F. (2005). Disordered personalities at work.
Psychology, Crime and Law, 11, 17-32
52
Ferris, P.A. (2009). The role of the consulting psychologist in the prevention, Laws Related to Work Place
detection, and correction of bullying and mobbing in the workplace. Consulting
Psychology Journal, 61(3), 169-189.
Catherine Mattice, MA & Brian Spitzberg, Ph.D. Bullies in Business: Self-Reports
of Tactics and Motives San Diego State University, 2007
Yildirim, A., & Yildirim, D. (2007). Mobbing in the workplace by peers and
managers: mobbing experienced by nurses working in healthcare facilities in
Turkey and its effect on nurses. Journal of Clinical Nursing, 16, 1444-1453.
Tehrani, N. (2004). Bullying: A source of chronic post traumatic stress? British
Journal of Guidance & Counselling, 32, 357-366.
Matthiesen, S.B., & Einarsen, S. (2004). Psychiatric distress and symptoms of
PTSD among victims of bullying at work. British Journal of Guidance &
Counselling, 32, 335-356.
Judgments - Johnson (A.P.) v. Unisys Limited, Uk Parliament - Publications
Bassman, Emily S. Abuse in the Workplace: Management Remedies and Bottom
Line Impact (1992)
Bell, Arthur H. You Can’t Talk to Me That Way: Stopping Toxic Language in the
Workplace (2005)
Brodsky, Carroll M. The Harassed Worker (1976)
Davenport, Noa, Distler Schwartz, Ruth, Pursell Elliott, Gail Mobbing: Emotional
Abuse in the American Workplace (1999, 2005 Third Edition) http://
www.mobbing-usa.com
Elbing, Carol & Elbing, Alvar Militant Managers: How to Spot ... How to Work
with ... How to Manage ... Your Highly Aggressive Boss (1994)
Field, Tim Bully In Sight: How to Predict, Resist, Challenge and Combat
Workplace Bullying (1996) ISBN 0-9529121-0-4
Futterman, Susan When You Work for a Bully: Assessing Your Options and Taking
Action
Hare, Robert & Babiak, Paul Snakes in Suits: When Psychopaths Go to Work
(2006)
Hornstein, Harvey A.Brutal Bosses and their Prey: How to Identify and Overcome
Abuse in the Workplace (1996)
Namie, Gary & Namie, Ruth: The Bully at Work’ Second Edition’ (2009)
Oade, Aryanne Managing Workplace Bullying: How to Identify, Respond to and
Manage Bullying Behaviour in the Workplace”. Palgrave Macmillan, 2009. ISBN
9780230228085
Randall, Peter Bullying in Adulthood: Assessing the bullies and their victims
(2001)
Randle, Jacqueline (Editor) Workplace Bullying in the NHS (2006)
53
Human Resource Laws Riley, Stephen Barsteadworth College - How Workplace Bullies Get Away with
It London, Chipmunka Publishing ISBN: 9781849911825 (2010)
Wyatt, Judith & Hare, Chauncey Work Abuse: How to Recognise and Survive It
(1997)
November 2000.
2005.
11 May 2006.
Viollis, Paul. “Most Workplace Violence Avoidable.” Business Insurance. 11
April 2005.
Websites:
http://definitions.uslegal.com/w/workplace-violence/
http://www.indiatogether.org/combatlaw/vol2/issue3/harass.htm
http://ezinearticles.com/?Law-on-Sexual-Harassment-in-India&id=1669634
http://definitions.uslegal.com/w/workplace-violence/
http://www.ilo.org/public/english/protection/safework/violence/costof.htm.
http://www.dagensps.se/artiklar/2009/04/28/62219293/index.xml
http://www.wisegeek.com/what-is-workplace-harassment.htm
http://peoplefriendlypolice.wordpress.com/supreme-court-guidelines-against-
sexual-harassment/
54
Laws Related to Work Place
UNIT 4 LAWS RELATED TO HUMAN Violence and Harassment
RIGHTS VIOLATION
Structure
4.0 Introduction
4.1 Objectives
4.2 Concept and Meaning of Human Rights
4.3 Universal Declaration of Human Rights (1948)
4.3.1 Where Do Universal Rights Begin?
4.4 Laws Related to Human Rights in India
4.4.1 Rights to Equality
4.4.2 Rights to Freedom
4.4.3 Right against Exploitation
4.4.4 Right to Freedom of Religion
4.4.5 Rights to Constitutional Remedies
4.5.6 Right to Property
4.5.7 Right to Education
4.5 Human Rights Violation
4.5.1 Misuse of the Internet
4.5.2 Human Trade
4.5.3 Custodial Violence
4.5.4 Land Alienation
4.5.5 Sexual Harassment at Work Place
4.5.6 Concern for Forest Dwellers
4.5.7 Homicide
4.6 Strategies, Laws and Responses against Human Rights Violation
4.6.1 Human Rights Act, 1993
4.6.2 Promoting the Right to Information
4.6.3 Peace Committees
4.6.4 Legislation
4.6.5 Campaigns
4.6.6 Helplines
4.6.7 Human Rights Courts
4.6.8 Compensation
4.6.9 National Commission for Women
4.7 Let Us Sum Up
4.0 INTRODUCTION
On humanitarian grounds, the government bodies have taken the responsibility
of providing several rights to human beings (but not necessarily at work place)
and these rights are specifically known as ‘Human rights’. Each nation provides
several rights to human. The present unit will deal with these human rights, its
advantages and also the punishments and harms if any one violates or misuses
these rights. 55
Human Resource Laws
4.1 OBJECTIVES
• Describe the meaning and concept of human rights;
• Explain the significance of human rights;
• Categorise the different types of human rights in India;
• Discuss some of the types of human right violation; and
• Discuss the strategies and responses against human right violation.
4.2 CONCEPT AND MEANING OF HUMAN RIGHTS

The concept of human rights refers to the basic freedom which a nation provides
to its citizen in certain specific areas, regions, spaces and categories. As a human
and citizen of a particular nation, the humans are entitled to enjoy freedom in
various activities as well. Such entitlements can be in form of norms that are
being shared on the grounds of actual human moralities, as justified moral norms
or natural rights (for example – right to eat, study, etc.) or they can also be the
legal rights either at a national level or international level.
The fundamental rights that humans have by the fact of being human, and that
are neither created nor can be abrogated by any government.
Supported by several international conventions and treaties (such as the United

Nation’s Universal Declaration of Human rights in 1948), these include cultural,
economic, and political rights, such as right to life, liberty, education and equality
before law, and right of association, belief, free speech, information, religion,
movement, and nationality. Promulgation of these rights is not binding on any
country, but they serve as a standard of concern for people and form the basis of
many modern national constitutions. Although they were defined first by the
Scottish philosopher John Locke (1632-1704) as absolute moral claims or
entitlements to life, liberty, and property, the best-known expression of human
rights is in the Virginia Declaration of Rights in 1776 which proclaims that “All
men are by nature equally free and independent and have certain inherent rights,
of which, when they enter a state of society, they cannot, by any compact, deprive
or divest their posterity.” Called also fundamental rights. See also civil rights
and natural rights.
The basic idea of human rights is that every person possesses dignity by the fact
alone of being a person. Human rights, which are inalienable and indivisible,
protect this dignity. The concept of human rights is based on a universal system
of values shared by all peoples, which offers a framework for the construction of
a human rights system with internationally recognised norms and standards.
Human rights norms regulate the relationship between the state and the people
living under its responsibility. Governments have the obligation to respect, protect
and guarantee the rights and freedoms of people through appropriate legislation
and measures.
For example, the state must respect the freedom of opinion or privacy of the
individual. Not only is it not allowed to intervene in peaceful demonstrations,
but it must also take active steps to protect demonstrators from aggression by
56
counter-demonstrators. Through preventive measures and the punishment of Laws Related to Human
Rights Violation
violence it also safeguards the prohibition on torture and inhuman or cruel
treatment. Finally the state has the task of providing schools, hospitals, teachers
and doctors so as to guarantee the right to education and health care.
The first comprehensive and universally valid human rights document was the
United Nations Universal Declaration of Human Rights, which was adopted in
1948 in the aftermath of the horrors of the Second World War. The Declaration
contains all the various categories and principles of the human rights system.
There are civil and political rights; economic, social and cultural rights; and
solidarity rights. Certain basic human rights principles apply to all these rights.
For example, no one may be discriminated against on the grounds of origins,
colour, religion, sex, age, language or assets. Moreover, states must provide every
person with effective legal recourse to assert guaranteed rights. Finally, all people
should be in a position to determine the way in which their rights are realised.
For example, the right to education includes the right of parents to decide whether
their children attend a state school or a Montessori school.
The main civil and political rights are:
• right to life, liberty and security of person
• prohibition of slavery
• prohibition of torture
• right to a fair trial
• protection of privacy and family life
• freedom of movement
• freedom of opinion and religion
• freedom of assembly and association
• right to vote
The main economic, social and cultural rights are:
• right to work, reasonable pay and free choice of employment
• right to form trade unions
• right to a reasonable standard of living, right to food
• right to reasonable health care
• right to education
• right to participate in cultural and social life
The main solidarity rights are:
• right of peoples to self-determination
• right to peace
• right to a clean environment
• right to development
Civil and political rights are sometimes called first-generation human rights.
They arose during the Enlightenment in the 18th century and reflect the idea of
57
Human Resource Laws individual freedom with respect to the state and the democratic idea of
participation. Second-generation human rights are the economic, social and
cultural rights that developed during the labour movements of the 19th and 20th
centuries. The third generation of human rights, solidarity rights, have existed
since the mid-1980s. They are contingent on international cooperation and aim
at the formation of a community.
With an urge to protect the interests and dignity of human beings the United
Nation General Assembly constituted the Universal Declaration of Human Rights
in 1948.
4.3 UNIVERSAL DECLARATION OF HUMAN

RIGHTS (1948)
The United Nations General Assembly (1948) adopted Universal Declaration
of Human Rights (UDHR) with a resolution to fight for human rights for the
citizen of the member countries. UDHR urges member nations to promote a
number of human, civil, economic and social rights, asserting these rights as
part of the “foundation of freedom, justice and peace in the world. The UDHR
was framed by members of the Human Rights Commission and it was decided
that the civil, political, economic, social and cultural rights of human beings will
be taken care of and will be protected. UDHR currently has two basic treaties or
contracts – one of them is on civil and political rights, known as, International
Covenant on Civil and Political Rights (ICCPR) while the other is on social,
economic, and cultural rights, Known as, the International, Covenant on
Economical, Social and Cultural Rights (ICESCR)
The United Nations (UN) came into being in 1945, shortly after the end of World
War II.
The stated purpose of the UN is to bring peace to all nations of the world. After
World War II, a committee of persons headed by Mrs. Eleanor Roosevelt, the
wife of US President Franklin D. Roosevelt, wrote a special document which
“declares” the rights that everyone in the entire world should have—the Universal
Declaration of Human Rights. Today there are 192 member states of the UN, all
of whom have signed on in agreement with the Universal Declaration of Human
Rights.
4.3.1 Where Do Universal Rights Begin?

“In small places, close to home—so close and so small that they cannot be seen
on any maps of the world. Yet they are the world of the individual person; the
neighbourhood he lives in; the school or college he attends; the factory, farm or
office where he works. Such are the places where every man, woman, and child
seeks equal justice, equal opportunity, equal dignity without discrimination.
Unless these rights have meaning there, they have little meaning anywhere.
Without concerted citizen action to uphold them close to home, we shall look in
vain for progress in the larger world.”
There are in all 30 Articles in this each dealing with certain important rights of
the human being.
58
1) We Are All Born Free & Equal: We are all born free. We all have our own Laws Related to Human
Rights Violation
thoughts and ideas. We should all be treated in the same way.
2) Don’t Discriminate: These rights belong to everybody, whatever our
differences.
3) The Right to Life: We all have the right to life, and to live in freedom and
safety.
4) No Slavery: Nobody has any right to make us a slave. We cannot make
anyone our slave.
5) No Torture: Nobody has any right to hurt us or to torture us.
6) You Have Rights No Matter Where You Go: I am a person just like you!
7) We’re All Equal Before the Law: The law is the same for everyone. It
must treat us all fairly.
8) Your Human Rights Are Protected by Law: We can all ask for the law to
help us when we are not treated fairly.
9) No Unfair Detainment: Nobody has the right to put us in prison without
good reason and keep us there, or to send us away from our country.
10) The Right to Trial: If we are put on trial this should be in public. The
people who try us should not let anyone tell them what to do.
11) We’re Always Innocent Till Proven Guilty: Nobody should be blamed
for doing something until it is proven. When people say we did a bad thing
we have the right to show it is not true.
12) The Right to Privacy: Nobody should try to harm our good name. Nobody
has the right to come into our home, open our letters, or bother us or our
family without a good reason.
13) Freedom to Move: We all have the right to go where we want in our own
country and to travel as we wish.
14) The Right to Seek a Safe Place to Live: If we are frightened of being
badly treated in our own country, we all have the right to run away to another
country to be safe.
15) Right to a Nationality: We all have the right to belong to a country.
16) Marriage and Family: Every grown-up has the right to marry and have a
family if they want to. Men and women have the same rights when they are
married, and when they are separated.
17) The Right to Your Own Things: Everyone has the right to own things or
share them. Nobody should take our things from us without a good reason.
18) Freedom of Thought: We all have the right to believe in what we want to
believe, to have a religion, or to change it if we want.
19) Freedom of Expression: We all have the right to make up our own minds,
to think what we like, to say what we think, and to share our ideas with
other people.
59
Human Resource Laws 20) The Right to Public Assembly: We all have the right to meet our friends
and to work together in peace to defend our rights. Nobody can make us
join a group if we don’t want to.
21) The Right to Democracy: We all have the right to take part in the
government of our country. Every grown-up should be allowed to choose
their own leaders.
22) Social Security: We all have the right to affordable housing, medicine,
education, and childcare, enough money to live on and medical help if we
are ill or old.
23) Workers’ Rights: Every grown-up has the right to do a job, to a fair wage
for their work, and to join a trade union.
24) The Right to Play: We all have the right to rest from work and to relax.
25) Food and Shelter for All: We all have the right to a good life. Mothers and
children, people who are old, unemployed or disabled, and all people have
the right to be cared for.
26) The Right to Education: Education is a right. Primary school should be
free. We should learn about the United Nations and how to get on with
others. Our parents can choose what we learn.
27) Copyright: Copyright is a special law that protects one’s own artistic
creations and writings; others cannot make copies without permission. We
all have the right to our own way of life and to enjoy the good things that
art, science and learning bring.
28) A Fair and Free World: There must be proper order so we can all enjoy
rights and freedoms in our own country and all over the world.
29) Responsibility: We have a duty to other people, and we should protect
their rights and freedoms.
30) No One Can Take Away Your Human Rights.

Fill in the blanks-
i) The United Nations General Assembly adopted Universal Declaration
of Human Rights (UDHR) in ____________________
ii) The UDHR was framed by _________________
iii) The two basic treaties of UDHR are ___________________
4.4 LAWS RELATED TO HUMAN RIGHTS IN

INDIA
In India the Human Right Act, 1993 is the Act which provides for the constitution
of ‘National Human Rights Commission, the State Human Rights Commission
in States and Human Rights Courts’ for better protection of Human Rights and
for matters connected therewith or incidental thereto. This Act is called the
Protection of Human Rights Act, 1993. It extends to the whole of India. and is
60
deemed to have come into force on the 28th day of September, 1993 where by Laws Related to Human
Rights Violation
“human rights” means the rights relating to life, liberty, equality and dignity of
the individual guaranteed by the Constitution or embodied in the International
Covenants and enforceable by courts in India.
The Human Rights Commission in India consists of:
1) Chairperson who has been a Chief Justice of the Supreme Court.
2) One Member who is or has been, a Judge of the Supreme Court.
3) One Member who is, or has been, the Chief Justice of a High Court.
4) Two Members appointed from amongst persons having knowledge of, or
practical experience in, matters relating to human rights.
The Chairpersons of the National Commission for Minorities, the National
Commission for the Scheduled Castes and Scheduled Tribes and the National
Commission for Women are deemed to be Members of the Commission for the
discharge of functions specified in clauses (b) to (j) of section 12.
Chief Executive Officer of the Commission is a Secretary General and is

empowered by law to exercise such powers and discharge such functions of the
Commission as it may delegate to him. The headquarters of the Commission are
at Delhi and the Commission can, with the previous approval of the Central
Government, establish offices at other places in India. It is important for all
citizens to know that ‘No statement made by a person in the course of giving
evidence before the Commission’ shall be used against him in, any civil or criminal
proceeding except a prosecution for giving false evidence by such statement but
one must not forget that this is only applicable if the statement made is in reply
to the question, which he is required by the Commission for him to answer, or is
relevant to the subject matter of the inquiry. A State Government may constitute
a Human Rights Commission to exercise the powers conferred upon, and to
perform the functions assigned to by the respective State Commission. The State
Commission consists of a Chairperson who has been a Chief Justice of a High
Court, A Member who is, or has been, a Judge of a High Court, A Member who
is, or has been, a district judge in that State along with two Members appointed
from amongst persons having knowledge of, or practical experience in, matters
relating to human rights.
There shall be a Secretary who shall be the Chief Executive Officer of the State
Commission and shall exercise such powers and discharge such functions of the
State Commission, as it may delegate to him. The headquarters of the State
Commission shall be at a place deemed fit for the purpose by the State
Government. A State Commission may inquire into violation of human rights
only in respect of matters related to any of the entries enumerated in List II and
List lll in the Seventh Schedule to the Constitution, provided that such matter is
not already being inquired into by the Commission or by any other Commission
duly constituted under any law. In addition to this the Government may, with the
concurrence of the Chief Justice of the High Court, by notification, also specify
for each district a Court of Session to be a Human Rights Court to try the said
offences.
The picture of human rights in India is a multifaceted one, due to its large size,
diversity, secularism, sovereignty, democratic and republic nature. The
61
Human Resource Laws constitution of India has provided six basic fundamental rights to the citizens of
India. They can be described as follows:
4.4.1 Right to Equality

Right to equality is an important right provided for in Articles 14, 15, 16, 17 and
18 of the constitution. It is the principal foundation of all other rights and liberties.
Article 14 declares irrespective of the caste, creed, colour, sex, religion, all citizens
shall be treated equally protected by the laws of the country.
Article 15 declares that no person shall be discriminated on the basis of caste,
colour, language etc. in social or public places. Every person shall have equal
access to public places like public parks, museums, wells, bathing ghats and
temples etc. However, the State may make any special provision for women and
children.
Article 16 states that the State cannot discriminate against anyone in the matters
of employment. All citizens can apply for government jobs. There are some
exceptions. The Parliament may enact a law stating that certain jobs can only be
filled by applicants who are domiciled in the area. How ever, according to the
Citizenship (Amendment) Bill, 2003, this right shall not be conferred to the citizens
residing outside the country.
Article 17 eliminates the practice of untouchability and treats it as an offence.
Article 18 of the constitution prohibits the country from conferring any titles.
The British government had created an aristocratic class known as Rai Bahadurs
and Khan Bahadurs in India — these titles were also abolished.
4.4.2 Right to Freedom

The articles 19, 20, 21 and 22 of the constitution of India provide a freedom of
speech and expression in order to enable an individual to participate in public
activities. Further it also provides freedom of press. Reasonable restrictions can
be imposed in the interest of public order, security of State, decency or morality.
Further, the citizens of India have been provided a freedom to assemble peacefully
without arms, freedom to form associations or unions, freedom to move freely
throughout the territory of India, freedom to reside and settle in any part of the
territory of India, freedom to practice any profession or to carry on any
occupation, trade or business on which the State can impose reasonable
restrictions on this freedom in the interest of public order, morality and the
sovereignty and integrity of India.
4.4.3 Right against Exploitation

The rights against exploitation are mentioned in articles 23 and 24. The articles
provide an elimination or abolition of trading of human beings as well as forcing
them to work. It also abolishes employment of children (that is, child labour)
below the age of 14 years in dangerous jobs like factories and mines.
4.4.4 Right to Freedom of Religion

The article 25, 26, 27 and 28 declares that any citizens of India are free to adopt,
practice and follow any religion. The constitution believes that all religions are
equal before the State and no religion shall be given preference over the other.
62
4.4.5 Right to Constitutional Remedies Laws Related to Human
Rights Violation
Right to constitutional remedies is a step taken to preserve and safeguard the
fundamental rights of its citizens in court and in front of law. It authorises the
citizens to move a file a case and fight for justice if in case the fundamental
rights of the individual is being denied. For instance, in case of imprisonment,
the citizen can ask the court to see if it is according to the provisions of the law
of the country. If the court finds that it is not, the person will have to be freed.
4.4.6 Right to Property

The articles 19 and 31of the constitution facilitates the citizens of India to acquire,
hold and dispose off property. Article 31 provided that “no person shall be deprived
of his property save by authority of law.” It also provided that compensation
would be paid to a person whose property has been taken for public purposes.
How ever, in 1978, the right to property was removed from the list of fundamental
rights, due to certain circumstances. Therefore, the right to property is no longer
a fundamental right, though it is still a constitutional right.
4.4.7 Right to Education

The right to education came in to action since 2010. The right declares that every
child of 6-14yrs age group has a right to get the basic or elementary education. It
is the duty of the Central and the local governments to ensure that the children of
the mentioned age group including the school drop outs (who have left schooling)
as well as the deprived children gets the elementary education.

1) The right to property says that “the persons can be deprived of his
property save by authority of law.” ( )
2) Right to constitutional remedies is a step taken to preserve and safeguard
the fundamental rights of its citizens in court and in front of law.( )
3) Any citizens of India are free to adopt, practice and follow any religion.
( )
4) Right to equality is an important right provided for in Articles 14, 15,
16, 17 and 18 of the constitution. ( )
5) Freedom of speech is one of the human rights of India, which can be
misused at times. ( )
4.5 HUMAN RIGHTS VIOLATION

The state, constitution and governments have declared several rights for humans
in order to provide them a secured life. It acts a facilitator as well as privilege for
every human or citizen in leading a comfortable life. But what if people start
misusing or abusing such fundamental human rights? No doubt there have been
instances where such rights have been misused or violated for the purpose of
self benefit. Following are some of such instances of human right violations:
63
Human Resource Laws 4.5.1 Misuse of the Internet
No doubt the freedom of expression is one of the fundamental rights of human
being due to which internet has become a unique mode of communication. It is
one of the sources that provide an opportunity to the individuals to express their
ideas and opinion directly to the world. Internet also provides the advantage of
exchanging information between people. But, it has also given a way to cyber
crime, terrorist attacks, conflicts and unwanted wars as well. Such misuse of
internet has lead to a serious violation of freedom of expression.
4.5.2 Human Trade

The constitution has amended acts which prohibits the action of exploitation of
people be it in the form of child labours, female workers and so on. Yet, for the
sake of earning profits and several other benefits, the trend of trading (buying
and selling) of human beings has remained equally active at several parts of our
country.
4.5.3 Custodial Violence

Another example of violation of human rights can be mapped out at the custodies
and jails. The major concerns are the custody death, torture in custody and
custodial rape. These acts and mishaps question out the laws formulated for the
civil rights and safe living of human beings.
4.5.4 Land Alienation

The right to property has been questioned at several places where the tribes and
communities are loosing their lands for the sake of several developmental projects
like housing schemes, upcoming schools.
4.5.5 Sexual Harassment at Work Place

The right to work has been misused constantly. The complaints of physical and
mental harassment have duly increased at the working places. This issue requires
a necessary attention as well as action to be taken for the security and democracy
of the women power.
4.5.6 Concern of Forest Dwellers

For the sake of conservation of forests, the tribes and people residing in forest
have been constantly been forced to leave the forest places. This has ultimately
raised questions against the right to own resources.
4.5.7 Homicide
The controversies of the dowry deaths, missing women, abortion of girl child
and torture of married women are also the areas which shows how brutally the
human rights are being violated at home environment.
4.6 STRATEGIES, LAWS AND RESPONSES

AGAINST HUMAN RIGHTS VIOLATION
The state, nation as well as several activists have actively tried to lessen or control
these violation of human rights. Some of the strategies are as follows:
64
4.6.1 Human Rights Act, 1993 Laws Related to Human
Rights Violation
With an aim to keep a control or check on violation of human rights, a body
called as human rights commission was set up under human rights act, 1993.
The Central Government constituted a body known as the National Human Rights
Commission to exercise the powers conferred upon, and to perform the functions
assigned to it, under this Act. The commission meets at regular times and intervals
to discuss any petition submitted by a victim of human right violation as well as
intervene the process of any allegation of human right violation which might be
pending at courts.
4.6.2 Promoting the Right to Information

Several authors have written articles and novels using the examples of the events
of the societies. These literary works have used the past examples as icons and
are creating awareness amongst human beings so that they do not fall prey to
these violations. The government even has telecasted several promos,
advertisements and documentaries in order to catch hold of these activities.
4.6.3 Peace Committees

Several NGO’s have formed human right groups which keep on sending some
members as peace committee to the areas which have been affected or are about
to get affected due to political violation of conflicts. These groups have actively
been involved in several areas like West Bengal, Tamil Nadu, and Kashmir.
4.6.4 Legislation
The legislation body is also actively trying to amend the acts and laws according
to the current requirement and changing human needs. The acts are amended in
order to keep a check over the rights which can prevent the human violation.
4.6.5 Campaigns
Camping and short training programs often accompany other interventional
programs, which can create public awareness of the do’s and don’ts of human
rights. These campaigns also suggest steps that are required to be taken in order
to avoid as well as prevent human right violation as well as exploitation.
4.6.6 Help Lines

Government has also provided several help line numbers in order to protect
female molestations, farmer suicides and child exploitation. The victims can
call and seek help as per their requirement at the help line numbers.
4.6.7 Human Right Courts

Setting up of human right courts have also been proposed under human right act,
(1993) at district levels. These courts will deal with the cases of the human right
violation and keep a check over such activities.
4.6.8 Compensation
Government has decided to pay some amount as a compensation (also known as
ex gratia payments) to the victims or the sufferers. Such payments are made to
those sufferers who has fallen victim of some conflict, terrorist activity or other
related mishaps. 65
Human Resource Laws 4.6.9 National Commission for Women
In order to protect the women section from deprivations, tortures and harassments
a body of national commission for women was set up by a statute in 1990. It was
opened in order to safeguard the interest and protect the women section from
any kind of mishaps.

i) The legislation body is also actively trying to amend the acts and laws
according to the current requirement and changing human needs( )
ii) The right to work has never been misused. ( )
iii) Several NGO’s have formed human right groups which keep on sending
some members as peace committee. ( )
iv) National commission for women was set up by a statute in 2011.( )
4.7 LET US SUM UP

No doubt the government at its level is trying hard to make all individuals at an
equal level or at par at every circumstance. It is our duty to maintain the dignity
of the laws and acts formulated for us. Human rights are so far good until it is
being utilised for the betterment of the society. It can thus be concluded from the
above section, that human rights violation is totally unethical and the state tries
its best to fight against these violations. It keeps on amending acts, formulating
bodies and takes several measures in order to control these unwanted activities.
Yet, one should be aware at their own part also regarding their rights and also
avoid themselves from being a part of human rights violation.

1) Describe the meaning and concept and significance of human rights.
2) Categorise the different types of human rights in India.
3) Discuss some of the types of human right violation.
4) Discuss the measures taken to prevent the human rights violation.

Freeman, Michael (2002). Human Rights: an Interdisciplinary Approach. Wiley-
Blackwell. pp. 15–17. ISBN 9780745623559.
Nickel, James (2009). “Human Rights”. In trse, Edward N.. The Stanford
Encyclopedia of Philosophy. http://plato.stanford.edu/archives/spr2009/entries/
rights-human/.
Littman, David G. (January 19, 2003). “Human Rights and Human Wrongs”.
National Review (New York. “The Durham, H. (2004). “”We the People: The
Position of NGOs in Gathering Evidence and Giving Witness in International
Criminal Trials”. In Thakur, R, Malcontent, P. From Sovereign Impunity to
66
International Accountability. New York: United Nations University Press. Laws Related to Human
Rights Violation
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Reproductive Rights Beyond Cairo and Beijing”. International Family Planning
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Freedman, Lynn P.; Stephen L. Isaacs (Jan. – Feb. 1993). “Human Rights and
Reproductive Choice”. Studies in Family Planning (Population Council) 24 (1):
18–30.
Provost, René (2002). International human rights and humanitarian law.

Cambridge, UK: Cambridge University Press. p. 8. ISBN 0-511-04186-1.



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Mattice, C.M., & Garman, K. (2010, June). Proactive Solutions for Workplace
Bullying: Looking at the Benefits of Positive Psychology. Paper to be presented
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Beale, D. (2001). Monitoring bullying in the workplace. In N. Tehrani (Ed.),

Building a culture of respect, managing bullying at work.
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detection, and correction of bullying and mobbing in the workplace. Consulting
Psychology Journal, 61(3), 169-189.
Hare, Robert and Babiak, Paul, Snakes in Suits: When Psychopaths Go to Work
Harper Collins, 2006
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of Tactics and Motives San Diego State University, 2007.
Yildirim, A., & Yildirim, D. (2007). Mobbing in the workplace by peers and
managers: mobbing experienced by nurses working in healthcare facilities in
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Tehrani, N. (2004). Bullying: A source of chronic post traumatic stress? British

Journal of Guidance & Counselling, 32, 357-366.
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PTSD among victims of bullying at work. British Journal of Guidance &
Counselling, 32, 335-356.
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http://www.africa-union.org/root/au/AboutAu/au_in_a_nutshell_en.htm.
Retrieved 2008-01-03.
. http://www.achpr.org/english/_info/mandate_en.html. Retrieved 2008-01-03.
http://www.achpr.org/english/_info/court_en.html. Retrieved 2008-01-03.
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3fb9ac69fcbb/ior630082004en.pdf.
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http://www.oas.org/key_issues/eng/default.asp. Retrieved 2008-01-03.
http://www.oas.org/documents/eng/biographies.asp?group=hhrr. Retrieved 2008-
01-03.
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http://web.archive.org/web/20080109045152/http://www.coe.int/T/e/Com/
about_coe/. Retrieved 2008-01-04.
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english_mod.pdf. Retrieved 2008-01-04.
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http://web.archive.org/web/20071222001646/http://www.echr.coe.int/ECHR/ Laws Related to Human
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EN/Header/The+Court/The+Court/History+of+the+Court/. Retrieved 2008-01-04.
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trade-poverty-gender.
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69
Goals and Objectives of
UNIT 1 GOALS AND OBJECTIVES OF Human Resource Planning,
Corporate Social
HUMAN RESOURCE PLANNING , Repsonsibility
CORPORATE SOCIAL
RESPONSIBILITY
Structure
1.0 Introduction
1.1 Objectives
1.2 Principles of Human Resource Planning
1.2.1 Setting Up of a Human Resource Planning Unit
1.2.2 Planning Time Span of the Planning of Managing Human Resource
1.2.3 Determination of the Scope and Details of the Plan
1.2.4 Accurate Information
1.3 Goals and Objectives of Human Resource Planning
1.3.1 The Planning Aims to Assess the Strategies of Human Resource Management
1.3.2 The Planning Aims To Predict Future Requirements
1.3.3 It Helps in Assessing Training Needs of Human Assest
1.3.4 It Aims to Determine the Cost Cutting Strategies of the Organisation
1.3.5 The Human Resource Planning also Helps in Meeting the Professional
Competences
1.3.6 It Helps in Meeting the Demands of the Customers
1.3.7 It Aims to Manage Organisational Change
1.3.8 It Helps in Managing the Diverse Work Force
1.4 Factors Affecting Human Resource Planning
1.4.1 Trend of Employment Opportunity
1.4.2 Demographic Factors
1.4.3 Organisational Change
1.4.4 Diverse Work Force
1.4.5 Turn over Rate of Organisations
1.5 Significance of Human Resource Planning
1.5.1 It Helps in Determining the Recruitment and Selection Procedure of the
Organisation
1.5.2 It Helps in Retaining the Human Resource of the Organisation
1.5.3 It Helps in Identifying the Future Needs
1.5.4 It also Helps in Down Sizing the Employees
1.6 Concept of Corporate Social Responsibility (CSR)
1.7 Definition of Corporate Social Responsibility
1.8 Types of Corporate Social Responsibility
1.9 Significance of Corporate Social Responsibility
1.9.1 Fulfillment of Responsibilities Towards Customers
1.9.2 Formation of Safe and Healthy Environment
1.9.3 Provision of Vocational Training
1.9.4 Helps in Managing Risks
1.9.5 Promotes Competition in the Market
1.9.6 Brand Differentiation
5
Importance of HR Planning 1.10 Let Us Sum Up
1.0 INTRODUCTION
Human resource planning is a very crucial as well as sensitive matter for
organisations and the corporate world. It is the back bone which is ultimately
going to support and meet the targets and values of organisations. It is essential
that, before any human resource activity is taken up by the human resource
department, suitable planning is carried out in order to ensure smooth
implementation and successful outcome of that activity. Thus the human resource
manager and the concerned personnel have to put in an effort in planning each
and every human resource activity taking in to consideration the organisational
goal and objectives. The present unit will basically focus on the goals and
objectives of the human resource planning. While talking about the human
resource planning, it will be unfair if the responsibilities of the corporate world
(also known as ‘corporate social responsibility’) will not be discussed. There by,
the present unit also intends to introduce the concept of corporate social
responsibility and its significance.
1.1 OBJECTIVES
With the help of this unit, you will be able to:
• Discuss the basic principles of human resource planning;
• Explain the goals and objectives of human resource planning;
• Describe the concept of the corporate social responsibility; and
• Highlight the significance of the corporate social responsibility.
1.2 PRINCIPLES OF HUMAN RESOURCE

PLANNING
Just to add on to the previous discussions on human resource planning in the
earlier block (refer Block1, Unit 1 on ‘human resource planning’); it becomes
essential to recollect and revise the basic principle of human resource planning.
Based on the following principles an effective organisation can utilise the
potentials of the human resource in the best possible ways:
1.2.1 Setting Up of a Human Resource Planning Unit

Organisations, more preferably having a larger work force should set up a cell or
a unit which should be totally dedicated to the roles and responsibilities of human
resource planning. The basic objective of this unit should be to coordinate and
settle the requirements of the human resource (that is, the work force) of the
organisation. It would also be responsible for updating and standardizing the
personnel working in the organisation. The unit should also prepare a frame
work or a plan which can help out in upliftment of the members of the organisation
as well as the best utilisation of these members for the upliftment of the
organisation. Wherein, in smaller organisations, these responsibilities can be
6 tackled by a senior executive.
1.2.2 Planning a Time Span of the Planning of Managing Goals and Objectives of
Human Resource Planning,
Human Resource Corporate Social
Repsonsibility
There should be comprehensive plan for the best management of human resource,
which should be prepared by the human resource planning unit or division, in
advance. Such plans will act as a frame work or guide for the necessary actions
that are required to be taken regarding the betterment and upgrade of the human
resource of the organisation for a specific time period. This specific time period
of the plan can range from one year to any number of years which suits the
requisition of the organisation.
1.2.3 Determination of the Scope and Details of the Plan

The plan should have all the details that might be used in the near future. It
should have information regarding the required qualifications for each
designation, recruitment policies, training strategies and the step by step process
of grievance redressal of the employees.
1.2.4 Accurate Information

It is important to note that the details and descriptions of the required plans and
strategies should be as clear and accurate as possible. It should have clarity on
the upcoming trends that would likely have an effect on the future recruitments,
salaries, promotions and jobs. It should also include the correct biographic and
other required information of each and every employee in its record.
1.3 GOALS AND OBJECTIVES OF HUMAN

RESOURCE PLANNING
It should be kept in mind that human resource planning is an activity which can
not be done in isolation. It is a more kind of pro-active attitude rather than being
a reactive attitude, which means that, the unit of human resource planning should
be active in taking all precautions in advance which would help out the employees
and it should not be active after the occurrence of any repercussions. The human
resource planning unit also recognizes that there must be a link between the
planning function and other functions of the organisation, such as, the strategic
planning and market demands. It helps out in developing and maintaining the
following strategies within the organisation which can be pointed out as the
following objectives of human resource planning:
1.3.1 The Planning Aims to Assess the Strategies of Human

Resource Management
The plans and actions of the human resource help in managing the human resource
of the organisation. It acts as a guide and helps out in assessing the work and
contribution of the present employees in the organisational output.
1.3.2 The Planning Aims to Predict Future Requirements

The function of human resource planning helps in determining the future needs.
Thus, with the help of the present records of persons and events, the human
resource planning tries to predict the future needs and requirements of the
organisation.
7
Importance of HR Planning
1.3.3 It Helps in Assessing Training Needs of the Human Asset
With the help of the records of the employees, human resource planning can
also help in assessing and identifying those persons who needs to be trained in
in order to meet the requirements of the organisation.
1.3.4 It Aims to Determine the Cost Cutting Strategies of the

Organisation
Organisations can minimize the cost or expenditure by deciding the strategies of
the utilisation of the human resource in the best possible way. It can plan out the
ways in which the present employees can be managed and motivated to achieve
the organisational goal. With the help of actions of planning the organisation
can also identify the ways in which minimum cost can be incurred on
compensation, training, recruitment and other related organisational activities.
1.3.5 The Human Resource Planning also Helps in Meeting the

Professional Competencies
The action of human resource planning helps in updating the present employees
and recruiting employees which can help the organisation to be at par with the
competitors. This therefore helps the employees to excel their performance and
be perfect in their profession.
1.3.6 It Helps in Meeting the Demands of the Customers

In this day to day changing life, where nothing is stable, there is a rapid change
in the taste preferences and demands of customers. With the help of future based
action plans, the organisation can also predict the upcoming requirements of the
customer or client’s side. The organisation tries its best to meet the maximum
needs of the market or the customer with the help of using its trained human
resource in the best possible way.
1.3.7 It aims to Manage Organisational Change

Organisational development and organisational change are two sides of the same
coin. Organisation has to bring changes for its continuous development and these
changes can not happen without proper planning. There by, the division of human
resource planning also aims to help the organisation in change management
with the help of its professionally skilled employees.
1.3.8 It Helps in Managing the Diverse Work Force

Undoubtedly, organisations have a diverse and heterogeneous work force. The
employees differ from each other on the basis of several criteria like – education,
experience, competencies, age, gender and so on. The human resource planning
helps in maintaining each and every minute detail of the employees which makes
it easy for the authorities and management to locate and find out the personal
details of any employee with the help of these personal records.
8
Self Assessment Questions Human Resource Planning,
Corporate Social
Fill in the blanks Repsonsibility
i) Organisations can minimize the cost or expenditure by deciding the
strategies of the utilisation of the _________________ in the best
possible way.
ii) Human resource planning can help out in upliftment of the __________
iii) The human resource planning also helps in meeting the ____________
competencies.
iv) There should be ________________ for the best management of human
resource which should be prepared by the human resource planning
division.
1.4 FACTORS AFFECTING HUMAN RESOURCE

PLANNING
Human resource planning is the primary activity of human resource management
and which basically identifying the number of people required in terms of quality
and quantity. It is the foundation upon which all related activities and functions
of organisation are dependent. Therefore, there are several factors which influence
the activity of human resource planning. Some of them can be pointed out as
follows:
1.4.1 Trend of Employment Opportunity

There are certain economic factors of the nation which can equally affect the
human resource planning of the organisations of that country. For example, if a
country has high population, then the government can pressurize the organisations
to employ as much as people as possible in order to maintain the earnings of the
citizens. In such a case, the planning should divide the tasks to a larger work
force.
1.4.2 Demographic Factors

The function of human resource planning is equally affected by the demographic
factors of the people of the society. It is difficult and complex for the organisations
to keep a control on the age, composition and population of work force. The
total number of people who get retire every year may not be equivalent to the
number of people joining the same organisation every year. This creates a situation
of challenge for the human resource planning division, as their plans are based
on the nature, kind, age and composition of the work force.
1.4.3 Organisational Change

Mergers and acquisitions of organisations have led several organisations to work
in a united way. When organisations of different nature and culture unite, the
human resource planning is duly affected. No doubt people of different
organisations have their own culture, where their own societal norms might also
be totally different. In such a case it is challenging for the human resource planning
to manipulate their attitude according to the needs of the organisation.
9
Importance of HR Planning 1.4.4 Diverse Work Force
The activities of human resource planning are also affected due to the
heterogeneous nature and diverse work force of the organisations. Each
organisation has employees different in age, caste sex, educational qualification,
designation, experience and so on. In such a case it becomes difficult for the
planning division to cater the needs of the employees as well as organisation.
1.4.5 Turn over Rate of Organisations

The human resource planning division takes in to account the details of the
organisation before hand and then implements the changes accordingly. Since,
the commitment of employees is questionable and also unpredictable to an extent,
the trend of people leaving and joining other organisations, affects the activity
of the planning division of the organisation.
1.5 SIGNIFICANCE OF HUMAN RESOURCE

PLANNING
As discussed earlier, the human resource planning division is the actual part of
human resource management where actions are planned and executed. It is the
back bone of the organisation. Some of the important implications of this division
can be pointed out as follows:
1.5.1 It Helps in Determining the Recruitment and Selection

Procedure of the Organisation
No organisations can afford a surplus amount of employee, as it will be sheer
wastage of money and underutilised work force for them. Also, they can not
manage with the employees lesser than the actual required work force. It is the
human resource planning division which investigates and then decides the number
of employees that are required for a particular job within organisation.
1.5.2 It Helps in Retaining the Human Resource of the

Organisation
The division tries to find out the ways by which the organisation can retain its
skilled employees. It tries to find out the different needs and requirements of the
staff personnel who are equally important for the organisation and then tries to
motivate them to retain their job within the organisation.
1.5.3 It Helps in Identifying the Future Needs

With the help of the present and past scenario of the organisation, the human
resource planning division tries to identify the upcoming trends and provisions
for development of the organisation. It also tries to predict the future changes
that are required to be done in terms of selection and retention of employees.
1.5.4 It also Helps in Down Sizing the Employees

For increasing the efficiency of work force, the human resource planning division,
tries to sort out the under utilised and unwanted employees of the organisation.
It tries to increase the efficiency of the organisation by reducing the number of
underutilised employees.
10
Self Assessment Questions Human Resource Planning,
Corporate Social
State whether the statements are true or false- Repsonsibility
i) The human resource planning helps in determining the ( )

recruitment and selection procedure of the organisation
ii) Human resource planning is the secondary activity of ( )
human resource management
iii) The human resource planning division can help in ( )
identifying the upcoming trends and provisions for
development of the organisation
iv) The function of human resource planning can never be ( )
affected by the demographic factors of the people of the society
v) The trend of people leaving and joining other organisations ( )
affects the activity of the planning division of the organisation
1.6 CONCEPT OF CORPORATE SOCIAL

RESPONSIBILITY (CSR)
Today, the scenario of organisations has changed. The organisations are not only
planning for developing the human resource within their premises, they are
equally providing a helping hand to the development of people and society outside
their organisations. The corporate world has turned out more to be socialistic
and is trying to improve the conditions of community. Such kind of activities
which are being done by the organisations for the development of society (which
can be inform of imparting education, developing schools, helping out NGO’s,
building hospitals, investing money for betterment of women, children, old ones
as well as disabled persons and many other related social activities) are known
as ‘Corporate Social Responsibility’.
The corporate social responsibility has turned out to be a magic stick not only to
the society but also for the corporate itself. With help of such social work, the
organisations are gaining customers, employees, and stake holders as well as
making out more consumers for their product, giving a good impact or impression.
In short corporate social responsibility is one of the approaches of the organisation
towards development of society and in turn getting their own brand name as
well as following the standards of taxation policies (as with the help of such
investments, they can also prevent themselves from paying excess tax to the
government).
1.7 DEFINITION OF CORPORATE SOCIAL

RESPONSIBILITY
Corporate social responsibility is a boon for the welfare and growth of the society.
Organisations perform such responsibilities as their obligation towards the society
as well as to fulfill certain self motives or purpose. Any how, the act of corporate
social responsibility has been defined in various manners. On similar grounds,
different organisations have framed different. Some of the definitions of the
process of corporate social responsibility is as follows:
11
Importance of HR Planning According to the World Business Council for Sustainable Development Corporate
Social Responsibility can be defined as “a commitment by business to behave
ethically and contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local community and
society at large” (Published in “Making Good Business Sense” authored by
Lord Holme and Richard Watts).
In terms of business standards, the process of corporate social responsibility is:

“Operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business.
Different nations have also come up to explore the meaning of the corporate
social responsibility on basis of their work culture and economical conditions.
In the United States, CSR has been defined as a social service being done on
humanitarian grounds. It is an act which is done by the organisations to share of
the profits with the society to charitable causes. It is seen as tainting the act for
the company to receive any benefit from the giving.
Wherein, the perspective of the European model is slightly different. They define
the process of corporate social responsibility as a process of operating the core
business in a socially responsible way, complemented by investment in
communities for solid business case reasons.
The government of Ghana defines the process of corporate social responsibility

as “a capacity to build sustainable livelihoods. It respects cultural differences
and finds the business opportunities in building the skills of employees, the
community and the government”
The Philippines explains corporate social responsibility as a “business given

back to the society”.
Since each nation has its own culture, they are also different in terms of the
economical conditions, demographic conditions, social norms and environmental
conditions; each nation formulates its own business strategies on basis of their
own priorities and values which also keeps on changing according to time.
Therefore, it is difficult to come up with a single definition which can be
generalised through out the global world market.
But the ground of performing the act of corporate social responsibility remains
the same through out the world. It basically focuses on managing business, gaining
customers, recognition and societal benefits. It can also be said to be a process
initiated by the organisations to make a contribution to the achievement of broader
societal goals.
In one of the model of Mallen baker (source- www.mallenbaker.net/csr/

definition.php, accessed on 17/08/11) the process of corporate social
responsibility has been tried to explain in a diagrammatic manner. According to
Baker, corporate social responsibility “is about how companies manage the
business processes to produce an overall positive impact on society”. Social
responsibility becomes an integral part of the wealth creation process - which if
managed properly should enhance the competitiveness of business and maximize
the value of wealth creation to society.
12
Corporate Social
Repsonsibility
Source: http://www.mallenbaker.net/csr/definition.php
In a nut shell, with the help of a diagrammatic representation, author has defined
that all the activities of the society are inter related and they try to create a positive
effect of the business in society. With the help of corporate social responsibility,
the organisations try to enhance their quality of management both in terms of
people and processes (the inner circle of the above diagram) and it also tries to
create a good impact on society in the various areas (the outer circle of the above
diagram).
The diagram explains that with the changing time the stakeholders are taking an
increasing interest in the activity of the company. The stakeholders try to analyse
the achievements of the organisation in terms of its products and services, in
terms of its impact on the environment and on local communities, or in how it
treats and develops its workforce, which is basically the outer circle of the above
diagram. The stake holders have a significant role in the development of the
organisation, because they provide various helps like the investors provide
financial assistance, government body provide favourable rules and regulations
and so on. All stake holders help an organisation only after studying its present
as well as past financial performance and quality management. Due to these
reasons and also to provide a share of their profit for charity purpose, their
organisations perform the corporate social responsibility.
1.8 TYPES OF CORPORATE SOCIAL

RESPONSIBILITY
With an urge to have financial transparency as well as helping the society to
develop, the organisations through out the global market are adapting and
implementing several corporate social responsibilities. As discussed earlier, these
13
Importance of HR Planning responsibilities vary from child care to arrangements for care of the old aged
people of the society. These different types of corporate social responsibilities
can be broadly categorized as the following:
1) Responsibility towards the human beings of the society: No doubt an

organisation has to run within a society. It gets its man power, customers as
well as the consumers (the ones who will actually consume the product
which may be bought by any customer) from the society. Therefore, many
companies target the development of the human beings of the society which
can be in form of running schools, colleges, hospitals, charitable
organisations. Targeting the people of the society not only helps them to
follow save their tax, it also helps them in getting more educated employees
as well as recognition within the society.
2) Responsibility towards the environment: An organisation is an open

system and its dependent on the external environment for its goods and
services. The excess use of natural wealth and resources leads to several
environmental like global warming, sustainable resources and pollution.
These environmental issues ultimately have an adverse effect on the business.
Due to these reasons, organisations have also started providing a helping
hand in making the environment pollution free. Businesses are being urged
by environmental groups and governments to reduce the pollutions that
they provide to the external environment and make the society a better place
to live in.
3) Responsibility towards non profit organisations: Many organisations

provide financial assistance to the charitable organisations that run with an
aim of providing social service to the organisations. In this way they try to
indirectly aid the society.
4) Responsibility towards business environment: Sometimes, an industry

group can give awards to companies to promote a cause within a field of
business. Corporate social responsibility awards can be given by industry
leaders to draw attention to or raise standards in a certain area of social
responsibility. For example, an award given by a public relations news
organisation that is promoting environmentally friendly causes might
highlight the best public relations campaign promoting environmentally
friendly or green behaviour. Dairy organisations might use awards to promote
humane practices in corporate dairy operations. These awards motivates
the activities which helps the society to grow ultimately.
With the change in time and requirements of the society, the organisations are
trying out several other modes which can benefit the society and is equally helping
them.
1.9 SIGNIFICANCE OF CORPORATE SOCIAL

RESPONSIBILITY
As discussed earlier, with the help of corporate social responsibility, an
organisation tries to maintain its moral and ethical standards. No doubt it is a
boon for the society; it is also significant for the corporate world. Some of the
significance of the corporate social responsibility can be pointed out as follows:
14
1.9.1 Fulfillment of Responsibilities Towards Customers Goals and Objectives of
The relationship between the organisation and its customer can prevail only if Corporate Social
Repsonsibility
there is a proper give and take relationship between both of them. With the help
of social activities, the organisations also try to show their obligation towards
the existing customers of the society. This is the reason why the organisations
with the help of CSR initiatives, not only to maintain its relationship with the
existing customers, they also try to gain newer customers.
1.9.2 Formation of Safe and Healthy Environment

With the help of CSR activities, the corporate world also helps in making the
world a better place to live in. The organisation tries to impart good education
which might help them in getting skilled and qualified employees in the upcoming
future. Also other initiatives helps the society to have a comfort living.
1.9.3 Provision of Vocational Training

Several organisations conduct workshops of short duration and try to impart
certain vocational/professional skills to the target groups. This not only helps
the people to gain some skills, it also helps the organisation in getting employees
from the trained people as per their requirement.
1.9.4 Helps in Managing Risks

If an organisation wants to strive in this ever changing world, then it has to meet
the required conditions of stake holders as well as government. It is answerable
to the government regarding the investments done and profit achieved. CSR is a
way out that helps the organisation to invest their money to prevent them self
from any scandals, issues or taxation norms. It is also responsible to the stake
holders, vendors, customers and every concerned person. As any scandal or issues
can create a bad name for the organisation (with the word of mouth of all
concerned persons), the societal activities of CSR helps in managing or
overcoming through such risks.
1.9.5 Promotes Competition in the Market

Any good activities of one organisation may easily drive away more customers
as well as employees towards them self. Such a strategy may then turn out to be
harmful to other organisations, as they may loose their existing customers as
well as employees. In such a situation, in order to survive other organisations
are also bound to start up with some or the other CSR activities. This ultimately
leads to a healthy environment of competition which ultimately contributes to
the growth of society.
1.9.6 Brand Differentiation

CSR helps the organisation in differentiating itself from the other similar or
related companies. The unique activity adopted by an organisation leads to more
recognition and identification. Therefore, corporate social responsibilities help
in creating a brand name for the organisation.
15
State whether the statements are true or false-
i) Corporate social responsibility can in no way provide vocational training
to the people of the society. ( )
ii) With help of such social work, the organisations are gaining customers,
employees, and stake holders as well as making out more consumers
for their product. ( )
iii) With the help of corporate social responsibility, the organisations wants
to maximize their profits only. ( )
iv) Imparting education to the members of the society is one of the examples
of corporate social responsibility. ( )
v) The corporate world gets its man power, customers as well as the
consumers from the society. ( )
1.10 LET US SUM UP

No doubt organisations are the ultimate source of development of society, but it
is the human resource which determines the ultimate existence of the
organisations in the society. In that case, it is responsibility of the organisations
to work out a frame which would act as a back bone for the growth as well as
optimum utilisation of the human resources within the organisation. It can also
be summarized that, corporate social responsibility is a significant initiative which
is helping out both the organisations as well as the society. What ever be the type
of the responsibility that an organisation adopts and implements, it should have
a positive impact on both of them. It can be summed up that the organisation
platys an important role on both- the human resource planning and corporate
social responsibility.

1) Briefly explain the basic principles of human resource planning.
2) What are the goals and objectives of human resource planning?
3) Point out the significance of human resource planning.
4) Explain the concept and significance of the corporate social responsibility.
5) Explain the major types of corporate social responsibility.
6) What are the other types of social responsibilities that you can suggest to
the business world?
1.12 SUGGESTED READINGS AND REFRENCES

Dubois, D., & Rothwell, W. (2004). Competency-Based Human Resource
Management. Davies-Black Publishing
Dubois, D., & Rothwell, W. (2000). The Competency Toolkit (Volumes 1 & 2).
HRD Press
16
Lucia, A., & Lepsinger, R. (1999). The Art and Science of Competency Models: Goals and Objectives of
Pinpointing Critical Success Factors in Organisations. Pfeiffer
Corporate Social
Repsonsibility
Shandler, D. (2000). Competency and the Learning Organisation. Crisp Learning.
Spencer, L M. in Cherniss, C. and D. Goleman, eds. (2001) “The economic
value of emotional intelligence competencies and EIC-based HR programs”, in
The Emotionally Intelligent Workplace: How to Select for, Measure, and Improve
Emotional Intelligence in Individuals, Groups and Organisations. San Francisco,
CA: Jossey-Bass/Wiley
Spencer, L., & Spencer, S. (1993). Competence at Work: Models for Superior
Performance. Wiley
Ulrich, D. and Brockbank, W. (2005) The HR Value Proposition. Boston: Harvard
Business School Press
Wood. R., & Payne, T. (1998). Competency-Based Recruitment and Selection.
Wiley
References
Bartram, D. (2005) The Great Eight competencies: A criterion-centric approach
to validation. Journal of Applied Psychology, 90, 1185–1203
Catano, V., Darr, M., & Campbell, C. (2007). Performance appraisal of behaviour-
based competencies: A reliable and valid procedure. Personnel Psychology, 60,
201-230
Cheng, M. I., &. Dainty, R. I. J. (2005). Toward a multidimensional competency-

based managerial performance framework: A hybrid approach. Journal of
Managerial Psychology, 20, 380-396
Draganidis, F., & Mentzas, G. (2006). Competency-based management: A review

of systems and approaches. Information Management &Computer Security, 14,
51-64
Homer, M. (2001). Skills and competency management. Industrial and

Commercial training, 33/2, 59-62
Horton, S. (2000). Introduction- the competency-based movement: Its origins

and impact on the public sector. The International Journal of Public Sector
Management, 13, 306-318
Kochanski, J. T.,& Ruse, D. H. (1996). Designing a competency-based human

resources organisation. Human Resource Management, 35, 19-34
McEvoy , G., Hayton, J., Wrnick, A., Mumford, T., Hanks, S., & Blahna, M.
(2005). A competency-based model for developing human resource professionals.
Journal of Management Education, 29, 383- 402
Rausch, E., Sherman, H., & Washbush, J. B. (2002). Defining and assessing
competencies for competency-based, outcome-focused management
development. The Journal of Management Development, 21, 184-200
Sanchez, J. I., &. Levine, E. L. (2009). What is (or should be) the difference
between competency modeling and traditional job analysis? Human Resource
Management Review, 19, 53–63 17
Importance of HR Planning Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods
in personnel psychology: Practice and theoretical implications of research
findings. Psychological Bulletin, 124, 262-274
Shippmann, J. S., Ash, R. A., Battista, M., Carr, L., Eyde, L. D., Hesketh, B.,
Kehoe, J., Pearlman, K., & Sanchez, J. I. (2000). The practice of competency
modeling, Personnel Psychology, 53, 703-740.
Spencer, L. M. (2004). Competency Model Statistical Validation and Business
Case Development, HR Technologies White Paper http://www.hrcompass.com/
validation.html
Websites
http://www.scribd.com/doc/2602053/HUMAN-RESOURCE-PLANNING
http://www.authorstream.com/Presentation/baraldp123-129363-human-resource-
planning-hrm-education-ppt-powerpoint/
en.wikipedia.org/wiki/Corporate_social_responsibility
http://www.mallenbaker.net/csr/definition.php
http://www.ehow.com/info_8117691_four-types-corporate-social-
responsibility.html
http://www.wisegeek.com/what-are-the-different-types-of-corporate-social-
responsibility-jobs.htm
http://www.wisegeek.com/what-are-the-different-types-of-corporate-social-
responsibility-awards.htm
18
UNIT 2 BUSINESS STRATEGY AND Human Resource Planning,
Corporate Social
OPERATIONAL STRATEGIES Repsonsibility
(TECHNOLOGY AND INNOVATION

IN HRS)
Structure
2.0 Introduction
2.1 Objectives
2.2 Business Strategy for HR Leaders
2.3 Steps for the Alignment of Business Strategy with HR Practices
2.4 Business Strategy and HR Strategy: The Current Scenario
2.5 Role of Human Resource Professionals in Business Strategies
2.6 Operational Strategies in Managing Human Resource System
2.6.1 Operational Strategies in HR Planning
2.6.2 Benefits of Operational Strategies in HR Planning
2.7 Operational Strategies in a Business Plan
2.7.1 Factors Affecting the Operational Strategies of a Business Plan
2.7.2 Benefits of Operational Strategies of a Business Plan
2.8 Business Plans and Operational Plans as a Technological and Innovative
Step in Human Resource Strategy (HRS)
2.9 Let Us Sum Up
2.0 INTRODUCTION
As discussed in the previous unit of this block (Refer Unit1), human resource
planning is a procedure which tries to identify the current and future human
resources needs for an organisation to achieve it goals. This necessitates the
urgency of the human resources planning to act as a link between human resources
management and the overall strategic plan of an organisation. The planning
processes of most best practice organisations not only define what will be
accomplished within a given timeframe, but also the numbers and types of human
resources that will be needed to achieve the defined business goals (e.g., number
of human resources; the required competencies; when the resources will be
needed; etc.). All these plans are based on certain strategies or ways which are
regularly monitored and evaluated for the organisations to run smoothly. This
unit will help you in understanding those business and operational strategies
which act as a route map for the organisations to manage human resource.
2.1 OBJECTIVES
• Describe the concept of business strategy and operatinal strategy;
19
Importance of HR Planning • Discuss the necessity of allignment of business strategy and human resource
practices within an organisation;
• Explain the benefits of operational strategy in HR practices; and
• Explain how the operational and business plans are innovative measures
within an organisation.
2.2 BUSINESS STRATEGY FOR HR LEADERS

Leaders and managers in the human resource management department play the
most important role as they are the ones who initiate various activities related to
human resource management and development. Thus they also have an important
role to play in business development. Suitable care needs to be taken in an
organisation to promote effective participant of leaders and managers involved
in human resource management in business development. They also should be
well aware about various business strategies. Further these leaders and managers
should also be provided with suitable training and information about business
strategies.
With the change in time, there are several issues, agendas and processes related
to human resource which keeps on making challenges for the work environment
of the organisation. In such a case, it is the responsibility of the human resource
(HR) department to keep a check on such challenges with the help of strategies.
Such strategies should not only be beneficial to the employees, it should also be
fruitful for the customers, capital market and other end users. The strategic mode
of the human resource department should be proactive (prepared in advance,
even before the situation occurs) in nature rather than being reactive (planning
out strategies, after the event has already occurred). The human resource
department creates a competitive edge by creating a platform at which the business
strategies can be aligned with the HR practices. Such alignment is equally
profitable for the organisations. The business strategy can be associated with
the HR practices by facilitating change management or by creating cultures of
creativity and innovation, facilitating mergers and acquisitions, and also by up
grading the internal structures of there organisation with the ongoing changes at
the market place.
Therefore, business strategies of the organisation are equally significant for the
human resource department. The organisation has to be active enough to manage
change with the changing environment. It has to face new challenges and in
order to face such challenges it has to plan out such business strategies which
could positively effect the internal environment (the employees / human resource
of the organisation) and the external environment (the market/customers/society/
consumers or end users).
2.3 STEPS FOR THE ALIGNMENT OF BUSINESS

STRATEGY WITH HR PRACTICES
As discussed earlier, it is necessary for the organisation to align its business
strategies with the human resource practices. With an idea of the strategies or
ways of business applications adopted by the organisations the HR leaders or
the managers can easily contribute to the decision-making processes of the
20 organisation. But again aligning of two different jobs (that is the business strategy
and HR practices) is unsurprisingly a challenging job. Organisations have to be Business Strategy and
Operational Strategies
very careful while trying to do so. Leaders and managers in human resource
(Technology and
department play a crucial role in the alignment of business strategies and human Innovation in HRS)
resource practices. Business strategies mainly depend on the organisational goals
at the same time human resource activities are also based on the organisational
goal. However close inspection of business strategy developed in the organisation
will provide adequate information about how each human resource activity can
be aligned with the business strategy. An alignment between the both will ensure
successful accomplishment of organisational goal.
There are certain steps which can be followed in aligning the two different streams
together. They can be pointed out as follows:
i) Identification of the target units: It is very necessary for the organisations
to identify, analyse and examine both the units carefully. Both the units (the
business division as well as the HR division) are the most confidential
sections of the organisations which is required to be considered foremost.
ii) Identification of the external driving forces: An external driving force
refers to the changes or the trends that are taking place in the market or
outside the organisation. The organisation has to identify those external
forces which are forcing the organisation to bring about a change.
iii) Determination of sources of competition: Once the external forces leading
to changing trends are identified, it is also necessary for the organisation to
analyse those sources which are actually responsible for those external
driving forces. Examples of such sources can be change in demand, target
groups, customers and several other factors. If these sources which are the
basic reasons for competitive market are identified, then it becomes easy
for the business unit to b ring about changes in their business strategies.
iv) Identification of the potentials of the organisation: After analysing the
sources of competition, it is necessary for the organisation to do a ‘gap
analysis’, meaning thereby, that they need to understand and examine the
technical and cultural capabilities that they have and what are the aspects
that they require to have in order to achieve the numbers to a greater extent
in the future than they had in the past.
v) Identification of HR practices: Once the business strategies have been
deeply studied, the organisation now needs to identify those HR practices
which will significantly contribute in creating the ideal human organisation
with the help of the applied business strategies.
vi) Preparation of an action plan: The next step is to work out the actions
that will help out in organisational progress. It is necessary to plan out that
how and what are the things that would be done so that that alignment of
HR practices and business strategies can work out in the best possible way.
An action plan should also propose a target date regarding what would be
done? Who would be involved? How will the progress be assessed? Who
will be assessing the progress? When will the progress be assessed?
vii) Assessing the results: Finally, when the action plan has been worked out
and has been implemented, it is necessary for the organisation to measure
the results. The results can be measured with the help of studying the
achievements.
21
State whether the statements are true or false-
i) The HRD creates a platform at which the business strategies ( )
can be aligned with the HR practices.
ii) An internal driving force refers to the changes or the trends ( )
that are taking place in the market or outside the organisation.
iii) An action plan should also propose a target date regarding ( )
what is supposed to be done
iv) Business strategy is a part of human resource management ( )
v) There should be an alignment between the human resource ( )
strategy and business strategy.
2.4 BUSINESS STRATEGY AND HR STRATEGY:

THE CURRENT SCENARIO
It is obvious that the organisation has to continuously modify the plans and
strategies according to the changes taking place in the market. Such change in
the business strategies poses several challenges to the HR strategies. Say for
example, if the organisation has to cut off its budget due to recession in the
economy, then several people may leave the organisation in search of even better
opportunity. In such a case the HR strategies and planning would be useless.
It would be worth to add that there are situations where some principles of human
resource strategy create challenges for the business strategy. There are situations
where members of the organisation do not readily accept the changes in the
business strategy, which may be due to lack of clarity or confusion. In such
circumstances, it is the transparency and fairness in the policies of the business
strategies which can help out in the alignment of both the human resource as
well as business strategy. Therefore, in the current scenario, it is very necessary
for the organisations to try its best to maintain its good will, win over the
commitment of employees and also be aware of the current changes and
happenings of the market place.
2.5 ROLE OF HUMAN RESOURCE

PROFESSIONALS IN BUSINESS
STRATEGIES
For a smooth alignment of business strategy with the strategies of policies of the
human resource department, it becomes necessary for the human resource
professional to work closely with the top management and business heads. The
following can be their contribution in helping out an alignment with the business
strategies:
i) Human resource professionals must continually update themselves with

the changing business environment: Since, HR planning is totally based
on anticipation and prediction of futuristic requirements, the human resource
professionals should be capable enough to anticipate the upcoming issues
and matters of concern. They should acquaint such issues and concerns in
22
well advance to the top management, so that they can find out the solutions Business Strategy and
to such upcoming problems before hand. This can help out the organisation
(Technology and
to modify its business strategy as well as human resource policies in Innovation in HRS)
accordance to the changing environment.
ii) Human resource professionals should act as knowledge facilitators at

all the levels of organisation: It is necessary for the organisation to study
the changes that are required to be done at its internal environment so that
they can face the challenges of the competitive market. In such situations,
the documentation prepared and maintained by the human resource
professionals can help out in enhancing the knowledge of the top
management. The review of performance appraisal process is one of the
vital sources of such knowledge which can help the top management in
enhancing the efficiency of the organisation.
iii) Human resource professionals should take keen interest in operational

activities of the organisation also: The human resource department can
significantly contribute to the effective business strategies of the organisation.
If they are clear with the operational activities of the organisation, then they
can play a more useful role in training and development, transcending
behavioural training programmes and “leadership”. This is particularly
important in an era when domain knowledge and technical expertise are
becoming more important.
iv) Human resource professionals need to be more creative in nature: The

human resource department is the most important source of information for
the organisation. It is one of the most supportive units of the organisation,
as it not only helps in selecting and recruiting members for the organisation,
it also helps in upgrading the employees with workshop and training
facilities. But it is time now, that this supportive system needs to be more
tactful and creative in maintaining the loyalty and interest of the employees
within the organisation.
v) Human resource professionals should be more strategic business

partner: The success of an organisation depends upon how they design
and implement a people strategy that is properly aligned with, and supports
the business strategy of the organisation. This can happen only if the human
resource professionals actively participate as a strategic business partner in
implementing plans and achieving budgets. The bottom line: HR is
increasingly seen as a strategic linchpin—one that needs to work closely
with operations, finance, and other corporate departments to help drive
business strategy and success.
Fill in the blanks
1) The human resource department is the ________________ of the
organisation.
2) The human resource department can significantly contribute to the
effective __________________ strategies of the organisation.
3) The _________________ professionals should be capable enough to
anticipate the upcoming issues and matters of concern.
23
4) The Human resource professionals need to be more ______________
in nature.
5) Human resource professionals should act as ___________________
facilitators at all the levels of organisation.
6) The human resource department should also have a complete knowledge
of the ____________ strategies or the business plans of the organisation.
2.6 OPERATIONAL STRATEGIES IN MANAGING

HUMAN RESOURCE SYSTEM
Operational strategies refer to the implementation of the plans. It talks about the
actions that are being taken according to the planned framework. In context to
human resource system, it refers to a combination of improved operations, capital
investments, and behavioural adjustments that are needed to maintain flow of
people and goods, respond to emergencies, correct unsafe conditions, reduce
security threats, and preserve human assets within the organisation. Organisations
are paying more stress in order to improve the mode of operations. The
organisation tries to use the most standard methods for planning, operating and
preserving human resource assets efficiently. Comprehensive, accurate, up-to-
the-minute data of the employees of the organisation are essential for the human
resource managers who anticipate problems and are proactive in resolving those
problems, making effective tradeoffs among a wide range of resources and
consequences. The HR managers have to be anticipatory, proactive, and
systematic in planning out and implementing operational strategies.
2.6.1 Operational Strategies in HR Planning

Human resource planning is most significant at an operational level. At the
operational level, good HR planning is in part based on thinking ahead about the
organisation. Operational strategy towards human resource management involves
putting the HR management practices in place to support management and staff
in achieving their day-to-day goals. The operational strategies includes several
functions like staffing, monitoring performance and several other HR practices
that are taking place and are supposed to take place in the upcoming year. In
short, the operational plan for the human resource department provides an answer
to the question, “where is our organisation going and how will it go to the desired
position?”
At an operational level, organisations also need to be aware of the

interdependencies between operational decisions and HR management practices.
Decisions made on one aspect of human resources often have an impact on
another aspect of HR management.
2.6.2 Benefits of Operational Strategies in HR Planning

An operational strategy in human resource system tries to put the human resource
policies in to practice. The operational plans are developed for the following
human resources practices and activities:
i) Operational plans are developed and executed in preparing and implementing

HR policy.
24
ii) Operational strategies play an important role in recruiting and staffing Business Strategy and
employees and therefore, help in getting right people at right place.
(Technology and
Innovation in HRS)
iii) It helps in identifying as well as providing training and development needs.
iv) It helps in providing compensation and other related benefits to the

employees of the organisation.
v) It provides a ground for deciding and implementing employment standards

and legislation.
vi) It helps in increasing the morale of employees.
vii) It plays in determining the available staff and designing a job as per the
requirement of the organisation.
Thus, the operational plans have several benefits which tries to maintain the
strategiesa of human resource planning at place. If your organisation already has
good HR management practices in place they should be reviewed on an ongoing
basis, every two to three years, to ensure that they still meet organisational needs
and comply with legislation.
2.7 OPERATIONAL STRATEGIES IN A BUSINESS

PLAN
In context to the business strategies, the operational strategies section refers to
business’s operations that are taken according to the business plan. It
includes plans for ordering, storing, selling, and producing outputs and likewise
offering services within an organisation.
2.7.1 Factors Affecting the Operational Strategies of a Business

Plan
A business plan is a blue print of the activities that are supposed to happen
within a specified time period within an organisation. Furthermore, the operational
strategies are the ways with the help of which the plans would be achieved.
Thereby, the operational strategies have a significant role in achieving the
predefined plans. Some of the factors which can affect the operational strategies
of a business plan are:
i) The physical set up of the organisation: Never the less, the internal as
well as external environment of the organisation plan plays an important
role in implementation of the operational strategies. Therefore, the actions
should be decided on basis of the physical surroundings, human resource
and other available resources of the organisation.
ii) Nature of the tasks: The operations plan should also include the
responsibilities for handling specific tasks. The operational strategies are
based on the nature of the task, who will handle them and how will it be
handled.
iii) Manufacturing and pricing mechanism: The operational strategies are

equally dependent on the minute details of the process of manufacturing
25
Importance of HR Planning outputs or providing services as well as the factors that would determine
the cost of the goods or services.
iv) Safety precautions: As successful implementation of the business plans

(that is, the operational strategies) would also depend upon the measures
that have been taken in order to ensure the safety and security of the resources
of the organisation and also to meet the business risks in the competitive
market.
iv) Nature of the business process outsourcing units: If the organisation has
outsourced the operational activities of the business plans, the
implementation of the business plans will also depend upon the nature of
the companies or consultancies to whom it has been outsourced.
The operational strategies of a business plan, not only helps in explaining how
the transaction or business will be done, it also helps an organisation to understand
the strategies that would best facilitate the type of business that has been planned.
It is necessary for the organisations to decide upon the ways how the business
would be conducted, but is even more important for the organisation to find out
logical reasoning behind the operations plan with the help of which the business
would be conducted.
2.7.2 Benefits of Operational Strategies of a Business Plan

Almost every business plan has its operational strategy that is followed in order
to achieve the planned target. These strategies not only help in understanding
other companies, vendors, partners, and distributors that an organisation has to
rely upon in order to complete transactions, but it has several other advantages
also. Some of them can be listed as follows:
i) The action plans helps an organisations to run its business smoothly.
ii) It ultimately helps in achieving the preplanned targets. Hence, helps in
maintaining as well as increasing its customers.
iii) It helps in speeding up the business transactions.
iv) It helps in meeting the competitive advantage over other organisations.
v) It also helps in best utilisation of the available resource within an
organisation.
vi) It also helps in anticipating the future trends and cope up in emergency
situations.
Over the life of the business, the manner in which a transaction is being done
keeps on changing significantly. The organisation needs to continually change
its business plan as well as its operational strategies while addressing its
competitors, technological changes, economical changes, and marketing trends.
In addition, a company’s business may grow from a small scale into a larger
scale business with the need for additional space and staffers. At times, if business
plan has been written several years before, it might become redundant in this
computer and technological era. For this reason, the organisations should
anticipate include some general expectations in the operational plans of the
business to change and grow over time to meet the market challenges.
26
Business Strategy and
Self Assessment Questions Operational Strategies
(Technology and
State whether the statements are true or false Innovation in HRS)
i) A business plan is a blue print of the activities that are ( )
supposed to happen within a specified time period within an
organisation.
ii) The action plans creates hindrance in running business of ( )
the organisation smoothly.
iii) The operational strategies of a business plan helps in ( )
explaining how the transaction or business will be done.
iv) The organisation needs to continually change its business ( )
plan.
v) The operational strategies depend upon the business plan of ( )
the organisation.
vi) The organisations need not anticipate the changes that might ( )
face in the coming days.
2.8 BUSINESS PLANS AND OPERATIONAL PLANS

AS A TECHNOLOGICAL AND INNOVATIVE
STEP IN HUMAN RESOURCE STRATEGY
(HRS)
The Human Resources Strategy (HRS) of the organisations starts from its
establishment phase. The human resource strategy basically focuses on putting
in place the basic policies, procedures and systems needed in a newly independent
organisation. Following this, the strategy keeps on changing or getting modified
as per the requirement or implementation of a new approach. As a result of
implementing these strategies, the division of HR takes a shape. It becomes a
section which has a set of HR policies and practices that are being aligned with
the direction in the Strategic Business Plan. The Department has selected and is
now commissioning a new HR information system. The operational strategy
acts as an innovative technique for the progress of the organisation in the long
term. The ways in which operational strategy acts as an innovative step in HRS
can be pointed out as follows:
i) With the help of operational plan an organisation can introduce the

information system as an advanced technique for managing the human
resource system, then the Human Resources Management Information
System (HRMIS) can help in assisting the human resource department to
identify HR issues and trends, as well as it will also allow it to monitor
progress in the implementation of future strategies.
ii) The operational plan helps out in competency mapping with help of relevant
techniques. These competencies reveal the HR capability, and helps in
developing a supporting qualifications/training/performance management
framework. Further work is required to integrate the management
development component into a single department-wide framework, linked
with wider public service initiatives.
27
Importance of HR Planning iii) The latest strategies adopted by the organisation helps in recruiting staff
with effective interpersonal skills, integrity and the talents to collaborate
and be innovative in an environment largely focused on consistency and
safety.
iv) The alignment of policy and processes with desired organisational direction
focus on getting the right people in the right roles, particularly management
roles support managers to increase employee and stakeholder satisfaction.
v) The organisations are able to emphasise the manager and staff training on
skills that would support the desired culture of the organisation. The
strategies help in reinforcing changed behaviours through leadership
modelling, recognition, performance evaluation and internal
communications.
vi) The operational plan also helps in alignment of the overall culture
of the organisation. The continued alignment of the departmental culture
with the organisational culture is essential for three reasons: Firstly, culture
influences the way frontline people work. Secondly, culture determines the
way managers support and work with frontline staff and thirdly, culture is
a key feature in determining how well the organisation can attract and retain
the people capability and capacity needed now and in the future.
vii) With the help of business strategies an organisation can develop a work
environment which is increasingly safe and healthy for employees,
stakeholders and customers as well.
viii) The business plan strategy also helps in enhancing organisational capability
and capacity. It helps in identifying the strength of the managers and staff
which ultimately helps out in rapid progress of the organisation.
ix) The operational plans act as an effective support for the managers by
leveraging the use of technology (internet and intranet) for policies,
guidelines, human resources performance measurements and self learning.
Now, it is possible for the top level management to get suggestions and
clarification from business delegates on appropriate time.
x) The business strategies and operational plans have helped in evolving more
user-friendly formats for HR policies and processes.

Fill in the blanks-
i) The business plan strategy also helps in _______________
organisational capability.
ii) The operational plan also helps in alignment of the overall

__________________ of the organisation.
iii) The alignment of policy and processes with desired organisational

direction focus on getting the right ______________ in the right roles.
28
Business Strategy and
iv) Business plans and operational plans are a ___________ and an Operational Strategies
innovative step in human resource strategy. (Technology and
Innovation in HRS)
v) With the help of ____________________ an organisation can introduce
the information system as an advanced technique for managing the
human resource system.
vi) The operational plans act as an effective support for the managers by
leveraging the use of ________________.
2.9 LET US SUM UP

It is clear from the above discussion and facts that, the business strategy and
operational strategy are one of the basic premises of the continuous improvement
of the organisation. The strategies help the organisation to ensure that the systems
remain effective, managed and controlled. The use of strategies for business
plan as well as operational plans are the beneficial aspects in managing the human
resource.
However, it is necessary for the organisation to not to surpass the policies and
philosophies of the organisation in the verge of innovation. It is an unavoidable
fact that the organisations have to achieve a balance between consistency (rules)
and innovation by providing a clear understanding of key principles and limiting
the development of rules to situations where they are required for safety, security,
therapeutic integrity and consistency. A smooth and successful running of the
organisation depends upon the healthy work environment, motivated and
committed employees as well as advanced business strategies. Business can
prosper effectively only when it is handled with care and updated regularly
according to the changes in external environment and global market.

1) Explain the steps of allignment of business strategy and human resource
practices within an organisation.
2) Explain the benefits of operational strategy in HR practices.
3) Explain how the operational and business plans are innovative measures
within an organisation.
4) Discuss the role of human resource professionals in business strategies.
5) As a business manger, what are the different strategies that you would try to
implement with the help of human resource practices?
6) What are the benefits of the operational strategies of a business plan?

Dubois, D., & Rothwell, W. (2004). Competency-Based Human Resource
Management. Davies-Black Publishing
Dubois, D., & Rothwell, W. (2000). The Competency Toolkit (Volumes 1 & 2).
HRD Press.
29
Importance of HR Planning Lucia, A., & Lepsinger, R. (1999). The Art and Science of Competency Models:
Pinpointing Critical Success Factors in Organisations. Pfeiffer
Performance. Wiley
Wiley
References
201-230
51-64
Sanchez, J. I., &. Levine, E. L. (2009). What is (or should be) the difference
Management Review, 19, 53–63
30
Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods Business Strategy and
(Technology and
findings. Psychological Bulletin, 124, 262-274 Innovation in HRS)
Shippmann, J. S., Ash, R. A., Battista, M., Carr, L., Eyde, L. D., Hesketh, B.,
Kehoe, J., Pearlman, K., & Sanchez, J. I. (2000). The practice of competency
modeling, Personnel Psychology, 53, 703-740.
Spencer, L. M. (2004). Competency Model Statistical Validation and Business
Case Development, HR Technologies White Paper http://www.hrcompass.com/
validation.html
Websites
http://www.iimb.ernet.in/~rishi/Linking%20Corporate%20Strategy%20
and%20HR%20Strategy.pdf
http://www.authorstream.com/Presentation/baraldp123-129363-human-resource-
planning-hrm-education-ppt-powerpoint/
http://www.citehr.com/1864-aligning-hr-business-strategy-yahoo-groups.html
http://www.allbusiness.com/business-planning-structures/business-plans/2524-
1.html
http://www.fhwa.dot.gov/policy/2002cpr/pdf/ch21.pdf
http://hrcouncil.ca/hr-toolkit/planning-operational.cfm
http://www.strategic-human-resource.com/human-resources-current-issues.html
www.bplans.com/sample_business_plans.cfm
en.wikipedia.org/wiki/Business_plan
www.help-finance.com/download/SampleBusinessPlan.pdf
www.myownbusiness.org/s2/
www.fundedplans.com/business.gov.in › Starting a Business
31
UNIT 3 RETENTION OF QUALIFIED AND
TECHNICAL PERSONNEL
(COMPETENCY MAPPING AND
PERFORMANCE APPRAISAL)
Structure
3.0 Introduction
3.1 Objectives
3.2 Retention of Qualified and Technical Personnel
3.2.1 Significance of Retaining Qualified and Technical Employees
3.2.2 Strategies for Retention of Employees
3.3 Competency Mapping
3.4 Performance Appraisal
3.4.1 The Process of Performance Appraisal
3.4.2 Benefits of Performance Appraisal
3.4.3 Constraints Experienced During Performance Appraisal
3.4.4 Methods of Performance Appraisals
3.5 Let Us Sum Up
3.0 INTRODUCTION
In the previous units we mainly discussed about human resource planning,
corporate social responsibility, business strategy and operational strategies. All
the above topics are important aspects of human resource management that helps
in the development of not only the human resource but leads to achievement of
organisational objectives.
In the present unit we will focus on another relevant topic in human resource
management that is retention of qualified and technical personnel. We will also
further highlight the concept of competency mapping and discuss about yet
another function under human resource management, that is, performance
appraisal.
Understanding of the above topics will help you to further better your knowledge
about various functions covered under human recourse management and also
help you comprehend one of the issues dealt by human resource managers in
organisations with regarding to the turnover of qualified and technical personnel.
3.1 OBJECTIVES
• Discuss about retention of qualified and technical personnel;
• Explain the concept of competency mapping; and
32 • Describe the performance appraisal, its benefits, pitfalls and methods.
Retention of Qualified and
3.2 RETENTION OF QUALIFIED AND Technical Personnel
(Competency Mapping and
TECHNICAL PERSONNEL Performance Appraisal)
In today’s world with globalization and rapid industrialisation retaining qualified

and technical persons is truly a challenge. The concept of long term employment
is quickly fading with employees jumping jobs. Instances where employees would
serve an organisation for years together still exist but are growing rare. In this
kind of situation measures are to be taken by the industry and especially the
human resource manager in order to avoid this kind of turn over amongst the
qualified and technical persons.
There may be various reasons for turnover amongst the employees and
accordingly varied measures can be undertaken to retain employees. Though
turn over as such can be one of the major problems faced by the human resource
managers, in this unit we will mainly focus on how the qualified and technical
employees may be retained.
A lot of time energy and finance is involved when a single employee is employed.
Right from the recruitment stage when an advertisement is placed in a newspaper
or a campus interview is conducted, to organising interviews, group discussions
etc. to appointing employees in suitable job position to training them and so on
a lot of effort on the part of the human resource department and personnel is
invested besides the financial investment. In such a situation when an employee
after being appointed and trained leaves the job then it may be considered as a
great loss to the organisation. In order to avoid this it is necessary that suitable
measures are employed in order to retain such employee. These suitable measures
or strategies developed can be discussed under the broad topic of retention
management.
There are various reasons why a qualified employee with high technical skills
may choose to leave a particular organisation. These reasons are discussed as
follows:
1) Better job opportunity: The employees may choose to leave because they
are getting a better offer in some other organisation that is providing them
with better career development, higher pay package and facilities and a
positive job environment.
2) Lack of motivation: An employee may also leave because he/she does not
feel motivated enough in the present organisation. The job might be
monotonous and there might not be any challenging task for the employee.
3) Ineffective leadership: Ineffective leadership is another reason why

employee may leave their jobs. The immediate supervisor may not possess
effective leadership skills. As a result he/ she may not be able to motivate
the employee or may not be able to set clear and challenging goals for the
employee.
4) Lack of career development opportunities: Employees may also leave

because they do not see any further career development opportunities in the
organisation. This may also result from flat hierarchies where promotional
opportunities are less.
33
Importance of HR Planning 5) Negative organisational culture: A negative organisational climate that
does not promote interpersonal relationship, a learning environment,
concrete criticism and team work.
6) Low morale: An overall low morale amongst the employees and lack of
organisational citizenship may also lead to turn over amongst the employees.
7) High absenteeism and accident rates in the organisation: An overall

high absenteeism and high accident rates may also lead to low morale and
a feeling of insecurity amongst the employees that may lead to a high
turnover.
These are some of the reasons why employee may not choose to remain in a
particular organisation. Further unfair or inadequate performance appraisal may
also result in employee turnover. Further we are going to discuss about
significance of retaining qualified and technical employees.
3.2.1 Significance of Retaining Qualified and Technical

Employees
There are numerous reasons why organisations focus retaining such employees.
When a qualified and technical employee leaves an organisation, it is a loss as
the organisation has invested in the recruitment, selection and training of such
an employee. Also the organisation is well versed with the skills, talents, attitudes,
values and performance of such an employee and is sure about the capacity of
the employee to achieve the individual and organisational goals. An existing
employee is well adjusted to the organisational culture and climate. And thus is
able to function at his/her best. Recruiting new employees elevates the costs
involved in the whole process and also the newly recruited employee will take
some time to adjust to the new organisation and to be fully productive. The
expectation, aspirations and weaknesses of an existing employee are known to
the superiors of that employee that help them to interact with him/ her in a better
manner.
Many organisations even approach their ex-employees and encourage them to

rejoin the organisation mainly because adjustment to organisational culture,
policies, climate and structure is easier for these employees and further they
come with an added experience of working with other organisations. Thus there
is this overall trend amongst the organisations to promote long term relationship
with their employees. It may not always be possible because as we discussed
earlier recent trends show that many employees engage in short term relationship
with organisations due to varied reasons discussed above. Thus various strategies
need to be planned and implemented by organisations in order to retain their
employees. These strategies will also be discussed in this unit.
3.2.2 Strategies for Retention of Employees

1) Recruitment, selection and placement: These three extremely important
functions are under human resource management. These serve as an entry
point for a prospective employee. In case if these processes are not adequately
planned and carried out then it might result in turn over amongst employees.
Effective recruitment is required in order to generate right and large pool of
prospective employees or applicants, who will prove to be effective
34
employees. In case the recruitment is not effective then a large pool of Retention of Qualified and
Technical Personnel
qualified and technical employees will not be generated. This will in turn
interfere with the selection process as the organisation will have to choose Performance Appraisal)
from a pool of ineffective applicants or they will have to redo the recruitment
process. Also the methods of selection should also be adequately selected
in order to select the best suitable employees. Further ineffective placement
of employees that is if the employees are not matched as their qualification
to their job in the organisation, the employees are going to be dissatisfied
and would choose to opt for a job that he/ she find more satisfied in.
2) Motivation: Motivation can be described as a drive to achieve a particular

goal and the organisations have to ensure that their employees are adequately
motivated. Motivation can be intrinsic and extrinsic. Intrinsic motivation is
the one where the employee is inwardly motivated or feels that he/ she
needs to perform at his/ her best and achieve the goals assigned to them.
Extrinsic motivation occurs when there are external stimuli that motivate
the employees like rewards or promotion. The human resource department
should strive to increase motivation amongst their employees by creating
positive stimulus and also by providing suitable training programmes,
workshops and interventions. This in turn will retain the employees as they
feel motivate to remain in the job and perform effectively. Also creating
challenging objectives and thatwhich match the potentialities of the
employees will also motivate them.
3) Training and career planning and development programmes: The

employees today seek development and training opportunities to enhance
their skills. Regular training programmes to enhance both technical skill as
well as behavior skills will not only make an employee effective performer
but also convince him/ her that the organisation is bothered and taking interest
in the individual development of the employee. Development is a long term
concept compared to training that can span for years. A suitable career
planning and development programme will be able to assure the employee
that he/ she has a bright future in the organisation.
4) Focus on succession planning: This aspect is in a way related to earlier

point where we spoke about training and career planning and development.
Succession planning in any organisation is an important aspect especially
at higher level positions. Under succession planning younger employees
are trained and prepared to take over the outgoing employees. This again
motivates the employees at the same time ensures their progression in the
organisation.
5) Handle employee grievances: Employees might experience certain

grievances with regard to their supervisors, colleagues or subordinates or
with regard to the facilities provided to them or varied aspect of the
organisation. There should be an avenue for expression of these grievances.
Open communication should be promoted in the organisation so that the
employee is able to discuss about his/ her problem freely rather than just
choose to quit.
6) Measures to reduce stress and dissatisfaction: Various activities and
programmes should be organised in order to help employees deal with their
35
Importance of HR Planning stress. Also the job should be made interesting and challenging enough for
the employee to be satisfied in doing it.
7) Generate Family involvement programmes: Any employees is to be
viewed froma dual dimension, that is, from his work point of view and
from him family point of view. Various programmes should be organised
that involves the family of the environment. Gettogethers, picnics and other
events can be regularly organised. Besides certain welfare activities for the
spouses and the children of the employees can also be organised.
8) Modify organisational culture: As discussed earlier organisational culture
is one important reason why an employee may leave the job. He/ she may
not find it comfortable and may not be able to adjust to it. On one hand the
employee should be helped to adjust to the new environment and culture
and on the other hand the organisational culture must be constantly assessed
in order to identify any problems and issues that arise within the organisation.
In case any problems are found with regard to the culture, suitable measures
should be taken to modify or change it.
9) Reward System: The reward system should be improved in order to make
it more lucrative in order to increase the motivation of the employees.
Rewards can be monitory or non monitory like. Rewards can be given for
performance and contribution of the employee to achievement of the goals.
10) Improving employee morale: Employee morale can be improved by
creating a conducive and comfortable environment in the organisation that
encourages a positive feeling amongst the employees. Increased morale will
lead to development of organisational citizenship amongst the employees
that helps employee identify better with the organisation. This in turn will
discourage the employee to leave the job as he/ she feels satisfied in the
present job.
11) Providing effective leadership in the organisation: Leaders in the
organisation should be provided with suitable training with regard to
communication, leadership and interpersonal skills. They should be trained
to invoke trust of their employees and motivate them. A good leader will
help employee develop and contribute his/ her best to the organisation. This
will also develop a positive feeling amongst the employees.
12) Employee Counselling: Counselling should be made available in
organisations in order to help employees deal with their problems both
personal and work related. This will help the employees cope with their
problems and they will also feel that the organisation vales them.
1) Explain the relevance of retaining qualified and technical employees.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
36
2) Discuss any two strategies for retaining employees. Technical Personnel
............................................................................................................... Performance Appraisal)
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3.3 COMPETENCY MAPPING

Competency mapping may be described as a process of identifying the strengths
of an individual employee in order to understand his/ her potentialities.
Competency mapping is carried out by organisations to understand the strengths
of each employee in the organisation so that individual goals can be accordingly
assigned so as to make effective use of the competencies of the employees.
Competency mapping not only help organisations take stock of the nature of the
employees in the organisation but also helps the individual employees understand
their own strengths and potentialities.
Under competency mapping an organisation may focus on various aspects of an

employee from technical skills to behavioural skills like communication, team
work, leadership, interpersonal leadership etc. to adjustment and potentiality of
the employee to work under stressful situation. The organisation may also look
for creativity and innovations as strengths of an employee. This will also depend
on the nature of job and position of the employee. The competency mapping
may be carried out for various reasons from performance appraisal, succession
planning to develop suitable strategies in order to make optimum use of the
strengths of each employee. Competency mapping can be used at the time of
recruitment, succession planning, to identify developmental and training needs
of the employees and promotions.
Some of the most common steps involved in the process of competency mapping
are as follows:
1) The employees in the organisation may be asked to fill up a questionnaire

in order get an idea about their present work activity and abilities and skills
required to perform that work activity in much better manner. In short job
analysis is conducted in order get an idea about the present activity of the
employee.
2) Once the questionnaires are filled by all the employees then on the basis of
job description a competency is created and put forth in front of the human
resource department for agreement and additions.
3) In the final step mapping of an employee’s abilities to the benchmarks is

carried out and further strategies are accordingly decided.
Critical Incident Analysis and Repertory Grid are two techniques that can be
used in competency mapping. Under Critical Incident Analysis, as the name
suggests the employees are to report about certain incidents that bring forth the
37
Importance of HR Planning exemplary behaviour of the employee. The basic assumption is that the employee
will display best or worst of his/ her behaviour during the crisis. For example,
the behaviour of an employee during an accident or during a conflict between
his subordinates. This will give an idea whether the person was able to perform
under pressure, about the decisions he/she took and about problem solving skills
employed by him/ her.
Under repertory grid, the important attributes of an employee are identified.

Then for each attribute a bipolar scale is created with differentiable characteristics
and their opposites.
Thus competency mapping can be of great help in understanding the employee

and ensuring their individual development at the same time overall development

1) Explain the concept of competency mapping.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Discuss the steps involved in competency mapping.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3.4 PERFORMANCE APPRAISAL

Performance appraisal refers to various procedures and methods that may be
used in order to evaluate the performance of an employee in an organisation.
Performance appraisal may be informal or formal. An informal performance
appraisal is one that is carried out on regular basis by the immediate supervisor.
This can be very effective as the immediate supervisor can keep track of the
performance of the employee on the regular basis and can report any
shortcomings. Also such an appraisal is cost effective and the feedback is instantly
received by the employee with regard to his performance. On the other hand
formal performance appraisal is carried out the organisation once in six months
or in a year depending on the policy, size and nature of the organisation. An
elaborate procedure may be involved in this along with participant of a number
of employees. A considerable financial investment is also required. This kind of
appraisal may be conducted by the human resource department in the organisation
or by an external consultant or an assessment centre.
38
3.4.1 The Process of Performance Appraisal Retention of Qualified and
Technical Personnel
1) Selection of performance factors and setting of the standards to be (Competency Mapping and
Performance Appraisal)
achieved: In order for an employee to perform he/ she should first have
clear idea about the goals and objectives that he/ she have to achieve. Thus
the employees should not only be aware about the goals he/ she have to
achieved but should also be informed about the necessary performance
factors and standards to be achieved by them.
2) Setting the period for performance appraisal: The period during which
the whole process of performance appraisal shall take place has to be notified.
This will not only help the appraiser plan ahead of time. But the employees
will be prepared for the process of appraisal.
3) Selecting the method for performance appraisal setting the stage for
performance appraisal to be carried out: we will discuss various methods
of performance appraisal later in this unit. One or more of these methods
have to be selected based on the size and nature of the organisational and
also the financial budget available for carrying out the appraisal.
4) Measuring the performance of the employees: With all the above

preparation in place, the actual performance of the employee is then assessed
and recorded. Suitable instructions and training is also provided to the
appraisers
5) Communication of the results of performance appraisal or giving

feedback: The results obtained are then communicated to the employees in
a systematic manner.
6) Application of the results of performance appraisal: The results are also

further utilised to develop suitable intervention strategies.
3.4.2 Benefits of Performance Appraisal

1) The employee becomes better aware about his/her own self, about his/ her
performance, strengths and weaknesses. Necessary steps or measure can
then be taken by him/ her in order to enhance the strengths and deal with
weaknesses.
2) The employee also develops a better understanding of his/ her role in the
organisation and the expectations from him/ her. Thus he/ she can plan
about the ways these expectations may be met.
3) Performance appraisal can lead to high motivation, better job satisfaction
and self concept.
4) It also provides the employees and their immediate supervisors an
opportunity to discuss the work related problems and ways to overcome
them.
5) It also provides a platform for the employees to express and discuss their
aspiration and career goals.
6) The organisations benefit from performance appraisal as they can identify
the strengths and weaknesses of their employees. And on the basis of
39
Importance of HR Planning performance appraisal results decision may be taken with regard to
promotions, demotions and transfers in the organisation.
7) Suitable training and career development programmes can be organised by
the human resource department based on the results of the performance
appraisal.
8) With suitable feedback conveyed to the employees, the result of performance

appraisal can be improved performance in the organisation.
3.4.3 Constraints Experienced During Performance Appraisal

We discussed about the benefits of performance appraisal and realise how it is
an important aspect of any organisation. One of the most important functions of
training and development may be based on the results of the performance
appraisal. However care has to be taken with regard to implementation of
performance appraisal as certain constraints may be faced while doing so. The
constraints face may be discussed as follows:
1) Negative organisational culture that does not value performance appraisal
and does not suitable promote giving and receiving of feedback. A negative
attitude towards performance appraisals may be as a result of unfair
performance appraisal in the past or due to lack of seriousness about the
process on the part of the management.
2) Lack of willingness on the part of the employees may also lead to failure of
the performance appraisal process. An employee may worry about negative
feedback and criticisms that he/ she may receive as a result of performance
appraisal and hence will resist the whole process or will not commit to it
thoroughly.
3) Apprehensions about the use of performance appraisal outcomes. Many
employees may resist performance appraisal because they are worried about
the outcome. They may feel that on the basis of the appraisal they may be
demoted or may loose the job.
4) Lack of proper procedure in implementation of performance appraisal will
also interfere with whole process. Adequate planning is required at the same
time fair means are to be adopted while the appraisal is conducted.
5) Role and goal ambiguity are other aspects that may lead to failure of
performance appraisal. In order for an employee to perform, he/she should
have clear idea about the role they have to play and about the goals they
have to achieve. Only then can the performance appraisal will effectively
measure the performance of theemployee.
6) Lack of linkage between performance appraisal and the reward system can
also lead to failure of performance appraisal. It is important that there is a
link between the performance appraisal and reward system. As per the leval
of performance of the employee he/ she should be adequately rewarded. In
absence of such a link, performance appraisal is meaning less and will fail
to motivate employees to achieve their set goals.
7) Low motivation to perform at the same to participate in the performance
appraisal process is another reason that contributes to an unsuccessful
40 performance appraisal.
3.4.4 Methods of Performance Appraisals Retention of Qualified and
Technical Personnel
Varied methods of performance appraisal can be utilised in an organisational (Competency Mapping and
Performance Appraisal)
setup depending on the nature, financial status and size of the organisation.
Mamoria, Gankar and Pareek (2004) various traditional and modern methods of
performance appraisal. These can be discussed as follows:
A) Traditional Methods
1) Straight ranking method: This is one of the oldest and simplest methods
of performance appraisal. Under this method, all the employees are compared
with each other and ranked. The performance of an employee is not
considered, but the employee is perceived as a whole and is compared to
other employees. Numerical ranks are assigned to each employee.
2) Paired comparison technique: Under this technique each employee is

compared to another employee in pairs on each trait. Rank is then assigned
to each employee. Though the judgement in this case is easier than that in
the previous method, it is a tedious job when a large number of employees
are involved.
3) Man to Man comparison method: Under this method, a scale of a man is

created for various factors like leadership, communication, honesty,
hardworking etc. and then each employee is compared with this scale. Thus
the employees are not compared to each other but are compared to a key
man with regard to one factor at a time. However designing of such a scale
is a challenging job.
4) Grading: In this method, certain categories are first established and defined,
like dependability, hardworking, cooperativeness etc. and then employees
are graded on the basis of these categories as per his/ her performance.
Grades in terms of A- Excellent, B- Good, C- Average, D- Poor, E- Very
poor may be provided to the employees.
5) Forced choice description method: In this method certain phrases in sets

are used and then the immediate superior has to choose one of the phrases
that closely describes the employee. For example:
Under pressure:
a) The person is able to manage pressure and function at his/ her best
b) Seeks help and support of others
c) Performance reduces drastically
d) Experiences stress and tries to avoid work
The supervisor is then to select from the above phrases that optimally
describes the employee. However a lot of personal bias can interfere with
this method. Also trained technicians are required to develop the statements
for each occupational group.
6) Check lists: Under this method, a series of questions or statements are

created and the appraiser has to answer either yes or no.
41
Importance of HR Planning 7) Free form essay method: This can be termed as an open ended appraisal
as the immediate supervisor is free to write about the subordinate in an
essay form or in a descriptive manner. This is more of a qualitative approach
than quantitative. However a lot of subjectivity may be involved in this
method and there is no single criteria for evaluation.
The above were some of the traditional methods. There are various disadvantages
of using the traditional methods. Firstly, the manager or the immediate supervisor
needs to be provided with adequate training as to appraise the employees. Rater’s
bias may also interfere with the overall process of the appraisal. The appraiser’s
personality may also interfere as some appraisers are lenient and some are overly
strict in their appraisal. Also most of the traditional methods require a lot of
preparation in terms of creating scales and statements that might be time
consuming. Further they may not actually give a complete idea about the overall
performance of the employee as they focus more on the task of the personality of
the employee.
We will now discuss certain modern methods of performance appraisal that better
suited for most of the organisations and can be aptly implemented.
B) Modern Methods
1) Assessment centers: Assessment centres utilise multiple methods of
appraisal and multiple appraisers. It may involve an interview, a written
test, a group discussion or situational exercises. The appraisers may be the
higher level managers in the organisation. They evaluate each employee
and then a summary report is submitted. Assessment centers may be a part
of the organisation or may be an external agency that is hired for the purpose.
Besides performance appraisal the assessment centers can be used to conduct
recruitment and selection, develop training programmmes and plan human
resource activities. Assessment centers are effective as they provide complete
idea about a particular employee as multiple appraisers and multiple methods
are used. However it is time consuming especially when managers and
superiors from the organisation are involved, their work in the organisation
may suffer. Also they will need some training with regard to how the appraisal
is to be carried out. In case an external agency is appointed, it might become
a very costly affair. In order to successfully use assessment centers for
performance appraisal, it is necessary to mainly focus on the goals that are
clearly communicated to each employee, ensure commitment of not only
top management but employees at all level.
2) 360 Degree Performance Appraisal: In this method the appraisal of a

single person is created by his/ her superiors, subordinates and peers and
employee himself/ herself hence the name 360 degree. The data is then
collected from all the parties and suitable feedback is provided to the
employee. Self assessment also helps employee understand his/ her own
strengths and weaknesses in a better manner. However personal bias and
rivalry needs to be avoided during such an appraisal. The employees however
may not easily accept implementation of such a method in the organisation
as they might be worried about the negative feedback especially from their
subordinates and peers. Suitable communication, clarification and training
with regard to the process of this method may help its smooth and effective
implementation.
42
3) Management by Objectives: The method was introduced by Peter Drucker Retention of Qualified and
Technical Personnel
and is one of the most effective methods of performance appraisal. In this
method based on the organisational goal, goals are created for each Performance Appraisal)
department in the organisation and based on the departmental goals and the
potentiality of individual employee in the department; individual goals are
created for each employee after a discussion between the employee and the
superior. These employees are then supervised for their progress towards
the goal and suitable help and support is provided in case any problem or
obstacle is faced by the employee so as to help him/ her achieve the goal
assigned to him/ her. Suitable feedback is also provided to the employee
from time to time. A lot of interaction and discussion is promoted by this
method between the employee and the superior that enhances the overall
functioning of the department and in turn of the organisation. The superior
plays role of a coach, mentor and counselor. The main focus of this method
is goal setting besides participant and feedback. The method is termed
effective because it motivates the employees to perform better, conflicts
are reduced and participation increases, role and goal ambiguity is also
reduced considerably. A lot of planning is encouraged. Problems are solved
faster and in time that enhances achievement of goals. The performance
deficiencies of the employee are identified and measures can be taken to
rectify them during the process of goal achievement.
However, the method is time consuming and requires a great deal of

involvement and positive attitude on the part of the employees and the
superiors. However in long term the effects of this method are positive and
long lasting that influences that overall organisational culture and enhances
it for smooth functioning of the organisation.
4) Behaviourally Anchored Rating Scales (BARS): This again one of the

most effective methods of performance appraisal that involves five stages.
a) Firstly it is important to generate critical incidents. The employees

working on a particular job are asked to describe specific critical
incidents that can take place on the job and that call for effective
performance on the part of the employee.
b) These incidences are then categorized in to smaller sets of performance

dimensions. Each category is then defined.
c) Then a group of employees are given certain critical incidents and

asked to locate them as per the categories.
d) The group is then asked to rate the behaviour described in the incident
as to how effectively or ineffectively it represents performance on the
performance dimension.
e) The subsets of incidents are then used as behavior anchors.
Though the method is time consuming and expensive it is more accurate as it is

done by experts. Clear standards are utilised and suitable feedback is provided
43
1) Define performance appraisal.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2) Explain any one method of performance appraisal.
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
3.5 LET US SUM UP

In this unit we discussed three important aspects namely, (i) retaining qualified
and technical employees, (ii) competence mapping and (iii) performance
appraisal. These are three important functions that enhance the overall
development of human resource and lead to effective achievement of
organisational objectives. However, we have to remember that suitable planning
is required to be carried out before implementation of these strategies and
processes. In retaining qualified and technical employees, the reason for turn
over in the organisation needs to be identified first and then suitable intervention
may be applied. With regard to competency mapping and performance appraisal,
it is important to assess the present attitude of employees towards these two
processes and then plan accordingly about the method and application.
Thus the human resource managers should not only plan extensively before
carrying out these activities but also have a fore sight about possible problems,
like resistance from the employees etc. so that he/ she is in better position to
successfully implement these activities.

1) Write a note on retention of qualified and technical personnel.
2) Define competence mapping and describe the steps involved in its process.
3) Define performance appraisal and discuss its benefits.
4) Discuss any five traditional methods of performance appraisal.
5) Describe any two modern methods of performance appraisal.

44
3.7 SUGGESTED READINGS Technical Personnel
Bhatia, S.K. (1999). Principles and Techniques of Personnel Management/ Performance Appraisal)
Human Resource Management. New Delhi. Deep and Deep Publications Pvt.
Ltd. 2nd Edition
Bratton, J and Gold, J. (2003). Human Resource Management Theory and
Practice. New York. Plagrave Macmillan, 3rd Edition
Gankar, S.V; Mamoria, C. B and Pareek, U (2004). Personnel Management.
Delhi. Himalaya Publishing House.
Pattanayak, B. (2004). Human Resource Management. New Delhi. Prentice-
hall of India 2nd Edition.
Rao P.S. (2009). Personnel and Human Resource Management and Industrial
Relations. New Delhi. Himalaya Publishing House.
Rao P.S. (2010). Essentials of Human Resource Management and Industrial
Relations. New Delhi. Himalaya Publishing House.
45
UNIT 4 PLANNING INVESTMENT IN
DEVELOPMENT (INCLUDING
CORPORATE COUNSELING)
Structure
4.0 Introduction
4.1 Objectives
4.2 Human Resource Development (HRD)
4.2.1 Human Resource
4.2.3 Concept of Human Resource Development
4.3 Strategies of Human Resource Development
4.4 Designing a HRD Strategy
4.5 Planned Investments as an Innovative Technique in Human Resource
Development
4.6 Significance of Human Resource Development
4.7 Concerns of Human Resource Development
4.8 Corporate Counseling
4.8.1 Effective Counseling at the Corporate Level
4.8.2 Counseling, Coaching and Mentoring
4.9 Let Us Sum Up
4.0 INTRODUCTION
The previous units of this block have highlighted on the various aspects of human
resource planning. It is very much clear from the earlier discussions that human
resource planning is that back bone which has a significant contribution in the
production, progress as well as the achievements of the organisation. The present
unit tries to maintain the same decorum and highlights on the strategies of
planning investment which would ultimately lead to the development of human
resource of the organisation.
4.1 OBJECTIVES
• Discuss the concept of human resource development;
• Explain the strategies of human resource development; and
• Describe the concept of corporate counseling;
• Highlight various concerns and issues of the human resource development

process. ‘
46
Planning Investment in
4.2 HUMAN RESOURCE DEVELOPMENT (HRD) Development (Including
Corporate Counseling)
Human resource planning is an important part of human resource management
which ultimately helps in human resource development. The field of human
resource management is concerned with the human related activities within the
organisation which can help in the smooth functioning of the organisation, where
as human resource development mainly focuses on promoting learning and
development amongst the employees. The main focus here is the overall
development and enhancement of the human resource in the organisation.
Innovative techniques are developed to improve the work culture, so that the
employees are motivated to give in their best to the organisation. Organisations
are striving hard to readily accept the changes in this modern world and adopt
the latest human resources practices. Those who refuse to change are left behind.
So it is imperative to implement the latest human resource practices in the
organisation.
Before getting in to further details, you must first be clear with certain concepts:
4.2.1 Human Resource

No doubt we are very clear with this concept. But ever since, we would be
discussing aspects related to human resource, it becomes necessary to redefine
the concept. Human resources are those people that work for an organisation.
They are the people who have been selected according to the needs of the
organisation. They are those movable assets whose devotion and loyalty would
lead to the ultimate survival of the organisation. That is why organisations work
hard for the optimum utilisation of this reource in the best planned way. It is also
worth to mention that there are three important aspects of the human resources
to work efficiently in the organisation. First, it is necessary that the work force
is physically fit and is being considered in terms of the number of hours that they
devote as well as their health conditions. The second aspect refers to the
knowledge, dexterity, skills and potentials of the human resource. These qualities
should match with the requirements of the job. Thirdly, the attitude, behaviour,
outlook and mindset of the human resource should be as such they readily accept
the trends of organisational changes. Organisation can be successful only if it
takes care of all these aspects of its human resource.

The section or department of Human Resource Management is concerned with
how these people are managed within the organisational environment. However,
the term Human Resource Management (HRM) has come to mean more than
this because people are different from the other resources that work for an
organisation. People have thoughts and feelings, aspirations and needs. Therefore,
the human resource management refers to an approach which not only considers
the needs of the people or member of the organisation; it is equally concerned
with the needs of the organisation. It tries to synergize the demands of the
organisation with the supply of appropriate human resource to the organisation.
No two individuals are same natured. They have their own needs and aspirations.
It is the responsibility of the section of human resource management to find out
about the needs and aspirations of individual employees, for example through
the appraisal process and then creating the opportunities according to the needs
47
Importance of HR Planning of the organisation (e.g. through job enlargement) as well as skills of the
employees and also provide them a platform where the employees can improve
their performance as well as skills. Therefore, the human resource management
department tries to relate each and every aspect of the way in which the
organisation interacts with its people, e.g. by providing training and development
opportunities, appraisal to find out about individual needs, training and
development needs analysis, etc.
4.2.3 Concept of Human Resource Development

The department of human resource development of the organisation is concerned
with the progress of the existing human resource of the organisation. The
organisation continuously needs to upgrade its employees with the help of
training, counseling, appraising and several other activities in order to be at par
in this competitive world market. The human resource development thereby,
refers as a method or way out to increase the over all knowledge, values, skills,
attitudes and the commitment of employees and also the process of acquiring
skills required or expected to do the job.
The human resource development, also known as personnel development aims

at the all-around development of the members of the organisation. It is a part of
human resource management and is basically concerned with extracting the
hidden qualities and skills of the employees and to prepare them to carry out
newer jobs. An organisation pays special emphasis on the methods of human
resource development as it is the human resource which will ultimate be
responsible for the growth and prosperity of the organisation. The organisations
are well acquainted with the fact that mere increasing the morale and motivation
of the employees will not be sufficient; it is necessary to continuously train and
enhance the efficiency as well as potentials of the employees.

Fill in the blanks
i) Human resource planning ultimately helps in development of ________
____________ .
ii) The human resource development, also known as ________________
development.
iii) Human resource management refers to ________________________
_______________________________________________________ .
4.3 STRATEGIES OF HUMAN RESOURCE

DEVELOPMENT
Human resource strategies are a plan or frame work which describes how the
human resources of the organisation will be utilised with an equal effort on their
training and career development in order to meet both the individual as well as
organisational objectives.
As discussed earlier also that the human resource development is an organisation’s

framework or blue print which acts as a guideline in improving and developing
48
of the human capital. This framework includes any training, career development, Planning Investment in
Development (Including
evaluation feedback, or tuition assistance that facilitates the continual
improvement of employees. The methods of human resource development can
vary from the formal method of training of the employees through formal
classroom lecture method or as informal as the method of counseling and coaching
between supervisor and subordinate.
The strategies of human resource development help the employees to acquire

knowledge, develop competencies and skills and also to adapt to the changes
taking place at their work environment. These methods also provide feedback to
the organisation about the current status of the competencies and knowledge of
its employees. There are certain methods which equally emphasise on the
organisation. These strategies which are being used by the organisation to develop
their human resource can be pointed out as follows:
i) Training strategy: This is one of the plans with the help of which the
employees of the organisation are educated and trained about the changes
taking place within as well as outside the organisation. There are basically
two types of training that are given to the employees of the organisation –
on the job training (a type of training in which the employees are trained
within organisational environment e.g.– apprenticeship) and off the job
training ( a type of training program which is not imparted within the real
organisational environment, e.g.– training through lecture method).
ii) Cost reduction strategy: Organisations may pool or collect small amount
of savings or contribution from the employees of the organisation. This
helps in protecting the wages of the employees as and when required as
well as helps in maintaining the competitive strategy of the organisation.
iii) Entrepreneurship strategy: It is a strategy which tries to extract the hidden

potentials amongst employees. The organisation provides an opportunity to
its members to generate creative ideas and bring them in to reality with the
help of existing resource within the organisation. This helps in fostering
creativity and innovativeness in the products and services of the
organisations.
iv) Culture developing strategy: Organisations try hard to increase the

commitment and loyalty of its employees and check out that their norms
and values are equally shared by the members of the organisation. Their
culture can help in creating a brand name and this also leads to development
of interpersonal relationship amongst the members and create a healthy
working environment for them.
v) Performance Appraisal System: As discussed in the previous unit,

performance appraisal system is one of the significant ways of assessing
the efficiency of the employees of the organisation. On basis of the report
of the performance appraisal, persons’ qualities, potentials as well as
deficiencies can be studied. Later on, organisation can try out ways of
overcoming those deficiencies of its human resource with the help of proper
training and other facilities.
vi) Career Planning: The process of integrating the needs and aspirations of
the employees is known as career planning. In order to maintain a long-
49
Importance of HR Planning term efficiency of the organisation and develop its self renewing capability,
the organisation plans interventional programs with the help of organisational
consultants. Such interventions help the organisation to come up with
innovative solution of existing problems of itself as well as its human
resource. Therefore, the organisations plan career and impart training to its
members with the help of the organisational consultants for a better work
environment and enhanced competencies.
4.4 DESIGNING A HRD STRATEGY
Need Survey
Development
of a Mission
Statement
SWOT Analysis
HR Analysis
Implementation
and Evaluation
of Plans
Fig.4.1: Flow chart representation of the process of developing HRD Strategy

It is clear from the above discussion that for a smooth running of the processing
of human resource development depends upon several criteria. Human beings
are no machines who can be used as and when required. They are alive, emotional
and require continuous motivation, inspiration and change in and around their
work environment. Also change is an unavoidable aspect of the competitive
market. Under such conditions, training and developing the workforce may lead
to development of creativity and innovation amongst the members of the
organisation. But again such development of human resource requires a
preplanned strategy which can help in meeting the required result. Each
organisation formulates certain framework on basis of which it decides the best
human resource strategy which can help in upgrading and developing its work
50
force. Some of the common steps followed for planning and designing the best Planning Investment in
human resource strategy for the work force of the organisation can be pointed
out as follows:
i) Need Survey: It is necessary for an organisation to first assess the current

position of its employees and also the position which it desires to achieve
in the world market. For this purpose may hire a consultant or the top
management can itself survey and try to find out the present qualities and
the required potentials of the employees of the organisation.
ii) Developing a mission statement: On the basis of the need survey conducted
by the organisation, the consultant or the top management tries to create a
big picture of the current achievements and desired target. They need to be
futuristic oriented. On the basis a vision of tomorrow, they decide targets
and a mission for the organisation that they need to attain. They decide the
key areas which require a quick attention and needs to be modified or
changed within the specified time period.
iii) SWOT Analysis: Swot analysis refers to a process of analysing the strengths,
weakness, opportunities and threats of the planned mission and targets for
the organisation. It is necessary to examine whether the desired mission
will be useful and helpful in developing and standardizing the employees
as well as the organisation.
iv) HR Analysis: After having a deep study of the various aspects, the consultant
or the top management of the organisation now tries to study the potentials
and the deficits of the work force. It tries to assess what are the ways through
which the human resource can bring benefits to the organisation. It also
tries to examine which strategy can be used for the development of the
human resource according to the suitability of the organisation.
v) Implementation and Evaluation of plans: After deciding the suitability

of the planned strategy for the development of the human resource of the
organisation, the strategy is implemented upon the workforce. The workforce
on whom the strategy is being implemented may belong to a single or many
departments. Once, the plan is implemented, the planned targets and the
current achievements are compared and evaluated after a specific time period.
Such comparative evaluation helps the organisation to analyse whether the
strategy or the intervention was successful and whether it can be used again
within a similar situation or not.
4.5 PLANNED INVESTMENTS AS AN

INNOVATIVE TECHNIQUE IN HUMAN
RESOURCE DEVELOPMENT
In technical terms ‘investment’ refers to those entire plan which leads to saving
of capital. Savings are important assets both at individual level as well as
organisational level which can be used at emergency or required conditions.
Human capital is also significant assets or investment for an organisation. It is
this resource which helps the organisation to face all the risks (ups and down) of
the global market. For this purpose, the organisation tries out ways which can
51
Importance of HR Planning help in the development of the human resource. These ways are a sort of planned
investment which can help in the development of the human resource. Some of
the ways which serves as a planned investment in the development of the human
resource are:
i) Employee Leasing Organisation: Unlike the consultancy agencies, many

organisations are now providing their own employees to various
organisations according to their technical know how. They are the principal
employers and send the required number and kind of employees to various
organisations on lease basis. The organisations who utilise such services
need to pay some amount to the parent organisation. Such a technique, not
only provides financial help to the parent or principal organisation, it also
provides an opportunity to the employees to tackle several situations within
and outside the organisation. It helps them to understand the nature and
technical know how of more than one organisation at a single job. It is the
parent or the leasing organisation which provides full salary and other
benefits to the employees irrespective of the number of days that the
employee is sent to various organisations on lease. Such leasing organisations
are also useful to other organisations as well, because they get an opportunity
to utilise the expert advice and service of most competent human resources
of the leasing organisations.
ii) Participative Management: Several organisations have adopted the

technique of decentralisation of power and authority. Powers and
responsibilities are no more limited at central level; instead, it is shared by
the employees at all level within the organisation. The employees actively
participate with the management in taking important decisions. Such type
of management system is referred as participative management style which
helps the organisation to extract the hidden potentials of its human resource
in decision making situation. Employee’s participation in management was
initiated to satisfy workers’ psychological needs and this leads to
development of a sense of belongingness and loyalty to the organisation.
iii) Innovative Reward Plans: Employers have started the scheme of reward
and incentives which would be given to the employees for creativity and
innovation in their tasks. Organisations provide innovative reward plans
that recognize employee contributions and grant enhancements and
ultimately help the employees to develop on their skills. It also encourages
employees to develop competencies and skills in specific areas.
iv) Collaboration with Educational Institutions: With an aim of saving time

and resources in training the employees of the organisation, the organisations
are now collaborating with certain educational institutes. These institutes
train the students according to the needs of corporate world and help them
to meet the requirement of the organisation which not only helps the
organisation to save its time, money and energy, it also helps the individuals
to get trained right at the educational level. These institutes run several
degree and diploma program which .trains the individual according to the
demands of the job.
v) Organisational Interventions: Organisations are bringing changes in their

business strategies and human resource strategies in order to cope up with
52
the changes taking place in the competitive world. Such changes are taking Planning Investment in
place both at organisational level as well as individual level with the help
of training and interventional programs. The interventional program helps
the employees to learn, adapt and readily accept the changes taking place at
their work environment.
Thereby, it can be said that human resource management is a process of bringing

people and organisations together so that the goals of each other are met. For
this purpose, the mechanism of developing of the human resource plays a
significant role in the growth of the organisation. The role of HR manager is
shifting from that of a protector and screener to the role of a planner and change
agent.

State whether the statement are true or false
i) Several organisations have adopted the technique of ( )
centralisation of power and authority.
ii) Organisations are bringing changes in their business ( )
strategies and human resource strategies in order to
cope up with the changes taking place in the competitive
world.
iii) The process of integrating the needs and aspirations of ( )
the employees is known as career planning.
iv) Human capital is least significant assets or investment ( )
for an organisation.
4.6 SIGNIFICANCE OF HUMAN RESOURCE

DEVELOPMENT
The basic intentions of the human resource development are to gain a competitive
advantage in the marketplace and the world economy through a superior
workforce. An organisation’s workforce is the most influential and valuable asset
toward achieving a company’s short-term and long-term goals. Therefore, with
the help of the process of human resource development, an organisation can
enhance the employees’ knowledge, competencies, skills, and abilities. The
methods of human resource development also helps in gaining knowledge and
technical know how in specific areas. It further helps in enhancing personal and
organisational skills that can improve the communication and efficiency of the
organisation. The strategies of human resource development also help in career
development of the human capital. It is the ultimate source of organisational
development. With the development of skills of its employees an organisation
can improve team-building activities, the quality of work life, organisational
restructuring and reward system as well.
4.7 CONCERNS OF HUMAN RESOURCE

DEVELOPMENT
The process of human resource development is a very significant yet crucial
issue as it deals with the career and work life of the employees of the organisation.
53
Importance of HR Planning This is the reason why the human resource development activities and efforts
need to be carefully mapped out. Certain issues and concerns of the human
resource development process can be listed as follows:
i) The selected process or the strategy of human resource development should

be as such it provides opportunities and courses for individuals to develop
skills, knowledge and attitudes that help themselves to achieve personal
objectives.
ii) Organisation should actively change the strategies of human resource

development according to the changes implemented in their business plan.
If such changes are not implemented then this would hinder the alignment
of the human resource strategy and the business strategy of the organisation.
iii) It is the responsibility of the organisations that they encourage the employees
to widen their knowledge and readily accept the changes as well as training
programs as it will be beneficial in their career advancement also.
iv) There are many organisations who continue to manage their people as before.
This is to the detriment of the Human Resource function.
v) Training continues as on-going concerns of organisations. It has become a

national issue in many countries. It is a risk for the organisation to choose
the best training program which would be effective for the diverse work
force of the organisation.
vi) Still another issue that calls for attention in the process of human resource
development deals with the behaviour of the employee. It becomes very
difficult to terminate or dismiss the complex and under-performing
employees.
It is core responsibility of the organisation to effectively deal with the process of

human resource development and overcome from all the hurdles which may
prevent the organisation in making its position in the competitive market.
4.8 CORPORATE COUNSELING

The concern of human resource development in organisations has led to a new
term known as ‘people management’. The process of human resource
development has generated an increase awareness of people related issues at all
levels (for example – marketing, financial and so on) and hierarchies (for example-
boss, subordinate, vendors, customers and so on). Managing of people in all
circumstances has turned out to be very sensitive and crucial in the current
commercial and industrial management situation. This has led to an emergence
of counseling at corporate level.
Counseling may be defined as a process of interaction between two persons
(the counselor and the client) which guides a person to tackle his/her own
emotions and feelings. It helps an individual to gain an insight and understanding
of what ought to be his values and aspirations in life. It enables them to tackle
stressful situations both at home and work environment as well. The objective
of the process of counseling is to make people more self-reliant and -confident,
more independent and in control of themselves. It is like a person looking at a
54 mirror to confirm what he must do to improve his image.
Organisations manage people who although work together with a common Planning Investment in
objective but are heterogeneous in nature, be it age, sex, educational qualifications
or experience. Further, in order to be at par with the competitive market,
organisations have also started changing their structures. Some companies have
already transformed their pyramidal structures into a flat organisation to focus
on their front-line staff. If such a radical shift in balance of power and authority
must succeed, front-line employees need to be empowered and counseled, so
that they may fulfill the revised parameters of performance expected of them.
Such conditions have led to the emergence of counseling at the corporate level
by the counselors. The counselors are hired or appointed by the organisations
who are technical experts in dealing with people and help them in effective
people management.
In the corporate context, the process of counseling addresses the basic issue of
inspiring confidence and imparting competence to the people in the front of the
business field. It helps in resolving the issues and problems of the employees
then and there which helps an organisation to save time, effort, money and energy.
The counselor can help the employees to recognise opportunities, deal with
changes, resolve problems, prioritize agenda, and make decisions. They help
the employees in finding out the real cause of the problems or the current situation
and then resolve such issues. The problems may be personal ( related to family
and home) or work environment (difficulties in dealing with boss, subordinate,
co-workers or peers).Since such issues are likely to impact upon the effectiveness
and productivity of the employee as well as the organisation. Also, the process
of counseling at corporate helps to deal employees who are very emotional in
nature. The demands of the organisational role may suppress the present feelings
and emotions of the employees. Repressed emotions, however, lead to blocks in
creativity, productivity, and self-development.
4.8.1 Effective Counseling at the Corporate Level

Corporate world are trying out ways to effectively manage their human resource,
corporate counseling is a part of those ways which also helps in the process of
development of the human resource. In such situations an effective counseling
can be beneficial for the organisation as well as its employees. Some of the ways
of effective counseling are as follows:
i) A counselor needs to be a good listener. He or she should have the capacity
to listen to each and every aspect of the employees of the organisation.
ii) A counselor should also be capable of reading body language, observing
the way things are being said, watching the tone/timbre/inflexion of voice,
and the intensity of communication. Body language is far more significant
than mere vocabulary.
iii) A counselor needs to have empathy with the client employee. Empathy
refers to trying to understand the other feelings by putting themselves in to
others’ shoes.
iv) A counselor needs to study and summarize the over all context before
suggesting remedies to the problems.
v) A counselor should help the employee to identify and modify any
dysfunctional aspects in his mode of thinking and behaviour.
vi) It is also essential to establish a proper environment and climate before
starting the processing of counseling. 55
Importance of HR Planning 4.8.2 Counseling, Coaching and Mentoring
It is important that counseling is not confused with coaching, or mentoring.
Coaching is an intensive form of personal development of the employee. The
objective of coaching is to enable the employees to realise the latent talents, and
arrive at a fresh sense of his/her ‘self’. Coaching is not remedial as it is clearly
focused on the future performance of the executive. It deals with new
opportunities lying ahead. Whereas, counseling refers to a process of analysing
the present and past problems of the employees and suggest certain remedies or
solutions to overcome them
Mentoring is more an advisory and career-oriented interaction, between an

employee and a more senior person, either from the same organisation or the
same profession. It is “an off-line help by one person to another, in making
significant transitions in knowledge, work, or thinking.”

Fill in the blanks
i) Counseling refers to _______________________________________
_______________________________________________________ .
ii) A counselor needs to be a good ______________________________
______________________________________________________ .
iii) Coaching refers to ________________________________________
______________________________________________________ .
iv) Mentoring refers to _______________________________________
______________________________________________________ .
4.9 LET US SUM UP

It can be summed up from the above discussions that human resource
development is a very important and sensitive aspect of managing the human
resource in the organisations. The process of human resource development leads
to the enhancement of potentials, skills, knowledge and technical know how of
the employees of the organisation. It is a preplanned process in which the strategy
which would be used for developing human resource is decided on basis of the
need survey. There are various strategies or methods which can be used by the
organisation for developing its existing human resource. It can also be concluded
that corporate counseling is an important mechanism which helps the employees
to tackle their problems. In a way it is also one of the strategy which helps in the
self growth of the human resource of the organisation.

1) Describe the concept of human resource and human resource development?
2) What are the steps of designing a HRD strategy? Explain the different types
of strategies of human resource development?
3) What do you understand by the term-corporate counseling? What are the
56 ways through which corporate counseling can be handled effectively?
4) How can you say that human resource development is a planned investment? Planning Investment in
5) Explain the various concerns and issues of the human resource development. Corporate Counseling)

Performance. Wiley
Wiley
References
201-230
51-64
57
Importance of HR Planning Sanchez, J. I., &. Levine, E. L. (2009). What is (or should be) the difference
Management Review, 19, 53–63
Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods
findings. Psychological Bulletin, 124, 262-274
Websites
http://www.strategic-human-resource.com/human-resources-current-issues.html
http://www.squidoo.com/corporatecounselling
http://www.window2india.com/cms/admin/article.jsp?aid=993
www.Headhonchos.com
www.rapidsoutheast.ie
http://www.ehow.com/about_5465954_methods-hrd.html
www.traintracksoftware.com
http://www.ehow.com/about_5465954_methods-hrd.html#ixzz1UPJUxtXY
http://www.niscair.res.in/aboutus/AnnRep07/ETTD.pdf
http://www.articlesbase.com/human-resources-articles/new-techniques-in-
human-resource-management-1649403.html
http://www.businessihub.com/human-resource-development-hrd/
http://www.thetimes100.co.uk/theory/theory—human-resources-planning—
417.php#ixzz1TqARB3sP
www.apihealthcare.com
http://www.authorstream.com/Presentation/richadinker-85389-human-resource-
development-strategies-hrd-strategy-design-types-business-finance-ppt-
powerpoint/
http://www.businessihub.com/human-resource-development-hrd/
http://www.thehindubusinessline.in/2004/09/17/stories/2004091700091100.htm
human-resource-management-1649403.html
www.mitsde.com
www.explorehr.org
www.mcmaster.ca/conted
human-resource-management-1649403.html#ixzz1UPL2iQLK
Under Creative Commons License: Attribution No Derivatives
http://www.thetimes100.co.uk/theory/theory—human-resources-planning—
417.php#ixzz1TqARB3sP
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Introduction of

UNIT 1 INTRODUCTION OF Organisational Psychology

1.2 WHAT IS AN ORGANISATION?

In the next section we will examine several ways of conceptualising an

1.3 ORGANISATIONAL METAPHORS

1.3.1 Organisations as Machines

1.3.3 Organisations as Brains

i) Functional redundancy: a kind of excess capacity, not by adding spare

iii) Minimum specifications: in addition to a capacity to evolve, systems also

1.3.4 Organisations as Cultures

1.3.5 Organisations as Political Systems

1.3.6 Organisations as Psychic Prisons

For example, a phenomenon that restricts thinking is groupthink (Janis, 1972).

1.3.7 Organisations as Flux and Transformation

1.3.8 Organisations as Instruments of Domination

This metaphor thus provides a useful counterweight to traditional organisational

These contrasting metaphors provide an interesting perspective on how to view

Self Assessment Questions

1.4 WHAT IS ORGANISATIONAL PSYCHOLOGY?

Organisational psychology may be defined as the “scientific study of individual

We have already discussed the historical development of the field of organisational

Table 1: A chronological summary of historical events in organisational

Organisational psychology gained prominence after World War II, influenced by

1.5 ORGANISATIONAL PSYCHOLOGY AND

Organisational psychology is also interested in macro-level processes, but only

According to Smithers (1988), “Whereas industrial and organisational psychology

1.6 SCOPE OF ORGANISATIONAL PSYCHOLOGY

Industrial Side Organisational Side

While industrial psychology is concerned with use of psychological measurement

Let us look at some of the topics covered in organisational psychology more

1.6.1 Work Motivation

1.6.2 Job Satisfaction, Organisational Commitment, and

Commitment refers to (a) a belief in and acceptance of organisation’s goals and

Organisational justice, a more recent addition to the field of organisational

1.6.4 Group behaviour

1.6.5 Work Stress

Organisation development is an ongoing, systematic process to implement

1.6.7 Productive and Counterproductive Behaviour

Counterproductive behaviour can be defined as employee behaviour that goes

1.6.8 Work-Life Balance

As you would’ve seen from the list of topics we cover in organisational

1.7 LET US SUM UP

Organisational psychology may be defined as a scientific field that studies

1.8 UNIT END QUESTIONS

Cybernetics : Science of communications and control in living

Metaphor : A figure of speech in which an implicit analogy is

Open system : Is one where there is a relation of dependence

1.10 SUGGESTED READINGS

Rollinson, D. & Broadfield, D. (2002). Organisational behaviour and analysis:

1.11 ANSWERS TO SELF ASSESSMENT

DEFINITION AND IMPORTANCE

2.2 THE FIELD OF ORGANISATIONAL

where P refers to personal characteristics and E represents the environment.

2.3 DEFINITION OF ORGANISATIONAL

“The field that seeks knowledge of behaviour in organisational settings by

It would be useful to describe three common key aspects of these definitions to

2.3.1 Systematic Study

OB is scientific because of the information and methodology it represents. Its

Concepts and theories in OB invariably arise out of extensive research. It is

2.3.2 Three Levels of Analysis: Individual, Group and

Level 1: Individual. Where the focus is on processes/phenomenon such as values,

Level 3: Organisation. The main concern here is the behaviour of an organisation

Fig. 1: Three Levels of Analysis used in Organisational Behaviour