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Master of Business Administration-MBA Semester 3 MU0002 Management and Organization Development - 2 Credits (Book ID: B1021) Assignment Set-

- 1 (30 Marks)
Q.1 Explain the characteristics of organization Development? ANS: Values of OD This model places human centered values above everything else. They are the engine of its 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 organizations who value these human attributes above all other quick fix benefits. Stephen Robbins(1986, p.461) expresses these human values more concisely as follows: a) The individual should be treated with respect and dignity. b) The organization climate should be characterized by trust, openness and support. c) Hierarchical authority and control are not regarded as effective mechanisms. d) Problems and conflicts should be confronted, and not disguised or avoided. e) People affected by change should be involved in its implementation. These values make OD a unique model and it will be shown later why it is the most suitable approach in resolving human afflictions and problems such as poverty alleviation. OD Approaches There are at least three planned change models that have been identified byCummings and Worley (1997) as shown in figure II below. The first and the second are principally different but the third one is an improved version of Action Research methodology which has taken centre stage in the 1990s to take care of the trend of emerging mega organizations, strategic alliances, mergers and public private partnerships. The improved version named the Contemporary Action Research model is of great interest to the workshop participants as it can be used to promote projects in both public and private organizations. Later in this paper it will be shown how it can be used to promote Poverty Reduction Strategies and gender main streaming in local government. The distinction between Lewins model and Action Research model is in the repetitive nature of action research. Lewins model is a once only intervention. Buchanan and Huczynski, (1997) give seven steps that are followed in this intervention. 1. Scouting the initial stages of consultant and client exchanging ideas on the problem and the appropriate approach. 2. Entry contract is entered into to formalize the relationship of consultant and client. 3. Diagnosis information gathering to define the problem and identify causes. 4. Planning consultant and client members jointly establish the goals of an OD intervention and the proposed approach 5. Action the intervention strategies are implemented. 6. Stabilization and Evaluation the change is stabilized (freezing takes place)and the outcomes are assessed. 7. Termination The consultant withdraws from the assignment. The action research model differs in several particular ways with the Lewins model. In action research the outcomes are fed back so that further improvements and changes can be made. This distinguishes this model as a cyclical and iterative process. The research aspect connotes a search5for knowledge that may be used elsewhere. OD Toolkits The above outlined procedure is the process through which results area achieved but action research methodology has what are described as toolkits. These are used to address specific areas of problem. Once diagnosis is complete and the problem identified one or more of these kits or interventions are employed to solve the problem. Some of these include; process consultation, change the structure, survey feedback, team building, inter-group development, role negotiation and sensitivity training. These are just a number but action research allows flexibility for the consultant to formulate a package of his own interventions to suit the clients

6needs. Such flexibility was illustrated through an OD consultancy in a local government organization. Organizational Development Interventions The Existence of certain conditions in an organization which may be described as the internal environment is sometimes assumed. Those who have been in an organization for too long cease to be conscious of such an environment and probably only newcomers notice such conditions. Different interventions are used when a need arises to change those conditions. Some of those interventions which are mentioned above deserve further explanation here. Cultural Analysis This is perhaps one of the most complex change action. Corporate culture is there salt of long term social learning and constitutes of basic assumptions, values, norms and artifacts that have worked well in an organization. These are passed onto succeeding generations of employees (Cummings and Worley, 1997). Some of these may have arisen from the principles of the founder and subsequently reinforced by succeeding top hierarchies of the organization. They may have an emphasis on product quality, customer care or employee relations. When problems arise the first question which would arise is how do we do things here? The answer will inform the type of solution that emerges. Therefore the organizational culture influences organizational strategy, performance and policies. To change organizational culture may be a traumatic experience and will require careful analysis and handling. Such is the trauma that was experienced by American companies in the 1980s when they adopted the Japanese approach which was influence by a strong organizational culture of employee participation, open communication, Security and equality. Process Consultation People conceive consultation as that situation where an expert is invited to advise an organization that is experiencing a problem. Edger Schein, (1998) has distinguished three types of consultations as; the expertise model, the doctor patient model and the process consultation model. The first model assumes that the client purchases from the consultant some expert information or service that he is unable to provide for himself. In the doctor patient model involves an activity similar to sickness diagnosis. The client who suspects or feels there is something wrong in the organization invites the doctor (consultant) to diagnose the organization so that he can advise on what is not right. The symptoms of the sickness may be low sales, employee instability or falling product quality. The doctor (consultant) diagnoses, prescribes and administers the cure. In this two models the knowledge and expertise remains with the expert and leaves the client fully dependent on the expert for future problems. OD advocates process consultation promoted by Schein who defines the process as: The creation of a relationship with the client that permits the client to perceive, understands, and act on the process events that occur in the clients internal and external environment in order to improve the situation as defined by the client (Schein, 1998, p.20) . Schein argues that both the expert and the doctor models are remedial models while as the process consultation model is both remedial and preventive. The purport of this model is to engage an external consultant on a flexible advisory capacity to work with the clients members in diagnosing the problems, planning the actions and finding the solutions together. This way the consultant helps the organizations individuals to understand internal problems and build capacity to identify appropriate problem solving action. The consultant need not be an expert in the problem at hand but his expertise is in facilitating a process that carries everybody in the search for solutions. This approach follows the rationale that the answers are with the people. So the only help required is leadership in diagnoses and in the process through the various stages. The purpose also is to ensure that once the consultant leaves the people have the capacity to solve the next round of problems. In the first two models the consultant will have to be recalled each time a new problem arises or an old one recurs. Structure Change This is an intervention that helps change the structure of an organization to make the work more interesting, challenging or productive. It may involve such activities as job enrichment, job enlargement, formation of autonomous work teams or business re engineering. Other actions may involve decentralization/centralization in an organization, flattening or extending of an organizations structure or even redesigning of focus from region to product or vice versa. Team Building Team work is vital to the functioning of modern organizations. Members of teams bring different strings to the group such as leader, investigator, motivator, finisher, clown, coordinator, thinker, negotiator or politician. These roles are used at different stages of production when such role play becomes essential in the groups work. Teams take over from hierarchical systems where individuals are assumed to know everything depending on their level in the authority ladder. This system denies the organization the cumulative advantage of skills and strengths indifferent individuals. Role Negotiation A misunderstanding between two individuals in an organization or group can affect its effectiveness. This is usually caused by lack of shared awareness, misunderstanding or lack of trust. This intervention helps to clarify individual perceptions and mutual expectations so that differences can be identified and reconciled or resolved. Q.3 Mr. Sunil is the General Manager of a textile company. He has to participate in the meeting with the board of directors of the company. He is expected to conduct the SWOT Analysis of the company. Help

him in preparing the question checklist to attain the required information about the companys Strength Weakness Opportunity and threat. Ans: Following are the checklist, Mr. Sunil has listed after conducting SWOT Analysis of his company A Mission is the purpose of the organization. Thus, planning begins with clearly def ining the mission of the organization. The mission statement is broad, summarizing what the organization do es. A m is s i on s t at em en t s hou ld be s hor t and sh ou ld be eas ily un der s t ood and ev er y employee should ideally be able to narrate it from memory. An explicit mission guides employees to work independently and yet collectively toward the realization of the organizations potential. The mission stat ement may be accompanied by an overarching statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. Conduct a situational or SWOT analysis A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is vital for the c r e a t i o n o f a n y s t r a t e g i c p l a n . T h e S W O T a n a l y s i s b e g i n s w i t h a s c a n of t h e e x t e r n a l envir onment. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. Sources of informat ion may include stakeholders like, customers (internal and external), suppliers, governments (local, state, federal,international), prof essional or trade associations (conventions and exhibit ions), journals andre ports (scientific, professional, and trade).SW OT analysis provides the assumptions and facts on which a plan will be based. Analyzing strengths and weaknesses comprises the internal assessment of the organization. For assessing the strengths of the organization the following questions are important: 1. What makes the organization distinctive? 2. How efficient is our manufacturing? 3. How skilled is our workforce? 4. What is our market share? 5. What financing is available? 6. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. What are the vulnerable areas of the organization that could be exploited? 2. Are the facilities outdated? 3. Is research and development adequate? 4. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. In which areas is the competition not meeting customer needs? 2. What are the possible new markets? 3. What is the strength of the economy? 4. Are our rivals weak? 5. What are the emerging technologies? 6. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. In which areas does the competition meet customer needs more effectively? 2. Are there new competitors? 3. Is there a shortage of resources? 4. Are market tastes changing? 5. What are the new regulations? 6. What substitute products exist? In general terms, the best strategy is one that fits the organizations strengths to opportunities in the environment. The SW OT analysis is used as a baseline for future improvement, as well as gap analysis. Comparing the organizat ion t o external benchmarks ( th e b es t pr ac t ic es ) is us ed t o ass es s current capabilit ies. Benchmarking systematically compares perf ormance measures such ase fficiency, effectiveness, or outcomes of an organizat ion against similar measures from other internal or external organizations. Set goals and objectives

Strat egic goals and obj ectives are developed to fill the gap between current capability and the m is s i on . Th ey ar e a lig n ed w it h t h e m is s i on and f or m t h e bas is f or t h e act i on pl an s of an organization. Objectives are also called performance goals. Generally, organizations have long-term objectives for factors such as, return on investment, earnings per share, etc. It also helps in setting minimum acceptable standards or common-sense minimums. Develop related strategies (tactical and operational) Tactical plans are based on the organizations strategic plan. In turn, operational plans are based on the organizat ions tactical plans. These ar e specific plans that are needed for each task or support ive act ivity comprising the whole. Strategic, tact ical, and operational planning must be accompanied by controls t o ensure proper implantation of the plans, necessary to maintain competitive advantage in the said market. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve thestrategic planning process. To develop an environmental monitoring procedure, short-term standards for key variables that will tend to validate and support the long-range estimates must be est ablished. Feedback is encouraged and incorporated to det ermine if goals and obj ectives are feasible. This review is used for the next planning cycle and review. Q.2 Explain Lewins three stage model of change process. Answer: Kurt Lewin introduced two ideas about change t hat have been influential since the 1940s. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. That is, the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. For example, we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces, with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. The production level tends to remain fairly constant because the field of forces remains fairly constant. Likewise, we can think of the level of morale in that plant as a resultant equilibrium point. Although morale may get a little better or a little worse on occasion, it generally hovers around some equilibrium point that is the resultant in a field of forces, some forces pushing toward higher morale and some pushing toward lower morale. With a technique called the force-field analysis, we can identify the major forces that make up the field of forces and then develop action plans for moving the equilibrium point in one direction or the other. This concept is useful for thinking about the dynamics of change situations. Lewins second idea was a model of the change process itself. He suggested that change is a three-stage process: Unfreezing the old behaviour (or situation), moving to new level of behaviour. Refreezing the behaviour at the new level. Change entails moving from one equilibrium point to another. Take the example of a man who smokes cigarettes and wants to quit. The three-stage model says he must first unfreeze the old behaviour of smoking, that is, believe that cigarette smoking is bad for him and that he should stop smoking. Next, he must move, that is, change his behaviour from being a smoker to being a non-smoker. Finally, the non-smoking behaviour must become permanent- non-smoking becomes the new Equilibrium point. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. Lewins three-stage model is a powerful tool for understanding change situations. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. Disconfirmation or lack of confirmation b. Creation of guilt or anxiety. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things, judge things, feel things, and react to things differently based on a new point of view obtained through a. Identifying with a new role model, mentor, etc. b. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. The total personality and self-concept. b. Significant relationships. I n st a ge 1, unfreezing, disconfirmation creat es pain and discomfort, which cause guilt and anxiety, which motivate the person to change. But unless the person f eels comfortable with dropping the old

behaviours and acquiring new ones, change will not occur. That is, the person must develop a sense of psychological safet y in order to replace the old behaviours with new behaviours. I n s t a g e 2 , m ov in g, t h e per s on un der g o es c og n it i v e r es t r uct ur in g. Th e p er s on ac q uir es inf ormat ion and evidence showing that the change is desirable and possible. This motivatingevidence is gained by, for example, identifying with ex-smokers and learning about the healthrisks of smoking. The primary task in stage 3, refreezing, is to integrate the new behaviours into the persons personality, and attitudes. That is, stabilizing the changes requires testing to see if they fit-fit with the individual, and fit with the individuals social surroundings. The phrase significant relationships refer to important people in the persons social environment-do these significant others approve of the changes? Another modification of Lewins model was proposed by Ronald Lippitt, Jeanne Watson, and Bruce Westley. They expanded the three-stage model into a sevenstage model representing the consulting process. Their seven stages are as follows: Phase 1: Developing a need for change. This phase corresponds to Lewins unfreezing phase. Phase 2: Establishing a change relationship. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. Phase 3: Clarifying or diagnosing the client systems problem. Phase 4: Examining alternative routes and goals; establishing goals and intentions of action. Phase 5: Transforming intentions into actual change efforts. Phases 3, 4, and 5 correspond row Lewins moving phase. Phase 6: Generalizing and stabilizing change. This phase corresponds to Lewins refreezing phase.