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MANAGEMENT DEVELOPMENT AND ORGANIZATION

DEVELOPMENT

(BMS PROJECT)

Submitted By

YASH REDDY

NDER THE GIDANCE O!

MRS" VIBHA DICOND#AR

D"G"RPAREL COLLEGE$

MMBAI%&'

OCTOBER % &

1


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A*+,-.ed/eme+t

I feel deeply indebted towards people who have guided me in this project. It would have

not been possible to make such an extensive report without their support and guidance.

I would firstly like to express my gratitude towards my guide Prof. Bhavna Suleria for

having shown so much trust and optimism in guiding and encouraged me. She showed a

lot of openness in her approach and I would like to thank her for her support in a way that

has lead to proper and effective learning.

I would like to thank all the faculty members of BS !epartment for their guidance and

motivation

I express my gratitude to !r. "eeta #atke mam for all the supports I needed to complete

the project report.

$ast but not the least I am grateful to my family members and my friends for being my

side always. %ithout their help and motivation it would have not been possible to

complete my project

00000000000000000000000

YASH REDDY

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St1teme+t by t2e 1+did1te

I' ()S* +,!!(' wish to state that the work embodied in this project entitled

-anagement development and rgani/ational development0 is carried out under the

supervision of Prof. ibha !icondwar' !epartment of BS' !.2. +uparel 3ollege'

umbai. #his work has not been submitted for any other degree of this or any other

4niversities.

55555555555555555555 555555555555555

Prof. ibha !icondwar (ash +eddy

55555555555555555555 5555555555555555555

Prof. !r. "eeta #atke ,xternal Supervisor

63o7ordinator8

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E3euti4e Summ15y

*+ definitions and views given by founders of rgani/ation !evelopment clarify the

distinctive features of the field of rgani/ation !evelopment and suggest why it is such a

powerful change strategy. #he participative' collaborative' problem7focused nature of

rgani/ation !evelopment marshals the experience and expertise of organi/ation

members as they work on their most important problems and opportunities in ways

designed to lead to successful outcomes. #hese foundations of organi/ation !evelopment

from the theoretical and practice underpinning of the field. #aken separately' each is a

powerful conceptual too for thinking about and implementing change. #aken collectively'

they constitute the beginning of a theory of organi/ation development and change that has

enormous potential for improving organi/ational performance and individual

development. #ata 2roup has taken initiative in all those matter wherein the organi/ation

can develop and expand itself in all the possible ways. #he organi/ation has ac:uainted

itself with all the information that can help it stand to the strong winds of competition that

has entered the country after liberali/ation. #he organi/ation has been certified with IS

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Topic: 1 Introduction

In this world turned upside down' organi/ation development as a distinct discipline

appears to have faded even further from view' while some of the underlying assumptions

and values of management development have been opened up to some serious

:uestioning' as the organi/ation in which the develop vie with one another to see which

can operate with the leanest corporate office of them all.

)s if all this were not sufficient' the focus of attention has begun to fall increasingly upon

smaller and medium si/ed enterprise' encouraging the :uestion' what have organi/ation

and management ever done for themCD %hile such businesses have always represented a

major slice of most western economies' it is really only the conspicuous failure of so many

big organi/ation which has drawn their smaller fellows into the sights of management and

organi/ation development practitioners. )s the +ussian proverb puts it' %hen the devil is

hungry' he will eat files.D

*owever' the mind7sets of many of us who provide advice and guidance to managers on

how they might improve their own or organi/ationDs performance. )s mind7set lead to

action which are guided by assumptions lurking somewhere below the conscious level' it

is as well to have them articulated and made explicit' particularly if economic

circumstances may have served to drive them even deeper below the level of surface

awareness.

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OBJECTIVE O! THE STDY

#o understand how the key business processes are carried out in the organi/ations.

#o relate theory with practice

#o understand how information is used in the organi/ation for decision making at

various levels.

#o gain knowledge about different departments in the organi/ation and their roles

and functioning.

RESEARCH DESIGN

+esearch design is descriptive in nature. Preference of people is analy/ed and :uantified to

know the factors responsible for the development and changes in the department leading

to the change in the whole organi/ation. )nd also findings of the new business models and

structures which are resulting in the development of the organi/ation as the whole.

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Jorum

#he #ata Business ,xcellence 3onvention is a forum that brings together the champions of

excellence in #ata from all over the world. 2lobal experts speak on challenges and

opportunities.

+ecognition

#he G+! = )ward function held during the )nnual 2roup $eadership 3onference

6)2$38 recognises #ata companies that have achieved significant improvement and

excelled in the :uality journey.

3ode

#he #ata 3ode of 3onduct 6#3o38 is a mandatory pan7#ata policy that defines how #ata

employees can conduct themselves.

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#raditionally the field of rgani/ation !evelopment 6!8 is defined as -an effort that is

planned' organi/ation7wide' and managed from the top to increase organi/ation

effectiveness and health through planned interventions in the organi/ationKs Lprocesses'L

using behavioral7science knowledge0. #his definition was coined in 1;@; at a time when

an organi/ation was considered to be much like a stable machine comprised of

interlocking parts. Jor the most part the definition works well. But the definition is highly

rigid in terms of its scope and applicability when it talks only about using behavioral

science knowledge. #he filed of rgani/ational !evelopment goes much beyond

behavioral science though it forms an integral part of the overall ! program.

#odayKs business challenges call for organi/ations to design and implement the structures'

processes' and systems that will allow their people to flourish7and that will spur change

and growth in order to keep up with the competitive marketplace.

#he field of rgani/ational !evelopment revolves around how rgani/ations

continuously respond and adapts 6change M structural and behavioral8 itself to the

challenges thrown by the external and internal environment and ensures success in terms

of achieving its 2oals. ! deals with the important issue of how organi/ations build and

manage various capabilities effectively in order to remain competitive in the market place

and respond effectively to any sort of dynamics.

In todayKs business environment' one of the most important assets for any organi/ation

across the globe is the ability to manage change and maintain the health of the

organi/ation. Below is a brief write up giving an overview of key aspects of

rgani/ational !evelopment.

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*uc/ynski 61;EA8 has suggested that organi/ational development 6!8 isF

Nnow generally regarded as being concerned with helping the members of an

organi/ation to improve its total ability to manage and develop itself' so it is able to

respond to the environment pressures it faces. !evelopment implies that the organi/ation

needs to learn how to adapt and change its culture so that it can continue to survive and

achieve its core purpose. If an organi/ationDs members are to develop and learn how to

adapt and change they need to ac:uire skills additional to' or other than' those they already

posses.

Jirst however it is necessary to be clear about the terms. #he following :uotation is from

Oilmann to place ! in its current contextF

#he field of !' as it first emerged in 1;?


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developmentD but' having been tempered by economic turmoil' with somewhat less of the

latterDs idealism and navetQ. )t the same time there has been recognition of the

re:uirement for managers to be able to develop and learn with less of the perspective

arrogance that characteri/ed many of the

#raditional'centrali/ed' specialist7owned programmesmanagement !evelopment.

anagement development has been described as an attempt to increase anagerial

effectiveness through planned and deliberate learning Process.D

#he customers for such process' client managers' have tended to have fairly clear views

about management development within their organi/ations' and they usually had few

problems in making a distinction between their perceptions of management development

on the one hand and management training on the other hand. %hile the latter has been

perceived as a process necessary to the ac:uisition of skills 6such as budgetary

development and control8' management development tend to viewed as a broadening

educational process by means of which the individual is initiated' shaped or fitted to the

attitudes' values rites and rituals of successively higher levels within the organi/ation. )s'

much' management development may or may not encompass formal training' and it may

be self7managed. any organi/ations have attached especially high values to process of

management self7development' even to the extent of welcoming back the prodigal

mangers who having resigned to gain experience in another environmentD' now the

returns to the fold with renewed vigour. ther stress the value of a broad base of

experience' but tend to reward loyalty and long service.D #his automatically places severe

constrains on the perceived benefits and wisdom of pursuing opportunities for such

broadening.

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#o an extend' then the client managers would relate management training to a process by

means of which the individual ac:uires the skills associated with a specific management

job or level. #hey would tend to regard management development as having much more to

do with career development and progression.

#his difference in perception tends to throw into much sharper relief in organi/ations

where responsibility for management training is assigned to the training function' while

management development is assigned as a personnel responsibility. #his distinction is

further reinforced where there is real' or perceived' competition between the two functions

over which is accountable for what and as to where the senior status lies.

#he single' learner function that has succeeded separate training and personnel functions

in a great many organi/ations' under the title of human resource management' has

narrowed the gap somewhat. But' as with management development and !' the separate

mind7sets associated with skills training on one hand' and with personnel growth and

development on the other' still linger on.

#here was a fundamental difference in the antecedents of management development and

!. anagement development was always a process ownedD by the organi/ation itself. It

may not have been done particularly well' but the managers within the organi/ation could

identify what is as a process that had specific meaning for him' within the context of the

norms and values of the organi/ation by which he was employed. rgani/ation

development' on the other hand' was more speciali/ed' more specific and' in aspiration at

east more scientific. It tended to be domain of the business school and the research

institute rather than the incorporate into the organi/ation itself. Oilmann provided a

possible insight as to why the values and concepts of organi/ation development have

rarely been incorporated into the organi/ations that it was meant to be servingF

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) P*.! straight out of graduate school who had never in his or her life even been near a

business organi/ation could teach write and do research on business and management.

%hile they thus achieved greater prestige in their own network' they increasingly lost

touch with the business community and the world at large. Intentionally or unintentionally'

they shut out from the halls of academia the very reality they where supposedly in the

business of studying.

#he itroff and Oilmann argument may tend towards the extreme and' as noted above'

they are not referring to ! as such but to relationship between the business schools and

business in general. It does' however' provide a backdrop for the image of ! practitioner

as outsiderD. #he practitioners themselves have tended to prefer the role' as facilitator

change agent as consultant and catalyst' as opposed to that of integrated participant in the

hurly7burly of the organi/ations' which they have aspired to develop.

%ith the dramatic economic changes' which commenced in the 1;E


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departmentD. ! has suffered in its turn from its identification with outsiders to the

organi/ation. It emphasis on humanist values has had a rough ride in organi/ations forced

by economic necessity to experience the massive employee shake7outs of the late 1;A


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OD !51me-,5*7

#he word frameworksD is used' rather than definitionD or frame of referencesD' because

the field has become too imprecise for any one of the many attempts at definition to be

entirely ade:uate.

Be++i7 (&:':)

!escribed ! as a response to change' a complex educational strategy intended to

change the beliefs' attitudes' values and structure of organi/ations so that they can be

better adapt to new technologies' markets and challenges' and the di//ying rate of change

itselfD. Such descriptions places ! at the apex of the ,5/1+i=1ti,+1. 8y51mid" It i7

7t51te/i$ it i7 ,+e5+ed -it2 41.ue7$ 1+d it i7 concerned with structure. If !

interventions are to be effective in terms of BennisDs description' then they must be made

with the full participation and commitment top management.

Be*215d -5,te (&:':)

In an organi/ation7development effort' the top management of the system has a personal

investment in the programme and its outcomes. #hey actively participate in the

management effort. #hese doses not mean that they must participate in the same activities

as the others' but it does mean that they must actively support the methods used to achieve

goals.

Perhaps less elegantly' but with a shrewd eye for the realities of organi/ation life' +eddin

61;AA


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But in this insistence on top management involvement realisticC In the current climate

such involvement is usually the result of massive and usually externally induced change'

such a merger take7over or bottom line crisis. #here are great many examples where such

involvement has been the springboard for the initiation of successful !7type

interventions. But in the majority of organi/ations' the demands of running the operation

in a difficult' but necessary catastrophic' environment may make the demand for such

involvement unrealistic. *ighly motivated teams operating just below' but with the

blessing of' such top managers may provide a more realistic driving7force for

organi/ational transformation and development 6Oat/enbach and Smith' 1;998. Bennis

himself goes on to suggest that its description of ! may be to provide an abstract and

perhaps' useless' definitionD. In order to clarify his position' therefore' he goes on to

provide four examples of ! in practiceF

1. #eam development.

&. Inter7group conflict resolution.

9. 3onfrontation meetings.

>. Jeedback.

,ach of these examples is concerned with processD issues having an impact on the

effectiveness achieved by particular work7groups' either internally or at the interface

between groups. ,ach is also concerned with the intervention of a third7party change

agentD or facilator. argersion 61;AE8' writing ten years after Bennis' picks upon this latter

point to suggest a simpler framework for ! than that of the earlier writersF

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#he term organi/ation developmentDN means the skills and methods used by people to

facilitate organi/ational improvement.

%hile argerisonDs description may reflect what ! has often become 6and many provide

an explanation as to why client managers have a hard time in recogni/ing the term

organi/ation developmentD at all8' it has lost two key elements of the Bennis and Bechard

re:uirements. #he first of these is strategy and second is top7level commitment. %hile the

earlier writersD aspirations may have been too high 6reflecting itroff and OilmannDs

concern about business schoolsD distance from organi/ational realities' argerisonDs

organi/ation developers do when it is successful. %hen it is not' it is what the client

mangers did and' therefore' is not !.

) really useful framework would probably lie somewhere between two and would include

a reference to the areas of knowledge and the particular skills and methods the

organi/ation developer would characteristically employ. argulies and +aia 61;A&8 went a

long way towards meeting this re:uirement when they stated thatF

rgani/ation development borrows from a number of disciplines' including )nthropology'

Sociology' Psychology and ,conomics. It generally involves the use of concepts and data

from the behavioural science to attempt to facilitate the process of planned change.

#he tool tag is specified with the references to the disciplines upon which ! practitioner

draw' and the stress upon planned change goes some way to meet BennisD emphasis upon

! as a strategic activity 6though it will not be argued here that a strategy and a plan are

one and the same thing8. aguiles and +aia againF

rgani/ation development is essentially a system approach to the total set of functional

and interpersonal role relationships in organi/ations. )n organi/ation can be viewed as a

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system of coordinated human activities' a complex whole consisting a number of

interacting and interrelated elements or subsystems. ) change in any one part will have an

impact on one or more of the other partsN organi/ation development itself can be viewed

as system of three related elements7 values' process and technology.

#hey than provide examples what these three elements might comprise.

#hese examples are summari/ed here

V1.ue7

1. Providing opportunities for people to function as human beings rather than

as resource in the productive process.

&. Providing opportunities for each organi/ation member' as well as for the

organi/ation itself' to develop to his or her full potential.

9. Seeking to increase the effectiveness of the organi/ation in terms of its goals.

>. )ttempting to create an environment in which it is possible to find exciting and

challenging work.

?. Providing opportunities for people for people in organi/ation to influence the

way in which they relate to work' the organi/ation' and the environment.

@. #reating each human being as a person with a complex set of needs' all of

which are important in his or her work and in his or her life.ProcessF

1. !ata7gathering.

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&. rgani/ation diagnosis

9. )ction intervention.

Te2+,.,/y

1. "ew ways of organi/ational learning.

&. "ew ways of coping.

9. "ew ways of problem7solving.

#he set of values provided by argulies and +aia are essential humanist in orientation.

#his provides another clue to the externali/ation of ! from the organi/ation within

which it is practiced. #he values as listed are desirable to most of the people' but the

experience of recent life in large organi/ations has not done much to suggest that these

values are shared within the organi/ations themselves. ore difficult still' because

organi/ational members can identify within them at an individual level' they are easily

espoused by the organi/ation in formali/ed expressions of its valuesF ur greatest asset is

our people and there unswerving commitment to company goals.D But' to paraphrase

)rgyris the values in use are demonstrably different. !espite the best endeavours of

Senior anagement the economic pressures have meant that we have had to realise five

hundred valued members of the workforceD. #hus' the experience of organi/ational

members during the 1;E


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time. #hese values place emphasis upon effective and efficient delivery as opposed to the

more general values of human potential and satisfaction.

2albraith 61;AA8 does not start from the same' humanist' standpoint that characteri/es the

writers referred to so far. *e is' however' very much in tune with the systems orientation

espoused by argulies and +aia' and places great emphasis upon the importance of

strategy in common with Bennis. But perhaps the most significant differences in style in

2albraithDs work from those alluded to previously is the sense that he is writing for the

manager who owns the problem rather than for the ! practitioner who can analyse and

understand the problem. Indeed' he refers to organi/ation to design as the key issue and

not to !F

rgani/ation design is conceived to be a decision process to bring about coherence

between the goals or purposes for which the organi/ation exists' the patterns of division of

labour and interunit coordination' and the people who do the work. #he notion of strategic

choice suggests that there are choices of goals and purpose' choices of different organi/ing

models' choices of process for integrating individuals into the organi/ation' and finally' a

choice as to whether goals' organi/ation' individuals or some combination of them should

be changed in order to adapt to changes in environment. rgani/ation design is concerned

with maintaining the coherence over time.

#hese choices are fundamental and control the manager with increasing fre:uency.

%riting sometime later' 2albraith 61;E98 developed his system orientation further to

indicate that organi/ations NNN. 3onsists of structure' process that cut the structural

lines like budgeting' planning teams' and so on' reward systems like promotions and

compensation' and finally' people practices like selection and development.

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#his approach is considerably more in harmony with the prevailing' functionalist

orientation that is characteristic of Bennis' argulies' +aia' etc. ,mphasis upon the notion

of choice and' in particular' strategic choice would also find favour with itroff and

Oilmann 61;E>8 who berate the business school and their academic antecedents for their

post 1;@Se4e+%S?M,de.

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of specialist' consultant7speak 6like management development or !8. n the other hand'

the term might just be indicative of a much needed shift in emphasis as a developers all

being to recogni/e and appreciate the value of their various' different contributions and to

demonstrate an enthusiasm and willingness to learn' really learn' from one another to the

benefit to themselves and of their organi/ations.

Summ15y

#his definitions and views given by founders of ! clarify the distinctive features of the

field of ! and suggest why it is such a powerful change strategy. #he participative'

collaborative' problem7focused nature of ! marshals the experience and expertise of

organi/ation members as they work on their most important problems and opportunities in

ways designed to lead to successful outcomes.

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#his chapter describes the foundations that underlie organi/ation development theory and

practice' art and science. #hese foundations the knowledge base upon which o! is

constructed. #he knowledge base of ! is extensive and constantly being upgraded. In

this chapter we describe what we think are the most important upgrading for the field. %e

will examine the following concepts

odels and theories of planned change

System theory

Participation and empowerment

#eam and teamwork

Parallel learning structures and

)pplied behavioral science.

rgani/ation development is planned change in an organi/ation context. Planned change

theories are rather rudimentary as for as explaining relationships between variables' but

pretty good in terms of identifying the important variables involved in change.

Ourt $ewin introduced new two idea of change. #he first idea that what is occurring at any

point in time is a resultant in a field opposing forces. #he status :uo7 whatever happening

right now is the result of forces pushing in opposite directions. #his can be identified by

force field analysis. %hereas $ewins second idea was a model of the change process itself.

*e suggested that change is a three7stage processF unfree/ing the old behavior 6or

situation8' moving to a new level of behavior and refree/ing the behavior at new level.

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Sy7tem T2e,5y

) second foundation of ! is -system theory0. %hich views organi/ation as open system

in active exchange with their surrounding environments. #he aim of this section is to

explain systems theory' describe the characteristics of systems' and show how system

theory enhances the practice of !.

$audwigon Bertalanffy first articulated the principle of general system theory in 1;?


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%hereas to empower is to give someone power. #his is done by giving their ideas' to

exert influences' and to be responsible. #hat is why participation is such an effective form

of empowerment. ) good manual for implementing empowerment strategies is Games

BellascoDs. #eaching the ,lephant to !anceF #he anagers 2uide to ,mpowering 3hang.

Belesco presented numerous examples in which leaders reap extraordinary gains by

empowering their employees. Belesco uses a simple four7 step model to describe the

empowerment process

)8 Preparation

B8 3reate tomorrow

38 ision

!8 3hange.

He be.ie4e7%

1. #hat only massive change will suffice to keep organi/ations available in

the future.

&. #hat people will not naturally embrace the needed changes' and

9. #he empowerment is the key to getti;ng people to want to participate in

change.

It is believed that one of the most important ingredients of empowerments is vision7

!eveloping a clear vision' devising a strategy to achieve the vision and unleashing the

intelligence and energy of the work force to accomplish the vision are what empowerment

is all about' according to Belesco.

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object of which is knowledge to solve practical' pressing problems. )ccording to

2reenwoodF

- #he diagnostic and treatment typologies are employed together. ,ach type description of

the diagnostic typology contains implications for a certain type of treatment. #he

practitioner uses treatment as the empirical test in his diagnosis' success corroborating the

diagnosis' failure negativity and thus re:uiring rediagnosis. #he principles of diagnosis

and of treatment constitute the principles of practice i.e. with their elaborations and

implications constitute practice theory.

! is both a result of applied behavioral science perhaps more accurately it is a program

of applying behavioral science to organi/ation. )nnexure > shows some of the inputs to

applied behavioral science. #he two bottom inputs' behavioral science research and

behavioral science theory are intended to represent contributions from pure or basic

science the two top inputs' practice research and practice theory' are intended to represent

contributions from applied science.

Summ15y

#hese foundations of organi/ation !evelopment from the theoretical and practice

underpinning of the field. #aken separately' each is a powerful conceptual too for thinking

about and implementing change. #aken collectively' they constitute the beginning of a

theory of organi/ation development and change that has enormous potential for improving

organi/ational performance and individual development. #hese foundations are solid'

valid' and of great value to ! theorist and practitioners. #hey are also of great value to

! to organi/ation leaders and members who stand to benefit from the change programs

erected on this collective foundation.

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In second step action plans are developed to correct problems' by sei/ing the

opportunities' and by maintaining areas of strengths. #hese action plans are !

interventions specifically tailored to address issues at all levels of organi/ation. Step three

consists of facts finding concerning the results to the action taken. If the answer is positive

than members initiate new action plans and interventions to resolve the issue 6this is

considered to be forth step8. )gain this process looks logical and linear in )nnexure > but

in practice it is more complicated.

Di1/+,7i+/ t2e 7y7tem$ it7 7ubu+it7 1+d 85,e77

rgani/ation development is at heart an action programs based on valid interest about the

status :uo' current problems and opportunities' and effects of actions as they relate to goal

achievement. )n ! program thus starts with diagnosis and continuously employs data

collection and data analy/ing throughout. #he re:uirement for diagnostic activities7

activities designed to provide an accurate account of things as they really are7stems from

two needsF the first is to know the state of things or -what is0 the second is to know the

effects or conse:uences of actions.

#he important of diagnostic activities is emphasi/ed by Bechard as follows

#he development of strategy for systematic improvement of an organi/ation demands an

examination of the present state of things such an analysis usually looks at two broad

areas. ne is a diagnosis of various subsystems that make up the total organi/ation. #hese

subsystems may be natural -teams0 such as top management. #he production department

or a research group or they may be levels such as top management' middle management'

or the work force.

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back -in sync.0 Jourth' the vision that guides the organi/ation changes yesterdayDs vision

is no longer enough. )ctions to build the necessary structures' process' and culture to

support the new vision7interventions7are developed to make the new vision a reality. In

summary' interventions are planned sets of actions to change those situations the

organi/ation members want to change. Interventions have been developed to solve most

problems related to the human side of organi/ations. #hus' when problem are discovered

in organi/ational system' subsystems' or processes' intervention activities can be initiated

to remedy the problems.

T2e N1tu5e ,6 OD i+te54e+ti,+7

) well7designed ! program unfolds according to strategy or game plan' called to overall

! strategy. #his strategy may be planned in advance or may emerge over time as events

dedicate. #he strategy is based on answer to such :uestions as the followingF what are

overall changeU improvements goals of the programsC %hat parts of the organi/ation are

most ready and respective to the ! programC )nswer to those :uestions lead the

practitioners to develop a game plan for where to intervene in the system' what to do' the

se:uencing of interventions' and as forth.

! interventions tend to focus on real problems rather than on abstract problems. #he

problems facing organi/ation members are real' not hypothetical the problems members

get rewards for solving are real' not hypothetical and the problems central to needs of

organi/ation members are real' not hypothetical. !eveloping the skills and knowledge to

solve real problems as they arise in their -natural state0 means that the educational

problem of -transfer of learning0 from one situation to another is minimi/ed 6all though

the problem of generali/ation' that is' knowing the appropriate times and places to apply

this particular set of skills and knowledge' is still present.8

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deviation from a standard of performance.0 )ccording to these authors' a problem is a

gap problem solving is discovering a solution7a set of actions7to close the gap.

Gust as ! practitioners apply behavioral science principles and practice to improve

organi/ational functioning and individual development' they apply these same principles

and practice as they plan' implement' and manage ! programs. #hey attend e:ually to

task and process' consider system ramifications of the program' involve organi/ation

member in planning and execution' use an action research model' create feedback loops to

ensure relevance and timeliness' and so forth. anaging the ! program effectively

means the difference between success and failure. #he aim of this section is to provide

guidelines to help ensure success in managing ! programs. Specifically' we examine the

phase involved in ! program' a change management model' and a procedure for creating

parallel learning structures.

P217e ,6 OD 85,/51m7

! programs follow a logical progression of events7 a series of phases that unfolds over

time. )n important part of managing ! programs well is to execute each phase well.

%arner Burke describes the following phases of !F

1. ,ntry

&. 3ontracting

9. !iagnosis

>. Jeedback

?. Planning 3hange

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@. Intervention

A. ,valuation

,ntry present the initial contact between consultant and client' exploration of the situation

that stimulated the client to seek a consultant' and exploration aimed at determining

whether the problem or opportunity' the client' and the consultant constitute a good match.

3ontracting involves establishing mutual expectations' reaching agreement on expenditure

of time' money' resources' and energy' and generally clarifying what each part expects to

get from the other and give to other. !iagnosis is the fact7finding phase in which a picture

of the situation is gained through interviews' observations' :uestionnaires' examination of

organi/ation documents and information' and the like. Burke observes that there are two

steps within the diagnostic phase7gathering information and analy/ing it. Jeedback

represents the return of the analy/ed information to the client system exploration of the

information by the clients for understanding' clarification' and accuracy and the

beginning of ownership of the data by the clients as their data' their picture of the

situation' and their problems and opportunities. Planning change involves the clients

deciding what action steps to take based on the information they have just learned.

)lternatives possibilities are explored and criti:ued plans for action are selected and

developed. Interventions implements sets of actions designed to correct the problems or

sei/e the opportunities. ,valuation represents assessing the effects of the programF what is

successfulC %hat changes occurredC %hat were the casual mechanismsC )re we satisfied

with the resultsC

#hese phases are straightforward and logical in description' but in practice they often

overlap a great deal and look more like an evolving process than a linear progression. But

the most important point is that emphasis builds the foundation for subse:uent phases

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therefore' each phase must be executed with care and precision. #hese phases of ! serve

as an overall roadmap for practitioners.

A M,de. 6,5 M1+1/i+/ C21+/e

3ummings and %orley identify five sets of activities re:uired for effective change

managementF

1. otivating change

&. 3reating a vision

9. !eveloping political Support

>. anaging the transition' and

" Sustaining momentum. #hese are shown in )nnexure A

2etting people to want to change' believe change is necessary' and to commit to

abandoning the status :uo for an uncertain future is the first step. 3ummings and %orley

suggests three methods for creating readiness to changeF sensiti/e people about the

pressure to change' that is why change must occur show discrepancies between the

current state of affairs and the future state of affairs 6which are more desirable8 and

communicate positive' realistic expectations for the advantages to change. #he next set of

activities' overcoming resistance to change' is achieved through three methodsF dealing

empathetically with feelings of loss an anxiety' providing extensive communication about

change effort and how it is proceeding' and encouraging participation and involvement by

organi/ation members is planning and executing the change. )s the other writeF -one of

the oldest and most effective strategies for overcoming resistance to involve organi/ation

members directly in planning and implementing change0.

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Summ15y

#hree components M diagnosis' interventions' and program management7critical to all

organi/ation development programs have been explored in this chapter. ,ach is important

in its own right all are vital to success. #he more effective they will become in their

organi/ation improvement efforts. rgani/ation development is complex blend of art'

science' and craft that is gained through the study and mastery of these three components.

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T,8i O5/1+i=1ti,+ De4e.,8me+t 1+d 5,.e ,6 M1+1/eme+t Te2+iue7

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I+t5,duti,+

%hile #otal =uality anagement has proven to be an effective process for improving

organi/ational functioning' its value can only be assured through a comprehensive and

well thought out implementation process. #he purpose of this chapter is to outline key

aspects of implementation of large7scale organi/ational change' which may enable a

practitioner to more thoughtfully and successfully implement #=. Jirst' the context will

be set. #= is' in fact' a large7scale systems change' and guiding principles and

considerations regarding this scale of change will be presented. %ithout attention to

contextual factors' well7intended changes may not be ade:uately designed. )s another

aspect of context' the expectations and perceptions of employees 6workers and managers8

will be assessed' so that the implementation plan can address them. Specifically' sources

of resistance to change and ways of dealing with them will be discussed. #his is important

to allow a change agent to anticipate resistances and design for them' so that the process

does not bog down or stall. "ext' a model of implementation will be presented' including

a discussion of key principles. isionary leadership will be offered as an overriding

perspective for someone instituting #=. In recent years the literature on change

management and leadership has grown steadily' and applications based on research

findings will be more likely to succeed. 4se of tested principles will also enable the

change agent to avoid reinventing the proverbial wheel. Implementation principles will be

followed by a review of steps in managing the transition to the new system and ways of

helping institutionali/e the process as part of the organi/ationKs culture. #his section' too'

will be informed by current writing in transition management and institutionali/ation of

change. Jinally' some miscellaneous doKs and donDts will be offered.

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change. In particular' middle management and first line supervisors will be operating in

new ways. Instead of acting as monitors' ordergivers' and agents of control they will serve

as boundary managers' coordinators' and leaders who assist line workers in getting their

jobs done. #o deal with fears of layoffs' all employees should be assured that no one will

lose employment as a result of #= changesF jobs may change' perhaps radically' but no

one will be laid off. *yde 61;;&8 has recommended that we Ldisperse and transform' not

replace' midlevel managers.L #his no layoff principle has been a common one in joint

labor management change processes such as :uality of working life projects for many

years.

)nother systems consideration is that #= should evolve from the organi/ationKs

strategic plan and be based on stakeholder expectations. #his type of planning and stance

regarding environmental relations is receiving more attention but still is not common in

the human services. )s will be discussed below' #= is often proposed based on

environmental conditions such as the need to cut costs or demands for increased

responsiveness to stakeholders. ) manager may also adopt #= as a way of being seen at

the proverbial cutting edge' because it is currently popular. #his is not a good motivation

to use #= and will be likely to lead to a cosmetic or superficial application' resulting in

failure and disappointment. #= should be purposeorientedF it should be used because an

organi/ationKs leaders feel a need to make the organi/ation more effective. It should be

driven by results and not be seen as an end in itself. If #= is introduced without

consideration of real organi/ational needs and conditions' it will be met by skepticism on

the part of both managers and workers. %e will now move to a discussion of the ways in

which people may react to #=.

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organi/ational processes' including reward systems' financial R information systems' and

training systems.

Implementing #= essentially involves organi/ational transformationF beginning to

operate in new ways' developing a new culture. #his also includes redesigning other

systems' as has been described above. Such change' while difficult' is possible in the

public sector' in spite of SwissKs 61;;&8 reservations 6Packard and +eid' 1;;


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#o communicate the change' mechanisms beyond existing processes will need to be

developed. Special all staff meetings attended by executives' sometimes designed as input

or dialog sessions' may be used to kick off the process' and #= newsletters may be an

effective ongoing communication tool to keep employees aware of activities and

accomplishments.

anagement of resources for the change effort is important with #=' because outside

consultants will almost always be re:uired. 3hoose consultants based on their prior

relevant experience and their commitment to adapting the process to fit uni:ue

organi/ational needs. %hile consultants will be invaluable with initial training of staff and

#= system design' employees 6management and others8 should be actively involved in

#= implementation' perhaps after receiving training in change management which they

can then pass on to other employees. ) collaborative relationship with consultants and

clear role definitions and specification of activities must be established.

S,me D,7 1+d D,+t7

Jollowing are some miscellaneous doKs and donKts which are based on experiences with

#= in the public sector and the human services. any are drawn from 3ohen and Brand

61;;98' *yde 61;;&8' and 3haudron 61;;&8.

Jirst' donKt Ldo #=LF a canned approach is likely to be met with skepticism and

ultimately fail because it is not adapted to the uni:ueness of a particular organi/ation.

#= is particularly susceptible to this phenomenon' because some adherents adopt almost

a religious fervor' 6they have been described by one observer as L!eming lemmingsL

6+eid' 1;;&8. L!eming as demigodL is another way this phenomenon has been describedF

a statement takes on an added aura when prefaced by L!r. !eming said...L 63haudron'

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1;;98. !onKt copy any particular model but use relevant basic principles such as an

emphasis on :uality' continuous analysis of tasks to improve performance' and work with

suppliers to enable the organi/ation to start with high :uality supplies. #= should be

seen as a process' not a program. It should be integrated into ongoing agency operations'

and the focus should be on how an organi/ation can better accomplish its goals and

objectives. )t the tactical level' donKt overemphasi/e techni:ues such as statistical process

control and the use of charts. Jocus instead on the systems the analysis and improvement

of processes not on statistics or individual variations.

%hereas some large7scale organi/ational change efforts are often driven by a centrali/ed

steering committee or group of executives' in #= it may be best to not centrali/e the

effort and establish a separate :uality management bureaucracy 6L:ualiticratsL' according

to *yde8. !onKt believe that top management support is necessary at first' as is axiomatic

in organi/ation development. %hile an organi/ation neednKt start #= at the top'

successes in particular units or programs should set the stage for diffusion in other

directions. 3hange from below may be appropriate for those at lower levels who want to

initiate #=. It may work best to start #= with a temporary task force and then hire

trainers' expose staff' and hope that managers will be motivated to learn more. People

responsible for leading shouldnKt devote full time to #= they should maintain their

regular work as well. 3ohen and Brand believe that #= is best taught by people doing it

day to day in their work. Implement it gradually to ensure meaningful culture change' and

use fre:uent feedback to ensure that change isnKt just superficial. #here is no need for a

Lgrand planL 6a :uality council' etc.8 just start where the organi/ation is.

Perhaps the most important LdoL worth repeating is to involve employees in the decision

making process' at whatever stages and levels possible. )s a specific aspect of this'

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advance negotiations and discussions with any unions present should occur. 3reate

Latmosphere of amnestyL 63ohen R Brand' 1;;9' &


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Summ15y

In summary' first assess preconditions and the current state of the organi/ation to make

sure the need for change is clear and that #= is an appropriate strategy. $eadership

styles and organi/ational culture must be congruent with #=. If they are not' this should

be worked on or #= implementation should be avoided or delayed until favorable

conditions exist.

+emember that this will be a difficult' comprehensive' and long7term process. $eaders

will need to maintain their commitment' keep the process visible' provide necessary

support' and hold people accountable for results. 4se input from stakeholder 6clients'

referring agencies' funding sources' etc.8 as possible and' of course' maximi/e employee

involvement in design of the system.

)lways keep in mind that #= should be purpose driven. Be clear on the organi/ationKs

vision for the future and stay focused on it. #= can be a powerful techni:ue for

unleashing employee creativity and potential' reducing bureaucracy and costs' and

improving service to clients and the community.

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#he years 1;@;7AE saw the #ata 2roup undertake aeronautical space projects and enter

sectors such as publishing' precision instruments and computer hardware.

#he years 1;A;7EE saw Indian civil aviation celebrate its fiftieth year. #ata ,ngineering

took another significant leap with its passenger cars. #ata #elecom was established.

#he period 1;E;71;;E saw sectors such as information technology taking the lead' and

#ata 3onsultancy Services established itself as a force to be reckoned with. #ata

,ngineering launched IndiaKs first fully indigenous car' the Indica. #ata =uality

anagement Services instituted the G+! = award' and +atan #ata took over from G. +.

!. #ata as the groupKs chairman.

Jar7reaching changes have taken place in the #ata 2roup from 1;;; to the present. #he

new #ata 2roup corporate mark and logo were unveiled #ata #ea gained control of the

#etley 2roup' 4O' following the biggest cross7border ac:uisition by an Indian company a

Kgroup executive officeK was set up to provide long7term direction to the group and a

Kgroup corporate officeK was established to guide the groupKs strategy for the future.

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M1+1/eme+t 7t5utu5e

#here are two decision7making bodies that define and direct the business endeavours of

the #ata group. #hese are called the 2roup ,xecutive ffice and the 2roup 3orporate

3entre.

G5,u8 E3euti4e O66ie

#he 2roup ,xecutive ffice 62,8 defines and reviews the business activities of the #ata

group and is involved in implementing programmes in corporate governance' human

resources' the environment' etc. #he chief objective of the 2, is to make the #ata group

more synergistic it does this by strengthening the relationship between the group and its

companies.

#he 2, creates a shared understanding of a #ata companyKs current activities' its

strengths and its weaknesses. It then addresses the most strategic issues facing the

company. )part from this' the 2, has reviewed the groupKs business portfolio and

clustered companies into seven business sectors. #he 2, assesses what uni:ue value a

company adds to a particular business sector and' conversely' what uni:ue value the group

can bring to that company.

G5,u8 C,58,51te Ce+t5e

#he 2roup 3orporate 3entre 62338 is a forum at which broad policy issues relating to the

growth of #ata companies are reviewed and the entry into new areas discussed. #he 233

also plays a key role in protecting and promoting the #ata brand in India and across the

globe. #he 233 also provides advisory services to #ata companies in the areas of *uman

+esources' Jinance' $egal' and other functional areas as and when re:uired.

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)part from this' the 233 from time to time' reviews #ata companiesD business portfolios

across business sectors.

Pi,+ee57

#here is a difference between making money for oneself and creating wealth for others.

#his is the story of a business house that has created wealth for a nation. #he story of

struggle' anxiety' adventure and achievement. #he story of #ata pioneers.

J1m7et9i T1t1' the founder of IndiaKs largest and internationally best7known group of

companies' began with a textile mill in central India in the 1EA


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T1t1 SSL

#ata SS$ $imited is a part of the 1& billion7dollar companies' #ata 2roup. #hey are a

leading manufacturer of steel wires' cold rolled steel strips' and hot rolled steel profiles in

India. #he company has a turnover of about V 19< million' and employs about 9?


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rgani/ation was established in 1;?E' since than organi/ation has gone through many

changes. #ata SS$ $td. is a representative of organi/ations coming under the purview of

#ata Sons. #he study made in this project goes on lines stating the methods used by the

organi/ation to change itself' the new policies made' the policies used to control the

relation between staff and managers' training programme' technology adopted. #he project

mainly focuses on the #= methods used by the organi/ation to help it change. In

following chapter the methods are dealt in detail.

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T,8i F T1t1 Bu7i+e77 E3e..e+e M,de. (TBEM)

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I+t5,duti,+

#B, stands for #ata business ,xcellence odel' it is a #= model based on alcolm

Baldrige "ational =uality )ward' 4S) 6given by the 4S President to )wards winning

)merican 3ompanies8. #he purpose of #B, is based on the best practice in world7class

companies. *ence this criterion can help companies adopting the criteria to pursue

business excellence in all aspects of business. #his model can be adopted by companies in

day7to7day work by against relevant sections of the criteria. #his self7evaluation will

expose gaps in daily working' which are essentials for Business ,xcellence. +espective

departments U functions can adopt the best available approach to pure business excellence

bridging the identified gaps. 6)nnexure E8 explains the application of #B,.

#B, scores each organi/ation with maximum of 1


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&. Mi77i,+F

#o achieve sustainable profitable growth in steel wire and related business.

3reate differential value to our customers through innovative offerings.

3ontinuous improvement of processes and technologies.

,nhance employeeDs competencies to create a high performing and

innovative organi/ation.

Be a responsible corporate citi/en and enhance the :uality of life of

employees and key community.

9. u1.ity 8,.iyF -it is policy of #ata SS$ $imited to maintain market leadership by

delivering products and services to entire satisfaction of our customers' through

continuous improvement' technological upgradation and committed employees.

>. C,58,51te 41.ue7F

3+,!IBI$I#( in all our dealings with customers' suppliers' employees'

share holders' social and government agencies and other stake holders.

34S#,+ J34S and S)#ISJ)3#I" and constant endeavor to work

for and with customer in true spirit of partnership.

#,) %+O and ,P$(,, 3I#,"#.

#he nurturing of !(")I3 $,)+"I"2 +2)"IT)#I" committed to

improve individual and organi/ation performance.

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3+P+)#, 3I#IT,"S*IP as a conscious responsibility to the society in

which we operate.

?. Balance score 3ard 6marks that are provided to rank the organi/ation for #B,8

@. pen dialogue' department meetings and 4nion7 anagement eetings.

rgani/ation has various programs for empowerment' innovation and learning. Jollowing

are some of the ways

#eam based culture

Balance Score 3ard 6BS38

,ncouraging participation in initiatives such as #op' Six Sigma' Suggestion

Schemes' and =uality 3ircles.

+eward and recognisation to individuals and teams.

,ncouraging employeesD participation in "ationalU International

conventionsU,xhibitions.

Jinancial )ssistance for higher education.

St51te/y de4e.,8me+t

#he company has strategy planning process where in there are various steps such asF

1. Industry assessmentF in this segment company scans through the external

environment such as demand supply analysis' industry value' environment impact

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assessments' strategies adopted by the competitors key re:uirements etc. this helps

company to build itself a strategy that will be competitive in market.

&. Product market analysisF product portfolio review is done and thought of new

products launch if necessary.

9. )ssessment of 3ompanyDs ability to competeF here company checks its ability'

capacity before entering into market environment. Jinal assessment is made so that

company does not lack in any area wherein their competitors can take advantage of.

>. S%# analysisF Strengths' %eakness' pportunities and #hreats are considered at

this level.

?. Strategic 3hoicesF choices of technology' *+ capabilities needs' Suppliers and

partner capabilities' where to compete' how to compete' scenario building etc. are taken

into concern.

@. +evisiting of mission and vision statementsF 3ompany revisits the original vision

and mission statement so to lead the organi/ation in same direction and does not take step

which contradicts companiesD goals.

A. Strategic Jormulation and deploymentF this is the last stage where company is

ready to apply its strategy and come with a boom.

St51te/y De8.,yme+t

)fter Strategy development is done organi/ation deploys the strategy with keeping in

mind following key themesF

1. 2row through new products

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&. !elayering through restructuring and empowerment.

9. 3reating focused groups like 2' separate sales and marketing' improvement

groups' environment groups.

>. 3ross7functional teams and task forces. #he work of this group is to check whether

the implementation of #= tools are effectively used and is there any positive result seen

after itDs implementation.

?. =uality 3ircles.

3ompany believes a small step today will help itself to take a giant leap in future. *ence'

company always keeps itself ready to face the tomorrowDs competition. It follows the

Plan7 !o73heck M)ct wherein it allows its employees to come up with ideas that can help

organi/ation to grow and build itself firmly in the competitive world. #he chart in

)nnexure 1< explains the following broad contents of A categoriesF

1. $eadership 6#his includes organi/ational $eadership' social +esponsibility and

citi/enship8

&. Strategic Planning 6*ow organi/ational Strategy is developed and

implemented8

9. 3ustomer and arket Jocus 6*ow customer and market knowledge is gathered

and used for market planning' segmentation' customer focus etc.C *ow customer

relationship is build and customer satisfactions is determinedC8

>. Information and )nalysis 6*ow is performance is measured and analy/edC8

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?. *uman +esource focus 6#hrough work systems' education' training'

development' employees well being satisfactions.8

@. Process anagement 6#hrough design' production' delivery' Oey businessU

support process like market development' information technology' supply chain

management' finance' project and engineering etc.8

A. Business +esults 6customer Jocused' Jinancial' market' human +esources'

design' production' environment' Strategy results8

ther than above stated model #ata 2roup also takes concern to train their employees in

most comfortable environment where they can participate and learn new methods. #he

details about #ata anagement #raining 3entre 6##38

#he #ata anagement #raining 3enter 6##38 has been positioned primarily as an in7

house training center for the #ata 2roup. It aims to provide training to high performers

within the group and to act as a cradle of change for #ata executives.

##3Ds training programmes are designed to develop leadership traits. #he institute tries

to make the training both issue7 and need7based by encouraging participants to implement

programme inputs in actual situations.

#he training methodology stresses on project orientation and action learning. Participants

are re:uired to discuss various issues' problems and plans concerning their organi/ations

and are then provided the opportunity to evolve solutions by interacting with a world7class

faculty.

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#he #ata Brand ,:uity Business Promotion programme' the #ata Kcode of conductK' and the

G+! = initiatives constitute a common module in all these programmes and participants

have the privilege to listen to and interact with senior #ata 2roup leaders.

#he center also plays a major role in the training and development of #ata )dministrative

Service officers. It conducts programmes not only during their induction and at the end of

their probation period' but also during their early years with the service. #he aim is to

inculcate the #ata 2roupDs values in probationers and nurture in them the ability to hold

senior positions within the group.

#he centerDs core faculty group consists of specialists who have wide7ranging experience

in management training' consulting and research. #he findings of their consulting and

research projects are often used in classroom sessions. #he center strives to provide the

highest :uality of service in operations and administration.

Summ15y

#ata 2roup has taken initiative in all those matter wherein the organi/ation can develop

and expand itself in all the possible ways. #he organi/ation has ac:uainted itself with all

the information that can help it stand to the strong winds of competition that has entered

the country after liberali/ation. #he organi/ation has been certified with IS ;


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T,8i% A+1.y7i7

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A+1.y7i7

)s this topic tries to cover the behavior of the organi/ation during the phase of change 6i.e.

organi/ation development8 and various steps taken by organi/ation to bring a major

change. #o understand this topic better I have taken #ata SS$ as the example and tried to

study the organi/ation. )s stated by Oillman that -rgani/ation development' on the other

hand' was more speciali/ed' more specific and' in aspiration at east more scientific. It

tended to be domain of the business school and the research institute rather than the

incorporate into the organi/ation itself.0 *ence I tried to domain this are by giving my

point of view on well7known company like #ata SS$..

#his organi/ation in short applies all those techni:ues' which should be used by any

learning organi/ation. #he uni:ue features of this organi/ation is that even being for half

the century in the market believes that it is still a learning organi/ation and keep itself

totally awake with all its six senses alert to sense the new methods in the market. #he

company employees respect the rules laid by the organi/ation and try to perform their part

effectively. It is also seen that there is a good upward and downward communication

between the top7level management and lower level management. #he organi/ation also

believes in participative management style' it also conducts a brain storming sessions to

improve the competitiveness in the organi/ation and motivate the employees. #he

organi/ation has its own code of conduct' which have sets of rules' and regulations that

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has to be followed by the employees. #his shows that organi/ation has good control on

the workers and employees' due to which company is able to carry its goodwill for this

many years.

T,8i: Ne- O5/1+i=1ti,+ St5utu5e

T2e E+4e.,8 St5utu5e

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4ntil recent time we followed the traditional structure of organi/ation i.e. the pyramid

shape. *owever' it is seen as times change every thing has to change. It is always the old

concept on which the new concepts are created. *ence' the proposed structure also has

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been made in keeping the positive points of the old structure and attempt to reduce the

limitations of traditional structure.

-rgani/ation structure0 is an imaginary lines drawn to limit the organi/ation to certain

boundaries and secondly to clearly specify the post and position of an individual in that

organi/ation. #here are various types of organi/ation structure made to meet the

re:uirement of that time.

Jor e.g.' the Jlip Pyramid the very concept of this is to remove the differences between the

top level management and lower level management. %here top7level management plays a

supportive role.

In the same manner' envelope structure has been proposed to remove the conflict between

two or more departments.

Jor e.g. a production depts. )sk for something and purchase dept brings something else' to

avoid such differences this structure to some extend can help the organi/ation.

,nvelope is a symbol of message' secret communication and a brief note. )pplication of

this concept is been tried in this structure.

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!e1tu5e7

1. aintains a high level secrecy.

&. +emoves the problem of inter department conflict

9. Provides flexibility to top level management

>. Provides a permanent position to a core competency team department.

?. )voids 2rape wine communication.

@. ,mployment of high skilled personnel takes place.

A. %orks with 4nity.

E. Participative management skills.

;. "o' direct !iscrimination.

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C,+.u7i,+

anagement !evelopment is best described as the process from which managers learn

and improve their skills not only to benefit themselves but also their employing

organi/ations.

In organisational development 6!8' the effectiveness of management is recognised as

one of the determinants of organisational success. #herefore' investment in management

development can have a direct economic benefit to the organi/ation.

anagers are exposed to learning opportunities whilst doing their jobs' if this informal

learning is used as a formal process then it is regarded as management development.

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Bib.i,/5182y

%ebsites

1. www.google.com

&. httpFUUtal.co.inUuiU)Page.aspxCSectionIdX


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!evelopment and management of visitor attractions' Gohn Swarbrooke.

!evelopment and changeF essays in honour of O " +aj' ,d by Pranab .Bardhan.

rgani/ation developmentF Some portion from Internet.

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