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Organisation Development (Culture, Conflict and Change) Management and Organisational Behaviour CHAPTER 22
Management and Organisational Behaviour 7th Edition CHAPTER 22 Organisation Development (Culture, Conflict and Change) Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.2 Organisational development (OD) • Organisational development is concerned with the diagnosis of organisational health & performance, & the ability of the organisation to adapt to change • It involves the application of organisational behaviour & the recognition of the social processes of the organisation Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.3 Figure 22.1 Major topics associated with organisational development Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.4 Intervention strategies • • • • • • • • Survey research & feedback T-groups (or sensitivity training) Teambuilding Grid training Role analysis Life & career planning Quality of work life Counselling Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.5 Organisational culture • A general concept that is difficult to explain or define precisely • No consensus on its meaning or its application to the analysis of work organisation • Wide diversity of interpretations relating to organisational development gives rise to a large number of definitions • Can be confusion over the difference between the interpretation of organisational culture & organisational climate Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.6 Organisational culture defined Reflects the underlying assumption about the way work is performed, what is acceptable and not acceptable, and what behaviour and actions are encouraged and discouraged Atkinson Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.7 Organisational culture defined (continued) The collection of traditions, values, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organisation McLean & Marshall Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.8 Culture & communication Culture & communication cannot be separated For us to communicate & co-operate we must share some common assumptions about the world we live in and some common standards by which to judge our own and each other’s actions Varey Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.9 Levels of culture 1. Artefacts – physical space and layout, technological output, written and spoken language, overt behaviour of group members 2. Values – values and beliefs become part of the conceptual process by which groups members justify actions and behaviour 3. Basic underlying assumptions – unconsciously held learned responses Schein Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.10 Types of organisational culture • Power culture • Role culture • Task culture • Person culture Handy Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.11 Types of culture according to Deal & Kennedy • Tough-guy, macho culture • Work-hard / play-hard culture • Bet-your-company culture • Process culture Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.12 Influences on the development of culture • • • • • • • History Primary function & technology Goals & objectives Size Location Management & staffing The environment Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.13 Figure 22.2 The cultural web Source: Long Range Planning, vol. 25, no. 1, Johnson, G. ‘Managing Strategic Change – Culture and Actions’, p.31, © 1992, Elsevier Science. Reproduced with permission from Excerpta Medica Inc. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.14 Criterion needed to develop a suitable culture • It must be strategically relevant • It needs to be strong in order that people care about what is important • The culture must have an intrinsic ability to adapt to changing circumstances Chatman & Cha Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.15 Managerial tasks Chatman & Cha suggest the following tools for leaders to develop, manage, and change culture – • Recruitment and selection • Social tools and training • Reward systems Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.16 National & international culture • Culture helps to account for variations among organisations and managers nationally and internationally • Culture helps to explain why different groups of people perceive things in their own way and perform things differently from other groups (Potter) • With greater international competition, an understanding of national cultures has become of increasing importance to managers Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.17 Organisational climate Applied to organisations, climate refers to the prevailing atmosphere surrounding the organisation, to the level of morale, and to the strength of feelings or belonging, care and goodwill among members Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.18 Organisational climate Climate will influence the attitudes which organisational members bring to bear on work performance and personal relationships The extent to which staff accept the organisational culture has a significant effect on climate Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.19 Characteristics of a healthy organisational climate • • • • • • • Integration of organisational and personal goals Appropriate organisation structure Democratic functioning Equitable HRM policies & practices Mutual trust & consideration Open discussion of conflict Managerial behaviour & leadership styles appropriate to work situations Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.20 Characteristics of a healthy organisational climate • • • • • Acceptance of psychological contract Recognition of people’s needs and expectations Equitable systems of rewards Concern for quality of working life Opportunities for personal development and career progression • Sense of identity with and loyalty to the organisation Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.21 Improving staff morale Managers need to review four main areas in which to develop the best possible attitudes in their staff: • A sense of importance in their job • Team working among staff • Management care about staff welfare • Economic rewards that are fair and individualised Petrick & Manning Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.22 Employee commitment Typically conceived as an individual’s psychology bond to the organisation, including a sense of job involvement, loyalty, & a belief in the values of the organisation O’Reilly Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.23 Model of commitment • A sense of belonging to the organisation – informed, involved, sharing in success • A sense of excitement in the job – pride, trust, accountability for results • Confidence in management – authority, dedication, competence Martin & Nicholls Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.24 Securing staff commitment • Genuine commitment requires not just a recognition or understanding of what the organisation expects but an emotional and behavioural response from staff • If loyalty, long service, or expertise appear to be no longer regarded, this may have an adverse effect on those surviving members and they are less likely to have a high level of commitment to the organisation Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.25 Securing staff commitment Commitment of staff to the organisation has long been valued and is coming back into fashion as the costs to loyalty of downsizing and re-engineering come to be felt Guirdham Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.26 Developing news ways to increase loyalty & commitment • Attention to reward strategies based on contribution rather than status or position • Systematic training and development including skills for working in cross-functional teams • Training managers in counselling, coaching and leadership skills Hiltrop Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.27 Organisational conflict Approaches & perspectives Unitary perspective – conflict is seen as a dysfunction outcome, explained by poor communication, personality clashes, work of agitators Pluralistic approach – conflict among competing sub-groups is inevitable, an inherent feature of organisations Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.28 Organisational conflict Approaches & perspectives Structuralist (radical) approach – conflict is a feature of the unequal nature of organisational life and a means of bringing about change Interactionist perspective – conflict is a positive force and is necessary for effective performance Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.29 Defining conflict • Behaviour intended to obstruct the achievement of some other person’s goals • Can be viewed at the individual, group, or organisational level Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.30 Conflict • Is not necessarily bad • Properly managed, it can have potentially positive outcomes • Can be an energising and vitalising force Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.31 Conflict • Can aid incremental improvements in organisational design and functioning and decision-making • Can be an agent for evolution and for internal and external change • Properly identified and handled it can help minimise the destructive influences of the win– lose situation Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.32 Positive outcomes of conflict • Better ideas produced • People are forced to search for new approaches • Long-standing problems brought to the surface and resolved • Clarification of individual views • Stimulation of interest and creativity • A chance for people to test their capacities Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.33 Negative outcomes of conflict • • • • Some people feel defeated and demeaned The distance between people increased A climate of mistrust and suspicion developed Individuals and groups concentrate on their own narrow interests • Resistance developed rather than teamwork • An increase in employee turnover Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.34 Main sources of conflict • • • • • • • • Differences in perception Limited resources Departmentalism and specialisation The nature of work activities Role conflict Inequitable treatment Violation of territory Environmental change Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.35 Strategies for managing conflict The strategies adopted will vary according to the nature and sources of conflict but could include: • • • • Clarification of goals and objectives Resource distribution HRM Non monetary rewards Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.36 Strategies for managing conflict (continued) • • • • • Development of interpersonal skills Group activities Leadership & management Organisational processes Socio-technological approaches Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.37 Behaviour modification • Unfreezing • Movement • Refreezing Lewin Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.38 Figure 22.4 Stages in planned change Source: Adapted from French, W.L., Kast, F.E. and Rosenzweig, J.E. Understanding Human Behaviour in Organizations, Harper and Row (1985) p.9. Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.39 Individual resistance to change • • • • • • Selective perception Habit Inconvenience of loss of freedom Economic implications Security in the past Fear of the unknown Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.40 Organisational resistance to change • Resources • Processes • Values Christensen & Overdorf Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.41 Actions to secure effective change 1. 2. 3. 4. 5. 6. 7. 8. Create a sense of urgency among relevant people Build a guiding team which has credibility Create visions that are sensible, clear and uplifting Communicate the vision and strategy to induce understanding and commitment Empower action and remove obstacles Produce short term wins Don’t let up but maintain momentum Make change stick by nurturing a new culture Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005 OHT 22.42 The role of people in implementing change • The successful implementation of new work methods and practices is dependent upon the willing and effective co-operation of staff, managerial colleagues and unions • If change is to work it must change the perceptions, attitudes and behaviour of people Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
