You are on page 1of 35

Mod 5

The Dynamics of Organisation

Organisation Culture
It is the system of shared actions, values and beliefs that develops within an organization and guides the behavior of its members.

Basic elements of organisational culture

Assumptions. Believes. Values.


Dominant culture
A culture that express the core values that are shared by a majority of the organizations members.

Mini cultures within an organization, typically defined by department designations and geographical separation.

Characteristics of organisational culture

Innovation and risk taking. Attention to detail. Outcome orientation. People orientation. Team orientation. Aggressiveness. Stability.

Functions of culture
Differentiates among other organisations.

Conveys identity for organisations members.

Facilitates generation of commitment to something larger than ones self-interest. It enhances the stability of the social system. Shapes the attitudes and behaviour of employees.

Culture creation
Founders hire employees how think and feel as they do. Founder indoctrinate and socialize the employees to their way of thinking and feeling. Founders own behaviour acts as a role model that encourages employees to identify with them.

Three forces sustain culture

Selection practices. Top managements activities. Socialization.

Process of Socialization

Pre arrival





How employees learn culture

Stories Rituals Material symbols Language

Creating ethical culture

Be visible role model. Communicate ethical expectations. Provide ethical training. Visibly reward ethical acts and punish unethical acts. Provide protective mechanism.

Cause and effect relation.

Bike example.

Change Management
Organisational change refers to modification or transformation of the organizations structure, processes or goods. Change may be due to internal or external.

Nature of change
It involves learning new and unlearning already well integrated into the personality and social relationships of the individual. No change will occur unless there is motivations to change. Organisational changes in authority structures, process and systems occur through key individuals in organisation.

Change involves altering attitudes, values, and behaviour. Change is multistage process, a cycle of behavioural modification. Change is initiated by some kind of disorganising pressure. Change rarely takes place smoothly. Change is human as well as technical problem.

Causes of change
Change in tools, machines and equipment. Change in methods and procedures. Change in business conditions. Change in managerial personnel. Change in formal organization structure. Change in informal organization. Deficiencies in existing organization. Technological change etc.

Resistance to change
Individual resistance:
Economic reason:
Fear of technological unemployment. Fear to reduced work hours consequently less pay. Fear of demotion and thus reduced wages. Fear of speed-up and reduced incentives.

Fear of unknown.

Fear of loss.
Security. Status quo. Peer pressure. disruption of interpersonal relationship. Social displacement.

Resistance to change
Organisational resistance:
Resource constraints. Structural inertia. Sunk cost. Politics. Threat to expertise. Group inertia.

Causes for resistance to change by employees

Disturbance in existing equilibrium. Imbalance in need satisfaction. Insecurity to jobs. Fear of economic loss. Chance effects emotions and sentiments. Obsolescence of skills. Lack of classification etc.

Overcoming resistance to change

Education and communication. Participation. Building support and commitment. Implementing change fairly. Manipulation and co-optation. Selecting people who accept change. Coercion.

Lewins change model

Reducing forces for status quo

Developing attitudes, values and behaviours

Reinforcing new attitudes, values, and behaviours.

Examples of interactions between levels and degree of change

Level of change
Individual Group
Add new employee

Create new department Reduction of workforce Major restructuring of organization

Degree of change

Promotions Small Training for managers Change MD High

Merge groups


Disband work group

Organizational development
OD is concerned with planning and implementing of programmes designed to enhance the effectiveness with which organization functions and respond to change

Characteristics of OD
1. Humanistic Values 2. Systems Orientation 3. Experiential Learning 4. Problem Solving 5. Contingency Orientation 6. Change Agent 7. Levels of Interventions

Goals of OD
To improve the functioning of individuals, teams and the total organization, To teach organization members how to continuously improve their own functioning.

Diagnostic foundations of OD and OD techniques

Forces for change

Organizational diagnosis Feed back Identification of alternative strategies

OD Process
Measurement & evaluation Development of change strategy

Implementation of change strategy

OD Interventions/Techniques
Sensitivity Training. Team Building.

Inter-group Development.
Process Consultation. Survey Feedback.

Sensitivity Training
A method of changing behaviour through unstructured group interaction.

Team Building
Activities that help team members learn how each member thinks and works.

Inter-group Development
Changing the attitudes, stereotypes and perceptions that work groups have about each other.

Process Consultation
An outside consultant helps the manager to understand how interpersonal processes are affecting the way work is being done.

Survey Feedback
A technique for assessing attitudes and perceptions. Identifying discrepancies in these and resolving the difference by using survey information in feedback groups.