Module 6

Organizational development − Techniques

of organizational development −
Interventions − Grid management −
Transactional analysis − Sensitivity training
• OD or Organizational
Development was introduced in
1930s by psychologists through
various studies
 Definition of OD
• Acc. to Richard Beckhard (1969) Organizational
Development (OD) is an effort that is :
– Planned
– Organization wide
– Managed from top
– Done through planned interventions
– Increases organizational effectiveness and
efficiency
– Improves overall capability of orgn
• A set of social science techniques designed to
plan change in organisation
• OD relies on information from :
– personality, learning and motivation
theories
– inputs from group dynamics, power,
leadership and organizational design
– Helps to introduce change in an orgn
 Organizational development (OD)
• A set of social science techniques designed to
plan change in organisational work settings, for
purposes of enhancing the personal
development of individuals and improving the
effectiveness of organizational functioning
• OD relies on information from personality,
learning and motivation theories, inputs from
group dynamics, power, leadership and
organizational design
 Characteristics of OD
• Planned change- also called change interventions/ techniques
• Comprehensive change- covers the entire organization
• Emphasis on work groups
• Long-range change
• Participation of a change agent: outside experts involved
• Emphasis on intervention- active involvement of the change
agent during the process
• Collaborative management
• Organisational culture- OD depends on culture of the
organization and hence is unique
 Objectives of OD
• To increase openness of communication among people
• To increase commitment, self-direction and self-control
• To involve the members in the process of analysis and
implementation
• To increase the level of trust and support among
employees
• To develop strategic solutions to problems with higher
frequency
• To increase the level of individual and group
responsibility in planning and execution
 OD interventions
• OD interventions are carried out usually by
experts called OD practitioners. They do it for
their client (company/ organization)
• Interventions are
– Structured/ planned activities used individually or
in combination to improve the client/
organization's functioning through participation of
the members of the organization.
 Techniques/ interventions of OD
The six OD interventions that change agents use
are:
1. Sensitivity training
2. Survey feedback
3. Process consultation
4. Team building
5. Intergroup development
6. Appreciative inquiry
 1. Sensitivity training
• One of the earliest OD techniques
• Training groups that seek to change behaviour
through unstructured group interaction
• Also called laboratory training, encounter
groups or T-groups (training groups)
 Objectives of Sensitivity Training
• To provide the subjects with increased awareness of
their own behaviour and how others perceive them
• greater sensitivity to the behaviour of others
• increased understanding of group process
• increased ability to empathise with others
• improved listening skills
• greater openness
• increased tolerance of individual differences
• improved conflict-resolution skills
 Procedure of Sensitivity training
• 10-15 employees are brought together in a free and
open environment, in which participants discuss
themselves
– away from workplaces in which participants discuss
themselves freely,
– in the presence of a facilitator
– Facilitator creates opportunity for participants to express their
ideas, beliefs and attitudes
• Individuals learn through observing and participating
rather than being told
• No formal agenda is provided
• Individual personalities, group interaction, processes and
relationships become the focus of discussion
 Benefits of Sensitivity training
• Increased ability to empathize with others
• Improved listening skills
• Greater openness
• Increased tolerance of individual differences
• Improved conflict resolution skills
• Realistic self-perceptions
• Greater group cohesiveness
• Reduction in interpersonal conflicts
• Better interaction between the individual and the
ogranisation
 2. Survey feedback
• A tool for assessing attitudes
held by organisation members,
identifying discrepancies among
member perceptions and solving
these differences
• Also called action research
 2. Survey feedback
• A tool for assessing attitudes held by organisation
members, identifying discrepancies among
member perceptions and solving these differences
• Questionnaires are used to identify discrepancies
• Questionnaire asks members for their perceptions
and attitudes on abroad range of topics like:
– decision-making practices
– communication effectiveness
– coordination between units
– satisfaction with the organsiation, job, peers and their
immediate supervisor
• Also known as action research
 3. Process Consultation
• A consultant (outside expert) assists a client
(usually a manager) to understand and
identify processes that need improvement
• The consultant works jointly with the client in
diagnosing what processes need improvement
• The consultant expertise lies in diagnosis and
in developing a helping relationship
• He helps the client to locate an expert and
then instructs the client in how to get the
most out of this expert resource
 4. Team building
• High interaction among team members to
increase trust and openness
• Some team building activities include:
– goal setting,
– development of interpersonal relations among
team members,
– role analysis to clarify each member’s role and
responsibilities and
 5. Intergroup development
• to change the attitudes, stereotypes and
perceptions that groups have of each other
• Each group meets independently to develop
lists of its perception of itself, the other group
and how it believes the other group perceives
it
• The groups then share their lists, after which
similarities and differences are discussed
• Differences are clearly articulated and the
groups look for the causes of the disparities
• Once these causes are identified, the groups
can move to the integration phase- working to
develop solutions that will improve relations
between the groups
 6. Appreciative Inquiry (AI)
• Seeks to identify the unique qualities and
special strengths of an oganisation,
which can then be built on to improve
performance
• Focuses on an organisation’s successes
rather than on its problems
• Problem-solving approaches always ask
people to look backward at yesterday’s
failures, to focus on shortcomings, and rarely
result in new visions
• AI looks into positive & future aspects of orgn
 3 characteristics of OD Interventions STT

• They are based on valid information about the

functioning of the organisation, usually collected by
the employees
• The intervention (under the guidance of the change
agent) provides employees with opportunities to
make their own choices regarding the nature of the
problems and their preferred solutions
• Interventions are aimed at gaining the employees’
personal commitment to their choices
 4 categories of interventions
1) Human process interventions- to improve interpersonal
skills of employees and provide them with the insight
and skills needed to analyse effectively their own and
others’ behaviour so that they can solve interpersonal
problems Eg: Sensitivity training, Team building, Grid
training
2) Techno-structural interventions: focuses on
improvement of productivity and efficiency. The purpose
is to jointly redesign and implement new organizational
structures. Examples of employee involvement
programmes in this are quality circles, TQM, QWL
programs
3) Human Resource Management interventions:
changes under this intervention include appraisal
system, reward system and workforce diversity
programs
4) Strategic interventions: eg: integrated strategic
management
– Analyzing current strategy and organizational design
– Choosing a desired strategy and organsational design
– Designing a strategic change plan
– Implementing a strategic change plan
 The Managerial Grid- by Blake and
Mouton
• The Managerial Grid developed by Robert Blake
and Jane Mouton focuses on task (production)
and employee (people) orientations of
managers, as well as combinations of concerns
between the two extremes
• A grid with concern for production on the
horizontal X-axis and concern for people on the
vertical Y- axis and plots five basic leadership
styles.
The Blake Mouton Managerial Grid (Blake &
Mouton, 1964)
 Grid Management
• Grid training: an extension of the managerial grid
concept developed by Blake and Mouton
• Done to promote organisational excellence by
fostering concern for production and concern for
people
• After a manager’s position in the grid is
determined, training begins to improve concern
over production (planning skills) and over people
(communication skills) to reach the ideal 9,9 state
• So, The Managerial Grid is a practical
and useful framework that helps one
identify and also improve their
leadership style.
• The first number refers to a leader's
production or task orientation; the second, to
people or employee orientation.
• Blake and Mouton propose that “Team
Management” - a high concern for both
employees and production - is the most
effective type of leadership behaviour
• The indifferent (previously called impoverished) style (1,1): evade
and elude-- Managers try to preserve job and job seniority,
protecting themselves by avoiding getting into trouble. The main
concern for the manager is not to be held responsible for any
mistakes, which results in less innovative decisions.
• The accommodating (previously, country club) style (1,9): yield and
comply. Managers pay much attention to the security and comfort of
the employees, in hopes that this will increase performance. The
resulting atmosphere is usually friendly, but not necessarily very
productive.
• The dictatorial (previously, produce or perish) style (9,1): control and
dominate--managers find employee needs unimportant; they provide
their employees with money and expect performance in return. They
also pressure their employees through rules and punishments to
achieve the company goals. This dictatorial style is based on Theory X
of Douglas McGregor, and is commonly applied by companies facing
failure. This style is often used in cases of crisis management.
• The status quo (previously, middle-of-the-road) style
(5,5): balance and compromise. Managers try to
balance between company goals and workers' needs.
By giving some concern to both people and production,
managers hope to achieve suitable performance
• The sound (previously, team style) (9,9): contribute and
commit. As suggested by the propositions of Theory Y,
managers encourage teamwork and commitment
among employees. This method make employees feel
themselves to be constructive parts of the company.
• The opportunistic style: exploit and manipulate. Managers adopt whichever behaviour offers the
greatest personal benefit.
• The paternalistic style: prescribe and guide. Managers praise and support, but discourage
challenges to their thinking
 Grid training- a multistep process STT
• Grid seminar: a session in which an organisation’s
line managers (who’ve been trained previously)
help employees to analyse their own management
styles
– done using specially designed questionnaire that allows
managers to determine how they stand with respect to
concern for production and concern for people
• Each participant’s approach on each aspect is
scored in a 1-9 range
 After the survey
• After a manager’s position in the grid is determined, they are
trained to reach the ideal state
• Training consists of organisation-wide team training aimed at
helping people interact more effectively with each other
• Training is also expanded to reduce conflict between groups that
work with each other
• The extend to which the orgn is meeting its strategic goals is
identified
• Plans are formulated to meet these goals and then implemented
• Progress towards the goals is continuously assessed and problem
areas are identified
• Evaluating “where the orgn was, how far it has progressed,
where it currently is”- gives a picture of how to strive
continuously for corporate excellence
Transactional Analysis (TA) Eric Berne
 Transactional Analysis (TA)
• When two people interact, there results a
social transaction
• Analysis of social transactions is called TA
• It is the study of social transactions between
people OR the study of moves people make in
their dealings with each other
• A technique used to help people better
understand their own and others’ behaviour,
especially in interpersonal relationships
• Developed by Dr. Eric Berne in 1950
 TA- a tool for resolving conflicts in
organisations
• Offers a model of personality to understand the
dynamics of self and its relationship to others
• Provides a method of analysing and
understanding interpersonal behaviour
• When two people interact, there is social
transaction in which one person responds to
another
• This study of such transactions between people is
called TA
• The primary concepts in TA
are:
–Ego states- PAC model
–Transactions
–Strokes
Ego states or PAC (Parent-Adult-Child) model

• Ego state means a level / state of behaviour

shown by a person to others at a particular
moment during the interaction
• All people have, in varying degrees, three ego
states: parent, adult and child
– The behaviour of a person shows which of these
three ego states is operating at a particular
moment
Ego states or PAC (Parent-Adult-Child) model

• All people have, in varying degrees, three ego

states: parent, adult and child
• The behaviour of a person shows which of
these three ego states is operating at a
particular moment
• Ego state has nothing to do with our
chronological age
Parent ego- the TAUGHT ego state
• Result of messages people receive from their
parents, elders, teachers etc. during their early
childhood
• Overprotective, controlling, authoritative,
dogmatic, nurturing, critical and righteous
• Mostly do’s and don’ts, advices and
admonitions
• Two Types:
– Nurturing parent ego
– Critical parent ego
• Two Types:
– Nurturing parent ego and
– Critical parent ego
• "Never talk to strangers“
• “I’ve told you many times not to even look at them”
• "Always chew with your mouth closed“
• “Hey, close your mouth, don’t you know that its bad table
manners”
• "Look both ways before you cross the street“
• You better cross carefully or else you’ll die.
 Adult ego- the THINKING/ LEARNED ego
state
• Authentic, direct, reality-based, rational, fact-
seeking and problem solving
• Neither impulsive action nor domination
• People with adult ego state- assume everyone
as responsible
• They gather relevant information, carefully
analyse it, generate alternatives and make
logical choices
• Adult is 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

Eg: “Rain coats are better than umbrellas because you

can let your both hands free”
Child ego- the FELT ego state
• Constitutes emotional, creative, spontaneous
and impulsive component of personality
• Based on one’s childhood experiences
• Characterised by childish, dependent and
immature behaviour
• Attention-seeking, temper tantrums
 Child ego- the FELT ego state
• Constitutes emotional, creative, spontaneous and impulsive
component of personality
• Based on one’s childhood experiences
• Characterised by childish, dependent and immature
behaviour
• Attention-seeking, temper tantrums
• Reflects experiences perceived by individuals in their early
years
– Natural Child: Child-in-the-child
– The Little Professor: Adult-in-the-child
– The Adaptive Child: Parent-in-the-child
• "When I saw the monster's face, I felt really
scared"
• "The clown at the birthday party was really
funny!
 Social transactions

• the interactions can be

–Complementary transaction,
–crossed transaction
– ulterior transaction
 Complementary
• When 2 persons ( Sender & receiver ) interact
in a way that they show the same ego state

• Smooth interaction
• No conflict
 Crossed
• When 2 persons interact in a way that they
show different ego state
• Source of interpersonal conflicts in
organsiation
 Ulterior
• Involve at least two ego states on the part of
the first person (sender)

• Most difficult to identify & deal

 Example
• The individual may say one thing (as an adult),
but mean something quite different (as a
parent)
• Boss: “My door is always open, come in and
we shall discuss the problem together and
arrive at a solution” (adult state)
• But boss actually means: “Don’t come to me
with problems, you solve them yourself, that’s
what you’re paid for” (parent state)
 Stroking
• The recognition of one’s presence by
others
• Exchanged when two persons
transact with each other
• A unit of recognition which may be
positive or negative
 Life positions
• Life position influences our behaviour when we
interact with others
• These positions are acquired by us very early in
our childhood and stay with us throughout, and
hence the name
• It is based on a combination of 2 viewpoints:
1. How people view themselves?
2. How do they view other people in general?
• Either a positive response (OK) or a negative
response (not OK) results in 4 possible life
positions
 The 4 life positions
1. I am not OK- you are OK
2. I am not OK- You are not OK
3. I am OK- You are not OK
4. I am OK- You are OK
• The first three are less psychologically mature
and less effective
– and hence high potential for interpersonal conflict
• The ideal one is I am OK- You are OK
– It shows a healthy acceptance of self and others
– This can be a learnt life position
 Johari window- another tool for resolving
conflicts in organisations
• Helps in analysing causes of interpersonal conflicts
• The basic premise: our personal and professional
relationships can be greatly improved (conflict
eliminated) through understanding ourselves in-
depth
– and choosing those aspects of self that can be shared
with others
• The more we share ourselves with others, the
more we can develop interpersonal relationships

REFER MODULE 5
 LEADERSHIP STYLE
• Leadership is a practical skill
• the ability of an individual or
organization to "lead" or guide
other individuals, teams, or
entire organizations.
• leadership style is the way a
person uses power to lead other
people
 Who is a leader?
 L-LOYAL
 E-EFFICIENT
 A-ABLE
 D-DILIGENT
 E-ENTHUSIASTIC
 R-RIGHTEOUS
 Qualities of a good leader
• Intelligence
• Communication skills
• Emotional balance
• Technical skills
• Human Relation skills
• Energy
• Teaching skills
 Types of leadership style
1. Autocratic Leadership
Style
2. Democratic Leadership
Style
3. Laissez-faire Leadership
Style
4. Strategic Leadership Style
5. Transformational
Leadership Style
6. Team Leadership Style
7. Cross-Cultural Leadership
Style
8. Facilitative Leadership
Style
9. Transactional Leadership
Style
10. Coaching Leadership Style
11. Charismatic Leadership
Style
12. Visionary Leadership Style
 1. Autocratic style
• Takes all decisions himself without consulting
the subordinates.
• Full control over subordinates
• Discipline through rewards and punishments
• One – way communication
2. Participative or Democratic style
• Encourages his subordinates to participate in
the decision making process.
• Attitudes,feelings,suggestions of members
considered while making decsions
• Two way,open communication between
members
3. Laissez-Faire or Free-Rein leadership style

• Group members set goals and decide things

on their own.
• Leader is passive observer of things
• Leader does not decide, does not control or
exercise influence over the group
• Communication is open and can take any
direction
Leadership styles
 4. Strategic Leadership Style

• Strategic leadership is one that involves a

leader who is essentially the head of an
organization. 
• Gives importance to strategic thinking
• what an organization naturally expects from
its leadership in times of change.
 5. Transformational leadership style

•  initiating change in organizations

• motivate others to do more than what they
can
• set more challenging expectations and
typically achieve higher performance.
• transformational leadership tends to have
more committed and satisfied followers. 
 6. Team leadership style
• Focuses on teamwork 
• working with the hearts and minds of all those
involved
• Has a vision
• The vision inspires and provides a strong sense
of purpose and direction.
 7.Cross cultural leadership style
• exists where there are various cultures in the
organization. 
• Focuses on managing culturally diverse
workforce
 8. Facilitative leadership style
• Focus is on measurement of performance of
group members and their productivity/outcome
•  If the group is high functioning, the facilitative
leader uses a light hand on the process.
• On the other hand, if the group is low
functioning, the facilitative leader will give more
directives in helping the group run towards
success. 
 9. Transactional leadership style
• followers get immediate, tangible rewards for
carrying out the leader’s orders. 
• clarifying what is expected of followers’
performance
• explaining how to meet such expectations;
and giving rewards on meeting objectives.
 10. Coaching leadership style
• teaching and supervising followers
• helps to improve their skills for increased
performance
– motivates followers
– inspires followers and
– encourages followers.
 11. Charismatic Leadership style

• transformation of followers’ values and

beliefs.
• Leader will influence & modify/change the
attitude of the group members
 12. Visionary Leadership style

• Create long term goals / realistic vision

• Are creative thinkers
• Provide great direction to group members to
achieve the vision
THEORIES OF LEADERSHIP
• TRAIT THEORY
• BEHAVIOURAL THEORIES
• CONTINGENCY THEORIES
 Trait theory
• Theories that consider personal qualities and
characteristics that differentiate leaders from
non-leaders.
• Trait research provides a basis for selecting the
right person to assume formal position in
group and organisation requiring leadership.
• Assume that leaders are born rather than
made
 Leadership Traits:

• Ambition and energy

• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
 Behavioural Theories
• Theories proposing that specific behaviours
differentiate leaders from non leaders.
• If there were specific behaviours that
identified leaders, then we could teach
leadership.
Ohio State Studies
University of Michigan Studies
Managerial grid theory
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught
 a) Ohio State Studies
o Identified two leadership
behaviours
- Initiating structure
- Consideration
 a) Ohio State Studies
o Identified two leadership behaviours
- Initiating structure
- Consideration
Initiating structure refers to the extent to which a leader is likely to define and
structure his or her role and those of employees in the search for goal
attainment. Establish formal lines of commn, determine hw
tasks are to be performed.
Consideration is the person who likely to have job relationships that are
characterised by mutual trust, respect for employees ideas and regard for their
feeling.
 A review of 160 studies found out that both initiating structure
and consideration were associated with effective leadership.
Rather consideration was more strongly related to the individual.
 The followers of a leader who were high in consideration were
more satisfied with their jobs and more motivated and had more
respect for their leader.
 b) University of Michigan Studies

Employee centred leader Production centred leader

 Treats subordinates as  Emphasises technical
human beings. aspects of job.
 Shows concern for their  Focus on work
well being. standards
 Encourages and involves  Employee seen as a tool
them in goal setting. in the production
process.
o Employee oriented leaders were associated
with higher group productivity and greater
job satisfaction.
o Michigan studies emphasized employee
oriented leadership over production oriented
leadership.
 Contingency Theories
 Fiedler model
 Hersey and Blanchard’s situational theory
 Path-Goal theory
 Fiedler Model
 Proposes that effective group performance depends on the
proper match between a leader’s style of interacting with
subordinates and the degree to which the situation gives
control and influence to the leader.
1. Identifying Leadership style
 Fiedler created the least preferred coworker (LPC)
questionnaire to measure whether a person is task or
relationship oriented.
 LPC contains set of 16 contrasting adjectives like pleasant-
unpleasant ,efficient – inefficient etc
Fiedler assumes that an individual’s
leadership style is fixed.
– If a situation requires a task oriented leader and
the person in that leadership position is
relationship oriented, either the situation has to
be modified or the leader has to be replaced in
order to achieve optimal effectiveness.
.
2. Defining the Situation
After the leadership style has been assessed through the
LPC questionnaire, next is to match the leader with the
situation. variables. Fiedler identified 3 situational
variables
1) Leader-member relations – degree of
confidence, trust and respect members have
in their leader .
2) Task structure – degree to which the job
assignments are procedurized.
3) Position power- degree of influence a leader
has over power variables such as hiring,
firing,promotions and salary increases.
3. Matching leaders & situation
• After understanding the leadership style
through LPC & defining the situations, choose
the appropriate
– Change the leader to fit the situation or
– Change the situation to fit the leader
 Hersey-Blanchard’s situational theory

 Two basic considerations in this model:

leadership styles and maturity of
subordinates.
 there is no single optimal leadership style.
 The style depends on the maturity of the
followers
 Based on this 4 leadership styles were identifies
 4 leadership styles
1. Delegating style
2. Participating style
3. Selling style
4. Telling style
1. Delegating style : the followers are highly matured.
So the leader allows the group to take own
responsibility (low task; low relationship style)
2. Participating style : sharing ideas & decisions (low
task; high relationship style)
3. Selling style : leader sells his ideas to the group &
persuade them to do the task ( high task; high
relationship style )
4. Telling style : leader gives clear & exact directions
to the followers & supervises the work closely
(high task; low relationship)
 Hersey-Blanchard’s situational theory

 Two basic considerations in this model:

leadership styles and maturity of
subordinates.
 Leadership styles
classified into 4 categories based on the
combination of 2 considerations: relationship
behaviour and task behaviour.
 Follower Unwilling Willing
Readiness

Able Supportive
Monitoring
Participative

Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations

.
 Path-Goal theory(Robert House)
• According to this model, the main function
of a leader is to clarify and set goals with
subordinates,
• to help them to find the best path for
achieving the goals and
• to remove obstacles to their performance
and need satisfaction.
Path-goal leadership process

Leader identifies Appropriate goals Leaders connect

subordinate needs are established reward with goal

Leader provides Employee

Effective
assistance on employee satisfied and
performance occurs
path towards goals accepts the leader

Both employee and

organisation are better
able to reach the goals
 END OF MODULE 6
•