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ORGANIZATIONAL EFFECTIVENESS

Effectiveness was determined by factors such as production maximization, cost minimization, technological
excellence, etc. (F W Taylor)
Effectiveness is a function of clear Authority and discipline within an Organization (henry fayol)
OE means Meeting organizational objectives and Prevailing societal expectations in the Near future, adapting
and developing in the intermediate future, and surviving In the distant future.
APPROACHES TO MEASURING ORGANIZATIONAL EFFECTIVENESS

• Goal Approach: Effectiveness is the ability to excel at one or more output goals.
• Internal Process Approach: Effectiveness is the ability to excel at internal efficiency, coordination,
motivation, and employee satisfaction.
• System Resource Approach: Effectiveness is the ability to acquire scarce and valued resources from
the environment
• Constituency Approach: Effectiveness is the ability to satisfy multiple strategic constituencies both
within and outside the organization.
• Domain Approach: Effectiveness is the ability to excel in one or more among several domains as
selected by senior managers.
Factors affecting OE
1- Sensitivity training (it is the process of changing behavior with the help of interactions in an structured
group. The employees in a free and open environment discuss among themselves and learning task place
through serving and participation.)
2- Survey feedback (this method requires use of questionnaire for the identification of discrepancies within
the perception of members by arranging discussion about their perception and suggesting remedial
measures)
3- Process consultation (an external consultant assists the organization in terms of perceiving,
understanding and acting upon process events. The change managers modify the situation by taking
remedial steps)
4- Team building (there is in increasingly reliance in modern organization upon teams for the
accomplishment of work tasks. High interaction within group activities aids team building in increasing
the level of trust and openness within members of the team. The aim is to improve member’s effort that
will result in increase in the performance of the team.
5- Intergroup development (the objective of this method is to change the attitudes and perception of various
groups towards each other. Each group independently creates a list of its own preparation and the
preparation of other groups. The exchange of the list takes place within the group after which there is a
discussion upon the similarities and differences. Thus, an effort is made to resolve the differences and
reach the stage of integration. As a result there is an improvement in the relations within the groups.)
6- Innovation (application of a novel idea to initiate or improve a product process or service. The OE
depends to a great extend upon in its innovativeness. That can be develop in a all the functional areas of
management)
Organizational climate
Meaning and Definition:
Before understanding the meaning of organizational climate, we must first understand the concept of climate.
“Climate in natural sense is referred to as the average course or condition of the weather at a place over a period
of years as exhibited by temperature, wind, velocity and precipitation.”
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However, it is quite difficult to define organizational climate incorporating the characteristics of natural climate.
This is so because the most frustrating feature of an attempt to deal with situational variables in a model of
management performance is the enormous complexity of the management itself. People have defined
organizational climate on the basis of its potential properties. A few important definitions are as given below.
According to Forehand and Gilmer, “Climate consists of a set of characteristics that describe an organization,
distinguish it from other organizations are relatively enduring over time and influence the behavior of people in
it.”
According to Campbell, “Organizational climate can be defined as a set of attributes specific to a particular
organization that may be induced from the way that organization deals with its members and its environment.
For the individual members within the organization, climate takes the form of a set of attitudes and experiences
which describe the organization in terms of both static characteristics (such as degree of autonomy) and
behavior outcome and outcome- outcome contingencies.”
Thus, organizational climate is a relatively enduring quality of the internal environment that is experienced by
its members, influences their behavior and can be described in terms of the value of a particular set of
characteristics of the organization. It may be possible to have as many climates as there are people in the
organization when considered collectively, the actions of the individuals become more meaningful for viewing
the total impact upon the climate and determining the stability of the work environment. The climate should be
viewed from a total system perspective. While there may be differences in climates within departments these
will be integrated to a certain extent to denote overall organizational climate.
Characteristics of Organizational Climate:
1. General Perception:
Organizational climate is a general expression of what the organization is. It is the summary perception which
people have about the organization. It conveys the impressions people have of the organizational internal
environment within which they work.
2. Abstract and Intangible Concept:
Organizational climate is a qualitative concept. It is very difficult to explain the components of organizational
climate in quantitative or measurable units.
3. Unique and District Identity:
Organizational climate gives a distinct identity to the organization. It explains how one organization is different
from other organizations.
4. Enduring Quality:
Organizational climate built up over a period of time. It represents a relatively enduring quality of the internal
environment that is experienced by the organizational members.
5. Multi-Dimensional Concept:
Organizational climate is a multi- dimensional concept. The various dimensions of the organizational climate
are individual autonomy, authority structure, leadership style, pattern of communication, degree of conflicts and
cooperation etc.
Factors Influencing Organizational Climate:
Organizational climate is a manifestation of the attitudes of organizational members towards the organization.
Researchers have used the data relating to individual perception of organizational properties in identifying
organizational climate
1- Organizational structure (structure is a framework that establishes formal relationships and authorities
and functional responsibilities. The actual arrangements oh hierarchy effects the climate. Highly
decentralized structure results in sound climate when the mgt feels the necessity of high degree of inputs
to the total output.
2- Organizational context (if the company wedded to such a policy when it is effectively utilizing the
resources both human and non human. In that case one can say that the climate is good. The manpower
philosophy is generally expressed by rules regulations and policies. The point is that the reactions of the
employees and the degree to which they welcome and accept the managerial philosophy is very critical
to the development of sound and favorable organizational climate)
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3- Physical environment ( it includes the external conditions of the environment. The size and location of
the building in which an employee works, the size of place, the size of city all these effects the
organizational climate)
4- Process ( there are so many elements of the process which an organization follows to achieve its
objectives. The elements include communication, decision making innovation and leadership. In all
these process the relationship between employer and subordinates is visible and therefore the superior
cannot afford to ignore this visible interface)
5- System values and norms ( every organizations has a formal value system where certain kind of
behaviors are rewarded and encouraged and certain kinds of behavior forces an individual to formal
sanctions. The formal value system is communicated to employees through rules and policies.
Impact of Organizational Climate:
Organizational climate influences to a great extent the performance of the employees because it has a major
impact on motivation and job satisfaction of individual employees. Organizational climate determines the work
environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences
the efficiency of the employees, we can say that organizational climate is directly related to the efficiency and
performance of the employees.
The organizational climate can affect the human behavior in the organization through an impact on their
performance, satisfaction and attitudes. There are four mechanisms by which climate affects the behavior of the
employees.
1. Constraint System:
Organizational climate can operate as a constraint system in both the positive and negative sense. This can be
done by providing information to the employees about what kind of behavior will be rewarded, punished or
ignored. Thus, behavior can be influenced by varying degrees of rewards and punishments. Such a constraint
system would influence the behavior of those people who are most interested in those specific values which are
assigned to different behavioral outcomes.
2. Evaluation of Self and Others:
Organizational variables may affect behavior through evaluation of self and others. In this evaluation process
both the physiological and psychological variables will be associated. Such evaluation will affect the human
behavior.
3. By Acting as Stimuli:
Organizational factors can influence human behavior by acting as stimuli. As stimuli they influence individual’s
arousal level, which is a motivational variable directing human behavior. The level of arousal will directly
affect the level of activation and hence performance.
4. By Helping the Individual to Form a Perception:
Organizational factors influence the behavior by helping the individual in forming a perception of the
organization. The perception then influences behavior. Thus, good organizational climate is instrumental to
higher employee satisfaction, better human relations and higher productivity, the role of climate can be
explained with the help of the following figure.
Developing a Sound Organizational Climate:
To develop a sound organizational climate is a long term proposition. Organizational climate depends upon the
organizational behavior system. The organizational climate should represent the goals and philosophies of those
who join together to create the organization. The type of climate that an organization seeks is contingent upon
the type of people it has the type of technology, level of education and expect actions of people in it.
The following techniques are generally helpful in improving the climate of the organization:
1. Effective Communication System:
There should be a two way communication in the organization so that the employees know what is going on and
react to it. The manager can modify his decision on the basis of feedback received.
2. Concern for People:
The management should be interested in the human resource development. It should work for the welfare of
employees and an improvement in their working conditions. For developing a sound organizational climate, the
management should have show concern for the people.
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3. Participative Decision Making:

The management should involve the employees in decision making process, particularly those decisions which
are related to goal setting and affect them. Participative decision making will make the employees committed to
the organization and more cooperative also.
4. Change in Policies, Procedures and Rules:
The organizational climate can also be changed by making changes in the policies, procedures and rules. It is a
time consuming process but the changes will also be long lasting if the workers see the changes in policies,
procedures and rules as favorable to them.
5. Technological Changes:
Generally, the workers and employees resist any innovative changes. But where technological changes improve
the working conditions of the employees, the change will be easily accepted. Better climate will be there if the
management adopts innovative changes in consultation with the employees.
But all the above factors are contingent upon the assumptions of the nature of people in general. For example,
the ECONOMIC MAN is basically motivated by money and economic security and hence, economic factors
may be used to attract and motivate him. For a SOCIAL MAN positive social relations and interactions are a
must. Thus, the creation of a climate where happy family atmosphere prevails is appropriate for him. The self
actuating man seeks achievement, accomplishment and meaning in what he does. The organizational climate
with a certain degree of freedom is appropriate for him.
Thus, in order to build up a sound organizational climate, management must understand the people in the
organization. The importance must be given to what motivates people’s performance in general and building an
overall climate conducive to motivation, a keen insight into the individual in particular and tailoring a personal
approach to leadership and job design to which the man will respond with commitment. The different types of
people suggest that there cannot be any all purpose organizational climate.

Organizational culture
Organizational culture works a lot like this. Every company has its own unique personality, just like people do.
The unique personality of an organization is referred to as its culture. In groups of people who work together,
organizational culture is an invisible but powerful force that influences the behavior of the members of that
group. So, how do we define organizational culture?
Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people
behave in organizations. These shared values have a strong influence on the people in the organization and
dictate how they dress, act, and perform their jobs. Every organization develops and maintains a unique culture,
which provides guidelines and boundaries for the behavior of the members of the organization. Let's explore
what elements make up an organization's culture.
Organizational culture is composed of seven characteristics that range in priority from high to low. Every
organization has a distinct value for each of these characteristics, which, when combined, defines the
organization's unique culture. Members of organizations make judgments on the value their organization places
on these characteristics, and then adjust their behavior to match this perceived set of values. Let's examine each
of these seven characteristics.

Characteristics of Organizational Culture

The seven characteristics of organizational culture are:
1. Innovation (Risk Orientation) - Companies with cultures that place a high value on innovation
encourage their employees to take risks and innovate in the performance of their jobs. Companies with
cultures that place a low value on innovation expect their employees to do their jobs the same way that
they have been trained to do them, without looking for ways to improve their performance.
2. Attention to Detail (Precision Orientation) - This characteristic of organizational culture dictates the
degree to which employees are expected to be accurate in their work. A culture that places a high value
on attention to detail expects their employees to perform their work with precision. A culture that places
a low value on this characteristic does not.
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3. Emphasis on Outcome (Achievement Orientation) - Companies that focus on results, but not on how
the results are achieved, place a high emphasis on this value of organizational culture. A company that
instructs its sales force to do whatever it takes to get sales orders has a culture that places a high value
on the emphasis on outcome characteristic.
4. Emphasis on People (Fairness Orientation) - Companies that place a high value on this characteristic of
organizational culture place a great deal of importance on how their decisions will affect the people in
their organizations. For these companies, it is important to treat their employees with respect and
dignity.
5. Teamwork (Collaboration Orientation) - Companies that organize work activities around teams instead
of individuals place a high value on this characteristic of organizational culture. People who work for
these types of companies tend to have a positive relationship with their coworkers and managers.

Organizational power
Power is the ability to influence the behavior of others with or without resistance by using a variety of tactics to
push or prompt action.
Power is the ability to get things done. Those with power are able to influence the behavior of others to achieve
some goal or objective. Sometimes people resist attempts to make them do certain things, but an effective leader
is able to overcome that resistance. Although people sometimes regard power as evil or corrupt, power is a fact
of organizational life and in itself is neither good nor bad. Leaders can use power to benefit others or to
constrain them, to serve the organization's goals or to undermine them.
Another way to view power is as a resource that people use in relationships. When a leader influences
subordinates, it is called downward power. We can also think of this as someone having power over someone
else. On the other hand, subordinates can also exercise upward power by trying to influence the decisions of
their leader. Indeed, leaders depend on their teams to get things done and in that way are subject to the power of
team members.
The Six Sources of Power
Power comes from several sources, each of which has different effects on the targets of that power. Some derive
from individual characteristics; others draw on aspects of an organization's structure. Six types of power
are legitimate, referent, expert, reward, coercive, and informational.
1- Legitimate Power
Also called "positional power," this is the power individuals have from their role and status within an
organization. Legitimate power usually involves formal authority delegated to the holder of the position.
2- Referent Power
Referent power comes from the ability of individuals to attract others and build their loyalty. It is based on the
personality and interpersonal skills of the power holder. A person may be admired because of a specific
personal trait, such as charisma or likability, and these positive feelings become the basis for interpersonal
influence.
3- Expert Power
Expert power draws from a person's skills and knowledge and is especially potent when an organization has a
high need for them. Narrower than most sources of power, the power of an expert typically applies only in the
specific area of the person's expertise and credibility.
4- Reward Power
Reward power comes from the ability to confer valued material rewards or create other positive incentives. It
refers to the degree to which the individual can provide external motivation to others through benefits or gifts.
In an organization, this motivation may include promotions, increases in pay, or extra time off.
5- Coercive Power
Coercive power is the threat and application of sanctions and other negative consequences. These can
include direct punishment or the withholding of desired resources or rewards. Coercive power relies on fear to
induce compliance.
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6- Informational Power
Informational power comes from access to facts and knowledge that others find useful or valuable. That access
can indicate relationships with other power holders and convey status that creates a positive impression.
Informational power offers advantages in building credibility and rational persuasion. It may also serve as the
basis for beneficial exchanges with others who seek that information.
All of these sources and uses of power can be combined to achieve a single aim, and individuals can often draw
on more than one of them. In fact, the more sources of power to which a person has access, the greater the
individual's overall power and ability to get things done.
Power Tactics
People use a variety of power tactics to push or prompt others into action. We can group these tactics into three
categories: behavioral, rational, and structural.
Behavioral tactics can be soft or hard. Soft tactics take advantage of the relationship between person and the
target. These tactics are more direct and interpersonal and can involve collaboration or other social interaction.
Conversely, hard tactics are harsh, forceful, and direct and rely on concrete outcomes. However, they are not
necessarily more powerful than soft tactics. In many circumstances, fear of social exclusion can be a much
stronger motivator than some kind of physical punishment.
Rational tactics of influence make use of reasoning, logic, and objective judgment, whereas nonrational tactics
rely on emotionalism and subjectivity. Examples of each include bargaining and persuasion (rational) and
evasion and put downs (nonrational).
Structural tactics exploit aspects of the relationship between individual roles and positions. Bilateral tactics,
such as collaboration and negotiation, involve reciprocity on the parts of both the person influencing and the
target. Unilateral tactics, on the other hand, are enacted without any participation on the part of the target. These
tactics include disengagement and fait accompli. Political approaches, such as playing two against one, take yet
another approach to exert influence.
People tend to vary in their use of power tactics, with different types of people opting for different tactics. For
instance, interpersonally-oriented people tend to use soft tactics, while extroverts employ a greater variety of
power tactics than do introverts. Studies have shown that men tend to use bilateral and direct tactics, whereas
women tend to use unilateral and indirect tactics. People will also choose different tactics based on the group
situation and according to whom they are trying to influence. In the face of resistance, people are more likely to
shift from soft to hard tactics to achieve their aims.
Organizational politics
Workplace politics is also known by other names like office politics and organizational politics. It is the use
of power and social networking within an organization to achieve changes that benefit the organization or
individuals within it. Influence by individuals may serve personal interests without regard to their effect on the
organization itself. Some of the personal advantages may include access to tangible assets, or intangible benefits
such as status or pseudo-authority that influences the behavior of others. On the other hand, organizational
politics can increase efficiency, form interpersonal relationships, expedite change, and profit the organization
and its members simultaneous.
Both individuals and groups may engage in office politics which can be highly destructive, as people focus on
personal gains at the expense of the organization. "Self-serving political actions can negatively influence our
social groupings, cooperation, information sharing, and many other organizational functions." Thus, it is vital to
pay attention to organizational politics and create the right political landscape. "Politics is the lubricant that oils
your organization's internal gears." Office politics has also been described as "simply how power gets worked
out on a practical, day-to-day basis
Machiavellianism is "the employment of cunning and duplicity in statecraft or in general conduct". The word
comes from the Italian Renaissance diplomat and writer Niccolò Machiavelli, who wrote Il Principe (The
Prince), among other works. In modern psychology, Machiavellianism is one of the dark triad personalities,
characterized by a duplicitous interpersonal style, a cynical disregard for morality and a focus on self-
interest and personal gain.
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Conflict
Conflict can be defined as a disagreement between two or more individuals or groups, with each individual or
groups trying to gain acceptance of its view or objectives over others.
1. Conflict within the individual:
The conflict within the individual is usually value related, where role playing expected of the individual does
not conform with the values and beliefs held by the individual. For example, a secretary may have to lie on
instructions that her boss is not in the office to avoid an unwanted visitor or an unwanted telephone call.
This may cause a conflict within the mind of the secretary who may have developed an ethic of telling the truth.
Similarly, many Indians who are vegetarians and come to America and find it very hard to remain vegetarians
may question the necessity of the vegetarian philosophy thus causing a conflict in their minds.
In addition to these value conflicts, a person may be faced with a role conflict. For example, a telephone
operator may be advised and required to be polite to the customers by her supervisor, who may also complain
that she is spending too much time with her customers. This would cause a role conflict in her mind.
Similarly a police officer may be invited to his brother’s wedding where he may find that some guests are using
drugs which are against the law. It may cause conflict in his mind as to which role he should play – as of a
brother or as of a police officer. Conflict within an individual can also arise when a person has to choose
between two equally desirable alternatives or between two equally undesirable goals.
2. Interpersonal Conflict:
Interpersonal conflict involves conflict between two or more individuals and is probably the most common and
most recognized conflict. This may involve conflict between two managers who are competing for limited
capital and manpower resources.
This conflict can become further acute when the scarce resources cannot be shared and must be obtained.
Similarly, if there are two equally deserving professors and they are both up for promotion, but only one of
them can be promoted because of budget and positional constraints, then this could result in interpersonal
conflict between the two professors.
Another type of interpersonal conflict can relate to disagreements over goals and objectives of the organization.
For example, some members of a board of directors of a school may want to offer courses in sex education
while others may find this proposal morally offensive thus causing interpersonal conflict among the members of
the board.
Similarly a college or a university may have a policy of quality education so that only top quality students are
admitted while some members of the organizational board may propose “open admission” policy where all high
school graduates are to be considered for admission. Such a situation can cause conflicts among the members of
the governing board. In addition to conflicts over the nature and substance of goals and objectives, the conflicts
can also arise over the means for achieving these goals and objectives.
For example, two marketing managers may argue as to which promotional methods would result in higher sales.
These conflicts become highlighted when they are based upon opinions rather than facts. Facts are generally
indisputable, resulting in agreements. Opinions are highly personal and subjective and may provide for
disagreements and criticism.
These interpersonal conflicts are often the results of personality clashes. People with widely different
characteristics and attitudes are bound to have views and aims that are inconsistent with the views and aims of
others.
3. Conflict between the individual and the group:
As has been discussed before, all formal groups and informal groups have established certain norms of behavior
and operational standards which all members are expected to adhere to. An individual member may want to
remain within the group for social needs but may disagree with the group goals and the methods to achieve such
goals.
For example, in some restaurants, all tips are shared equally by all waiters and waitresses. Some particular
waitress who may be overly polite and efficient may feel that she deserves more, thus causing conflict between
her and the group. Similarly, if a group is going on strike for some reasons, some members of the group may not
agree with these reasons or simply may not be economically able to afford to go on strike, thus causing conflict
with the group.
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This conflict may also be between the manager and a group of subordinates or between the leader and the
followers. A manager may take a disciplinary action against a member of the group causing conflict with the
group and this may result in reduced productivity.
“Mutiny on the Bounty” is a classic example of rebellion of the crew of the ship against their leader, based upon
the treatment that the crew received at the hands of their leader. The conflict among the armed forces is taken so
seriously that the army must obey their commander even if the command is wrong and in conflict with what
others believe in.
4. Intergroup conflict:
An organization is an interlocking network of groups, departments, sections or work teams. The intergroup
conflicts are not so much personal in nature as they are due to factors inherent in the organizational structure.
For example, there is active and continuous conflict between the union and the management.
One of the most common conflict is between the line and the staff members of the organization. The line
managers may resent their dependence on staff for information and recommendations. The staff may resent their
inability to implement directly their own decisions and recommendations. This interdependence causes
intergroup conflict.
These inter-unit conflicts can also be caused by inconsistent rewards and differing performance criteria for
different units and groups. For example, sales people who depend upon their commission as a reward for their
efforts may promise their customers certain quantity of the product and delivery times which the production
department may find impossible to meet thus causing conflict between the two units.
Different functional groups within the organization may come into conflict with each other because of their
different specific objectives. There are some fundamental differences among different units of the organization
both in the structure as well as operations and processes and thus each unit develops its own organizational sub-
structure. These sub-structures according to Lawrence and Lorsch, differ in terms of (a) goal orientation which
can be highly specific for production but highly fluid for research and development, (b) time orientation which
is short run for sales and long run for research, (c) formality of structure which is highly informal for research
and highly formal in production and (d) supervisory style which may be more democratic in one area as
compared to another area.
A classic example of inter-unit conflict is between sales and production as described earlier. The sales
department is typically customer-oriented and wants to maintain high inventories for filling orders as they are
received which is a costly option as against the production department which is strongly concerned about cost
effectiveness requiring as little inventory of finished product at hand as possible.
Similarly, intergroup conflict may arise between day shift workers and night shift workers who might blame
each other for anything that goes wrong from missing tools to maintenance problems.
5. Inter-organizational conflict:
Conflict also occurs between organizations which are dependent upon each other in some way. This conflict
may be between buyer organizations and supplier organizations about quantity, quality and delivery times of
raw materials and other policy issues.
Such conflict could also be between unions and organizations employing their members, between government
agencies that regulate certain organizations and the organizations that are affected by them.
Conflict management
Conflict management is the process of limiting the negative aspects of conflict while increasing the positive
aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including
effectiveness or performance in organizational setting

Conflict Management Styles

Conflicts happen. How an employee responds and resolves conflict will limit or enable that employee's success.
Here are five conflict styles that a manager will follow according to Kenneth W. Thomas and Ralph H.
Kilmann:
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An accommodating manager is one who cooperates to a high degree. This may be at the manager's own
expense and actually work against that manager's own goals, objectives, and desired outcomes. This approach is
effective when the other person is the expert or has a better solution.
Avoiding an issue is one way a manager might attempt to resolve conflict. This type of conflict style does not
help the other staff members reach their goals and does not help the manager who is avoiding the issue and
cannot assertively pursue his or her own goals. However, this works well when the issue is trivial or when the
manager has no chance of winning.
Collaborating managers become partners or pair up with each other to achieve both of their goals in this style.
This is how managers break free of the win-lose paradigm and seek the win-win. This can be effective for
complex scenarios where managers need to find a novel solution.
Competing: This is the win-lose approach. A manager is acting in a very assertive way to achieve his or her
own goals without seeking to cooperate with other employees, and it may be at the expense of those other
employees. This approach may be appropriate for emergencies when time is of the essence.
Compromising: This is the lose-lose scenario where neither person or manager really achieves what they want.
This requires a moderate level of assertiveness and cooperation. It may be appropriate for scenarios where you
need a temporary solution or where both sides have equally important goals.
Conflict process
Stage 1: Potential Opposition or Incompatibility
The first step in the conflict process is the presence on conditions that create opportunities for conflict to
develop. These cause or create opportunities for organizational conflict to rise.
These three conditions causes conflict.
 Communications: Different words connotations, jargon insufficient exchange of information and noise
in communication channel are all antecedent conditions to conflict. Too much communication as well as
too little communication can lay the foundation for conflict.
 Structure: In this context the term structure is used to include variables such as size, degree of
specialization in the tasks assigned to group members, jurisdictional clarity, members/ goal
compatibility, leadership styles, reward systems and the degree of dependence between groups. The size
and specialization act as forces to stimulate conflict. The larger the group and the more specialized its
activities, the greater the likelihood of conflict. Tenure and conflict have been found to be inversely
related.
The potential for conflicts tends to be greatest when group members are younger and when turnover is
high. In defining where responsibility for action lies; the greater the ambiguity is the greater the
potential for conflict to surface. Such Jurisdictional ambiguity increases inter group fighting for control
or resources and territory.
 Personal Variables: Certain personality types- for example individuals who are highly authoritarian
and dogmatic- lead to potential conflict. Another reason for conflict is difference in value systems.
Value differences are the best explanations of diverse issues such as prejudice disagreements over one’s
contribution to the group and rewards one deserves.
Stage 2: Cognition and Personalization
Conflict must be perceived by the parties to it whether or not conflict exists is a perception issue. If no one is
aware of a conflict, then it is generally agreed that no conflict exists. Because conflict is perceives does not
mean that is personalized.
For e.g. ” A may be aware that B and A are in serious disagreements but it may not make A tense or nations and
it may have no effect whatsoever on A’s affection towards B” It is the felt level , when individuals become
emotionally involved that parties experience anxiety , tension or hostility. Stage2 is the place in the process
where the parties decide what the conflict is about and emotions plays a major role in shaping perception.

Stage 3: Intentions
Intentions are decisions to act in a given way intentions intervene between people’s perception and emotions
and their overt behavior.
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Using two dimensions cooperativeness (the degree to which one party attempts to satisfy the other party’s
concerns)and assertiveness (the degree to which one party attempts to satisfy his or her own concerns)- five
conflict handling intentions can be identified.
Intentions provide general guidelines for parties in a conflict situation. They define each party’s purpose. Yet
people intention is not fixed. During the course of conflict, they might change because of re-conceptualization
or because of an emotional reaction to the behavior of other party.
Stage 4: Behavior
This is a stage where conflict becomes visible. The behavior stage includes the statements, actions and reactions
made by the conflicting parties. These conflict behaviors are usually overt attempt to implement each party’s
intentions.
Stage 5: Outcomes
The action reaction interplay between the conflicting parties result in consequences. These outcomes may be
functional in that the conflict results in an improvement in the group’s performance, or dysfunctional in that it
hinders group performance.
Conflict is constructive when it improves the quality of decisions simulates creativity and innovations
encourages interest and curiosity among group members provides the medium through which problems can be
aired and tensions released and fosters an environment of self-evaluation and change.
Conflict is dysfunctional when uncontrolled opposition breeds discontent, which acts to dissolve common ties
and eventually leads to the destruction of the group. Among the more undesirable consequences are a retarding
of communication, reductions in group cohesiveness and subordination of group goals to the primacy of
infighting between members.
Negotiation
It is the most effective and practical technique to avoid conflicts and stress and is also known as bargaining.
It is the process of getting the best terms once the other side starts to act on their interest. It is the process by
which the involved parties or group resolve matters of dispute by holding discussions and coming to an
agreement which can be mutually agreed by them.
Distributive Negotiations
The term distributive means; there is a giving out; or the scattering of things. By its mere nature, there is a limit
or finite amount in the thing being distributed or divided amongst the people involved. Hence, this type of
negotiation is often referred to as 'The Fixed Pie'. There is only so much to go around, but the proportion to be
distributed is limited but also variable. How many times has somebody shouted out, 'Who wants the last piece of
pizza?' Everyone looks at each other, then the pizza slice, and two or more hands rush to grab it.
In the real world of negotiations, two parties face off with the goal of getting as much as possible. The seller
wants to go after the best price they can obtain, while the buyer wants to pay the lowest price to achieve the best
bargain. It's really just good old plain haggling, which is not all that much different from playing a tug of war.
A distributive negotiation usually involves people who have never had a previous interactive relationship, nor
are they likely to do so again in the near future. Simple everyday examples, would be when we're buying a car
or a house. Purchasing products or services are simple business examples where distributive bargaining is often
employed. Remember, even friends or business acquaintances can drive a hard bargain just as well as any
stranger.
Secondly, when we are dealing with someone unknown to us, and it's a one time only occurrence, we really
have no particular interest in forming a relationship with them, except for the purpose of the deal itself. We are
generally less concerned with how they perceive us, or how they might regard our reputation. Ours and
their interests are usually self serving.
Distributive Bargaining Basics
 Play your cards close to your chest - Give little or no information to the other side. The less they know
about our interests as to why we want to make the purchase, our preferences, or the point at which
we'd decline to deal, the better our position. Expressing eagerness or need, reveals a weakness which
could be exploited to our disadvantage.
 The opposite is equally true - Try to pry as much information from the other side. Any additional
information that we uncover can be used as leverage to negotiate a better deal.
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 The only thing you should ever tell - The only information we should ever reveal are those alternative
options, such as other sellers, which shows we are prepared to walk from the negotiation whenever it
suits us.
 Let them make the first offer - Whatever is used as the first offer will generally act as an anchor upon
which the rest of the negotiation will revolve. Try to get the other side to set the stage from which to
start.
 Be realistic - Being too greedy or too stingy will likely result in no agreement, so keep it real.
Integrative Negotiations
The word integrative means to join several parts into a whole. Conceptually, this implies some cooperation, or a
joining of forces to achieve something together. Usually involves a higher degree of trust and a forming of a
relationship. Both parties want to walk away feeling they've achieved something which has value by getting
what each wants. Ideally, it is a twofold process.
In the real world of business, the results often tilt in favour of one party over the other because, it's unlikely that
both parties will come to the table at even strength, when they begin the talks.
Nonetheless, there are many advantages to be gained by both parties, when they take a cooperative approach to
mutual problem solving. The process generally involves some form or combination of making value for
value concessions, in conjunction with creative problem solving. Generally, this form of negotiation is looking
down the road, to them forming a long term relationship to create mutual gain. It is often described as the win-
win scenario.
Integrative Negotiation Basics
 Multiple Issues - Integrative negotiations usually entails a multitude of issues to be negotiated, unlike
distributive negotiations which generally revolve around the price, or a single issue. In integrative
negotiations, each side wants to get something of value while trading something which has a lesser
value.
 Sharing - To fully understand each other's situation, both parties must realistically share as much
information as they can to understand the other's interests. You can't solve a problem without knowing
the parameters. Cooperation is essential.
 Problem Solving - Find solutions to each other's problems. If you can offer something of lesser value
which gives your counterpart something which they need, and this results in you realising your
objective, then you have integrated your problems into a positive solution.
 Bridge Building - More and more businesses are engaging in long term relationships. Relationships offer
greater security.
12 Principles of Negotiation ... Marvin Gottlieb and William J. Healy
1. The greatest failure in negotiation is failing to negotiate.
2. The most important person to know in a negotiation is yourself.
3. Everyone has power in a negotiation.
4. Single-issue bargaining leaves both parties unsatisfied.
5. Urgency drives decisions.
6. Agreement is the end; trading off is the means.
7. Even in a collaborative environment, best results are obtained by keeping the other party on a "need to
know" basis.
8. The value of something is always in the eye of the beholder.
9. Success in negotiation is directly related to the amount and kind of preparation preceding the
negotiation.
10. The ability to walk away or select another alternative to a negotiated agreement puts a negotiator in a
very strong position.
11. Even when two sides are far apart on major issues, there are always things they can agree upon.
12. Meaningful negotiation involves conflicts. The person who has a strong need to be liked, or who tends
to avoid conflict, is likely to be at a disadvantage.
Steps in negotiation
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1. Preparation and Planning

Before the start of negations one must be aware of conflict the history leading to the negotiation the
people involved and their perception of the conflict expectations from the negotiations etc.
2. Definition of Ground Rules
Once the planning and strategy is development one has to begin defining the ground rules and
procedures with the other party over the negotiation itself that will do the negotiation. Where will it take
place?
What time constrains, if any will apply? To what issues will negotiations be limited? Will there be a
specific procedure to follow in an impasse is reached? During this phase the parties will also exchange
their initial proposals or demands.
3. Clarification and Justification
When initial positions have been exchanged both the parties will explain amplify, clarify, bolster and
justify their original demands. This need not be confrontational.
Rather it is an opportunity for educating and informing each other on the issues why they are important
and how each arrived at their initial demands. This is the point where one party might want to provide
the other party with any documentation that helps support its position.
4. Bargaining and Problem Solving
The essence of the negotiation process is the actual give and take in trying to hash out an agreement. It is
here where concessions will undoubtedly need to be made by both parties.
5. Closure and Implementation
The final step in the negotiation process is formalization the agreement that has been worked out and
developing and procedures that are necessary for implementation and monitoring. For major
negotiations – this will require hammering out the specifics in a formal contract.
Negotiation Process has five stages. In all steps of negotiation process the involved parties bargain at a
systematic way to decide how to allocate scarce resources and maintain each other’s interest
Win win negotiation
Negotiation philosophy in which all parties to an agreement or deal stand to realize their fair share (not
100 percent) of the benefits or profit. We define a win/win negotiation, as an agreement that is equally
beneficial to everyone. All parties come out of a negotiation with a workable agreement that benefits everyone
involved. If your current negotiation strategies are not working for you, change your strategy. Think win/win
and let the other person know about it right away. Be up front and explain your strategy. Talk about the benefits
to both of you from this approach. This type of negotiation will produce a satisfactory agreement for both sides,
and in a style that will leave both parties satisfied. Win/Win Negotiation involves these seven steps:
1. UNDERSTANDING PEOPLE - People negotiate with people. Getting their agreement that a Win/Win
approach is fair and good for business over the long haul.
2. UNDERSTANDING THEIR INTERESTS AND ISSUES - Both business and personal. Know what the
win/win looks like. Determine how you can satisfy what they are looking for and what you are looking
for.
3. EXPLORING AND INVENTING OPTIONS - Brainstorm several options that make sense.
4. KNOW WHAT YOU WANT - Know what you want the deal to look like after the negotiation.
Specifically, what will make this a fair arrangement for you?
5. KNOW WHAT THEY WANT - Interview all the key people involved. Make sure you understand what
they want.
6. DO YOUR HOMEWORK – Understand their motivations style and adapt your style to address these
motivations. Research answers to the important issues involved in this negotiation in advance. Consider
the important questions and concerns everyone will have.
7. FINDING MUTUAL SATISFACTION (What do the parties want? What constitutes a win for each
person involved?)
Negotiation tactics
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Commonly used tactics are

1- Bluffing ( means a false proposition, promise or treat by individuals/ parties)
2- Delays ( time pressure is deliberate effort of individuals pushing the other to quite in case he has limited
time to take a decision)
3- Snow job ( it is build pressure on the other individuals or the party by presenting a long list of issues
which has no significance or relevance with the person in concern)
4- Temper tantrums ( there are used to express anger, frustration or dissatisfaction either on the
advancement of negotiation or on the nature of counter proposals to make the other party unconformable
and agreed to the offer proposed)
5- Nibble ( this is fundamentally denotes tiresome opposition to reach an agreement on an issue after hard
and prolonged bargaining)
6- Limited authority
Factors influencing the negotiation
1- Information
2- Confidence
3- Focus
4- Listen
5- Realistic
6- Always have alternative plans
7- Be a good communicator
8- Don’t drag the conversation too long
Organizational learning
Organizational learning is the process of creating, retaining, and transferring knowledge within an organization.
An organization improves over time as it gains experience. From this experience, it is able to create knowledge.
This knowledge is broad, covering any topic that could better an organization
Theories of learning
Classical conditioning (also known as Pavlovian or respondent conditioning) is a learning process in which an
innate response to a potent stimulus comes to be elicited in response to a previously neutral stimulus; this is
achieved by repeated pairings of the neutral stimulus with the potent stimulus. The basic facts about classical
conditioning were discovered by Ivan Pavlov through his famous experiments with dogs. Together with operant
conditioning, classical conditioning became the foundation of Behaviorism, a school of psychology which was
dominant in the mid-20th century and is still an important influence on the practice of psychological therapy
and the study of animal behaviour (ethology). Classical conditioning is now the best understood of the basic
learning processes, and its neural substrates are beginning to be understood.
Operant conditioning (also, “instrumental conditioning”) is a learning process in which behavior is sensitive
to, or controlled by, its consequences. For example, a child may learn to open a box to get the candy inside, or
learn to avoid touching a hot stove. In contrast, classical conditioning causes a stimulus to signal a positive or
negative consequence; the resulting behavior does not produce the consequence. For example, the sight of a
colorful wrapper comes to signal "candy", causing a child to salivate, or the sound of a door slam comes to
signal an angry parent, causing a child to tremble. The study of animal learning in the 20th century was
dominated by the analysis of these two sorts of learning, [1] and they are still at the core of behavior analysis.
Cognitive learning is the refining of knowledge by adding new information to prior knowledge. Organized
cluster of knowledge about a particular topic. An associative structure that stores knowledge organized around a
particular topic, concept, object, event, or situation. Cognitive theory is an approach to psychology that
attempts to explain human behavior by understanding the thought processes. The assumption is that in humans,
thoughts are the primary determinants of emotions and behavior
Social learning theory (Albert Bandura) posits that learning is a cognitive process that takes place in a social
context and can occur purely through observation or direct instruction, even in the absence of motor
reproduction or direct reinforcement.[1] In addition to the observation of behavior, learning also occurs through
the observation of rewards and punishments, a process known as vicarious reinforcement. The theory expands
on traditional behavioral theories, in which behavior is governed solely by reinforcements, by placing emphasis
on the important roles of various internal processes in the learning individual.[2]
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Social learning theory integrated behavioral and cognitive theories of learning in order to provide a
comprehensive model that could account for the wide range of learning experiences that occur in the real world.
As initially outlined by Bandura and Walters in 1963 [1] and further detailed in 1977,[8] key tenets of social
learning theory are as follows:[9]
1. Learning is not purely behavioral; rather, it is a cognitive process that takes place in a social context.
2. Learning can occur by observing a behavior and by observing the consequences of the behavior
(vicarious reinforcement).
3. Learning involves observation, extraction of information from those observations, and making decisions
about the performance of the behavior (observational learning ormodeling). Thus, learning can occur
without an observable change in behavior.
4. Reinforcement plays a role in learning but is not entirely responsible for learning.
5. The learner is not a passive recipient of information. Cognition, environment, and behavior all mutually
influence each other
Transfer of learning
Learning transfer can be defined as the ability of a learner to successfully apply the behavior, knowledge, and
skills acquired in a learning event to the job, with a resulting improvement in job performance .
Principles of reinforcement
1- Positive reinforcement is any consequence to an action that increases the likelihood that action will
happen again. Such events are called Positive Reinforcers. Notice that this definition allows for individual
variation, so that what reinforces one person on one occasion may not reinforce another or even the same
person on another occasion. However, there are many reinforcers that work for most human beings. For
example, if you make eye contact with a person who smiles at you in the course of a conversation, you will
make more eye contact with that person during your conversation. Smiling and making eye contact are
simple but powerful reinforcers of social behavior. If you give a child a piece of candy each time he says
“please” or “thank you” she will be more likely to use those words again in the same context. But reinforcers
don’t have to be things. If you tell an employee “Good job!” each time he gets a task done on time he will be
more likely to work harder at the next task. Positive reinforcement is strongest when it occurs just after the
behavior you want to increase. It weakens the longer you wait to use it.
2- Negative reinforcement. Negative reinforcement occurs when an aversive experience suddenly stops. It
occurs most commonly in social interactions. Example: You are in a heated argument with someone who is
getting louder and more aggressive. You feel faint, the blood drains from your face, and you collapse into a
chair. The other person suddenly stops arguing, changes tone and asks in a worried voice if you are OK.
Your “fainting spell” has just been negatively reinforced, and the next time you argue with this person you
will be more likely to have the same reaction. It is the removal of the other person’s angry tone that is
reinforcing. Notice that neither person’s action is deliberate or even something they are aware of. Yet it is
the first building block of a habitual way of ending arguments for these two people.
3- Punishment is an aversive event that suppresses ongoing behavior and causes avoidance or even escape.
Going back to the dog looking up at its master at the dinner table, if instead of giving it a scrap of meat from
the table it got a slap on the nose the dog would likely withdraw with a slight yelp. Its looking up for food
would be suppressed, at least momentarily. If it got a slap every time it tried to look up, the act of coming up
to the table would eventually be suppressed. If its master came after it with a stick it would try to escape.
Notice that punishment does not reinforce anything or teach any new behaviors. It merely causes the animal
to stop whatever it’s doing and try to get away.. It works the same way for people. Example: A work crew is
standing around visiting before starting a job. Suddenly the boss jumps out of the pickup hopping mad and
starts yelling at them to get busy or else! The talk immediately stops and the workers take off in all
directions. Punishment is a common strategy for parents who want their children to stop what they are doing
(e.g. making too much noise) or clear out and leave the parent in peace. For humans even the threat of
punishment is enough to suppress behavior.
4- Extinction is the removal of reinforcement, which is ultimately followed by a lessening of the behavior that
was previously reinforced. Going back to the dog at the table example, if the dog’s entreaty was completely
ignored by its master, the approach and looking up would eventually fade away. However, even a look from
the master can be just reinforcing enough for the dog to keeping looking up, so extinction of a response is
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not always as easy as you might think. For extinction to work the reinforcement must be withdrawn
completely and consistently. Ignoring the dog most of the time but giving in to it once in a while actually
makes things worse through an operation called intermittent reinforcement. Intermittent reinforcement is the
off-and-on use of reinforcement, and it is very effective in locking in behaviors that precede it. For example,
the first time you tell your employee “Good job!” for completing a task in a timely manner it will have more
effect than after the fourth or fifth time in a row that you say it. After a while the employee comes to expect
it, and it loses some of its reinforcing value. By fading the “Good job!” comment to once in a while the
desired behavior will actually occur more consistently. Dr. Skinner actually mapped out schedules of
reinforcement in thousands of studies showing how the strength of reinforcement changed as a function of
how often the reinforcer occurred.
5- Intermittent reinforcement cans also work against you when you are trying to modify a behavior. Going
back to the person at the party, if you slip and make eye contact or otherwise show interest when you would
actually like the other person to stop talking, you are accidentally reinforcing the behavior you want to stop.
Even occasional “slip-ups” in showing attention become a kind of intermittent reinforcement.
Empowerment
A management practice of sharing information, rewards, and power with employees so that they can
take initiativeand make decisions to solve problems and improve serviceand performance.
Empowerment is based on the idea that giving employeesskills, resources, authority, opportunity, motivation, as
wellholding them responsible and accountable for outcomes of their actions, will contribute to
their competence andsatisfaction.
Organizational change
It is both the process in which an organization changes its structure, strategies, operational methods,
technologies, or organizational culture to affect change within the organization and the effects of these changes
on the organization. Organizational change can be continuous or occur for distinct periods of time.
Change process
Stage 1: Unfreeze - this is the first of Lewin's change transition stages, where people are taken from a state of
being unready to change to being ready and willing to make the first step. The Unfreezing stage is probably one
of the more important stages to understand in the world of change we live in today. This stage is about getting
ready to change. It involves getting to a point of understanding that change is necessary, and getting ready to
move away from our current comfort zone. This first stage is about preparing ourselves, or others, before the
change (and ideally creating a situation in which we want the change). The more we feel that change is
necessary, the more urgent it is, the more motivated we are to make the change.
Stage 2: Change (Transition) - once you have unfrozen the people, the next question is how you keep them
going. Kurt Lewin was aware that change is not an event, but rather a process. He called that process a
transition. Transition is the inner movement or journey we make in reaction to a change. This second stage
occurs as we make the changes that are needed. People are 'unfrozen' and moving towards a new way of being.
That said this stage is often the hardest as people are unsure or even fearful. This is not an easy time as people
are learning about the changes and need to be given time to understand and work with them. Change
(Transition) Freeze Unfreeze (Refreeze) Support is really important here and can be in the form of training,
coaching, and expecting mistakes as part of the process. Using role models and allowing people to develop their
own solutions also help to make the changes. It's also really useful to keep communicating a clear picture of the
desired change and the benefits to people so they don't lose sight of where they are heading.
Stage 3: Freezing (or Refreezing) - refreezing is the third of Lewin's change transition stages, where people
are taken from a state of being in transition and moved to a stable and productive state. Kurt Lewin refers to this
stage as freezing although a lot of people refer to it as 'refreezing'. As the name suggests this stage is about
establishing stability once the changes have been made. The changes are accepted and become the new norm.
People form new relationships and become comfortable with their routines. This can take time .
Types of change
1- Strategic change
This is a change in very mission of the organization. A single mission may have to be changed to
multiple missions.
2- Structural change
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Decentralized operations and participative mgt style have been seen as more recent trends in the
organizational structure. Since this structural changes shift the authority and responsibility to generally
lower level mgt. it has a major impact on an organizational social climate and members have to develop
a team spirit as well as acquire skills to make on the spot decision at points of operations
3- Process oriented change
These changes relate to technological developments, information processing, automation and use of
robotics in the manufacturing operations. This means replacing or retraining personnel, heavy capital
equipment investment and operational changes. This would affect the organizational culture and hence
changes in behavior patterns of members
4- People oriented changes
Even though many organizational changes affect people in some form, it is important that the behavior
and attitudes of the members be predictable and in accordance with the expectations of the organization
and be consistent with the mission and the policies of the enterprise. These changes directed towards
performance improvements.
Steps in managed change
1- Develop new goals and objectives
2- Select an agent for change
3- Diagnose the problem
4- Select methodology
5- Develop a plan
6- Strategy for the implementation of the plan
7- Implementation of the plan
8- Receive and evaluate feedback
Change agents
A change agent is a person from inside or outside the organization who helps an organization transform itself
by focusing on such matters as organizational effectiveness, improvement, and development. A change agent
usually focuses his efforts on the effect of changing technologies, structures, and tasks on interpersonal and
group relationships in the organization. The focus is on the people in the organization and their interactions.
Roles & Competencies
A change agent is basically a consultant, either from within the organization or brought in as an outsider. They
often play the role of a researcher, trainer, counselor, or teacher. Sometimes they will even serve as a line
manager. While some change agents specialize in one role, most will shift their roles depending upon the needs
of the organization.
You must have four competencies to become an effective change agent:
1- Broad knowledge: You must not only have broad industry knowledge but a broad range of
multidisciplinary knowledge, including conceptual knowledge, diagnostic knowledge, evaluative
knowledge, an understanding of methodology for change, and ethical knowledge.
2- Operational and relational knowledge: You must be able to listen, trust, form relationships, observe,
identify, and report. You must be flexible to deal with different types of relationships and behaviors.
3- Sensitivity and maturity: You must not only be able to demonstrate sensitivity to others, but you must
also be sensitive and mature enough to be aware of your own motivations.
4- Authenticity: You must be authentic. You must act in accordance with the values you seek to promote in
the organization. For example, if you recommend a form of management that permits subordinate
participation, you should not attempt to impose these changes without the participation of the
organizational members. In other words, you should practice what you preach.
Strategies to manage resistance to change
 Education & Communication: One of the best ways to overcome resistance to change is to educate
people about the change effort beforehand. Up-front communication and education helps employees see the
logic in the change effort. This reduces unfounded and incorrect rumors concerning the effects of change in
the organization.
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 Participation & Involvement: When employees are involved in the change effort they are more likely to
buy into change rather than resist it. This approach is likely to lower resistance more so than merely hoping
people will acquiesce to change.
 Facilitation & Support: Managers can head-off potential resistance by being supportive of employees
during difficult times. Managerial support helps employees deal with fear and anxiety during a transition
period. This approach is concerned with provision of special training, counseling, time off work.
 Negotiation and Agreement: Managers can combat resistance by offering incentives to employees not to
resist change. This can be done by allowing change resistors to veto elements of change that are
threatening, or change resistors can be offered incentives to go elsewhere in the company in order to avoid
having to experience the change effort. This approach will be appropriate where those resisting change are
in a position of power.
 Manipulation and Cooptation: “Cooptation” (no it’s not misspelled) involves the patronizing gesture of
bringing a person into a change management planning group for the sake of appearances rather than their
substantive contribution. This often involves selecting leaders of the resisters to participate in the change
effort. These leaders can be given a symbolic role in decision making without threatening the change effort.
 Explicit and Implicit Coercion: Managers can explicitly or implicitly force employees into accepting
change by making clear that resisting change can lead to losing jobs, firing, or not promoting employees.
Organizational development
Organization development is an ongoing, systematic process of implementing effective organizational change.
OD is known as both a field of science focused on understanding and managing organizational change and as a
field of scientific study and inquiry. It is interdisciplinary in nature and draws on sociology, psychology,
particularly industrial and organizational psychology, and theories of motivation, learning, and personality.
Although behavioral science has provided the basic foundation for the study and practice of OD, new and
emerging fields of study have made their presence felt. Experts in systems thinking and organizational learning,
structure of intuition in decision making, and coaching (to name a few) whose perspective is not steeped in just
the behavioral sciences, but a much more multi-disciplinary and inter-disciplinary approach, have emerged as
OD catalysts or tools.
Organization development is a growing field that is responsive to many new approaches .
Objective
The objectives of OD are:
1. To increase the level of inter-personal trust among employees.
2. To increase employees' level of satisfaction and commitment.
3. To confront problems instead of neglecting them.
4. To effectively manage conflict.
5. To increase cooperation and collaboration among the employees.
6. To increase the organization's problem solving.
7. To put in place processes that will help improve the ongoing operation of the organization on a
continuous basis.
As objectives of organizational development are framed keeping in view specific situations, they vary from one
situation to another. In other words, these programs are tailored to meet the requirements of a particular
situation. But broadly speaking, all organizational development programs try to achieve the following
objectives:
1. Making individuals in the organization aware of the vision of the organization. Organizational
development helps in making employees align with the vision of the organization.
2. Encouraging employees to solve problems instead of avoiding them.
3. Strengthening inter-personnel trust, cooperation, and communication for the successful achievement of
organizational goals.
4. Encouraging every individual to participate in the process of planning, thus making them feel
responsible for the implementation of the plan.
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5. Creating a work atmosphere in which employees are encouraged to work and participate
enthusiastically.
6. Replacing formal lines of authority with personal knowledge and skill.
7. Creating an environment of trust so that employees willingly accept change.
Organization Development Interventions
Organization Development (OD) Interventions Techniques Are The Methods Created By OD Professionals And
Others. Single Organization Or Consultant Cannot Use All The Interventions. They Use These Interventions
Depending Upon The Need Or Requirement. The Most Important Interventions Are,
1. Survey Feedback
2. Process Consultation
3. Sensitivity Training
4. The Managerial Grid
5. Goal Setting And Planning
6. Team Building And Management By Objectives
7. Job Enrichment, Changes In Organizational Structure And Participative Management And Quality Circles,
ISO, TQM
Survey Feedback: The Intervention Provides Data And Information To The Managers. Information On
Attitudes Of Employees About Wage Level, And Structure, Hours Of Work, Working Conditions And
Relations Are Collected And The Results Are Supplied To The Top Executive Teams. They Analyse The Data,
Find Out The Problem, Evaluate The Results And Develop The Means To Correct The Problems Identified. The
Team Are Formed With The Employees At All Levels In The Organization Hierarchy I.E, From The Rank And
File To The Top Level.
Process Consultation : The Process Consultant Meets The Members Of The Department And Work Teams
Observes Thie Interaction, Problem Identification Skills, Solving Procedures Et. He Feeds Back The Team Eith
The Information Collected Through Observations, Coaches And Counsels Individuals & Groups In Moulding
Their Behavior.
Goal Setting And Planning : Each Division In An Organization Sets The Goals Or Formulates The Plans For
Profitability. These Goals Are Sent To The Top Management Which In Turn Sends Them Back To The
Divisions After Modification . A Set Of Organization Goals Thus Emerge There After.
Managerial Grid: This Identifies A Range Of Management Behavior Based On The Different Ways That How
Production/Service Oriented And Employee Oriented States Interact With Each Other. Managerial Grid Is Also
Called As Instrumental Laboratory Training As It Is A Structured Version Of Laboratory Training. It Consists
Of Individual And Group Exercises With A View To Developing Awareness Of Individual Managerial Style
Interpersonal Competence And Group Effeciveness. Thus Grid Training Is Related To The Leadership Styles.
The Managerial Grid Focuses On The Observations Of Behaviour In Exercises Specifically Related To Work.
Participants In This Training Are Encouraged And Helped To Appraise Their Own Managerial Style.
Grid management
The Managerial Grid is based on two behavioral dimensions:
 Concern for People – This is the degree to which a leader considers the needs of team members, their
interests, and areas of personal development when deciding how best to accomplish a task.
 Concern for Results – This is the degree to which a leader emphasizes concrete objectives, organizational
efficiency and high productivity when deciding how best to accomplish a task .
In summary, the Blake and Mouton Managerial Grid is an x/y-axis grid that represents the degree to
which managers have a concern for production and for people. The degree to which a manager has concern for
either or both determines the manager's leadership style.
Transactional analysis
Transactional analysis is a psychoanalytic therapy wherein social transactions are analyzed to determine the ego
state of the patient (whether parent-like, childlike, or adult-like) as a basis for understanding behavior. [1] In
transactional analysis, the patient is taught to alter the ego state as a way to solve emotional problems. The
method deviates from Freudian psychoanalysis which focuses on increasing awareness of the contents of
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unconsciously held ideas. Eric Berne developed the concept and paradigm of transactional analysis in the late
1950s
According to TA, there are three ego-states that people consistently use:
Parent – The parent represents a massive collection of recordings in the brain of external events experienced or
perceived in approximately the first five years of life. Since the majority of the external events experienced by a
child are actions of the parent, the ego state was appropriately called Parent. Note that events perceived by the
child from individuals that are NOT parents (but who are often in parent-like roles) are also recorded in the
Parent. When Transactional Analysts refer to the Parent ego state (as opposed to a biological or stepparent), it is
capitalized. The same goes for the other two states (Adult and Child).
Examples of recordings in the Parent include:
 “Never talk to strangers”
 “Always chew with your mouth closed”
 “Look both ways before you cross the street”
It is worth noting that, while recording these events, the young child has no way to filter the data; the events are
recorded without question and without analysis. One can consider that these events are imposed on the child.
There are other data experienced by the child that are not recorded in the Parent. This is recorded in the Adult,
which will be described shortly.
Child – In contrast to the Parent, the Child represents the recordings in the brain of internal events associated
with external events the child perceives. Stated another way, stored in the Child are
the emotions or feelings which accompanied external events. Like the Parent, recordings in the Child occur from
childbirth all the way up to the age of approximately 5 years old.
Examples of recordings in the Child include:
 “When I saw the monster’s face, I felt really scared”
 “The clown at the birthday party was really funny!
Adult – The Adult is the last ego state. Close to one year of age, a child begins to exhibit gross motor activity.
The child learns that he or she can control a cup from which to drink, that he or she can grab a toy. In social
settings, the child can play peek-a-boo.
This is the beginning of the Adult in the small child. Adult data grows out of the child’s ability to see what is
different than what he or she observed (Parent) or felt (Child). In other words, the Adult allows the young
person to evaluate and validate Child and Parental data. Berne describes the Adult as being “principally
concerned with transforming stimuli into pieces of information, and processing and filing that information on
the basis of previous experience”6 Stated another way, Harris describes the Adult as “a data-processing
computer, which grinds out decisions after computing the information from three sources: the Parent, the Child,
and the data which the adult has gathered and is gathering” 7
Analyzing Transactions
When two people communicate, one person initiates a transaction with the transactional stimulus (see the above
Transactions Defined section for a definition of the transaction stimulus). The person at whom the stimulus is
directed will respond with thetransactional response. Simple Transactional Analysis involves identifying which
ego state directed the stimulus and which ego state in the other person executed the response.
According to Dr. Berne, the simplest transactions are between Adults ego states. For example, a surgeon will
survey the patient, and based upon the data before him/her, his/her Adult decides that the scalpel is the next
instrument required. The surgeon’s Adult holds out his/her hand, providing the transactional stimulus to the
nurse. The nurse’s Adult looks at the hand, and based upon previous experiences, concludes that the scalpel is
needed. The nurse then places the scalpel in the surgeon’s hand.
Strokes
As stated earlier, Berne defined a stroke as the “fundamental unit of social action.” 11 A stroke is a unit of
recognition, when one person recognizes another person either verbally or non verbally. Berne introduced the
idea of strokes into Transactional Analysis based upon the work of Rene Spitz, a researcher who did pioneering
work in the area of child development. Spitz observed that infants deprived of handling – in other words, not
receiving any strokes – were more prone to emotional and physical difficulties. These infants lacked the
cuddling, touching, and handling that most other infants received.
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Berne took Spitz’s observations of these infants and developed theories about the needs of adults for strokes.
Berne postulated that adults need need physical contact just like infants, but have learned to substitute other
types of recognition instead of physical stimulation. So while an infant needs cuddling, an adult craves a smile,
a wink, a hand gesture, or other form of recognition. Berne defined the term recognition-hunger as this
requirement of adults to receive strokes.
Berne also reasoned that any stroke, be it positive or negative, is better than no strokes at all. Or, as summarized
in TA Today, “any stroke is better than no stroke at all.” 12 For example, if you are walking in front of your
house and you see your neighbor, you will likely smile and say “Hi.” Your neighbor will likely say “hello”
back. This is an example of a positive stroke. Your neighbor could also frown at you and say nothing. This is an
example of a negative stroke. But either case is better than no stroke at all, if your neighbor ignored you
completely.
Sensitivity training
Sensitivity training is a form of training with the goal of making people more aware of their own prejudices and
more sensitive to others.
Process consultancy
It is usually a contrast of expert consultation and is often regarded by those who support it, as a better quality of
management consultancy.