U nit 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

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.

Bureaucracy
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

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? – Strategy
Innovation 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 Relationship
Strategy 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.

• Stress is a feeling that's created when we react to
particular events. It's the body's way of rising to a
challenge and preparing to meet a tough situation
with focus, strength, stamina, and heightened
alertness.
• Perceived substantial imbalance between the
demands of stressors and response capacity
resulting in psychological, physical and/ or
behavioural 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 Performance
Performance
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.

Contrasting Organizational Cultures …
Organization B
This organization is also a manufacturing firm. Here, however, management
encourages and rewards risk taking and change. Decisions based on intuition are
valued as much as those that are well rationalized. Management prides itself on its
history of experimenting with new technologies and its success in regularly introducing
innovation products. Managers or employees who have a good idea are encouraged to
“run with it.” And failures are treated as “learning experiences.” The company prides
itself on being market-driven and rapidly responsive to the changing needs of its
customers.
There are few rules and regulations for employees to follow, and supervision is loose
because management believes that its employees are hardworking and trustworthy.
Management is concerned with high productivity, but believes that this comes through
treating its people right. The company is proud of its reputation as being a good place
to work.
Job activities are designed around work teams, and team members are encouraged to
interact with people across functions and authority levels. Employees talk positively
about the competition between teams. Individuals and teams have goals, and bonuses
are based on achievement of these outcomes. Employees are given considerable
autonomy in choosing the means by which the goals are attained. 40Dr Rijal's Discourses on OB

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 Alive
Selection
– 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 Process
1. 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 Culture
Workplace 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. 58Dr Rijal's Discourses on OB

How Organizational Cultures Have an Impact on
Performance and Satisfaction

4. Power and Politics
Definition 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 B
requires.

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 Power
The 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 resources

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

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

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 Changes
3. 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.

Managing Planned Change
1. 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 Change
2. 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 Interventions
Organization 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, TQM

Survey feedback: The intervention provides data and
information to the managers. Information on attitudes of
employees about wage level, and structure, hours of work,
working conditions and relations are collected and the results
are supplied to the top executive teams. They 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 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. 93Dr Rijal's Discourses on OB

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.

U nit iv ob at system level

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