Unit iv ob at system level

Learning Block III: Study of OB at System Level

Graduate Teaching Notes on OB

(2015)

Dr Chanakya P Rijal

Nepal College of Management

In Affiliation with

Kathmandu University, School of Management

Lalitpur, Nepal

UNIT IV: OB AT SYSTEM LEVEL

1. Organizational Design and Structure

2. Managing Stress

3. Organizational Culture

4. Power and Politics

5. Organizational Change and Development

1. Organizational Design and Structure

Key Elements:

•Work specialization

•Departmentalization

•Chain of command

•Span of control

•Centralization and decentralization

•Formalization

Organizational Structure…

How the job tasks are formally divided, grouped, and coordinated.

3Dr Rijal's Discourses on OB

Key Design Questions and Answers for Designing the Proper Organization Structure

The Key Questions The Answer Is Provided By

1. To what degree are articles Work specialization

subdivided into separate jobs?

2. On what basis will jobs be grouped Departmentalization

together?

3. Whom do individuals and groups Chain of command

report to?

4. How many individuals can a manager Span of control

efficiently and effectively direct?

5. Where does decision-making Centralization

authority lie? and decentralization

6. To what degree will there be rules Formalization

and regulations to direct employees

and managers? 4Dr Rijal's Discourses on OB

What Is Organizational Structure?

Division of labor:

• Makes efficient use of employee skills

• Increases employee skills through repetition

• Less between-job downtime increases productivity

• Specialized training is more efficient.

• Allows use of specialized equipment.

Work Specialization

The degree to which tasks in the organization are subdivided into separate jobs.



Grouping Activities By:

• Function

• Product

• Geography

• Process

• Customer

Departmentalization

The basis by which jobs are grouped together.



Chain of Command

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Authority

The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.

Unity of Command

A subordinate should have only one superior to whom he or she is directly responsible.



Narrow Span Drawbacks:

•Expense of additional layers of management.

•Increased complexity of vertical communication.

•Encouragement of overly tight supervision and discouragement of employee autonomy.

Concept:

Wider spans of management increase organizational efficiency.

Span of Control

The number of subordinates a manager can efficiently and effectively direct.


Contrasting Spans of Control


What Is Organizational Structure?Centralization

The degree to which decision making is concentrated at a single point in the organization.

Formalization

The degree to which jobs within the organization are standardized.

Decentralization

The degree to which decision making is

spread throughout the organization.


Common Organization Designs

A Simple Structure:Jack Gold’s Men’s Store

Simple Structure

A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.


Common Organization DesignsBureaucracy

A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.


The Bureaucracy• Strengths

– Functional economies of scale

– Minimum duplication of personnel and equipment

– Enhanced communication

– Centralized decision making

• Weaknesses

– Subunit conflicts with organizational goals

– Obsessive concern with rules and regulations

– Lack of employee discretion to deal with problems


Common Organization Designs

Key Elements:

+ Gains the advantages of functional and product departmentalization while avoiding their weaknesses.

+ Facilitates coordination of complex and interdependent activities.

+ Breaks down unity-of-command concept.

Matrix Structure

A structure that creates dual lines of authority and combines functional and product departmentalization.


Matrix Structure (College of Business Administration)

(Dean)

(Director)

Employee


New Design Options

Characteristics:

•Breaks down departmental barriers.

•Decentralizes decision making to the team level.

•Requires employees to be generalists as well as specialists.

•Creates a “flexible bureaucracy.”

Team Structure

The use of teams as the central device to coordinate work activities.


New Design Options

Concepts:

Advantage: Provides maximum flexibility while

concentrating on what the organization does best.

Disadvantage: Reduced control over key parts of the

business.

Virtual Organization

A small, core organization that outsources its major business functions.

Highly centralized with little or no departmentalization.


Why Do Structures Differ?Mechanistic Model

A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.


Why Do Structures Differ?Organic Model

A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.


Mechanistic Versus Organic Models


Why Do Structures Differ? – StrategyInnovation Strategy

A strategy that emphasizes the introduction of major new products and services.

Imitation Strategy

A strategy that seeks to move into new products or new markets only after their viability has already been proven.

Cost-minimization Strategy

A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.


The Strategy-Structure RelationshipStrategy Structural Option

Innovation Organic: A loose structure; low specialization, low formalization, decentralized

Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization

Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings


Organization Structure: Its Determinants and Outcomes

Implicit Models of Organizational Structure

Perceptions that people hold regarding structural variables formed by observing things around them in an unscientific fashion.


2. Stress Management

• Stress is a feeling that's created when we react toparticular events. It's the body's way of rising to achallenge and preparing to meet a tough situationwith focus, strength, stamina, and heightenedalertness.

• Perceived substantial imbalance between thedemands of stressors and response capacityresulting in psychological, physical and/ orbehavioural deviations

• Not necessarily bad or damaging

Concept of Stress


• Stressor: external factors exerting pressures on a person’s physiological or psychological systems (e.g. a sudden increase in workload)

• Response: internal psychological factors (e.g. discomfort, anxiety or tension) responding to external demands

Components of stress


Stress and PerformancePe

rfo

rman

ce

Stress of boredom

Moderate stress

Stress of excess pressure


1. Extra-organisational stressors

– Societal and technological changes

– The family

– Relocation

– Economic and financial conditions

– Race, gender and class

– Community conditions

2. Organisational stressors

– Organizational processes

– Organizational structure and design

– Administrative policies and strategies

– Working conditions

Causes/Sources of Stress


3. Group stressors

– Lack of group cohesiveness

– Lack of social support

4. Individual stressors

– Personality dispositions and traits: particularly Type A personality

– Feeling of a lack of personal control over the work environment

– Learned helplessness

– Low psychological hardiness (commitment, challenge and control)



5. Time stressors: too much to do in limited time

– Work overload, lack of control

6. Encounter stressors: resulting from interpersonal interactions

– Role conflicts, issue conflicts, interaction conflicts

7. Situational stressors: arising from the environment

– Unfavourable working conditions, rapid changes

8. Anticipatory stressors: potentially disagreeable events that threaten to occur

– Unpleasant expectations, fear



• Critical event stress

– Specific life or job event creating high stress followed by low stress

• Chronic stress

– Constant and additive stress caused by continuously recurring strossorss

Nature of Stress


1. Physical problems: High blood pressure, high cholesterol, heart disease, tension headaches, back pain, gastrointestinal problem

2. Psychological problems: Anger, anxiety, depression, irritability, loss of self-esteem, moodiness and dissatisfaction

3. Behavioural problems: Under/overeating, sleeplessness, increased smoking and drinking, drug abuse, accident proneness, absenteeism and turnover

4. Cognitive problems: Distortion of thinking, indecisiveness, lowered intellectual functioning

5. Social problems: Aggression, withdrawal

Individual Consequences


1. Lower motivation

2. Dissatisfaction

3. Lower job performance

4. Absenteeism

5. Turnover

6. Higher grievances

7. Higher accidents

8. Lower quality work relationships

9. Faulty decision making

10. Conflicts

Organizational Consequences


• Elimination of stressors

– Minimization of causes and creation of more favorable environment; permanent strategy; requires long time

• Development of resiliency

– Development of overall capacity to handle stress; proactive strategy to initiate actions to resist effects of stress; long term effect; requires moderate time

• Use of temporary coping mechanisms

– Short term and reactive strategy to be used on the spot to reduce temporarily the effects of stress

Managing Stress


Elimination of Stressors

Stressor Strategy

Time stressor

Encounter stressor

Situational stressor

Anticipatory stressor

• Time management• Delegation• Interpersonal competence• Work redesign• Prioritizing• Planning


• Programs focused on specific organisational, group and individual stressors

– Restructuring/ redesign of policies, structure, systems and processes and work contents and contexts

– Building cohesive and supportive groups

– Selection and development of individuals

• General stress coping programmes

– Work-life balance

– Work-family initiatives

– Counselling services

– Wellness publications

– Employee assistance program

Organisational Strategies


3. Organizational Culture

Institutionalization

When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality.


Organizational Culture

Characteristics:

1. Innovation and risk taking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

Organizational Culture

A common perception held by the organization’s members; a system of shared meaning.


Contrasting Organizational Cultures …Organization A

This organization is a manufacturing firm. Managers are expected to fully document

all decisions; and “good managers” are those who can provide detailed data to

support their recommendations. Creative decisions that incur significant change or

risk are not encouraged. Because managers of failed projects are openly criticized

and penalized, managers try not to implement ideas that deviate much from the

status quo. One lower-level manager quoted an often used phrase in the company:

“If it ain’t broke, don’t fix it.”

There are extensive rules and regulations in this firm that employees are required to

follow. Managers supervise employees closely to ensure there are no deviations.

Management is concerned with high productivity, regardless of the impact on

employee morale or turnover.

Work activities are designed around individuals. There are distinct departments and

lines of authority, and employees are expected to minimize formal contact with other

employees outside their functional area or line of command. Performance

evaluations and rewards emphasize individual effort, although seniority tends to be

the primary factor in the determination of pay raises and promotions.39Dr Rijal's Discourses on OB

Contrasting Organizational Cultures …Organization B

This organization is also a manufacturing firm. Here, however, managementencourages and rewards risk taking and change. Decisions based on intuition arevalued as much as those that are well rationalized. Management prides itself on itshistory of experimenting with new technologies and its success in regularly introducinginnovation products. Managers or employees who have a good idea are encouraged to“run with it.” And failures are treated as “learning experiences.” The company pridesitself on being market-driven and rapidly responsive to the changing needs of itscustomers.

There are few rules and regulations for employees to follow, and supervision is loosebecause management believes that its employees are hardworking and trustworthy.Management is concerned with high productivity, but believes that this comes throughtreating its people right. The company is proud of its reputation as being a good placeto work.

Job activities are designed around work teams, and team members are encouraged tointeract with people across functions and authority levels. Employees talk positivelyabout the competition between teams. Individuals and teams have goals, and bonusesare based on achievement of these outcomes. Employees are given considerableautonomy in choosing the means by which the goals are attained.


Do Organizations Have Uniform Cultures?Dominant Culture

Expresses the core values that are shared by a majority of the organization’s members.

Subcultures

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


Do Organizations Have Uniform Cultures?Core Values

The primary or dominant values that are accepted throughout the organization.

Strong Culture

A culture in which the core values are intensely held and widely shared.


What Is Organizational Culture?

• Culture Versus Formalization

– A strong culture increases behavioral consistency and can act as a substitute for formalization.

• Organizational Culture Versus National Culture

– National culture has a greater impact on employees than does their organization’s culture.

– Nationals selected to work for foreign companies may be atypical of the local/native population.


What Do Cultures Do?


What Do Cultures Do?

Culture as a Liability:

1.Barrier to change

2.Barrier to diversity

3.Barrier to acquisitions and mergers


How Culture Begins

Founders hire and keep only employees who think and feel the same way they do.

Founders indoctrinate and socialize these employees to their way of thinking and feeling.

The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.


Keeping Culture AliveSelection

– Concerns with how well the candidates will fit into the organization.

– Provides information to candidates about the organization.

Top Management

– Senior executives help establish behavioral norms that are adopted by the organization.

Socialization

– The process that helps new employees adapt to the organization’s culture.


Stages in the Socialization Process1. Prearrival Stage

The period of learning in the socialization process that occurs before a new employee joins the organization.

3. Metamorphosis Stage

The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

2. Encounter Stage

The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.


A Socialization Model


Entry Socialization Options

• Formal versus Informal

• Individual versus Collective

• Fixed versus Variable

• Serial versus Random

• Investiture versus Divestiture


How Organization Cultures Form …


How Employees Learn Culture

• Stories

• Rituals

• Material Symbols

• Language


Creating an Ethical Organizational Culture• Characteristics of Organizations that Develop High Ethical

Standards

– High tolerance for risk

– Low to moderate in aggressiveness

– Focus on means as well as outcomes

• Managerial Practices Promoting an Ethical Culture

– Being a visible role model.

– Communicating ethical expectations.

– Providing ethical training.

– Rewarding ethical acts and punishing unethical ones.

– Providing protective mechanisms.


Creating a Customer-Responsive Culture• Key Variables Shaping Customer-Responsive Cultures

1. The types of employees hired by the organization.

2. Low formalization: the freedom to meet customer service requirements.

3. Empowering employees with decision-making discretion to please the customer.

4. Good listening skills to understand customer messages.

5. Role clarity that allows service employees to act as “boundary spanners.”

6. Employees who engage in organizational citizenship behaviors.


Creating a Customer-Responsive Culture (cont’d)

Managerial Actions :

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decision about their jobs.


Creating a Customer-Responsive Culture (cont’d)

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and

demonstrating commitment to customers.

• Conduct performance appraisals based on

customer-focused employee behaviors.

• Provide ongoing recognition for employees who

make special efforts to please customers.


Spirituality and Organizational CultureWorkplace Spirituality

The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community.

Characteristics:

• Strong sense of purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression


Reasons for the Growing Interest in Spirituality As a counterbalance to the pressures and stress of a

turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection.

Formalized religion hasn’t worked for many people.

Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.

The desire to integrate personal life values with one’s professional life.

An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.


How Organizational Cultures Have an Impact on Performance and Satisfaction


4. Power and PoliticsDefinition of Power

A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.

Dependency

B’s relationship to A when A possesses something that Brequires.


Contrasting Leadership and Power• Leadership

– Focuses on goal achievement.

– Requires goal compatibility with followers.

– Focuses influence downward.

• Research Focus

– Leadership styles and relationships with followers.

• Power

– Used as a means for achieving goals.

– Requires follower dependency.

– Used to gain lateral and upward influence.

• Research Focus

– Power tactics for gaining compliance.


Bases of Power: Formal Power

2. Coercive Power

A power base dependent on fear.

3. Reward Power

Compliance achieved based on the ability to distribute rewards that others view as valuable.

1. Formal Power

Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information.


Bases of Power: Formal Power (cont’d)4. Legitimate Power

The power a person receives as a result of his or her position in the formal hierarchy of an organization.

5. Expert Power

Influence based on special skills or knowledge.

6. Referent Power

Influence based on possession by an individual of desirable resources or personal traits.



Dependency: The Key To PowerThe General Dependency Postulate

– The greater B’s dependency on A, the greater the power

A has over B.

– Possession/control of scarce organizational resources

that others need makes a manager powerful.

– Access to optional resources (e.g., multiple suppliers)

reduces the resource holder’s power.

What Creates Dependency

– Importance of the resource to the organization

– Scarcity of the resources

– Nonsubstitutability of the resources65Dr Rijal's Discourses on OB

Power Tactics Influence Tactics:

• Legitimacy

• Rational persuasion

• Inspirational appeals

• Consultation

• Exchange

• Personal appeals

• Ingratiation

• Pressure

• Coalitions

Power Tactics

Ways in which individuals translate power bases into specific actions.


Preferred Power Tactics by Influence Direction

Upward Influence Downward Influence Lateral Influence

Rational persuasion Rational persuasion Rational persuasion

Inspirational appeals Consultation

Pressure Ingratiation

Consultation Exchange

Ingratiation Legitimacy

Exchange Personal appeals

Legitimacy Coalitions


Factors Influencing the Choice and Effectiveness of Power Tactics

a. Sequencing of tactics

– Softer to harder tactics work best.

b. Skillful use of a tactic

c. Relative power of the tactic user

– Some tactics work better when applied downward or upward.

d. The type of request attaching to the tactic

– Is the request legitimate?

e. How the request is perceived

– Is the request consistent with the target’s values?

f. The culture of the organization

– Culture affects user’s choice of tactic.

g. Country-specific cultural factors

– Local values favor certain tactics over others.


Power in Groups: Coalitions

• Seek to maximize their size to attain influence.

• Seek a broad and diverse constituency for support of their objectives.

• Occur more frequently in organizations with high task and resource interdependencies.

• Occur more frequently if tasks are standardized and routine.

Coalitions

Clusters of individuals who temporarily come together to achieve a specific purpose.


Sexual Harassment: Unequal Power in the Workplace

Sexual Harassment

– Unwelcome advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature.

The U.S. Supreme Court test for determining if sexual harassment has occurred:

– Whether comments or behavior in a work environment “would reasonably be perceived, and is perceived, as hostile or abusive.”


Managerial Steps Required to Prevent Sexual Harassment

• Make sure a policy against it is in place.

• Ensure that employees will not encounter retaliation if they file a complaint.

• Investigate every complaint and include the human resource and legal departments.

• Make sure offenders are disciplined or terminated.

• Set up in-house seminars and training.


Politics: Power in Action

Political Behavior

Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.

Legitimate Political Behavior

Normal everyday politics.

Illegitimate Political Behavior

Extreme political behavior that violates the implied rules of the game.


Politics Is in the Eye of the Beholder“Political” Label “Effective Management” Label

1. Blaming others vs. Fixing responsibility

2. “Kissing up” vs. Developing working relationships

3. Apple polishing vs. Demonstrating loyalty

4. Passing the buck vs. Delegating authority

5. Covering your rear vs. Documenting decisions

6. Creating conflict vs. Encouraging change and innovation

7. Forming coalitions vs. Facilitating teamwork

8. Whistle blowing vs. Improving efficiency

9. Scheming vs. Planning ahead

10. Overachieving vs. Competent and capable

11. Ambitious vs. Career-minded

12. Opportunistic vs. Astute

13. Cunning vs. Practical-minded

14. Arrogant vs. Confident

15. Perfectionist vs. Attentive to detail 73Dr Rijal's Discourses on OB

Factors That Influence Political Behaviors


Employee Responses to Organizational Politics


Defensive Behaviors

Avoiding Action:

• Over conforming

• Buck passing

• Playing dumb

• Stretching

• Stalling

Avoiding Blame:

• Buffing

• Playing safe

• Justifying

• Scapegoating

• Misrepresenting

Avoiding Change:

• Prevention

• Self-protection


Impression Management (IM)

IM Techniques:

• Conformity

• Excuses

• Apologies

• Self-Promotion

• Flattery

• Favors

• Association

Impression Management

The process by which individuals attempt to control the others’ impression about them.


Is A Political Action Ethical?

1. What is the utility of engaging in the behavior?

2. Does the utility balance out any harm done by the action?

3. Does the action conform to standards of equity and justice?


5. Organizational Change and Development

1. Forces for changes

2. Managing planned change

3. Resistance to change

4. Organizational development interventions

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Organizational Change It refers to the overall nature of activities, for

example, their extent and rate, that occur during a project that aims to enhance the overall performance of the organization.

The activities are often led by a change agent, or person currently responsible to guide the overall change effort.

The activities are often project-oriented (a one-time project) and geared to address a current overall problem or goal in the organization.


Organizational Development This phrase refers to the evolution of the

organization during the overall organizational

change activities.

For example, evolution of its members to be able to

resolve a major problem, achieve an overall project

goal and/or achieve overall organizational goals.

Organizational development is an outcome of

organizational change activities.


Forces for Changes

1. Globalization

Globalization involves technological, economic,

political, and cultural exchanges made possible largely

by advances in communication, transportation, and

infrastructure.

2. Technological Change

Technological change is the term that is used to

discribe the overall process of invention innovation

diffusion.


Forces for Changes3. Knowledge Management

Knowledge management is a concept in which an enterprise

consciously and comprehensively gathers, organizes, shares,

and analyzes its knowledge in terms of resources, documents,

and people skills.

4. Cross-departmental Collaborations

An important part of knowledge management is effectively

managing organization-wide collaborations. Use of

appropriate technology and applications such as a virtual

private networks; VoIP, e-mail, social networking websites

such as Face Book, and even company-sponsored blogs.


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Managing Planned Change1. Change vs planned change

Both of them are concerned with making things

different.

Change inevitably happens to all organizations.

Planned change involves changings activities of the

organizations that are intentional and goal oriented.

The focus of planned change is primarily on

intentional,goal-oriented organizational change.


Managing Planned Change2. Order and magnitude of planned change

Planned change can also be viewed from order and

magnitude.

They are:

i. First-order change: It is linear and continuous. It

implies no fundamental shifts in the assumptions

that organizational members hold about the world.

ii. Second-order change: As against frist order

change, its is multi-dimensional.


Responsibility for introducing planned change

• It is the change agent who brings or manages changes in organizations.

• Change agents can be managers or non mangers,employees of the

organizationation or outside consultants.

• Past experience in change programs indicates that outside consultants

can offer the organization with specialized knowledge in the theory

and method of change but they lack inside the organization knowledge

they are hired for short time period.

• The responsiblility for sustaining the change programs remains with

inside members.

• It is easy to bring change but difficult to sustain.

• What can change agents change?

• Robbins has explained four major categories of change options --

changing structure , changing technology, changing physical settings,

and changing people.


Resistance to Change• It is the general tendency of human beings to resist change,

no matter how much beneficial the program is.

• It is always difficult to implement change programs.

• Almost all organizational change efforts face one or more forms of resistance to change.

The main sources of resistance to change are:

a. Individual: Habit, security ,economic factors fear of the unknown perception.

b. Organizational: Structure, limited focus of change, group, threat to expertise, etc.


Selected Models of Organizational Change

1. Lewin’s Three-step Model of Change

Unfreeze ____ Movement ____ Refreeze

2. Kaizening

3. Re-engineering

4. E-engineering


Organization Development InterventionsOrganization Development (OD) interventions techniques are

the methods created by OD professionals.

Single organization or consultant cannot use all interventions.

They use these interventions depending upon the need or

requirement.

The most important interventions are:

1. Survey feedback 2. Process Consultation

3. Sensitivity Training 4. The Managerial grid

5. Goal setting and Planning

6. Team Building and management by objectives

7. Job enrichment, changes in organizational structure and

participative management and Quality circles, TQM89Dr Rijal's Discourses on OB

Survey feedback: The intervention provides data and

information to the managers. Information on attitudes of

employees about wage level, and structure, hours of work,

working conditions and relations are collected and the results

are supplied to the top executive teams. They analyze the data,

find out the problem, evaluate the results and develop the

means to correct the problems identified. The teams are

formed with the employees at all levels in the organizational

hierarchy.

Process consultation: The process in which the consultant

meets the members of the department and work teams

observes their interactions, problem identification skills,

solving procedures etc. S/he provides feedback to the team

with the information collected through observations, coaches

and counsels individuals and groups in moulding their

behavior.90Dr Rijal's Discourses on OB

Goal setting and planning: Each division in an organization sets the

goals or formulates the plans for profitability. These goals are sent to the

top management which in turn sends them back to the divisions after

modification. A set of organizational goals thus emerge there after.

Managerial grid: This identifies a range of management behaviors

based on the different ways how production/service oriented and

employee oriented states interact with each other. Managerial grid is also

called as instrumental laboratory training as it is a structured version of

laboratory training. It consists of individual and group exercises with a

view to developing awareness of individual managerial style

interpersonal competence and group effeciveness. Thus grid training is

related to the leadership styles. The managerial grid focuses on the

observations of behavior in exercises specifically related to work.

Participants in this training are encouraged and helped to appraise their

own managerial styles.


There are 6 phases in grid OD

First phase is concerned with studying the grid as a theoretical knowledge to understand the human behavior in the organization.

Second phase is concerned with team work development. A seminar helps the members in developing each member’s perception and the insight into the problems faced by various members on the job.

Third phase is inter group development. This phase aims at developing the relationship between different departments.

Fourth phase is concerned with the creation of a strategic model for the organization where the Chief Executive and immediate subordinates participate in this activity.Fifth phase is concerned with implementation of strategic model. Planning teams are formed for each department to know the available resources, required resources, procuring them if required and implementing the model.

Sixth Phase is concerned with the critical evaluation of the model and making necessary adjustment for successful implementation. 92Dr Rijal's Discourses on OB

Management by Objectives (MBO) is a successful philosophy of management. It replaces the traditional philosophy of “Management by Domination”. MBO leads to a systematic goal setting and planning. Peter Drucker(1959), the eminent management Guru, first propagated the philosophy and then it became a movement.MBO is a process by which managers at different levels and their subordinates work together in identifying goals and establishing objectives consistent with organizational goals and perform planning for attaining them.

Sensitivity training is called a laboratory as it is conducted by creating an experimental laboratory situation in which employees are brought together. The team building technique and training is designed to improve the ability of the employees to work together as team members.


Job enrichment is currently practiced all over the world.

It is based on the assumption in order to motivate workers, job itself must provide opportunities for achievement, recognition, responsibility, advancement and growth.

The basic idea is to restore to jobs the elements of interest that were taken away.

In a job enrichment program the worker decides how the job is performed, planned and controlled and makes more decisions concerning the entire process.


Date post:	14-Jul-2015
Category:	Leadership & Management
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Unit iv ob at system level

Leadership & Management