Behaivioral Innovation 01

Technical Report 515
THE ROLE OF INNOVATION

IN ORGANIZATIONAL
DEVELOPMENT
Robert H, Davis
Michigan State University
LEADERSHIP AND MANAGEMENT TECHNICAL AREA
U.S. Army
Research Institute for the Behavioral and Social Sciences
June 1981
Aplproved for pubiic relesls; distribution unlimited.

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FOR THE BEHAVIORAL AND SOCIAL SCIENCES
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JOSEPH ZEIDNER Colonel, IN
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Monitored technically by: T'. Owen Jacobs

Laurel W. Oliver
Francis E. O'Mara
IS. KEY WORDS (ContInue on reveres side It neucesary and Identify by bloce numbee)
Innovation Technology Transfer

Organizational development Organizational 17Effectdvoness
Sociotechnical Theory
20, AS"TrRACrT r'earthwe st ro-ver .to it nuagyo m

and dednffy by b'ock reumber)
Written originally as a chapter in a book on organizational change while the
author was on sabbatical leave at ARI, -hihs article examines some of the
impliications of innovation research for organizational dveulupment. Since
the underlying values that quide organizational dovelopment activities are
humanistic, change agents are often invited to concentrate their eneg:qies
more on increasing personal growth than on the improvement of organizational
performance. There is, however, no basis for assuming that self nctualization
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UNCLASL I FIED
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20. will make organizations more effective or efficient. The aim of article
is to show how by focusing on innovation (tochnical/structural/and
physical changes), organizational development can contributo to both
individual growth and increased effectiveness.
UNCLASSIFIED
Toecmical Report 515
THE ROLE OF INNOVATION

IN ORGANIZATIONAL
DEVELOPMENT
Robert H. Davis
Michigan State University
Submitted by:
T. Owen JacobW, Chief
LEADERS:AIP AND MANAGEMENT TECHNICAL AREA
Approved by;
Cecil D. Johnson, Director
MANPOWER AND PERSONNEL
RESEARCH LABORATORY
U.S. ARMY RESEARCH INSTITUTE FOR THE BEHAVIORAL AND SOCIAL SCIENCES
5001 Elunhower Avenue, Alexandria, Virginia 22333
Office, Deputy Chief of Staff for Personnel

Department of the Army
June 1981
Army Project Number Command Processes and Evaluation

20263731 A792
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Iii
FOREWORD
The Leadership and Management Technical Area of the Army Research

Institute for the Behavioral and Social Sciences (ARI) is conducting
research on the Army's Organizational Effectiveness (OE) Program. OE
involves the use of selected management and behavioral science skills
and techniques to improve the effectiveness of Army organizations. In
the civilian community, this apprcach is known as organizational devel-
opment, or OD. Both OE and OD are concerned with organizational change
and innovation. Dr. Robert H. Davis, of Michigan State University, has
been working for many years in the area of organizational innovations.
In this paper, he reviews the innovation and organizational development
literature: integrates those findings, and identifies approaches which
lead to the implementation of technical innovations. This research was
conducted while Dr. Davis was on sabbatical at the Army Research Insti-
tute under Army Project 2Q263731A792, "Command Processes and Evaluation,"
FY79 and FY80 Work Program.
1.
IJ EPH ZEIDNER
k-chnical Director
1
A-n'sten '
v w -iled
Jistttieatloe ......
. Ava..andfor
plot I spoiaJl
v
THE ROLE OF INNOVATION IN ORGANIZATIONAL DEVELOPMENT
BRIEF
14equirement:
Theory and practice in the area of organizational development have

emphasized the role of social and psychological factors in the improve-
ment of organizational effectiveness rather than technical/structural/
physical changes. Although numerous investigators have commented on the
importance of optimizing both the social and technical side of organiza-
tions, in practice organizational change agents have generally concen-
trated on the human side of organizations, in part at least because very
few intervention strategies stress operational innovations.
Procedure:
The innovation and organizational development literature was reviewed

in an effort to integrate some of the findings from that literature and
identify approaches to organizational change that would facilitate the
discovery, adoption, and implementation of technical innovations.
Findings:
A critique of the literature reveals that the most frequently cited

instances of successful organizational change often involve technical
and structural innovations that tend to be overlooked or ignored by their
authors who often explain their results in terms of human factors. The
role of organizational development is here defined as creating an organi-
zational climate for problem solving that stimulates the discovery of
innovations. Working within a problem solving framework, the basic
strategy described is one of identifying variances and searching for in-
novative solutions to them. Four approaches to the identification of
variances are examined. Numerous obstacles to constructive problem solv-
ing in organizations can be identified, including the fact that groups
value unanimity and discourage exceptions, the tendency of some people to
dominate the search process, inappropriate leader behaviors, and the ten-
dency of groups to move to solutions before defining problems fully.
vii
Utilization of Findingst
This report will be of most value to those involved in programs for

improving organizational effectiveness, either as change agents or mana-
gers. The specific objective is to provide such individuals with a broad
theoretical framework for understanding the improvement of performance in
organizations and to encourage organizationu to more fully utilize the
creative abilities of their members to suggest changes of a technical/
structural/physical nature that will have an impact on a unit's effective-
ness. The report contains an annotated bibliography of literature cited
which should also be of substantial value as a guide to others conducting
research on organizational change.
viii
CONTENTS
Page
PREFACE xi
INTRODUCTION . . . . . . . ................. ..... ..... 1
WHAT IS ORGANIZATIONAL DEVELOPMENT? ......... .. , . 2
Organizational Development: Philosophy, Assumptions,

and Techniques . . . . . 0 . . .0. . . . . . . ,0 . . t . 2
Three Preliminary Distinctions . . . . . . , . . ... . 4
ORGANIZATIONAL CLIMATE AND OD, ............... B
Properties of Organizational Climates . .. . . ..... . . 8

Climate, Effectiveness, and Innovation . . .. . . . . ... 9
How Climate Contributes to Innovation . . . . . . .. . 10
Effect of Politics on Climate:
The Cherwell The Case of Tizard and 13
Educational Mechanisms for Creating an Innovative Climate . . . 15
THE PROBLEM SOLVING COMPONENT OF ORGANIZATIONAL DEVELOPMENT .... 19
Variance Identificationt The Basic Strategy of

Discrepancy Analysis .................... 19
Four Examples of Methods to Identify Variances ......... 19
Discovering Solutions: Some Requirements ........... 27
IMPLEMENTATION AND SURVIVAL OF INNOVATIONS . .... . , .... 31
Successful Failures .............. ...... . 31

Implications for Organizational Development .... . . . .. 35
ANNOTATED BIBLIOGRAPHY . ............ 37
X
I.
_ _ j
PREFACE
Some of the staff members of the Army Research Institute for the
Behavioral and Social Sciences (ARI), where I am on sabbatical leave from
Michigan State University, suggested that this document would be useful
to officers in the armed forces and. others who have a special interest in
the problem of improving organizational effectiveness using methods of
organizational developnent.
What follows is a chapter from a larger work that is now in progress

entitled organizational Innovation and Renewal. A few preliminary remarks
about the theme of that book and one or two definitions may help to clar-
ify the ideas developed in this chapter.
Organizational renewal may be seen as a dynamic process of adapta-

tion in which organizations continuously evaluate their inner and outer
environments against shifting criteria and devise new programs. The main
line of argument which I have put forward in Organizational Innovation
and Renewal is this: the major objective of organizational renewal is
to improve organizational effectiveness, and the best way to achieve this
objective is by creating a climate that fully utilizes the creative
abilities of human beings to innovate and contribute to organizational
change.
organizational renewal is seen as a search process in which inven-

tion and innovation are major outcomes. To invent is to create or devise
something new for the first time. Invention always involves the origina-
tion of an idea. By comparison with innovations, inventions are rsla-
tively rare because they must pass what has sometimes been called "the
cultural test of novelty," which means that an invention must be genuinely
new to all cultures and not merely new to some individual or organization.
Innovations need not pass the cultural test. The conditions that
govern the cultural test are embodied in patent law and involve concrete
facts and hard evidence. In contrast, innovations are matters of human
perception and judgment which are less objective. If something is per-
ceived as new, either by an organization or by an individual, it is an
innovation.
Innovation, therefore, involves some sort of rearrangement of the

world that is new for some individual or organization. Inventions make
such rearrangements possible, but innovations may stem from many other
kinds of discoveries as well as from inventions, discoveries about the
skills of people in organizations, for example, or the needs of the mar-
ketplace, or ways of circumventing restrictions imposed by regulations,
etc.
Thus far, I have described innovation as something that is new.

But the term innovation is, also, used to describe a dynamic process.
As a process, innovation involves the actual discovery, adoption, and
xi
utilization of things, such as programs, techniques, products, and inven-
tions, that are now to an individual or organization.
Much of the literature on innovations has been concerned with change

from the perspective of individuals. But we are here concerned with
innovations of organizations, which is a somewhat different process. The
fact that some individual or individuals in an organization, even its
leaders, decide to adopt an innovation, does not guarantee that the orga-
nization will accept or use it.
My basic objective in this chapter is to describe the important

part played by innovation in the area known within the military as orga-
nizational effectiveness, but more generally called organizational devel-
opment, or sometimes just organization development. Dr. T. Owen Jacobs
encouraged me to work on this problem during my tenure in the group which
he heads at ARI, and I am indebted to him, not only for his support, but
for many valuable suggestions as well. Dr. Laurel W. Oliver and
Dr. Francis E. O'Mara made substantial contributions to my thinking about
organizational effectiveness, but it goes without saying, they bear no
responsibility for my misperceptions or my intellectual innovations.
August 1, 1980 Dr. Robert H. Davis

Alexandria, Virginia
xii
INTRODUCTION
The ultimate goal of orqani?.ational renewal is the improvement

of organizational effectiveness. I will argue in this document that
improved organizational performance and effectivenejs is contingent on
tne use of techniques that promote the discovery and use of innova-
tlons. Some organizational development (OD) methods encourage innova-
tion some of the time; but the link between most organizational devel-
opment techniques and improved organizational performance is tenuous
at best.
The underlying values that guide organizational development ctiv-

!ties are humanistic and often invite change agents to concentrate their
energies on increasing personal growth and making the individual's life
more meaningful and satisfying, rather than on technological changes.
Unfortunately, there is little reason to believe that greater satisfac-
tion in the typical organization will in and of itself improve organiza-
tional effectiveness or efficiency. Unless one of the major outcomes
of organizational development is innovation, then an organization's
overall effectiveness is not apt to improve very much. After all, there
is a limit to how fast people can work and the energy they can expend
without physical impairment.
What most efforts at organizational development do is to set the

stage for creative problem solving that makes greatly improved productiv-
ity possible. In other words, organizational development helps to es-
tablish conditions that increase the likelihood that an organization
will discover, adopt, and use innovations that will lead to substantial
improvements in their performance; hut for this to occur, the situation
must be structured to encourage innovation, as it is for example in the
Scanlon Plan (Frost et al., 1974).
One might reasonably argue that the most meaningful and enduring
path to personal satisfaction and "self-actualization" is through crea-
tive participation in the innovation process and the social and personal
benefits that result from increased productivity. The aim of this chap-
ter is to show how, by focusing on innovation, organizational development
activities can contribute to both individual growth and organizational
renewal.
Humans design the organizations in which they participate. Their

involvement as architects of, and participants in, organizations has both
advantages and disndvantages. The major advantage is that their special
knowledge and creative talents can be tapped to redesign organi.zations
and make them more effective. But as we have already noted a number
of times, the requirements for control and reliability of individual
performance that bureaucracies impose on organizations may cause people
in them to engage in disruptive, rather than constructive, behaviors. As
a result, behavior in bureaucracies may interfere with problem solving and
the implementation and evaluation of potentially effective innovations.
Appropriately used, organizational development can help to overcome

some of the consequencies of bureaucratization and stimulate more construc
tive behaviors byt
1. Eliminating or reducing the impact of system dysfunctional ac-

tions through conflict resolutions, role clarification, defini-
tion of common objectives, etc.
2. Creating a climate for change--a climate of openness and trust

that encourages suggestions and the free exchange of information.
3. Stimulating problem solving and creating involvement in the

processes by which innovations are discovered and implemented.
4. Increasing the motivation of the organization's members to

become more involved with and committed to its objectives.
These four outcomes may be thought of as the primary goals of orga-

nizational development.
WHAT IS ORGANIZATIONAL DEVELOPMENT?
Long before the term organizational development was invented, orga-

nizations engaged in planned change. Most organizations today, whether
they apply the techniques of organizational development or not, are
interested in improving their performance by the systematic application
of a wide variety of sometimes highly effective techniques that guide
planned change from operations research to zero-based budgeting. Al-
though these techniques are used to rievelop and improve organizations,
they are not normally considered to be methods of organizational develop-
ment. As a matter of fact, the term organizational development has been
co-opted by behavioral scientists who have assigned a rather restricted
definition to it and distinguished Organizational Development, with a
capital OD, from other forms of planned change. My purpose in this sec-
tion is to examine some of the definitions of organizational development
that have been suggested and propose a new one that recognizes the cen-
tral role of innovation.
Organizational Development: Philosophy,

Assumptions, and Techniques
Organizational development is both a philosophy of organizational

change and a set of strategies and techniques for implementing that
philosophy.
2
The Philosophy and Assumptions of OD. As a philosophy, organiza-
tional development is based on the behavioral sciences and is rooted in
certain basic assumptions about men and women. We will consider firet
what it means to be science-based and then develop one or two of the
assumptions that support OD.
Whitehead (1925) pointed out over 50 years ago that science flour-
ished first in the West because of the Christian faith that an omniscient
God had created a lawful world, a world in which He knew when and where
every sparrow fell. Western science is based on the faith that there
are universal laws to be discovered if one only uses the appropriate
methods. Behavioral scientists have extended this assumption to humans,
and they have used both the empirical and analytic methods of science
to enrich our understanding of human behavior. This scientific knowledge
about behavior provides the foundation and justification for the princi-
ples and practices of OD.
Science, also, includes a variety of canons for evaluating the

validity of knowledge. At its best, organizational development seeks
to confirm or disconfirm its principles and practices by subjecting them
to systcmatic observation and controlled experimentation.
Numerous writers have identified the basic assumptions about indi-

viduals and groups that undergird organizational development activities
(see, for example, French, 1969; McGregor, 19601 and Huse, 1975). Two of
the most widely held assumptions bear directly on the issue of innova-
tion in organizations.
First, organizational development assumes that most people (in the

Western world at least) have powerful needs for personal growth and devel-
opment. These needs provide the basis for motivation in, and commitment
to, organizations. One way to harness this motivation is to invite people
to participate in the redesign of the organizations of which they are a
part. When workers are given an opportunity to invent their own future,
to develop what Miller (1979) calls "Utopian fantasies," the entire orga-
nization can be moved to a new level of productivity. But for a variety
of reasons, many organizations do not try to satisfy these needs and may
even frustrate them. As a consequence, productivity and quality suffer.
Second, organizational development assumes that people are creative

and capable of contributing far more to organizations than is generally
realized. A number of years ago, I participated in the development of a
major organizational development activity for the Air Force. Engineers
and physical scientists who were responsible for the project developed a
number of models of the system on which they were working. Not knowing
how to factor in the human component, they called on some psychologists
to help them determine how much humans degraded the system. The psychol-
ogists said that it was ncnsense to assume that humans invariably de-
graded any system by some fixed percentage, and they proceeded to set up
a series of experiments which demonstrated that when properly used, humans
3
could improve the performance of a system over its initial design speci-
fications (Chapman et al., 1959). The essential point is that humans
have great creative potential for innovation and invention. The problem
is to harness it, to find ways of dipping into the pool of knowledge
that lies waiting to be tapped, and exploiting that knowle4ge.
Strategies of OD. Organizational development uses two somewhat

different strategies to achieve its objectives. The first of these is
basically an educational strategy that stresses change in personal be-
liefs, attitudes, and values in an effort to create an organizationa'.
climate for change. The second is a problem solving strategy. The dif-
ference between these two approaches is illustrated by citing two defi-
nitions of organizational development.
The first definition is by Warren Bennis (1969) and stresses educa-

tion and organizational climate.
Organizational. development (OD) is a response to change, a com-

plex educatioual strategy intended to change the beliefs, atti-
tudes, values, and structure of organizations so that they can
better adapt to new technologies, markets and challenges, and
the dizzying rate of change itself. (p. 2)
The second definition, by French and Bell (1975), emphasizes problem

solving, action research, and climate (culture).
Organization development is a long-range effort to improve an

organization's problem-solving and renewal processes, particu-
larly through a more effective and collaborative management of
organization culture--with special emphasis on the culture of
formal work teams--with the assistance of a change agent, or
catalyst, and the use of the theory and technology of applied
behavioral science, including action research. (p. 14)
From the perspective developed in this book, organizational develop-

ment incorporates both of these ideas. Organizational development is
(1) a behavioral-science based, educational strategy for cultivating orga-
nizational climates that facilitate planned change, and (2) a problem solv-
ing, action research strategy that encourages the constructive involvement
of people in the redesign of the organizations of which they are a part
through the creation, tailoring, and implementation of innovations.
Three Preliminary Distinctions
Before describing the educational-culture and problem solving com-

ponents of organizational development in greater detail, there are three
important preliminary points that must be made. They concern the dis-
tinction between primary and secondary innovations, the focus on organi-
zational performance rather than individual performance, and the impor-
tance of technical/structural/physical changes in OD.
4
Primary Versus Secondary Innovations. Virtually all organizational
development involves innovation at the primary and possibly the secondary
level. By primary level, I mean that organizational development inter-
ventions themselves are innovations for most organLzations. Such inter-
ventions as autonomous work groups, job restructuring, and participative
decision making are examples of primary innovations. Innovations of this
kind are often "discovered" and implemented with the aid of a change
agent who has had special experience with them in other settings. But,
in many instances these interventions are merely vehicles for discovering
secondary innovations. Secondary innovations result from OD interven-
tions that tap the creative, problem solving talents of employees. By
permitting employees to have a greater voice in the operations for which
they are responsible (a primary innovation), for example, they are more
apt to discover secondary operational innovations that will improve
effectiveness.
Individual Versus Organizational Performance. In any discussion of

organizational renewal, it is essential to carefully distinguish between
individual and system performance. In most organizutions, any given in-
dividual makes only a relatively small contribution to the final output of
the organization. Although there may be a relatively high correlation be-
tween the performance of some individuals and organizational performance,
this is not necessarily true of all individuals nor even of most individ-
uals in many organizations. People within an organization frequently
compensate for the low motivation, low productivity, carelessness, etc.,
of others. Furthermore, organizations intentionally structure themselves
to adjust for weaknesses of this kind through load sharing, redundancy,
load allocation, automation, etc.
Much of the research on the impact of organizational climate, job

satisfaction, morale, and motivation on productivity is focused on the
performance of individuals, not organizations. The extensive body of re-
search on the relationship between employee satisfaction and performance,
for example, deals almost exclusively with individual, rather than sys-
tem, performance. (For examples see Herzberg, 19661 and Brayfield and
Crockett, 1955.)
Our focus in this document is on the adoption and implementation of

organizational innovations which, by definition, are intended to improve
organizational performance. As I have already suggested, organizational
development contributes to organizational performance by creating a cul-
ture or climate in which problem solving and innovation are encouraged.
Although OD efforts sometimes concentrate on human factors alone, by the
use of sensitivity or laboratory training, for example, there is no evi-
dence that those methods by themselves improve organizational performance
(Campbell and Dunnette, 1968; Bowers, 1973). Such methods are often used
to "unfreeze" organizations (see, for example, Blake and Mouton, 1964,
1966, 1971) and pave the way for more substantive innovations, but change
agents must constantly guard against the common fallacy of assuming that by
enhancing job satisfaction through various "soft" techniques, organizational
performance can be improved. There is no established direct link between
individual satisfaction and individual performance in an organizational
setting (see, for example, Greene, 1972), to say nothing about a link
between individual satisfaction and organizational performance.
The major danger of concentrating change efforts exclusively on

personal development is that the technical,'structural/physical side of
organizations, which is the channel for organizational innovation and
renewal, will be neglected. As sociotechnical theorists have reminded
us for the past three or four decades, the two sides must be Jointly
optimized.
Technical/Structural/and Physical Changes. One final point that

should be made before we discuss the two major strategies of O concerns
the pervasiveness of technical/structural/and physical innovations in
successful instnces of organizational development. In most successful
examples of OD, primary and secondary innovations almost invariably
involve technical, physical, or structural changes that are either intro-
duced by ohanqe agents or discovered by the organization's members.
This should be obvious for primary innovations such as autonomous work
groups, job restructuring, and other examples of sociotechnical inter-
ventions. Similarly, the Scanlon Plan, which is a primary innovation,
always involves, as an integral part of its design, secondary innova-
tions in the form of employee-generated suggestions.
But even in the case of participative decision makinq, where success-

ful outcomes are often attributed to psychological factors, such an in-
creased motivation or satisfaction, secondary innovations of a technical
nature are frequently involved. In the now classic studies of Coch and
French (1948), for example, :in which employees who were encouraged to Ais-
cuss their new jobs were more productive than those who were introduced in
the traditional way, secondary innovations and problem solving apparently
played a crucial role in the outcome (Gardner, 1977). Experimental groups
were given the opportunity to examine and problem solve about competitive
garments which were denied to the control group, and a number of "frills"
were eliminated from the garments that they were producing. These sugges-
tions probably account In part at least for the Increased productivity
noted in the study.
Continuous problem solving was apparently not a feature of the Coch

and French studies, but there are other examples of participative deci-
sion making in the literature that clearly involve as the primary outcome
of participation the repeated collection and analysis of suggestions for
tf-chnical/structural/physical changes. In one highly successful study
of participative decision making by Bragg and Andrews (1973), for exam-
ple, the productivity of a hospital that encouraged participative deci-
sion making (PDM) was compared with two hospi.tals that did not offer this
opportunity to employees. By comparison with the control hospitals,
attitudes improved, absences declined, and productivity increased in the
experimental hospital. The mechanism for involvement of employees was a
6
series of meetings where they were encouraged to make suqigestions and
decide whether or not to implement them. Of 147 suggestions made in the
course of the study, 90 involved changes in work flow and 44 involved
equipment modifications. Many of these changes were undoubtedly com-
pletely new for the experimental laundry, i.e., they were secondary
innovations. Commenting on the importance of involving employees in
problem solving about the organization, the authors make the following
observation:
Looking back at the foreman's record of PDM meetings, it can

be seen that 90 percent of all employee Ruggestions involved
technological modifications in the laundry subsystem....We
believe that releasing this rich vein of heretofore untapped
energy led to technological and attitudinal changes that sub-
stantially increase productivity.
Problem solving and innovation were also important ingredients in

the participative decision making study by Bartlett (1967), which he re-
ported as an attempt to shift a manufacturing organization from Theory X
to Theory Y. Focusing on behavior rather than attitude change, Bartlett
designed a communications laboratory to "unfreeze" participants and in-
crease their problem solving behavior. Explaining how the laboratory
facilitated improvements in productivity, the author notes that "TVe prob-
lem was not defined as being whether Epsilon's managers could (or wanted
to) solve its problems. Rather, it was how best to remove the cultural
restraints preventing them from making their own greatest contribution...
the simple explanation as to why the changes took place at Epsilon is
this...the supervisors already had sufficient ideas to vastly improve
production...." The problem was to establish "a climate in which SO
could realize their desire to communicate their ideas for improvement,.."
(p. 401).
In their review of 78 work-improvement studies, Cummings and Molloy

(1977) described a wide range of factors that organizational development
change agents manipulate to produce positive change, includingi (1) pay/
reward systems; (2) autnnomy/discretion; (3) improved support services;
(4) training; (5) organizational structure; (6) technical/physical
changes! (7) task/varietyi (8) information/feedback, and (9) patterns of
interaction among people. All of these are potentially primary innova-
tions, of course. But secondary innovations, particularly secondary
technical/structural/physical innovations, are a significant feature of
inany of the experiments analyzed by Cummings and Molloy. As a matter of
fact, the authors comment on the pervasiveness of technical/physical
changes. But they may still underestimate the role of technical/physical
changes because they frequently overlook secondary modifications in the
work setting that result from focal primary innovations, such as partici-
pative deninion making. Thus, when itemizing the "action levers" used in
the French and Coch study and in the experiment by Bragg and Andrews,
which we have just described, Cummings and Molloy do not cite physical/
technical factors as contributing to the final outcome, but as I have
7
just noted, technical/physical factors played an important part In the
outcome of these studies.
Even studies, which use operant conditioning as the primary innova-

tion, may involve secondary technical innovations that contribute to im-
provements in productivity. At Emery Air Freight, for example, an exten-
sive program of positive reinforcement was introduced in an effort to
increase productivity (Organizational Dynamics, 1976). A careful reading
of the article that describes this work suggests that innovation played
a major role in the improvement noted and that positive reinforcement was
used primarily to motivate employees to use that innovation. The author
points with satisfaction to a savings of $650,000 made possible by the
simple innovation of combining small shipments into a single container.
Operant. conditioning helped to motivate employees to follow the procedure
which resulted in these savings. Furthermore, there are a number of com-
ments, such as the following, that suggest employees were encouraged to
problem solvet "Even with the below par employees, the manager takes a
positive note...." (Here the manager follows the practice of waiting for
a slight improvement in performance.) "Then he might follow up his
praise of the improvement by asking the man what he (the employee) thought
could be done to improve further. Everything he did from there on would
be an attempt to solve the problem and provide the manager with additional
opportunities for reinforcement.... The biggest problem with the pro-
gram occurs when the manager (italics mine) stops asking for feedback...,."
(p. 44).
ORGANIZATIONAL CLIMATE AND OD
Most definitions of organizational development suggest that one of

the major objectives of OD is the creation of a climate that encourages
planned change. What precisely do we mean by organizational climate?
And what are the features of an organizational climate that are conducive
to innovation?
Properties of Organizational Climates
A wide range of environmental factors influence the motivation and

behavior of people in organizational settings from styles of leadership
to incentive structure. Efforts to define climate have been directed
primarily at isolating a small but comprehensive set of properties that
can be used to characterize the climates of different organizations,
These properties are commonly based on the perceptions of people about
the organizations in which they work.
There Js no general agreement about what factors are necessary or

sufficient for describing the climate of different organizations. Litwin
and Stringer (1966, 1968), who define climate in terms of environmental
and perceptual factors that affect behavior, developed a questionnaire
SI
tor measuring perceptions in six different areas: (1) organizational
Structure, which is a measure of bureaucratizationi (2) Individual
Responsibilityi (3) Adequacy and Appropriateness of Rewards/ (4) Degree
of Challenge and Riski (5) Warmth and Supporti and (6) Tolerance and
Conflict.
Campbell et al. (1970) summarize the work of Litwin and Stringer and
a numbet of other writers in this area, and they found some commonality
amcng the various authors reviewed and suggested a synthesis that includes
the following four factors:
1. Individual autonomy. The keystone of this dimension is the

freedom of the individual to be his own boss and reserve con-
siderable decision mA.-6. power for himself. He does not have
to be constantly acc u-i-ble to maneement.
2. The degree of structure imposed upon the positions. The prin-

cipal element is the degree to which the objectives of, and
methods for, the job are established and communicated to the
individual by superiors.
3. Reward orientation. The factors (from various other writers on

the topic, including general satisfaction, reward, promotion-
achievement orientation) do not hang together quite as well as
the previous two factors.
I
4. Consideration, warmth, and support.
In addition to these four factors, Campbell and his colleagues were

tempted to add a fifth group incorporating ideas such as "presence of
conflict," "tolerance of conflict," and "working with cooperative and
pleasant people," but they did not do so explicitly.
Climate, Effectiveness, and Innovation
The studies described thus far merely identify properties that may
be useful for characterizing organizational climate. They do not attempt
to relate organizational climate to organizational effectiveness. Numer-
ous studies, going back at least to the work of Lewin, Lippitt, and White
(1939), bear directly on this issue.
The studies of Lewin and his associates concentrated primarily on

the interpersonal effects of changes in leadership style. However, other
studies have tried to measure the impact of leadership on organizational
effectiveness more directly.
One of the earliest and best known experiments of this kind was re.-
ported by Morse and Reimer (1956). Working with the top management of a
nonunionized industrial organization, Moise and Reimer identified four
i 9
- - -
I
divisions of a department that were matched for productivity. They then

conducted a controlled experiment in which two of these divisions were
given greater control and discretion over all aspects of the work situa-
tion (autonomy)l and two divisions were subjected to tighter controls
(hierarchical). Measures of satisfaction and productivity were taken
after one year.
Attitudes of employees in the divisions that were given giceater

autonomy improved sigi.ificantly in a number of areas over the course of
the study, whereas attitude deteriorated in divisions experiencing hier-
archical control. Improvements in attitudes were noted particularly in
the autonomous divisions toward supervision, the program, and the com-
pany. Overall job satisfaction decreased in the hierarchical divisions
but remained unchanged in the autonomous divisions. Productivity in-
creased significantly in both groups, but the increase was greater in the
divisions that were hierarchically controlled than in those that were
autonomous.
Efforts to explain the fact that hierarchical divisions had better

productivity than autonomous divisions have generally focused on the fact
that workers who were not needed could be transferred to other divisions
(thereby increasing productivity), and members of autonomous work groups
may have been more reluctant to transfer such workers than supervisors of
the hierarchical divisions. if one pursues the analysis suggested in
this document, however, thqre is no reason to expect increases in produc-
tivity merely because workers are given greater autonomy. Rather, one
must aaks How is the autonomy used'? Is the autonomy used to encourage
workers to problem solve about their Jobs and implement innovations? or
is it adopted in the expectation that it will more or less automatically
improve productivity?
A study by Litwin and Stringer reported in Campbell et al. (1970)

bears directly on the effect on productivity of encouraging innovation.
In their study, Litwin and Stringer assigned 45 students from the Harvard
Business School to work in three simulated fitms that were in competition
for a contract award. The president of these three simulated firms were
members of the research team. They adopted quite different leadership
styles, creating three unique organizational climatest (1) an authori-
tarian structured climatet (2) a democratic climater and (3) an achieving
climate. The achieving climate, in which innovation was encouraged, was
most productive in terms of dollar volume, number of new products, and
cost-saving innovations. Product quality, however, was highest in the
authoritarian-structured firm. Players who worked in the democratic cli-
mate were more satisfied with their jobn than players in the other two
firms.
How Climate Contributes to Innovation
We have noted that one of the major purponea of orgjanizational de-

velopment is the creation of a climate that encourages innovation and
10
- -- j
change. From the work of Campbell and his colleagues, it might be ex-
pected that the four factors, which they identified, vwould act the stage
for innovation. But, if these four factors are indeed important ingredi-
ents in the change process, how do they work? How, fcr example, does
greater autonomy contribute to innovation and productivity? In an effort
to answer this question, let Lis examine each of the four factors that
make up climate in somewhat greater detail and relate them to innovation.
Factor #1t Individual Autonomy. By individual autonomy, Campbell

et al. mean that workers have the power within their sphere of influence
to make their own decisions. The essential notion here is the freedom to
make changes that will not adversely affect productivity and may improve
it. This freedom inevitably carries with it certain risks that manage-
ment must be willing to accept. When people are free to make their own
choices, there is a good cliance that they will make the wror; ones from
management's point of view at least some of the time.
Autonomy, creativity, and tolerance would appear to be closely re-

lated dimensions of organizational climate. An organization which encour-
ages its employees to be av.tonomous must be willing to accept the creative
ideas that will spontaneously emerge and tolerate the differences among
individuals that will become apparent. Siegel and Kremmerer (1978), who
have developed a scale for measuring the perceived support for innovations
in organizations, found that acceptance of creativity and tolerance of
differences are key features of the climate of innovative organizations.
Based on a factor analysis of their scale, they concluded that it

measured three unique factorst (1) support for creativityl (2) tolerance
of differences, and (3) personal commitmJent. The scale was administered
to 1,899 students and faculty in public schools judged to be innovative
and traditional. Two factors seemed to different-iate between the schools
that were innovative and those that were not: schools in which creativity
was supported and individual differences were tolerated were more likely
to be innovative. Autonomy encourages innovation by freeing individuals
to think creatively about their jobs and propose innovations without fear
that they will be criticized for being different.
There is a second way in which autonomy may contribute to innovation

and increased productivity. Autonomy permits variancos to bn controlled
at their source, which is one of the central principles of sociotechnical
design (Cherns, 1976). Power to take action is vested in individuals who
are nearest to the problem and most apt to recognize it oarly, and in
individuals who are likely to understand the problem well enough to pro-
pose successful and creative solutions to it.
Factor #21 Structure. Structure hers refers to the extent to which

objectives and methods are clearly defined. The data at hand permit us
to do little more than speculate about how structure might influence Inno-
vation and renewal.
11
' ' q-T .... , ,

There in a rather widespread conviction today among many groups of
people that clearly defined objectives are important for many different
types of activities. Operationally defined objectives are assumed to con-
tribute to organizational effectiveness by focusing the attention of in-
dividuals on common goals that are understood by all and by reducing the
ambiguity that often surrounds the goals that guide policy formation and
action in organizations. While there is no evidence to my knowledge on
this issue with respect to innovation, it is generally recognized that in
all problem solving, an important preliminary step to it is to clearly
and operationally define the problem. Well-stated objectives facilitate
problem definition and, therefore, may contribute to innovation.
On the other hand, over-structuring work methods may interfere with

innovation. Once again, there is no direct evidence on this question
which I am aware of, but firmly established work methods are often
accepted uncritically and attitudes about them are socially transmitted
as a matter of tradition that makes them highly resistant to planned
change and innovation.
Factor #3t Rewards and Satisfaction. For Campbell and his col-
leagues, rewards and satisfactions, as a climate variable, are general and
molar impressions that employees have of the organizations in which they
work. We have already noted how in the study of the Emery Freight Com-
pany, positive reinforcement was used to encourage people to implement
an innovation. There is an additional piece of evidence from a study by
Gray (1971) which suggests that innovations are sensitive to the bonus
rate used in the Scanlon Plan. A key element in the Scanlon Plan is em-
ployee suggestions, which often involve what we have been calling secon-
dary innovations. Gray found that the number of suggestions in a large
pressed steel plant fell substantially over a 1-year period, but that
suggestion rate was closely correlated with bonus rate. As one would
suspect, if people feel that suggestions have some payoff for them, they
are more apt to make them. Gray is highly skeptical of the notion that
participative leadership promotes suggestions and is more inclined to
attribute differences in number of suggestions to the type of tasks and
bonus rate. In any case, reward undoubtedly plays a role in both the
generation of innovations and their implementation.
Factor #41 Consideration, Warmth, and Support. Innovation involves

risk.. To suggest an innovation, particularly before one has tested all
of its implications, clearly requires a certain amount of courage. The
initiator of an innovation is apt to be laughed at and ridiculed, some-
times even when the idea turns out to be a good one. Implementation of
an innovation is often an act of faith, because no one is able to work
out and predict all of the implications before the idea is tried out in a
specific content. Prior success in other organizations reduces the risk
but cannot eliminate it entirely. For all of these reasons, a climate
that encourages risk, that is nonthreatening, that tolerates differences,
and that is warm and supportive is most apt to be one that promotes
innovation.
12
The Effect of Politics on Climate: The Case of Tizard and Cherwell
Innovations often become enmeshed in politics, which is to say that
some individuals involved in the process use their political power to
influence decisions for reasons that may be unrelated to organizational
effectiveness. They may wish to promote a rival concept, believing that
it is genuinely more likely to succeed. But often they are motivated by
simple greed, or the obligation to pay off old political debts, or by per-
sonal animosity toward others involved in the decision. People may not
even be aware of their own motivations in these cases. But such variables
cannot be neglected because they frequently distort the judgment of indi-
viduals and have a decisive impact on the final decision.
Although the problem is particularly evident when governments are

involved, especially when decisions must be made in times of crisis or
under the cloak of secrecy, no single professional group is immune from
the political virus; it attacks natural scientists, corporate executives,
college administrators, and union leaders as well as elected officials.
The final decision with respect to an innovation is often made by a

few men who debate the issue in secrecy. Commenting on this problem,
C. P. Snow (1960) notes that:
One of the most bizarre features of any advanced industrial

society in our time is that the cardinal choices have to be
made by a handful of men: in secret...and by men who cannot
have a first-hand knowledge of what those choices depend
upon or what their results may be.
Snow recounts the struggle between Sir Henry Tizard and Lord
Cherwell, two distinguished British scientists, who locked horns during
World War I1 over the development of radar and the potential effective-
ness of the strategic bombing of Germany. As it turned out, history
demonstrated that Tizard was right in both cases, but he lost the argu-
ment over strategic bombing because Cherwell had the ear of Churchill
and used his political influence to overcome the arguments of Tizard and
other informed scientists who carefully rebutted his claims that strategic
bombing could be decisive in winning the war against Hitler. Tizard was
out of power at the time because his political loyalties lay on the oppo-
site side of the aisle. Nevertheless, he wrote a devastating criticism
of Lord Cherwell's basic document advocating strategic bombing. In the
words of C. P. Snow:
Everyone agreed that, if the amount of possible destruction

was as low as that calculated by Tizard, the bombing offensive
was not worth concentrating on....It fell to Tizard to argue
the case .... I do not think that in secret politics I have ever
seen a minority view so unpopular. Bombing had become a matter
of faith.... In private, we made the bitter jokes of a losing
13
side. "There were the Fermi-Dirac statistics," we sad, "The
Einstein-Bose statistics. And the new Cherwell non-quantitative
statistics."
What the reader interested in innovation finds most fascinating

about Snow's revealing personal insights in this study of the politics of
invention and innovation is the extent to which Cherwell's deep hatred
for Tizard apparently distorted his judgment on these matters. The two
had met many years before in Berlin and, indeed, had become close friends
there. But over the years the animosity between them grew for some un-
known reason, and ultimately reached its peak during the war when
Cherwell's relationship to Churchill gave him unusual power to promote
his ideas and strike out at Tizard. Reading Snow's engaging description
of these events, one finds merits of the innovations taking a backseat
to the personality struggle between these two complex men.
Snow offers several antidotes to the problems he describes. He

believes we should be careful not to give much power over the fate of
important innovations to a few men, particularly when they show clear
evidence of personality defects. But, above all, Snow believes we must
avoid the two conditions that lay the foundation for self-deceit in
these matters.
First, there is what Snow calls "the euphoria of gadgets." Men get
carried away with ideas and gadgets, particularly those which they have
invented or have a major personal stako in. To give such men great power
in the final adoption decision is to invite disaster.
Second, there is what Snow calls the euphoria of secrecy. Openness

is, of course, the key to informed debate, the acceptance of innovations,
and their effective implementation. Secrecy gives an unusual sense of
omniscience to the men who share the secret and are vested with the power
to act on the basis of that information. Such men often assume that they
have a power of insight that is greater than that enjoyed by other equally
qualified outsiders. At the time of the Bay of Pigs, an operation which
President Kennedy inherited from the Eisenhower administration, a small
group of trusted individuals from both administrations were called to-
gether to consider the planned invasion of Cuba. Operating in secrecy,
the group developed a high sense of mission that was untested by the
sobering comments of others inside and outside of government. The entire
operation might have been avoided if it had beon subjected to more openJ
debate (Janis, 1972). This episode in American history provides n number
of examples of the way in which small qroups operate, and we shall have
occasion to refer to the work of Janis acain later in this chapter.
From an organizational developmont perspective, Snow's bioqraphical.

descriptions brinq us back to the issue of the kinds of cultural condi-
tions that promote innovations. We have noted how important oponness and
trust are to the development and adoption of effective innovations. Tn
14
r
the case of Tizard and Cherwell, the climate for innovation was, in a
sense, terrible. The secrecy, of course, was a major factor. But the
stakes were enormous. From the perspective of those involved, radar
could spell the difference between survival and defeat for Britain; and
the decision to engage in strategic bombing might cost hundreds of thou-
sands of lives. Con~equently, these men were willing to risk all and to
enqage in the most bitter and acrimonious debate. But, one suspects that
less determined men confronting more mundane issues would be unwilling
to contribute their ideas in such a climate. As a matter of fact, the
feud between Tizard and Cherwell became so bitter and intense at one
point that two Nobel Prize winners, A. V. Hill, the physiologist, and
P. M. S. Slackett, the physicist, both resigned from the committee con-
sidering the development of radar rather than sit through the endless
haggling over Cherwell's hair-brained ideas.
Cherwell was not one of the original appointees to the committee,

which had moved along very well until Churchill insisted that he be given
& place on it. "Almost from the moment that" (Lord Cherwell) "took his
seat in the committee room, the meetings did not krrv- half an hour's har-
mony or work undisturbed," according to Snow. 'ihe debate continued until
the two Nobel Prize winners realized that the personal animosity between
thb two men was obstructing all hope of progress and resigned. They only
returned to the committee after Cherwell was replaced by E. V. Appleton,
an expert on the propagation of radio waves, who contributed not only in-
valuable scientific knowledge, but apparently helped to re-establish a
climate in which innovation could flourish.
Educational Mechanisms for Creating an Innovative Climate
Two different types of educational mechanasms are commonly used to

improve organizational. performance depending upon whether the focus is on
the task of the group or the climate (sentience).
Task and Sentient Groups. An important and useful distinction is

sometimes drawn between task and sentient groups (Miller and Rice, 1967).
Task groups contribute to the survival of organizations by performing
activities that are essential to the organization's survival. Sentient
groups, on the other hand, are those groups that demand and receive
loyalty from their members. They are the groups to which people are com-
mitted, corresponding closely to what sociologists call primary groups.
Sometimes sentient and task groups overlap more or less completely, as in
a family-owned business, but sometimes sentient groups lie almost entirely
outside if the organizations in which people hold formal membership.
We have noted that consideration, warmth, and support, which are of-
ten important properties of sentient groups, are also characteristics of
organizations that encourage innovation. Organizational development has
as one of its major objectives the development of these properties in the
task group, not for their own sake, but for the contribution they can
15
make to organizational innovation and renewal. In other words, organi-
zational development undertakes to make task and sentient groups more
nearly coextensive.
The ideal is illustrated by small groups of men in time of war who

become mutually dependent upon one another, such as the crews of bombers
or submarines, and develop a strong sense of interpersonal trust, confi-
dence, and affection, and a powerful commitment to the performance of
their common task. Exhaustive interviews with German prisoners during
and after World War II suggest that the Wehrmacht was sustained largely
by the satisfaction of soldiers with their primary (sentient) groups
(Shils and Janowitz, 1948). Contrary to what might be expected based on
many articles written prior to the work of Shils and Janowitz, they found
that abstract political ideals and symbols played almost no role at all
in the determination of German soldiers to continue fighting. What
counted was their loyalty to those around then, particularly their imme-
diate comrades. A participant observer, who served with a rifle platoon
in the Korean War (Little, 1964), confirmed the findings of Shils and
Janowitz, concluding that the "buddy system" was generally the thing that
helped soldiers through combat and contributed significantly to their
effectiveness. In such cases as these, task and sentient groups overlap
completely.
At the opposite extreme are those individuals who are never inte-
grated into their task groups but remain on the periphery. They may work
with others in a factory or organizational setting, but are not loyal to
them. Sometimes they perform their tasks reasonably well, but often their
behavior is disruptive and their performance slipshod. In their study,
Shils and J'rnowitz found that such isolates were most apt to surrender or
desert. And Little notes ironically that they were often rotated out of
combat roles during the Korean War.
Tasks and Team Skills. Although the development of sentience is

clearly important to the issue of organizational renewal, we should not
neglect the development of task groups nor take them for granted. People
must learn through formal training or experience the individual and team
skills needed to participate successfully in task groups. By individual
skills, I mean those skills that can be acquired outside of the context
of a particular system, but are essential to the system's performance.
Such skills include virtually all component activities taught in formal
education or training settings from reading a radar scope or welding a
pipe to the diagnostic skills of an internist or psychologist. Team
skills, on the other hand, are generally learned in the context of a par-
ticular task group and involve the interactions of human beings with one
another. Freed (1962) has developed a taxonomy that illustrates team
skills, including load sharing, warning, filtering, adapting, etc. Both
individual and team training make a substantial contribution to organiza-
tional effectiveness, but they are generally not considered to be methods
of organizational development and will not be discussed in more detail
in this chapter. There are times, however, when team training methods
16
I,.
shadc, eVer into orgcanilsa~t onla dvove]oprioent pirt:ice lar Iy whuLI groups are en-
Courageod to(: ifnnova to and imprnvo thI e w-ays, inwllWi.ch sys tolis operate C11p.2- 1
)cvo loping Scnn~jLet~ienc A wideo range of "educational met-hods" has been

used toecuaethe dovelopme1int of s~entient groups. All successful effortsF
Of' th is kind have! one thingJ inl common: they provide rcl~itively informa.1 , un-
aqt rec(turod Lro. exeince.S.
-~)r rlho more task centered the activities, of a1"11
gjroUp are, the lesis apt t 'he oroup) I a to develop behaviors , beliefsý, and at;tl.-
LLdQISSOULiated With s0lntt ence. The major except ion to thi~s prop~osition ic3
to be found in qroups with highly routine tasks that permit unstructured ac-
t iVitiCS to p~roceed-K SiMUltaneuou~sly and ill parallel W~it~h them.
OneU Of the IIOQt Widely usedI me1thods in orgjanixational devolopment for

croating sentient g roups is known variously as L~abor-atory training, Sonsi-
tivl ty training., and T-groups.
At its bust, Laboratory training takes place in anl isolated setting (re-
treat) where subjects cani devote their full attention to it. Numerous vari-
able-s that normally interfere with the evolution of sentient groups, such as
role and status diffoxoncos, are either eliminated, ijniorecl, or recjected by
the gIroup. As a result, Laboratory training provides, a highl/ disLtilled ex-
perience inl which onec can often witness the rapid evolution of a sentient
group.
One of the essential characteristics of Laboratory training is that it
is unstructured. While the leader may set broad objectives for the groull,
no agendea structures its activities. Without assigned roles and with no For-
mnal. agenda, tension inevitably mounts; peop~le became anxious ;,n1d grope for
ways to Mike the experiecilc meaningful.
Since actions taken to foster sentience may interfere with th-e perfor-
mance of task groups, it is crucial to maintain the boundaries betwreen them
and insure that these bfundaries arc easily discriminated. For this reason,
activities designed to pronmote sentience are often carried on outside of the
formal organization settirg.
But far too often, retreats are overorLIanized and, hence, mler~ely rein-
force or cultivate task qroups. Tho more attractive the seutting, th1c greatier
the danger that thi~s will happen. No one wants,, or dares, to leave others9
with the impression that a group asseombled onl San Francisco or Craird Travers;e
Bays in order to enjoy tao settinq or the Fellowship. Consequently, SChicduILIs
are filled from morning t~o night with intensive, genierally one-way , information-
packed learning experiences, even though it is clear that they Qovrload oneL
and all.. Roles are carefully maintained because those in power ar~e concernied
that if they let clown the barriers, they will not- be able to re-estaiblish them
when they return to the regula~r organizational setting. Unfortunate~ly, !ouch
retreats are often zi waste o~f time.
But sentOence is not, ank unmixed b]esig.When1 ICeuit.-IlL L ndLaI

gc ps over la and(]" popiO r ind deep1 sat.i. tnact-io, inl them, s.ome innoval ions
will be, resisted, part.i.rulairly thiost) that. thirunten L-o reail ien irce.
A.7
and disrupt well-established interpersonal relationships. Another reason
sentient groups resist change is that such groups often allow people to
fantasize and engage in speculative free association that approaches a
form of play without forcing them to defend their ideas (Gosling, 1979).
Since playing with ideas is enjoyable, people may not want to see a sen-
tient group formed for this purpose broken up. Unfortunately, the deci-
sion to act on an idea almost always closes out fantasy, greatly reduces
the number of degrees of freedom to act, and sets the group on a fixed
course that may dissolve the sentient group itself. Consequentl7, the
group may resist or even sabotage the change process.
Miller and Rice suggest that if organizations are to remain adaptive

under circumstances such as these, "the greatest sentience must remain
in the group committed to change" (p. 260). Presumably the commitment is
to changing others. Another option is to try to create a total organiza-
tional commitment to change. Sometimes, the Scanlon Plan succeeds in
setting up autochthonous processes that support change throughout an or-
ganization, but it is relatively rare to see this happen in older, well-
established organizations. Early in their life cycle, small businesses
sometimes manage to cultivate both task and sentient groups, but they
often do not last. This is a major point made by Miller (1979) who
studied a small plant in New York established in the mid-1960s that had
achieved a high level of productivity and morale by creating a "family"
atmosphere. As we noted earlier, Miller believes that worker commitment
was sustained in this plant in their "Utopian fantasies." But after 15
years, the fantasies were beginning to wear a little thin and the future
looked a bit tarnished: the new approach could not solve all of the
plant's problems and even generated a few. Also, as people settled into
posittons, the chances for rapid promotion dropped dramatically.
Miller and Rice comment on this phenomenon with the following obser-
vation: "They (the people in new, innovative small businesses) are pre-
pared to work long hours for little money because of their belief in
their cause. In time, other sentient groups exert their pull--family,
other jobs, established professions--and members leavel those who remain
struggle on, but unless new ideas and new leaders emerge, the institu-
tion can easily be submerged and become indistinguishable from its con-
temporaries" (p. 258).
THE PROBLEM SOWVING COMPONENT OF ORGANIZATIONAL DEVELOPMENT
Effe'itive problem solving for organizational renewal involves thre

basic niteps or stages. First, the problem must be clearly defined and
stated in terms that are unambiguous. Second, having defined the prob-
lem, one must search for solutions that will satisfy thE needs that have
been identified. And third, alternative solutions must be evaluated in
an effort to establish not only their effectiveness, but their unantrici-
pated consequences for the organization.
S1
A number of sophisticated techniques have been developed for identi-
fying and clarifying problems, including structured interviews, surveys,
problem posting, nominal gcoups, simulations, and task analyses. Each
of these techniques is generally treated separately, but a common under-
lying strategy often guides their use. I call this strategy discrepancy
analysis. It will not be possible to describe these techniques in detail
in this chapter. For our purposes, it will be more useful to illustrate
how some of these techniques are usod for discrepancy analysis and the
identification and clarification of irganizational problems.
Our understanding of how solutions are generated ornce a problem is

defined is, at best, sketchy. Change agents sometimes use the same tech-
niques that are recommende4 for problem identification to stimulate the
production of possible solutions to problems. Also, the cultural and
psychological requirements for good problem solving can be described to
some degree. indeed, we have already addressed some of the cultural re-
quirements in our discussion of the establishment of a climate for orga-
nizational renewal.
Finally, the literature on implementation and testing has been grow-

ing rapidly under the general rubric of evaluation. Evaluation is a
topic which deserves a volume in its own right. Unfortunately, I do not
have the space needed to address this subject in detail and will have to
limit my comments to the important and neglected topic of survivability
of innovations once the adoption decision is made.
Variance Identification: The Basic Strategy of Discrepancy Analysis
When an organization has a problem, an existing state of affairs

deviates in some way from an established ideal, model, criterion, or
standard. The standard may be thought of as an established boundary
from which variances are assessed. Initially, the real nature of the
variance is often poorly defined and those who recognize the problem may
not have any concrete evidence that it exists, and even if they collect
such evidence, they may find that it is not convincing to others because
there is little or no agreement about its validity or standards of
comparison.
Before an organizational problem can be solved, people must agree

on boundazies and the extent to which actual performance deviates from
them. In other words, they must fully define the variances that they are
trying to reduce.
Four Examples of Methods to Identify Variances
This relatively simple principle is what ties together such appar-

ently diverse techniques as surveys, simulations, task analyses, and
open-ended methods when they are used for the purpose of improving
19
organizational performance. Each of these techniques has built into itt
(1) a model of how things would be in the beat of all possible worlds or
how they should be, i.e., they set a standard; and (2) a way of assess-
ing actual conditions. Four examples, one for each of the techniques,
will help to illustrate this point.
Survey of Organizations. Staff members of the Institute for Social

Research at the University of Michigan have developed a survey known as
the Survey of Organizations t._c is now in its fifth ('1974) edition.
The Survey of Organizations has been used in a wide variety of edu-

cational settings and has been the centerpiece of an intensive and sys-
tematic research effort at the University of Michigan for many years
(Taylor and Bowers, 19721 Houser, Pecorello, and Wissler, 19771 and
Bowers and Franklin, 1977). The theoretical underpinnings for the Survey
of Organizations are to be found in the works of Rensis Likert (1961),
particularly his System 4 Model. The focus on the model is on the human
side of organizations, particular'ly people'. expectations and the way in
which they influence one another in organizations. Leadership and "the
management system that emerges from that leadership process across persons
and groups," according to Bowers and Franklin, are the "primary causal
variables in organizational life" (p. 22).
From the theoretical foundations established by Likert, five areas

have been identified that are believed to encompass the major variables
that affect organizational performance: (1) organizational climate,
(2) supervisory leadershipi (3) peer leadershipl (4) supervisory needst
and (5) a general category to encompass such variables as group processes,
satisfaction, job challenge, etc. The survey contains 124 core questions
designed to assess the characteristics of an organization with respect
to each of these indices of performance.
If one wore merely to provide an organization with the raw data from
such a survey, that information, by itself, would not be very useful.
For one thing, data of this kind need to be analyzed and summarized to
make them meaningful to the user. But even more important, a basis for
comparison or standard must be provided so that people can answer the
inevitable question: Compared to what? In other words, to be maximally
useful, the data muot prnvide information about variarces.
The change agents who employ the Survey of Organizations actually

use two sets of standards. The first is implicit in the theoretical
foundations of the survey itself, and the second set lies in the data
base that has been co3lected for many years about how organizations of
different types respond to the survey in the five areas identified above.
With respect to the first of these standards, the theory is norma-

tive and specifies modes of behavior that are most apt to improve organi-
zational performance. For -'.mple, the theory gives primacy to human
resour'es and assumes tbot an organization will be most successful if it
20
recognizes the creative assets of its people. When the survey asks, "How
friendly and easy to approach is your supervisor?," the theory implies,
at least, that the "correct" answer or standard is one that suggests that
the supervisor values the employee as an individual and feels that he or
she is worthwhile.
But operationally, the standard that is actually used to give feed-

back to organizations is a comparison with other organizations. In
practice, this involves conducting a computer analysis that provides data
about where the target organization stands with respect to others.
Normally, this information is broken down into the indices described
above and stated in percentiles.
Although such data may be useful in and of itself, it becomes much

more useful when it is fed back to managers, supervisors, and employees
and they are asked to problem rolve about it. Because the survey is de-
signed for general use, the data can only provide clues to problems, it
cannot define problems precisely. Thus, knowing that an organization
falls below the 25th percentile on Peer Leadership team building does not
explain why this is true. To learn why one would need to explore that
area with the organization's members in an effort to understand the prob-
lem in that specific organization#
The Survey of Organizations illustrates one important limitation of

this approach to organizational renewal. The theory focuses problem
solving on a specific class of variances, i.eo, those that deal with the
human side of orgarizations. Unfortunately, this violates one of the
cardinal rules of creative problem solving, which holds that a problem
should always be stated in such a way that it does not define a solution
in advance. There is almost no way that such surveyu can be used to de-
fine problems without focusing one's attention on a specific class of
solutions, i.e., interpersonal solutions %hen, in fact, many of the orga-
nization's problems may lie on the technical side.
Simulations. The RAND System Training Program illustrates how simu-

lationp, like surveys, use discrepancy analysis to uncover and define
problems. The program was the outgrowth of four experiments conducted in
an abandoned pool hall in Santa Monica, California. From these inauspi-
cious beginnings, it became one of the most successful organizational
development efforts ever undertaken. The studies were originally con-
ductod for the Air Force in the period 1952-53, and by the early 1960s
the methods were used widely by the United States and its allies around
the world to train air defense crew,.
At the time, air defense was accomplished by a large number of radar

sites, called Direction Centers, that were linked together and with
fighter aircraft bases across the United States and Canada. Each site
rotated crews of 25 to 35 men each through three shifts a day, 7 days
a week, and 52 weeks a year.
21
Each of these sites performed three major functions. They conducted
air surveillance, identified the aircraft entering their sectors by com-
paring their radar tracks with their flight plans, and intercepted those
that were unknown to obtain a visual identification.
At the time of the RAND studies, the United States Air Defense system
was not very effective. This fact was demonstrated in a variety of ways,
not the least of which weis the regular penetration of the system by aircraft
of the Strategic Air Command of the United States which seemed to take par-
ticular satisfaction in demonstrating the helplessness of the Air Defense
systmn against a determined attack by a well-trained and equipped "enemy."
The beat single article describing the RAND experiments was written
by Chapman et al. (1959), but the details of these experiments need not
concern us here. Our focus is primarily on how simulation was used to
identify problems in the Air Defense system and stimulate crews to develop
effective solutions to them.
An important feature of the program was the capability to simulate

dynamically realistic attacks on the radar scopes of Air Defense Direction
Centers during training exercises. Each exercise lasted for 2 hours and
involved an entire crew, each member of which performed his normal job as
he would in real life. Since many sectors curried scores or even hundreds
of aircraft in a 2-hour period, each traveling at different speeds and
altitudes with a unique flight plan, the simulation effort was very great
and could not have been accomplished without the use of high speed digital
computers. The original studies, conducted In 1952-53, are, in fact,
among the first examples of the use of computerized simulation for the
purpose of improving organizational operations. By the early 1950s, the
program was installed throughout the United States and simulated attacks
were generated that permitted every site in the country to respond simul-
taneously to a coordinated and realistic air attack.
A variety of materials was furnished along with the necessary equip-
ment and programs for simulating the attacks on the radar scopes. Since
researchers knew when every flight appeared on and disappeared from a
radar scope, and its exact speed and altitude, variances could be noted
between what some called "God's view of the world" and the actual perform-
ance of the crew. Such. aids permitted observers to take data on actual
performance, analyze it by comparison with the "true" inputs into the
system, and present discrepancies to crewe for problem solving.
As in the case of surveys, the basic strategy is one of discrepancy

analysis.
The following episode at a radar site that took place during an

exercise in the state of Washington will illustrate how the system worked
to uncover variances and solutions to them.
I I I
Shortly after the simulated attack began, it became evident that one
of the men assigned to keep track of flights on a large plexiglass board
was falling behind the traffic. Actually, the man had two jobs. In
addition to keeping track of individual flights, he was expected to main-
tain an up-to-date record of available interceptor aircraft on an adja-
cent plexiglass status board. The data at the end of the exercise clearly
indicated that the boards for which the man was responsible had not been
kept current and they further suggested that this lag contributed to the
poor showing of the crew in the exercise.
When the exercise was finished, the crew took a short break and then
reassembled to discuss the variances observed which iere presented to
them without comment or interpretation. Because the data were objective
and face valid, crews almost never wasted time disputing them. Soon the
crew zeroed in on the lag in posting tracks and fighter data, which I have
just noted, and made a number of suggestions for improving the situation,
including the addition of another crew member behind the board. At this
point, the man who had had all the difficulty spoke up and said he really
didn't think that it would be necessary to assign an assistant to him.
The problem, as he saw it, was to remove the large communications cable
that he tripped over every time he moved from one board to another. The
crew chief immediately spoke up and denied that there was any such cable
behind the board. A lively argument followed and the officer in charge
suggested a sensible way of settling the dispute. Why not go and look?
So the lights which were normally turned off around the clock were switched
on and, sure enough, the unfortunate enlisted man was right. He had been
tripping over a cable and it had interfered with his performance.
Now this may sound like an isolated or even improbable epicode, but
the fact of the matter is such simple problems often bring the biggest
systems to their knees. In the course of the program's operation, crews
at radar sites around the world identified literally hundreds of problems
and solutions, some as elementary as the one I have just described, and
others as complex as those reported by Chapman and his colleagues.
There is an important feature of the RAND work that deserves special

attention in this context. A climate of openness and trust was created
in the debriefings that followed every exercise, not in the hopes that it
would somehow motivate better performance in and of itself, but because
it encouraged the free exchanqe of information about problems and helped
to insure that creative solutions would be suggested. To the uxtent that
group dynamics contributed to the effectiveness of the organization, it
was a bonus.
It is interesting to note that the RAND studies and the program that
grew out of them are seldom cited in the literature on organizational
development. One can only speculate about why this should be true. The
experiments were conducted for the Air Force and a great deal of valuable
military research of this kind has been neglected by social scientists
(Parson., 1972). The program's technology was far too expensive and
23
sophisticated to be used by individual graduate students in the pursuit
of a dissertation topic, which means that there was little follow up re-
search in university settings. Also, the studies were classified in the
early stages, at least, and this inhibited the dissemination of the re-
sults. But perhaps most siqnificantly, it was called the Syitfm Training
Program which implied that the major thrust of the eff3rt was traditional
individual or team training when, in fact, it was really an uffort at
organizational renewal. At any rate, the program was highly successful
and broke new ground that many change agents, even those in the military
settings, have yet to integrate into their thin1ting about organizations.
Task Analyses. To some it may seem paradoxical to suggest using

task analyses for the purpose of organizational developmente A task
analysis is, fizrt and foremost, a roadmap describing the salient features
of a task and how a particular job should be performed. As such, many
people think of the task analysis as a highly structured, behavioristic
tool for improving job performance. But, when task analyses are seen as
a way of surfacing variances, it readily becomes apparent that they can
be used for the purpose of organizational problem solving.
Since task analyses describe how tasks should be performed under

different circumstances, they provide standards against which to evaluate
performance. By observing actual performanue and comparing it with the
standard, one can identify discrepancies that need to be corrected.
Whether one uses job incumbents for this purpose or experts, the effect
is to identify problems and generate proposals for solving them.
The typical task analysi6 is used to describe how a single task is

performed, but it is not essential that the analysis be limited in this
way. While detailed step-by-step descriptions are often essential for
designing effective training programs and training aids, for the purposes
of organizational problem solving it is often useful to treat larger units
of behavior describing the interactions of two or more people involved in
the performance of more comprehensive task-units.
Steiner (1972) has described a formula for estimating the productiv-

ity of task groups that involves a discrepancy approach of the type being
considered here. Steiner assumes that actual productivity of a task
group is determined by the resources available to the group minus "losses
due to faulty process." In order to evaluate a process and determine
whether or not it is faulty, a standard description of how the process
ought to be performed must be available. By comparing the standard with
actual performance, one is able to arrive at some estimate of loss due to
"faulty process." Unfortunately, Steiner does not address the major
issue raised in this chapter: the use of discrepancy analysis to encour-
age the discovery of innovations that dramatically increase productivity.
Discrepancy analysis has been used at Michigan State University in

an effort to improve classroom learning as the following examples
illustrate. 4
.---
.. .. .
24
Consider first the aotivities that a teacher and student must per-
form if the standard lecture method is to work. 7f one carefully observes
this system, It in possible to identify 100 or more behaviors that are
important to it. success. Some of these behaviors must be performed by
the teacherl arid some must be performed by the students. In many cases,
the two must interact together for the system to operate effectively.
The teachers' aotivitJes range from such things as preparing lectures to
providing feedback. The students' activities range from reading assigned
material to preparing for tests. If either the teacher or a student
fails to perform any of his or her assigned activities, the system will
not work as well as it otherwise might have. A system task description
identifying these required steps can be used with students and facnlty
to get them to identify diucrepancies and problem solve about teaching-
learning situations in an effort to improve their functioning.
In some cases, one need only identify a few steps and the diacrepan-
ctes that exist in order to set the problem solving process in motion.
Some years ago, a department chairman at Michigan State University
approached our group becati:t, he was having considerable difficulty aucom-
sodating students in his cvworcrowded radio broadcasting laboratory. His
intention was to ask the uentral administration for a second laboratory,
but he thought he'd Itry to find another solution first. The problem was
caused by the large numbe. of students who arrived simultaneously at the
laboratory for suheduled instruction. The students complained because
they couldn't follow the lecture-demonstrations and did not learn to use
the equipment. With the chairman's permission, we performed a discrep-
ancy analysis which compared the ideal with the actual situation. The
task analysis itself, i.e., the ideal, only contained a few steps such as
these: (1) students arrive itn the classroomi (2) demonstration is pre-
sented; (3) all students see, hear, and undnrstand the demonetration;
(4) students are given the opportunity for immediate practice on the task,
etc. Alongside each step in the ideal description we described whet
actually took place when students arrived in the class. The chairman was
then encouraged to discuss this analysis with faculty and students and
solicit their suggestions for improvaments. Rather than request a new
laboratory, the department decided to test an independent study mode
which would permit student* to arrive at the laboratory at any hour, thus
alleviating the overcrowding. The idea worked and the idea of a new
laboratory was shelved.
Task analyses of this kind have not been widely used for the purpose
of organizational problem solving. To my knowledge, the only writer who
has described a method similar to this one in any detail is Gilbert (1974).
In addition to stressing the importance of such discrepancy analyses at
all levels in an organization, Gilbert's basic system focuses consider-
able attention on the problem of identifying those areas which are apt to
yield the maximum payoff for a given amount of effort and attention in
organizations.
25
_!
Open-ended Methods. Another procedure which is commonly used for
identifying variances and disecuvering solutions to them is to ask people
more or less directly. Since individuals in groups stimulate one another
to t. iink of new ideas, elaborate on the suggestions of others, and con-
Zirm or disconfirm individual perceptions, groups are often used for
1 wroblem solving.
When groups are asked to attack a problem head-on, standards and

data are often ignored initially. In order to encourage the maximum pro-
duction of as many creative suggestions as possible, members are urged
to hold their critical comments regarding the ideas proposed. But# free
association produces so many ideas that sooner or later they must be
reduce- to a manageable number, and one of the most important criteria
for screening ideas is the extent to which any given idea agrees with the
facts (Maier, 1960). In other words, to be effective open-ended methods,
such as brainstorming groups, muot sooner or later use something akin to
discrepancy analysis to establish the validity of problems and suggestions.
A number of authors have described a variety of specific open-ended

methodu using groups to identify problems and solutions. Many of these
techniques are sophisticated variants of the basic method known as brain-
storming (Osborn, 1957). Brainstorming is a technique that encourages
individuals in groups to generate ideas as rapidly as possible. Osborn
laid down a few general principles for brainstorming that have been incor-
porated into many subsequently developed methods. To encourage free-
wheeling and the production of the maximum number of ideas, he insisted
that suggestions should not be judged during the brainstorminq session,
but afterwards. Criticism is ruled out during brainstorming but members
of the group are encouraged to elaborate on ideas or combine them.
Recent innovations in this area have been directed primarily at

facilitating the brainstorming process and overcoming some disadvantages
of Osborn's approach. Maier, for example, has long stressed the impor-
tance of focusing on problems early in the process rather than solutions,
and he has suggested several useful techniques for posting the ideas as
they are generated (1963). The Delphi Technique permits an investigator
to gather inputs from individuals and evaluate them without bringing them
together in a group. Another technique, known as Nominal Groups, over-
comes the tendency of one or two individuals to dominate the group by
having people work alone to generate their ideas before sharing them in
a round robin fashion that allows everyone's original ideas to be con-
sidered but skips those that have already been discussed (Delbecq et al.,
1975). And so on.
What should be noted here is the fact that open-ended techniques,

1lke the other methods described above, can be used to develp an inven-
tory of problems and solutions. Although open-ended techniqives inevitably
have some structure and differ among themselves in this regard, they are
all less structured than surveys, simulations, and task analyses. The
latter have the advantage of providing the group with objective data about
its own operations that can be "chewed on" and used to discover problems
26
and solutions more or less inductively. Open-ended methods, in contrast,
get to the point more directly and use the group to define problems and
to prioritize them and to establish the reliability and validity of indi-
vidual suggestions.
All at the methods described in this section can be used legitimately

to facilitate problem solving. Each of them has advantages and disadvan-
tages. The central objective in organizational renewal is to get people
involved in solving the problems of organizations. As a general rule,
nothing captures the imagination of people more effectively than present-
ing them with some clues, perhaps mere fragments of a tantalizing puzzle,
and asking them to join in the creative act of spinning out possible solu-
tions to problems that impact directly on their lives.
Discovering Solutions: Some Requirements
Once an organization recognizes a problem, a search is often under-

taken for ways to correct the observed variance. The search may be
described from either a psychological or a social perspective. In other
words, one may focus either on the individuals involved and how they
discover innovations, or one may consider how the group hinders or facil-
itates the discovery process. These two perspectives are generally dis-
cussed in the literature under the headings of individual and group
problem solving# respectively.
The Psychological Perspective. When people face a difficult and

unique problem, they often grope for a long period of time before they
quite suddenly discover a solution to it. When this happens, they are
said to have had insight. It is generally noted that the solution in
such cases involves the conjunction of two ideas or elements that have
not been previously joined together. in the well-known studies of Kohler,
for example, chimpanzees had the problem of obtaining a banana hanging
from the ceiling of their cage just out of reach. Several boxes were
available in the cage and could be stacked so that the chimpanzees could
reach the banana. Providing the chimpanzess have had previous experience
stacking boxes, they are generally able to put the two ideas together
and solve the problem.
Homer Barnett, a sociologist who gave a great deal of thought to the

psychological as well as the social and cultural variables that influence
innovation, expresued it in this ways
When innovation takes place, there is an intimate linkage or

fusion of two or more elements that have not been previously
joined in just this fashion, so that the result is a qualita-
tive distinct whole. (1953, p. 181)
The notion that innovation involves the fusion of two previously

unlinked ideas is nicely illustrated by Maier's two-string problem. 7,
subject is asked to join two strings together that are hanging from the
27
- !...
rI
ceiling and spaced so that if the subject holds the end of one string, he
or she cannot reach the other. By merely looking at the strings, sub-
jects can see that they are long enough to be tied together, but their
first attampts to bridge the gap by reaching from one to the other soon
convinces them that their arms are not long enough. If a small weight,
such as a pair of pliers, is available to them, however, many subjects
soon discover that they can tie the weight to one string and use it as a
pendulum. They swing the pendulum, walk over to the other string, wait
for the pendulum to reach them, grab it, and tie the two strings together.
some subjects never arrive at this elegant solution because they cannot
fuse the idea of a pair of pliers and the idea of a weight for a pendu-
lum. They are so fixated on the more common uses for pliers that the new
use does not occur to them.
Two implications can be drawn from such problem solving research.

First, past experience with the elements needed to solve the problem is
essential. But, if people have had too much experience or if they are
too rigid, they may not consider alternative upes for the elements. And
second, the elements or ideas that may contribute to a solution must be
present in the problem solving situation, they must be paired with the
problem, either symbolically or physically.
The.:e are two reasons why it is necessary for the elements to be

juxtapositioned. First, the elements are sometimes needed to actually
implemenc the solution, as in Maier's two-string problem. Without a
weight, it would have been impossible for subjects to actually construct
a pendulum. But second, the elements stimulate, by association, the pro-
duction of ideas for unusual solutions that might not otherwise have
arisen. A subject sees the pliers in the two-string problem, for exam-
ple, and wonders how they might be used to solve the problem. If a small
weight had not been present, the subjects might not have thought of con-
structing pendulums.
Group Factors That Hinder or Facilitate Problem Solving. If groups

are to problem solve effectively, organizational conditions must encour-
age the linkages and fusion of elements described by Barnett. I have
already suggested that organizational innovations are most apt to arise
in settings that are participative, accepting, and encouraging. Why
should this be true? And what factors in the environment are likely to
hinder the discovery of innovations?
In a recent review of the literature on problem solviny in groups,

Hoffman (1978) makes the following observation: "The major barriers to
effective problem solving are those conditions which prevent the free
expression of ideas in a group" (p. 68). He then goes on to identify
some of the major factors that hinder group problem solving, four of
which bear directly on the issue at hand.
FirsL, groups tend to value unanimity and to enforce majority rule.

As a consequence, individuals may go along with the group solution with-
out voicing their own, often valid, objectives. As a matter of fact, the
28I
majority may ever, suppress the expression of alternative solutions, par-
ticularly in cohesive groups, that operate in secrecy. Janis (1972) calls
this phenomenon "groupthink." On the basis of his postmortem exam~nation
of the Bay of Pigs crisis and the deliberations of a small group of rtd-
visors to President Kennedy at that time, which was mentioned earlier,
Janis concluded that dissent in the group was stifled by the momentum
that gathered in suppoi't of a particular solution. Some of those attend-
ing the meetings felt threatened or uncomfortable in this situation and
lacked the needed confidence to express their views. As a consequence,
the group trrived at what was later agreed to be a poor decision. Recog-
nizing that the group had not functioned very well and that his presence
at the Bay of Pigs sessions had inhibited the free exchange of informa-
tion, President Kennedy did not attend the early meetings of the group
that debated the presence of soviet missiles in Cuba and he laid down
various ground rules to encourage more open debate during those meetings.
People go along with the majority for a variety of reasons, including

feat of rejection, the need to be accepted, and lack of confidence in
themselves. The novice is in a particularly difficult position. In the
presence of people who have successfully dealt with other, often similar,
problems In the past, the new member of the group often finds himself or
herself conforming with the more experienced members. In the presence of
people who have successfully dealt with the same or similar problems, an
Inexperienced person tends to accept the demonstrated competence of the
other person and follow his or her lead (Mausner, 1954).
A second set of factors that hinder effective group problem solving
is the tendency of some people to dominate the discussion. Self-confident
individuals may prevent the group from fully utilizing the information
available to it by aggressively advocating their own position. Unfortu-
nately, there is evidence to suggest that groups which have high status
and dominance needs tend to be less productive and more dissatisfied with
their functioning and outcomes than groups with low self-oriented needs
(Couriezo et al., 1950).
A third set of obstacles to effective problem solving has to do with

the structure of groups, particularly their leadership. When a leader
has the responsibility and the power to make the final decisions by him-
self, then his mere presence may inhibit the free flow of ideas and in-
formation. Anxious not to be caught on the losing side or appear to be
disruptive, members of the group may watch the leader carefully for clues
to his ultimate decision. Considerations such as these were behind
President Kennedy's decision to remove himself fjom the early discussions
surrounding the Cuban missile crisis.
Sometimes the leader defines the problem facing the organization in

a way that incorporates his solution to it. (For example: How can we
get our salesmen to drive fewer miles?) Or the leader may state the
problem without a solution and then immediately offer one to the group.
Behavior of this kind puts a damper on problem solving. When the leader
29
delegates responsibility to the group for finding solutions to prohlems,
it is more apt to produce high quality solutions, show higher acceptance
of the solutions generated, and he more satisfied with them than if the
leader arrives at a solution and offers it to the group (Solem, 1958).
Leaders may hinder effective problem solving in other ways as well,
particularly in those cases where they elect. to conduct the problem solv-
ing sessions 1irsonally. The way in which leaders respond to suggestions
made by participants can encourage or inhibit free discussion (Oakes
et al., 1960). Their feedback will influence not only the individual who
offers his or her opinion, but those who are listening as well. Nothing
discourages people from participating in a discussion more effectively or
quickly than ridicule or criticism by the leader of the ideas which are
put forward.
A fourth and final obstruction to effective problem solving is the

tendency of groups to move too quickly to a single solution which they
accept too uncritically and without examining other alternatives. Some-
thing similar happens in the case of individual problem solving as well.
When we try to solve an unfamiliar problem, we often arrive at a tenta-
tive "solution" that "ought to work" but doesn't, and find ourselves
coming back to that "solution" over and over again despite the fact that
it doesn't work.
Rather than spend time carefully defining a problem to be certain

that it is clearly understood, the group often presses ahead in search of
a solution. Once a solution is suggested that seems to suffice, thc mem-
bers often fixate on it and find themselves unwilling to consider alter-
natives. When groups are instructed to resist this natural tendency to
leap at solutions and focus on the problem, they produce higher quality
solutions (Maier and Solem, 1962). For this reason, experts in the area
of problem solving generally encourage the group to define the problem
fully and carefully before trying to solve it. Once the problem has been
defined, the group looks for solutions. Finally, the solutions are
screened (Maier, 1960).
At the start of this section I posed the question: "Why should we

expect organizational innovations to be more likely to arise in an
accepting and participative organizational setting?" Our analysis of the
factors that hinder effective group problem solving provides us with a
number of clues that can now be used to answer this question. First, in
order to define a problem adequately, it is always useful to incorporate
the perspectives of the various individuals who are affected by it. Each
individual brings to the problem definition his or her own unique view-
point. A given individual often possesses information about the problem
that is not available from any other source and is essential to its clari-
fication and solution. Second, in a participative setting, people are
encouraged to offer their ideas freely and openly, and without feaz of
ridicule or attack. People who are involved in this way apply their in-
dividual creative talents to the discovery of new and innovative solu-
tions, thereby multiplying the chances that an effective innovation will
nnun ~
nn mnnmnmonu, ()•
nnm "l| l~lh-Jm nm i , . . . .
be discovered. Third, once involved, many participants will search for
appropriate prototype innovations that may exist outside of the organiza-
tion and be adopted by it. Since each individual has many different
encounters, the chances are improved that an effective solution of this
nature will be found. Finally, open discussions of a problem increase
the likelihood that accidental contingencies among elements will occur
and fise to produce innovations. People stimulate one another by sug-
gesting prevJously unrecognized elements, now contingencies, and by
elaborating proposed solutions.
IMPLEMENTATION AND SURVIVAL OF INNOVATIONS
Under ordinary conditions, organizational innovations cannot be sus-

tained unless significant changes occur in the environment in which they
are embedded. In part this is because infrastructures must be created to
support them. Efforts to improve agricultural productivity in under-
developed countries through the Introduction of new seeds or fertilizers,
for example, may require numerous environmental changes if they are to
work, such as new or better roads, credit for farmers, and new markets
for their products, etc. But the problem of implementing and sustaining
change involves far more than the creation of suitable supporting mecha-
nisms and services for innovations. Highly successful innovations, from
the point of view of effectiveness or user attitudes, for example, are
sometimes abandoned even though an infrastructure has been constructed to
support them.
Successful Failures
Many successful innovations do not survive. It certainly helps the

chances of an innovation for survival if it is successful, but success is
not a sufficient condition for continuation. The following example from
the psychological literature helps to make this point.
A relatively simple, effective, and economical cure for enuresis

(bedwetting) has been known for about 100 years. Based on straightfor-
ward conditioning techniques, the method was demonstrated to be highly
effective in a clinical setting by 0. H. Mowrer in 1939 and described by
him in 1950, Twenty-five years later, Baker (1969) visited the clinic
and found that none of the pediatricians were still using the method.
So Baker set up another experiment and once again demonstrated the effec-
tiveness of the method. Whether the innovation will survive this time
around is uncertain. What romaine incontrovertibly true is that this
successful innovation just disappeared. It was not replaced by something
better. It vanished in that setting.
How are we to account for such "successful failures" as the one

which I have just cited?
.31
H
Scattered throughout the literature on innovation there are a number
of studies that cast some light on this question. But only a few of
these studies use examples front the area of organizational development.
Therefore, I will draw on the wider literature here and describe '.1o
examples from the field of education that offer a partial answer to the
question I have just raised. Then I will close the chapter with some
implications of these studies and one or two others for organizational
development.
The RAND Corporation-USOE Study. Berman and his colleagues (1975) at

the RAND Corporation recently completed a study of four massive innovation
programs funded by USOE: (1) Title III, funded at $120-190 million, was
designed to encourage instruction innovation in elementary and secondary
schools; (2) Right to Read, funded at $12 million annually which focused
on improving reading skills, particularly among disadvantaged youngsters;
(3) Vocation Education, Part D, designed to enhance career awareness and
reading, was funded at $16 million annually; and (4) Title VIII, Bilingual
Education which was aimed at helping children with limited English speak-
ing ability and was funded at $45-85 million annually.
National Opinion Research Center conducted a nationwide survey of

293 projects in 18 states for RAND. In addition, RAND personnel visited
29 of these projects and interviewed numerous federal, state, and local
employees about these various programs.
The RAND study did not look directly at project continuation. They
asked instead whether or not local school administrators intended to con-
tinue their projects after federal funds were removed. Projeot success
had some relationship to continuation. Naturally, projects that are
clear-cut failures are not apt to be continued. But many districts appar-
ently have no intention of continuing a project, regardless of its suc-
cess because the district is not prepared to accept the costs or the in-
centives are not adequate. As RAND goes on to note, "costs and political
and bureaucratic acceptability were probably of equal importance (to
success or failure)."
Another interesting outcome of the RAND study deals with implementa-

tion, not continuation. Implementation took several different forms:
(1) in some cases the local educational setting and the innovation both
were changed or modifiedl (2) the local educational agency sometimes
emasculated the innovation and completely co-opted it to meet local needs
without changel and (3) in other cases there was no implementation at all.
In other words, funded projects sometimes didn't survive long enough to
even get implemented.
RAND concluded that one of the most important determinants of both

implementation and continuation was the extent to which the initiation
behavior at the local level could be characterized as problem solving or
opportunistic. In other words, did the local folks have a problem that
they really were trying to solve, or were they Just after federal money?
32
Significantly, differences in technology or resources made little
difference to the successful implementation of a project in the RAND
study. Local condiitions were far more important.
To summarize some of the significant conclusions of the RAND study,

the implementation of innovations involves a complex interaction between
them and local organizations. Innovations were most apt to survive when
they were adapted to the organization, focused on practical unmet needs
that organizations recognized and wanted to attack, and encouraged local
modification and tailoring of them and wide involvement of the people
affected by the change efforts.
MIT and the Keller Plan. The Keller Plan is a method of independent
study that is now widely used in this country and Europe to teach many
different subjects. The method is based on research by Dr. Fred Keller,
a well-known behaviorist and respected educator; it allows students to
take a course by completing a series of self-study modules.
In the spring of 1969 the Education Research Center at the Massachu-

setts Institute of Technology (MIT) experimented with the Keller Plan for
the introductory physics course. Within 3 or 4 years, the Keller Plan was
used almost exclusively to teach the introductory sequence at MIT. The
decision by the MIT physics faculty to adopt the plan attracted a great
deal of national and international attention. Conferences were held at
MIT to explain the plan to teachers of physics from other institutions.
There were numerous visitors and a number of widely distributed publica-
tions describing the program. By 1973, the department had decided to
abandon the plan. Why?
This question was recently asked, and at least partially answered,

by tour MIT professors who published a case study describing the rise and
fall of the project (Friedman et al., 1976). Although we have never un-
dertaken a postmortem of similar "failures" at Michigan State University,
we have witnessed a number of them and believe that there are common
causes. Therefore, it may be useful to identify some of the factors
that contribute to the demise of apparently successful programs.
First, the effects of an innovation may radiate out and create prob-
lems in other courses. Competency-based instruction, for example, treats
time as a variable, whereas most courses are taught in a fixed time
period. Thus, students who fail to complete a competency-based course
may be permitted to continue worKing after the final examination period.
If students are allowed to continue studying into the next semester, the
competency-based course will begin to interfere with subsequent courses.
Students will spend time on the competency-based course that they should
be spending on other coursesl in addition, they may lack necessary pre-
requisite skill that should have been acquired. And so on. Inevitably,
this leads to frustration and resistance toward the innovation. Some-
thing along these lines appears to have happened at MIT.
33
I.,
Second, some innovations challenge deeply held convictions of faculty
members about human behavior in general and learning in particular. For
excample, PSI focuses on the teaching process and not curricular content
which is the primary interest of most faculty, particularly those in the
sciences. Also, the psychological assumptions underlying an innovation
are genera.ily not obvious in the early stages but after a period of ube
tIu•: ~apmptions gradually become more apparent to more faculty members.
Thus, for example, the Keiler Plan, which was used at MIT, is a model
that is largely derived fr:om a behavioristic orientation to learning.
Many of the physicists at MIT were apparently onwilling to accept the
undeLtying VrCcmis,- nn which the model was based and thought it failed
to teach certain intangible attitudes, values, and ways of thinking.
Third, PSI cended to alter the toles of some of the people involved
in teaching physics, particularly the graduate assistants, forcing them
to assume a more passive teaching posture and under-utilizing their skills
and abilities. For these reasons, the assistants inay not have been moti-
vated to make the program work, and their commitment was essential to its
success.
Fourth and last, although Friedman et al. do not make special note
of , iruio-v.iton frequently consume more time and energy than tradi-
tional methods. As a matter of fact, this tends to be the case even when
the innovation involves the use of hardware designed to increase "produc-
tivity." Many faculty members (and their departments) have no understand-
ing of the extent of the commitment required until, after the project is
underway. Once the true implications are understood, the pressure to
abandon the project increases.
A second study, of the Keller Plan describes the lonclitudinal oxper•.J-

once of a single faculty member at another institution with the plan,
and highlight!:: another reason innovations sometimes fail. t. L. Ainm:-
worth is at Indiana University Southeoast. le adopted a variant of the
Keller Plan in 1975 and reported his experience in a recent article. What
i; Perhaps most remarkable about this article is the author's persistence
and the energy te dtsv.tcd tn trying to make this innovation work. In the
face of overwhelming odds, an indifferent administration and a student
body that, on the whole, was unprepared to take on individualized
learning of this kind, Ainsworth tried the Keller Plan again and again
only to fail. Many educational innovations sound good on paper but the
deck may be stacked against them: they may require too much time, support
from the administration, or students who reilly want to learn and are pre-
pared to commit themselves to the task. I recall, attending a UNESCO con-
ference in Amsterdam almost a decade ago. We were discussing all of the
new in,.ovat!c-,=c.rYher education when one of the student observers in-
terr'ipted and pnlitelý asked if we weren't making some assumptions about
their learninq skills and motivation to learn. We were all impressed and
interested in the comment, but after a while, it faded into the background
and we went right on with our conference as if the students didn't exist.
Many innovations in higher education, in industry, and the military are
24
variant forms of independent study--and many students in this generation
lack the skills and motivation to engage e,,en the best designed learning
modules on their own.
Some of the implications of the studies which I have Just described

are relatively obvious and have been supported by the observations of Om
practitioners (in parentheses):
0 If they are to survive, organizational development interventions

must be tailored to meet real needs that are recoqnized and
accepted by organizations.
o To survive, innovations must be understood by the people who are

expected to use them or will be affected by them, and those people
must be encouraged to participate in the adoption decision (Gilnon
and Lefcowitz, 1957).
* To survive, innovations must work, and the likelihood of their

working can be vastly improved if they are based on (tested)
theory (Frank and Hackman, 1975).
a Innovations stand a better chance of survival if they are "legiti-

mized" within the organizations by formal regulations, policies,
structures, budgets, and similar linkages that hind them in.
Implications for Organizational Development
Even if one follows all of these prescriptions, there is still no

assurance that an innovation will survive. As a matter of fact, the
Keller Plan at MIT probably met all of the criteria that I have just
listed. This brings us to the final point about the survival of innova-
txzns and the one that offers the greatest difficulty. If innovations
are to survive, substantidl changes must take place in the environment to
make it compatible with the proposed change. At one level, this may mean
nothing more than making certain that organizational practices "fit" the
innovation, e.g., that the incentive structure of the organization is
compatible with the innovation and rewards its use. But when achieving
compatibility between the innovation and the organization requires that
people change, that roles be altered, or values be modified, or power be
redistributed, formidable difficulties surface almost inmmediately.
According to Eric Miller (1979) the primary task of a development

program is to help the client system to increase its control of its envi-
ronment. Seen in this light, all development, whether of organizations
or groups or individuals involves changing the environment in which peo-
ple operate so that roles are redefined and power is shifted. To quote
Miller directly on the topic of organizational development and power:
3')
Our proposition tells us that unless there is change in the
relatedness of the group (receiving OD) to its environment--a
change in the direction of greater potency--the internal im-
provements in relationships will not be sustained. If the
group is a senior management team, the hope for outcome is
greater potency in relation to customers, competitors, or sup-
pliers. If, however, this outer boundary is intractable, then
it is predictable that either the management team will direct
its energies into conflict with other groups within the enter-
prise--for example, trade unions--or it will regress. if on
the other hand the group being "developed" lies not on the
boundary of the enterprise but inside it--for example, a pro-
duction department--so that its environment consists of other
departments, then "successful" internal development will depend
on changes in relationship with one or more of those depart-
ments. The resultant conflict may well be productive, though
it is often unwelcome because it calls into question the estab-
lished "mobilization of bias." My point is that, although many
people may wish it otherwise, organizational development cannot
be effective without also being a political activity, involving
changes in power. Whether he is aware of it or not, the OD
consultant is implicated in that activity. (p. 231)
Eric Miller's quotation and the ideas set forth in this chapter help
to give us some perspective on the role and responsibilities of change
agents. If the objective is to improve the organization's operation,
then the change agent has an obligation to insure that his or her inter-
ventions genuinely make a diffarence and that the resulting changes,
particularly the organization's innovations, can be sustained. Interven-
tions, aimed at isolated individuals or groups, are unlikely to facili-
tate organizational renewal or to endure. Nor should such interventions
be promoted and offered by "practitioners" who have no grasp of the com-
plexity of the change process.
30
ANNOTATED BIBLIOGRAPHY
Ainsworth, L. L. Self-paced instruction: An innovation that failed. Teach-

ing of Psychology, 6 (February 1979), 42-46.
Despite frustrating results and little administrative support, Ainsworth tried

repeatedly to make the Personalized System of Instruction (PSI) work. In the
end, he failed. He concludes that PSI is not suited to many students entering
college because they lack the necessary motivation and ability to undertake
independent study activities of this nature. PSI is apparently best suited
to high ability and other outstanding students who need it least. Since self-
paced courses are generally designed to be easy to understand and pass, the
failure of many students to succeed in them suggests that their academic
preparation and motivation is "woefully inadequate." Article illustrates
that users of an innovation must have the skills to take advantage of it,
and change agents must be certain that the innovation is matched to users.
Baker, Bruce L. Symptom treatment and symptom substitution in enuresis. Jour-

nal of Abnormal Psychology, 74 (1969), 42-49.
Conditioning treatments for bed-wetting have been reported by many investi-

gators but they are not widely used because of fears of "symptom substitu-
tion," i.e., fear that a relapse or new symptom will arise. Thirty enuretic
children were treated in this study using either conditioning (experimental
group) or by other methods designed only to duplicate the motivational as-
pects of the experimental group (control group). Conditioning was superior
to the other methods. In addition, on several measures of adjustment children
actually showed improvements, e.g., they were reported to be happier, more
grown-up and venturesome. Study does not deal directly with innovation but
McClelland (1978) reports that Baker did his study in the same clinic where
Mowrer conducted his original successful studies some 30 years earlier, but
Mowrer's innovation was abandoned for unknown reasons.
Barnett, Homer G. Innovation: The Basis of Cultural Change. New York:

McGraw-Hill, 1953.
Early and well-known text in the area of innovation that treats it in a very
broad way, defining innovation as "any thought, behavior, or thing that is
new because it is qualitatively different from existing forms. Strictly speak-
ing, every innovation is an idea or constellation of ideas." Since this defi-
nition includes most creative acts by humans, the book deals in great detail
with the creative process and how ideas are generated. Barnett approaches
the problem from a broad social science perspective to look at creativity and
the impact of culture on the adoption and diffusion of innovations. Although
most authors today limit the concept of innovation more than Barnett does and
there has been a great deal of research on the subject since this text was
written, the book contains much useful information and many insightful
observations.
37
Bartlett, Fredric Charles. Remembering: A Study in Experimental and Social
Psychology. New York: The Macmillan Company, 1932.
This classic study reports Bartlett's experiments in the areas of imagery

and recall which were undertaken at Cambridge in the early 1900s. Bart-
lett's methods were devised after he became frustrated with the approach of
Ebbinghaus who relied primarily on nonsense syllables. The book describes
five basic methods for studying imagery and remembering and presents a theory
of remembering as well. The central theme developed in Bartlett's theory is
that memory is not reproductive, but is constructive. Literal recall, Bart-
lett found, is relatively rare; instead people tend to reconstruct the past
and in doing so modify it greatly. Incoming stimuli cause people to "turn
round upon (their) own schemata and to reconstruct them afresh." Often re-
call is based on some general impression of the whole or attitude toward it
that is rooted in feeling and affect. "Recall is then a construction made
largely on the basis of this attitude, and its general effect is that of a
justification of the attitude." (p. 207)
Bennis, Warren G. Organization Development: Its Nature, Origins, and Prospects.

Reading, Mass.: Addison-Wesley Publishing Company, iC'69.
One of a series of books designed to give readers some idea of the scope of or-
ganizational development. Written largely from the point of view of practi-
tioners in the field, the series stresses techniques, applications, and practical
examples. This volume sets the tone for other books in the series. According
to Bennis, "Organizational development is a response to change, a complex educa-
tional strategy intended to change the beliefs, attitudes, values, and structure
of organizations so that they can better adapt to new technologies, markets, and
challenges." Strong emphasis is placed on the central role of the change agent
and his values about humans in organizations. Approaches the description of or-
ganizational development by posing and answering a series of questions in an
informal and personal way about assumptions, goals, steps, and role of the change
agent. Although Bennis stresses that organizational development is not just sen-
sitivity training, considerable emphasis is given to it.
Berman, Paul, Greenwood, Peter W., McLaughlin, Milbrey, and Pincus, John. Fed-
eral Programs Supporting Educational Change, Volume IV (Abridged): A Summary
of the Findings in Review. R-1589/4-HEW (ABR.). Santa Monica, Calif.: The
Rand Corporation, April 1975.
This report summarizes an evaluation by the Rand Corporation of four massive

federal educational programs: (1) Title III ($120-$190 million annually) to
introduce educational practices; (2) Right-to-Read ($12 million annually);
(3) Vocational Education ($16 million annually); and (4) Title VII, Bilingual
Education ($45-$85 million annually). After an extensive review of the litera-
ture, a nationwide survey in 18 states of 293 projects, field studies at 29
sites, and Rand staff interviews with federal and SEA officials were conducted.
The authors looked at perceived success, changes in behavior, fidelity of im-
plementation, and expected continuation. Some significant conclusions:
(1) search for solutions characteristic of problem solving did not occur;
local staff seemed to know what was possible; also, money was seen often as
an opportunity to get funds, not to satisfy a deeply felt need; (2) implemen-
tation stage was not a simple application of a known technique but a complex
38
interaction between the organization and the innovation; (3) effective imple-
mentation was most apt to occur when the innovation was adapted to the organi-
zationi (4) incorporation was most likely when the projeut involved training
(not technology) and focused on practical issues rather than theory and en-
couraged local development and wide involvement of the staff. Resource level
and type of treatment (technology) had relatively little effect on project
outcomes. A receptive institutional setting (climate) and "mutual adaptation"
were keys to serious and sustained change. Internal and local factors wore
paramount over others. If the project was too complex or its values and goals
were not consonent with participants, or its objectives did not match distinct
objectives, the project was unlikely to be implemented successfully.
Blake, Robert R., and Mouton, Jane Srygley. Some effect of managerial grid
seminar training on union and management attitudes toward supervision. Jour-
nal of Applied Behavioral Science, 2 (1966), 387-400.
Before and after two one-week seminars, a forced choice questionnaire was ad-
ministered to 33 managers and 23 union members from the same plant. Subjects
read The Managerial Grid by Blake and Mouton and were involved in a variety of
structured learning experiences to help them understand grid theory. Manage-
ment and union scores differed significantly before and after training. Mana-
gers tended to emphasize production more than did union members who were more
oriented to people. The attitudes of both union and management changed as a
result of the seminar, but managers' attitudes changed more than union members.
Both groups moved to a greater emphasis on production, but the authors note
that the two groups have fundamental differences over what constitutes sound
supervision with union members stressing concern for people.
Blake, Robert R., and Mouton, Jane Srygley. Grid OD: A systems approach to
corporate excellence. In Harvey Hornstein, Barbara Bunker, W. Warner Burke,
Marion Gindes, and Roy J. Lewicki (eds.), Social Intervention: A Behavioral
Science Approach. New York: The Free Press, 1971, 401-419.
A summary article about Grid OD presented to the McGregor conference in 1967.

Authors define the purpose of OD: "To achieve an excellent corporation."
After citing a number of barriers to excellence (communications and planning
particularly), the authors point out 4 significant components of corporate
culture that are essential for excellence: (1) knowledge of behavioral
theories; (2) behavioral science instrumented implementation; (3) knowledge
of business topic; and (4) management science. They then go on to show how
Grid OD develops these four sides in its various phases. To clarify what
Grid OD is, it is compared and contrasted with the T-Group consultant method.
Grid OD attacks the total culture (not just the behavioral), affects every
member of the organization using "cultural carriers," relies heavily on in-
strumentation, and is more structured.
Blake, Robert R., Mouton, Jane Srygley, Barnes, L. B., and Greiner, L. E.
Breakthrough in organization development. Harvard Business Review, 42 (1964),
133-155.
A frequently cited study of Grid OD. Blake and him, colleagues presented
their program to 800 managers in a 4,000 employee division ,f a large petroleum
corporation. Numorowt measures of perceived changes in work qrou'w performanco
and attitudes were taken. Although employees were asked to estil*.ktc chanqtes
in their perceptions from pre-to-post study time periods, no pretost dcta wor.
taken. Authors collected objective data about operating cosi.s, plant safety,
profits, transfers, etc. Results support the value of Grid OD1. Profits in-
creased and about 13% of that increase was attributed to improve,; operating
procedures and might bi-. attributed to OD. Values shifted toward 'J/9 on the
Blakc-Mouton model, frequency of meetings and transfers increase...
BOowCrs, David G. OD techniques and their results in 23 orgi-nizations: Thu

Michigalu ICL study. Tho Journal ofA2p)lied Bohavioral Scievce, 9 (19',3)
2i-43.
A ftve year longitudinal. study of 23 organi.zatiei:-i using di ffe tit 0D treat:-

ments. Results are based on data from more than 14,000 respondents. The
Survey of Organizations questionnaire was used to measure crganizatiotial func-
tioning before and after OD intorventions, The results indicated that survey
feedback was associated with statistically significant improvmeunt on a major-
Ity of measures, as was interpersonal process consulting. Laboratory training
and task process consultation were not associated with significant changes.
As a matter of fact, Laboratory Training was negatively related, i.e., organi-
zational functioning declined. The impact of these various treatments, par-
ticularly Laboratory Training, was shown to be contingunt irn part on orgatni-
zational climate.
Bowers, David G. and Franklin, Jerome L. Survey-Guidel Dovolovment Is Data-

Based Organizational Change (revised edition) . La Jolla, Calif.: Univer.ity
Associates, 1977.
Ail introduction to survey-guidod development that provides a useful overview

of the Survey of Organizations and the theoretical foundations upon which it
is based. The Survey of Organizations is derived from the work of Rensis
Likert who regards leadership and thu management system that results from that
leadership as the primary cau!nal variable in organizations. In addition to
describing the theoretical foundations for this survey, the book discusses
such topics as the role of the change agent, survey feedback and how it. is
presented, and problems involved in evaluating organizations. Closes with a
ditcussion of the evidence in support of the Survey of Organizations and sug-
gests some needed areas for additional re.-earch.
Bragg, J. E. and Andrews, I. 13. Participative deci.sion making: An experi-

imental study in a hospital. Journ.Ul of Applied Behavioral Science, 9 (19,73)
727-735.
A study of participativu decision making (PDM) in a hospital laundry that fol-

lows Lowin's model in an effort. to improve productivity. The major vehicle
for change is participative decision making focusod orn eliciting and evaluat-
ing "suqgestionn" of employees in the laundry. Of 147 suggestions, ninety
concerned work flow, and forty-four involved equipment modifications. Pro-
ductivity rate:t for the PDM laundry and two control. laundries wore comparod
after 12 months and 18 months as measured by pounds of laundry handled per
4o
• ,.,
omlp.Loyou. hotur. 1'UM laundry showed slignificanit improvements in productivity
compared to controls-. Also, tho PPDM laundry showed a siqnit leant improvement
ill e~mp-I~Loye attitudes ,.nd a signi ficant decline in absenteeism.
Lvayfiiuld, Arthur 11. and Crockett, Walter 11. Employee attitudes aild emlployce
perorm()~anIce. Psyc~ho:logical Biulletin, 52 (1955) , 396-424.
Authoyi.;4 note that there has been a qroat deal of work on empl:ýyoe attitudes
and there in- a commuonl aso3umpjtiali inl the litoraturo that 0.Tlployouo attitiudeIs
bear a a Lk;ni ficanit relat.ionrihip to omployee performance. lBrayfieid and Crock-
ott sot- oa()t to suammeririz Luiad examineo the empirical. ii teralture bearing oni thic
assumption, They review a number of studies of prformsance on)i the job, EACci-
dents, anid eamployment stability arid conclude: (1) "That satisfaction with
unuls potxsition io a network of relationships need niot imply strong motivation
to outstaniding pe~ formance within the system," and (2) "product ivi ty may be
only peripherally related to many of the goals toward which the industrial.
worker is strivinct." (p. 42) Authors conclude with a comment onl the corn-
pioxity of worker motivation.
Campbell, John V. anid Dunneattu, Marvin D. Effecti~voness of T-Group Lxperionces-

inl managerial training and development. Psycho].ogledl Bullutinl, 70 (1968) ,
73-108.
01ne of tIhU most qyStemIatiAC and thorough reviews of the literature onl the( Or-
fuctivenesjs of '1-groups ever undertaken). The focus of the review is on 'l-group
1
utlu for manlagement. duvelopment. A~ter deocribinq the nature of T-groups and
underlying assumptions, the authors review the results of 44 titudies divided
into those that examinied primarily internal criteria (pornonal ohange unilinked
to job performanco) and external criteria (impact onl job porformanice) .Thle
evidence Suggests that T-grou~ps do affect "back-home" behavior, but it is dif-
ficult to speOcify axarotly how. People appuar to change in1 different wayst and
there ici not convincing ovidence that thair Job performance improves. Indeed,
in the Oon study available at the time (Underwood, 19G5) the results suggesFt
that there may be more negative job related changes than occurred inl a conitrol.
group. The results for internal, critoria were, even less conclusive.
Campbell, 7ohn I. , Dunrnettu , Marvin D. , Lawlor, Edward E~. 111, and Weick,
Karl E ., Jr. Environmental variation anid maniage~rial affectlvemeeýj . Inl Rich-
ard M. Steero and Lyman W. Porter. Motlivat.Lon and Work Behavior. New York:
MuC~raw-lHill , 1975.
Identifies Some of the Conceptual difficulties involved inl llvnx'!ItigaLinly .r-

cjanizationai. environiments and their effects. A'.thOrrn review the literature
des~cribing ef.FOrts to cons11truct taxonomies of factors that affect climate
and summarize the results of empirical. work in this areaUl. They attempt to
synithnsl.;so pr'.vious studios with a set of four factors Common to the various
studies reviewed. (1) individual autonomy; ',2) tho degreeCL Ot sitructure! is-
posed, (3) reward orienitationr and (4) cons ide rat ion , warmtth, and siuppart.
Enivironmo,;tal siltuations are described as beinq o'cuoudilnqly Complex, especi-
ally when in teractions are consIdered. They !suggest-greiater att~ontion par-
ticularly to the. Interaction of task and climate , o. q. , decentralizntion works1
best when tasks require cooperation, and contralization works best when tasks
are relatively independent. Authors also stress the importance of primacy in
the initial job assignment and recommend "stretching" the individual to his
capacity in the first job.
Chapman, Robert L., Biel, William C., Kennedy, John L. and Newell, A. The
System Research Laboratories Air Defense Experiments. Management Science,
5 (1959), 251-269.
One of the first public reports of a series of major studies of the Air Defense
System undertaken by a small group of psychologists in the early 1950s at the
Rand Corporation. These studies demonstrated that under the appropriate con-
ditions, crews learned to handle more simulated hostile aircraft than was pos-
sible without special training in the objectives of the organization, knowledge
of results, and experience with tasks of increasing difficulty. Althrugh there
has been a great deal of discussion about what crews were actually ' 1i.:•r:Iing"
in these experiments, the data reported by Chapman and his colleagues T.Igjest
that they adopted innovative methods for disregarding unimportant tracks and
following only important tracks as load increased. These studies led to a
world-wide training program for training radar crews in air defense and were
responsible for the splitting-off from Rand of the System Development Division,
which ultimately became the System Development Corporation. For an excellent
summary of this and related research see Parsons, 1972.
Cherns, Albert. The principles of sociotechnical design. Human Relations, 29

(1976), 783-792.
Author sees organizational design as an outcome, not an input, generally of

architects, system analysts, engineers, etc. who often have a Taylorist or
Theory X bias. To survive social systems must: (l) adapt to the environment;
(2) integrate people's activities; and (3) provide for continual occupation
of roles. Both social and technical systems must be jointly optimized. But
how? Author identifies 9 principles: (C) compatability between design and
objectives; (2) no more should be specified than what is absolutely essential,
but the essential aspects must be specified; (3) variances must be controlled
as close to the source as possible; (4) when the environment varies rapidly,
elements should perform more than one function; (5) working groups can ac-
quire and handle a great deal of responsibility and autonomy--the boundaries
should be located so that those in position to coordinate boundaries can;
(6) the system of social support should be designed to reinforce behavior which
the system is designed to elicit; (7) one objective of sociotechnical design
is to provide a high quality of work; (8) design is iterative; and (9) pro-
vide information in the first place where it will be used.
Coch, L. and French, J. R. P. Overcoming resistance to change. Human Rela-

tions, 1 (1948), 512-523.
Authors used group discussion to gain acceptance for changes in work methods
in a garment factory. Workers showed drops in productivity when changed from
one job to another that could not be accounted for by the new learning re-
quired. Control group was introduced to new jobs in traditional way: in-
formed of the problem and the solution and invited to ask questions. Two
experimental groups were given a dramatic dcmonstration of the problem
42
(competitor's garment shown), encouraged to problem solve about improving their
product, and expected to arrive at some agreement about changes needed to be-
come competitive. The control group, as expected, showed little improvement,
high turnover, and was hostile to management. Both experimental groups showed
dramatic improvements. For a critique, see Steele, 1973. Note that the
method involved a technical component: elimination of "frills" from the
garment.
Cummings, Thomas G. and Molloy, Edmond S. Improving Productivity and the

Quality of Work Life. New York: Praeger Publishers, 1977.
The authors undertook this study with a grant from the National Science Founda-
tion in an effort to assess the current state of knowledge about job satisfac-
tion and productivity. Noting some of the limitations in the way studies were
reported, the authors undertook a "hard-nosed" reevaluation of some 78 experi-
ments reported in the literature in an effort to assess the outcomes and the
"action levers" that might account for them. Action levers included: (1) pay
(reward); (2) autonomy/discretion; (3) support services; (4) training; (5) or-
ganizational structure; (6) technical/physical; (7) task variety; (8) informa-
tion feedback; (9) interpersonal/group processes. The 78 studies are analyzed
in terms of action levers and the effect of a range of organizational changes,
such as participative decision making, autonomous work groups, flexitime, Scan-
lon plan, etc., on costs, productivity, quality, etc. One example is included
of each type of change by reprinting chapters and articles from their original
sources.
Delbecq, Andre L., Van de Van, Andrew H., and Gustafson, David H. Group Tech-
niques for Program Planning. Glenview, Illinois: Scott, Foresman and Company,
1975.
A practical down-to-earth guide to the use of several group decision making

techniques. The major technique discussed is the Nominal Group Technique (NGT)
which is a variant of Osborne's "brainstorming" methods but is much more con-
trolled and orderly. NGT involves the silent generation of ideas by indi-
viduals that are then shared in round-robin fashion and discussed for clari-
fication and prioritization. Another technique described in some detail is
the Delphi, which permits problem solving and decision making without requir-
ing that subjects be assembled in a group. Inputs are solicited, collated,
and returned to individuals for comment and prioritization. Contains useful,
detailed instructions for conducting Nominal Groups and using Delphi.
Fouriezos, Nicholas T., Hutt, Max L. and Guetzkow, Harold. Measurement of

self-oriented needs in discussion groups. Journal of Abnormal and Social
Psychology, 45 (1950), 682-690.
A distinction is drawn between motives directed at helping the group meet its
goals (task directed) and the self-oriented motives of individuals in a group
(ego motives) to enhance their own, personal objectives. Five basic self-
oriented needs are described (Dependence, Status, Dominance, Aggression, and
Catharsis) and a rating scale for each developed. Groups with the highest
self-oriented scores are least satisfied with the group's functioning and
outcomes. Also, groups with high self-oriented needs tended to be less
43
productive. Authors note the similarities and differences between their ap-
proach and Bale's interaction categories.
Frank, Linda L. and Hackman, J. Richard. A failure of job enrichment: The

caso of the change that wasn't. Journal of Alhied Behavioral Science,
11. (1975), 413-436.
Describes an effort to shift stock transfer employees in a large bank to a

semiautononmous work group thereby "enriching" the jobs of individual employ-
ees. Thu "innovation" failed for a numb,'r of reasons, according to the au-
thors, the most important being that the change did not actually enrich jobs
at all. The authors say that the efforL was not guided by an appropriate
thuory.--particularly workgroup thc.o)ry as opposed to individual theory. They
stress the importance of carefully specified target jobs before changes are
made.
Freed, Alvyn M. Human interactions in man-machine systems. Human Factors, 4

(1962) , 39-399.
A taxonomy of human interaction skills in organizations with some tentative

quggestions for ways of defining, labeling, and measuring them. Freed de-
fines some of the most crucial system interactionst (1) adjustingi (2) adapt-
ing, (3) alerting; (4) assisting; (5) checking; (6) coordinating; (7) communi-
cating; (8) filtering; (9) load sharing; (10) load balancing; (11) quoueingi
(12) surveying; and (13) supporting. For three of these (alerting, load bal-
ancing, and checking), Freed illustrates associated activities, behaviors,
and responses. Focus is on specific organizational behaviors that may be
improved through design or training to increase organizational effectiveness
and productivity.
French, Wendell. Organizational development objectives, assumptions, and

strategies. California Management Review, 12 (Winter 1969) , 23-24.
Written in non-technical language, this article introduces the reader to some

of the basic objectives, assumptions, and strategies of OD. Among the basic
objectives cited are to (1) increase level of trust and support among the or-
ganization members; (2) increase confrontations in the organizations; (3) change
environment from authority based on role to authority based on knowledge;
(4) increase communication openness; (5) increase enthusiasm; and (6) increase
group responsibility for planning. Assumptions listed recognize people'c de-
sire for growth and desire to make a greater contribution to organizations.
With respect to behavior iq groups, OiJ assumes that people want to wo-k in
groups, that work groups are hi(nhly relevant to people, and people must
cooperate with leaders and one another to solve problems. Numerous assump-
tions about people in orqanizations are also cited. Action research model
is described as a basic OD strategy. Considerable discussion of laboratory
training as one method of OD.
44
French, Wendell L. and Bell, Cecil H., Jr. Organization Development: Be-
havioral Science Interventions for Organization Improvement. ]nglewood
Cliffs, N.J.; Prentice-Hall, 1978.
A well-known and useful text in the field of organizational development.

This book is of special int.erest in this context because the authors focus
on the organization and its r.newal in their definition of OD: "Organization
development is a long-range effort to improvw an organization's problem-
solving and renewal processes, particularly through a more effective and
collaborative management of organization culture--with special emphasis on
the culture of formal work teams -- with the assistance of a change agent, or
catalyst, and the use of the theory and technology of applied behavioral
science, including action research." This definition ýs notable for its empha-
sis on problem solving and action research as vehicles far organizational re-
newal, which is consistent with the theme of the document that this annotated
bibliography accompanies. The authors describe various intervention strate-
gies, giving a balanced recognition to the techni.cal side, which is sometimes
overlooked or minimized in other treatments of 0D.
Friedman, Charles P., Hirschi, Stanley, Parlett, Malcolm, and Taylor, Edwin F.
The rise and fall of PSI in physics at MIT. American Journal of Physics,
44 (1976) , 204-211.
This report is a postmortem examination of the reasons why an apparently highly

successful innovation was abandoned after four semesters by the faculty of the I
Physics Department at MIT. Tested 5 years before its full scale adoption with
small groups of students, the decision to adopt PSI (Personalized System of
Instruction) and use it with hundreds of students was viewed as a highly sig-
nificant event. The authors try to understand why it was abandoned despite
the fact that many students were satisfied with it. They do not offer any
single answer. From the faculty perspective, the method failed to teach the
"ineffable" things that could be compressed into objectives, it was too me-
chanical, and (probably) too behavioristic. Faculty felt the program was too
free and loose for their students who were trained to expect thinqs to be
tougher and more demanding. Section leader.s, who were not themselves the in-
novators, were probably not highly motivated to use an innovation that forced
them to play a passive role and underutilized their talents. Faculty also
may have felt that there was little to be gained by educational research that
focused on process and not on curricular matters.
Frost, Carl F., Wakeley, John H., and Ruh, Robert A. The Scanlon Plan for
Organization Developnent: Identiuy, Participation, and Equity. East, Lansing,
Michigan: Michigan State University Press, 1974.
This book describes the Scanlon Plan as a philosophy of organization and a

set of management principles. The senior author, who worked directly with
Joe Scanlon before coming to Michigan State, has helped establish the plan
in numerous corporations throughout the United States and has an intimate
knowledge of the problems involved with its adoption and implementation. The
book provides practical guidance to those interested in establishing the pro-
gram in their own organizations as well as describing some of the theoretical
and empirical underpinnings of the Scanlon Plan. Considerable emphasis is
45
............................ '" ... * ..- l"l I m

placed on the readiness of an oryanization to become involved and the complex
problem of determining the bonus to be paid to workers as a consequence of
increases ia productivity. From an innovation perspective, the approach may
be considered as an innovation in itself, but also as a formal mechanism for
generating innovations (eanployee suggestions)
Gardner, G. Worker's participation: A critic!al evaluatin of Coch and French.

Human Relations, 30 (1977) , 1071-1078.
A critique of the widely-quoted Coch and French study of participation as a

vehicle for overcoming resintance to change. The author cites numerous prob-
lems wit~h the two experimonts reporte.od in the original article: (1) number
of groups did not permit statistical comparisons; (2) groups were different
sizes; (3) a dramatic demonstration was used to demonstrate the need for change
to the experimental, hut not the control groups; (4) group competition de-
veloped spontaneously and was uncontrolled; (5) supervision differed among
groups; (6) experimental groups may have been better trained; and (7) experi-
m~ental groups received knowledge of results, but control group did not.
Gilbert, Thomas F. Level aod Structure of Performance Analysis: A Praxi3.

Technical Paper, No. 1. Morristown, N.J.: Praxis Corporation, 1.974.
This document describes Gilbert's approach to the observation of performance

in organizations. The aim is to create a systematic performance technology
that offers concrete suggestioni regarding where to look in organizations in
or.der to help them solve performance problems. Gilbert recommends that one
begin with the general and move to the specific, gradually going from the or-
ganizational to the individual level. Gilbert distinguishes three levels
(Policy, Strategy, and Tactics) and believen that at each level one should
specify the ideal (a model) and then look for discrepancies. Those discrep-
ancies that promise the maximum payoff are attacked first. Methods used to
solve problems depend upon the performance discrepancy identified.
Gilson, Thomas Q. and Lefeowitz, Myron J. A plant-wide productivity bonuE

in a small factoryt Study of an unsuccessful case. Industrial and Labor
Relations Review, 10 (January 1957), 284-296.
Describesan unsuccessful attempt to introduce the Scanlon Plan into a small

ceramic giftware firm that employs primarily women, Puerto Ricans, and "dis-
placed persons." Management relations at the time of the test were described
as "personal and autocratic." Plan was initiated without any mechanism for
proposing or reviewing suggestions and the major emphasis was on the bonus
only. Senior workers refused to participate on the production comunittee, so
employees were drafted for the job. Their suggestions were really isolated
complaints about working conditions rather than ideas for improving produc-
tion. Although there was some improvement in productivity, the plan was
abandoned. Plan failed for many reasons: lack of trust, limited understand-
ing of the elements of the Scanlon Plan. poor communications, lack of follow-
through, and lack of worker participation.
45
CGosling, Robert H. Another source c i 2,.(ervatism in groups. In W. Gordon
Lawrence (ed.), Exploring-Individuai and Group Boundaries: A Tavistock Open
System Approach. Chichester: John Wiley and Sons, 1979.
Anecdotal, but insightful, account by a group therapist of the reasons why
groups resist change and the consequences. After citing the two most familiar
reasons (reluctance to give up relationships and fear of the unknown), Gosling
develops a third reason. Sentient groups provide an opportunity to be incon-
sistent, to fantasize. and engage in "what if" kinds of thinking without fear
of criticism. Hence, such groups may be highly creative. They will., however,
resist the tendency to make firm decisions (to change) because such decisions
cut off the degrees of freedom to dream and because once a choice is made,
the course is set. Three examples of working groups that permit different
levels of playfulness are cited.
Gra%,, R. B. The Scanlon plan--a case study. British Journal of Industrial

Relations, 9 (1971), 291-310.
A report of a study of the Scanlon plaii at the Linwood Press Steel Company from
1963-1966. Briefly describes the plant, the program, and the underlying
philosophy of the plan. The article sets ou• to test specifically the notion
that (1) the more participative the leadership, ýhe greater the number of
suggestions; (2) restrictive practices and absenteeism are reduced under the
Scanlon Plan; and (3) there are fewer grievances and disputes under the plan.
Suggestion rates fall over time from N - 386 to N - 41 over 1 year period.
Suggestion rates for different shop seemed to be a function of type of task,
more than level of participation encouraged. (Variable is uncontrolled so
it is not possible to draw conclusions about the effects of participation).
Author concludes that the plan failed to cure restrictive practices, reduce
absenteeism, or improve industrial relations. Evidence appears to support
the idea that suggestions are correlated positively with bonus rate. No evi-
dence presented on productivity. Quality of the human relations training
appears weak. Author stresses bonus feature of the plan, not human relations
training.
Greene, Charles N. The satisfaction-performance controversy. Business Hori-

zons, 15 (1972), 31-41.
Reviews research concerning the relationship between satisfaction and perfor-

mance. Greene notes the widespread belief among managers and others that
satisfaction improves performance and demonstrates that the evidence does not
support this assumption and in fact, "conclusively reject(s)" it. The data
suggest instead that rewards contribute more to performance than satisfaction.
Author draws the implications of this research for management.
Herzberg, F. Work and the Nature of Man. Cleveland: World Publishing Company,
1966.
Reports the results of 10 critical-incident studies on 17 different populations

that support the dual-factor theory which suggests that man has two sets of
needs, the one set based on his animal nature to avoid pain and satisfy basic
47
biological needs and the other for personal growth and achievement. The first
set of needs are called Hygiene Needs; the second Motivators. The theory holds
that motivators combined contribute more to job satisfaction than dissatisfac-
tion, but hygiene factors contribute more to dissatisfaction than satisfaction.
Subjects were requested to recall times when they felt exceptionally good about
their jobs and the reasons. Subjects were also asked to recall times when they
felt especially negative about their jobs. Herzberg asserts that in 97% of
the cases, the results supported the dual-factor theory, i.e. satisfaction came
from achievement, recognition, the work itself, responsibility, etc.; dissatis-
faction resulted from company policies, supervision, work conditions, salary,
status, etc. Theory and subsequent research has provided the basis for a num-
ber of efforts to enrich Jobs, but has been criticized on several grounds (see
House and Wigdor, 1967)
Hoffman, L. Richard. Group problem solving. In Leonard Berkowitz (ed.), 2roup

Processes. New York: Academic Press, 1978.
Addresses the basic question: "How best can a group use the resources of its
members in solving a given problem?" Skirting the issue of individual versus
group problem solving, the article addresses this question by summarizing
studies of group factors inhibiting and promoting problem solving. Among the
factors inhibiting effective problem solving are: (1) pressures toward uni-
formity; (2) participation bias; (3) group structure; (4) failure to search
for problems. Factors promoting problem solving are: (1) group composition;
(2) group processes; and (3) acceptance. A number of difficulties surround-
ing research in this area are discussed.
Hfuse, Edgar F. Organization Development and Change. St. Paul, Minn.: West
Publishing, 1975.
A book intended to be of use to both professionals and students in the area of

organizational development. Written from a system perspective, the book de-
scribes the underlying assumptions and basic concepts of OD. Most of the
better-known OD techniques are described in later chapters. A number of case
studies are included in an appendix.
Janis, Irving L. Victims of Groupthink: A Psychological Study of Foreign

Policy Decisions and Fiascoes. Boston: Houghton Mifflin, 1972.
Describes a number of military operations in which the U.S. has been involved
since 1941 including: (1) the Bay of Pigs; (2) the North Korean War; (3) Pearl
Harbor; and (4) the Vietnam War. As a counterpoint to these unfortunate epi-
sodes in history, Janis describes two historical incidents where the outcomes
were more favorable to U.S. interests: (1) the Cuban Missile Crisis; arid
(2) the Marshall Plan. Janis attributes many of the problems described to
"groupthink" which has 8 symptoms: (1) an illusion within the group of in-
vulnerability; (2) collective efforts to rationalize and discount warnings;
(3) unquestioned belief in the group's inherent morality; (4) stereotyped
views of the enemy; (5) direct pressure on any individual who deviates from
the group's ideas; (6) self-censorship by individuals because of (7) a shared
48
illusion of unanimity; and (8) the emergence of self-appointed "mind-guards"
who "protect" the group from adverse information. Janis proposes three anti-
dotes: (1) impartial leadership; (2) encourage critical evaluation by all;
and (3) appoint several groups to work on problems simultaneously.
Lewin, Kurt and Lippitt, Ronald. An experimental approach to the study of

autocracy and democracy: A preliminary note. Sociomety, 1 (1938), 292-300.
Describes an experiment with two matched groups of elementary school volun-

teers who were invited to make theatrical masks. Masks were not made by in-
dividuals but one at a time by the group. One group worked in an authori-
tarian atmosphere, the other worked in a democratic atmosphere. Proliminary
findings were: (1) higher tension state existed in the autocratic qroup;
(2) greater cooperation in the democratic group; (3) more expressioi) of con-
structive suggestion and better acceptance of criticism in the democratic
group; (4) democratic groups produced better products and were more careful;
(5) democratic groups developed a sense of communityj autocratic groups de-
veloped strong sense of "'going it alone", (6) the group structure was more
stable and there was more unity in the democratic group; (7) some scapegoat-
ing occurred in the autocratic group; and (8) there was a better feeling for
group property in the democratic group.
Lowin, Kurt, Lippitt, Ronald, and White, Ralph K. Patterns of aggressive be-
havior in experimentally created "social climates." Journal of Social Psy-
chology, 10 (1939), 271-299.
A classic study of three alternative leadership styles (democratic, autocratic,

and "laissez-faire") on the behavior of four clubs of 10 year old boys. All
boys worked on projects under the three different styles of leadership suc-
cessively. Leaders varied within groups and leaders played different roles.
Exhaustive records were taken of group structure interactions, personality,
etc, Results of this experiment are mixed with an earlier study by Lippitt
which the authors call the first experiment. In the earlier experiment hos-
tility was 30 times more frequent in autocratic than in democratic groups.
Aggression was 8 times as frequent. In the second experiment, only one group
showed high aggression; the other groups were apathetic. Authors suggest that
the apathy was a function of the repressive atmosphere since, among other
things, aggression rose sharply when the leader left the roompand the boys
liked the democratic and laissez-faire groups best.
Likert, Rensis. New Patterns of Management. New York: McGraw-Hill, 1961.
Early presentation of Likert's thesis that the quality of leadership is the

most crucial factor in organizational performance. Supervision and leader-
ship style, according to Likert's data, are much more important in influenc-
ing results than such general (psychological) factors as interest in the job
or attitudes toward the company. Successful companies are shown to have dif-
ferent patterns of leadership than unsuccessful companies. L.ikert develops
the importance of the "linking pin" function which ties work groups within an
organization toqether and allows supervisors and subordinates to influence one
4L)
-. . 4.
another and coordinate thei-, activities. Four different systems of organiza-
tion are described; (1) Exploitive Authoritative; (2) Benevolent Authoritative;
(3) Consultative; and (4) Participative. The operating characteristics of
these four types are described in somc detail. Includes reviews of research
supporting the theory. Point. of view is not consistent with contemporary
sociotechnical studies which suggest that there is no one best way of organiz-
ing for maximum efficiency (see for example Joan Woodward, 1965). Provides
theoretical foundation for the Survey of Organizations.
Little, Roger W. Buddy relations and combat performance. In Morris danowitz

(ed.) , The New Military: Changing Patterns of Oraanization, 1964.
Participant observer study of a combat rifle platoon in action during the Korean
war in which the author conducted in depth interviows with individuals in order
to talk about their best friends. Of 30 men interviewed, 21 designated
one buddy and 5 designated 2 other persons as buddies. Certain norms governed
buddy-behavior. (1) they are therapists to one another; (2) they do not st-ate
it publicly; (3) they did not boast of combat powers; (4) they do not put one
another on the spot; and (5) they give each other first loyalty even over the
organization by staying behind and volunteering to remain together. Buddies
generally performed their roles effectively in contrast to those who did not
and who ordinarily are isolates. Heros wore also sometimes isolates and found
it hard to integrate into the primary group. The longer units were in the
line the more their loyalties to the primary group hardened and the more likely
it was that they would become deviant from the larger organization and needed
a period of rest and rehabilitation during which primary group loyalties could
be weakened and organizational loyalties reestablished.
Litwin, George H. and Stringer, R. The influence of organizational climate

on human motivation. Paper presented at a conference on organizational cli-
I
mate. Ann Arbort: Foundation for Research on Human Behavior, 1966.
A study reported in Campbell, Dunnette, Lawler, and Weick (1970) that is

unique because it reports the effects of organizational climate on organiza-
tional (and not just individual) behavior. Students from the Harvard Business
School were divided into three competing teams that sought a contract award
from a simulated government agency. Three different climates were created:
(1) authoritarian-structored; (2) democratic-friendly; and (3) an achieving
climate that encouraged innovation. The achieving climate produced the most
in terms of dollar volume, number of new products, and cost saving innovations.
The authoritarian structure produced the highest quality products. Subjects In
the democratic friendly business were the most satisfied with their jobs.
Litwin, George H. and Stringer, R. A. Motivation and Or anizati.ona. Climate.

Boston: Harvard University Press, 1968.
The authors note that "Organization climate refers to a set of measurable

properties of the work environment, perceived directly or indirectly by the
people who live and work in this environment and assumed to influence their
motivation and behavior" (p. 4). This means that climate may be identified
50
with various environmental factors that shape behavior and motivation. Au-
thors focus considerable attention on incentives, noting that people respond
not to specific expectancies and incentives, but to a more general and molar
impression of their environment. McClelland's notion that the environment
sets the stage for motivation to be elicited is emphasized. Thus achievement
motivation, for example, is only aroused if the environment is appropriate for
it and elicits it. With respect to climate, the authors emphasize that it is
a generally felt variable by those involved; it is not necessarily conscious;
it is cyclical, shifting, decaying, and chaiging from one time period to the
next; and it is a molar impression made up of many factors.
Maier, Norman R. F. Screening solutions to upqrade conditions of uncertainty.

Journal of Psychology, 49 (1960), 217-231.
Whenever solutions are generated by groups, they vary in quality and there
are often too many of them overwhelming the group. The puirpose of Maier's
screening process is to reduce the number of solutions by eliminating those
least apt to be successful, Two of the four screening principles described
are designed to reduce the number of solutions and two are intended to hell.
select from those they retain. (1) Acceptable solutions should be tailored
to fit particular problems. Therefore solutions transferred from other
problems should be rejected; (2) Solutions supported by facts or interpreta-
tions of facts that are challenged by other members of the group should be
rejected; (3) Solutions that are supported by unchallenged facts should be
selected and evaluated; and (4) When exceptionu to a trend can be explained,
solutions based on the trend should be selected for evaluation. Solutions
selected should be evaluated in terms of cost and practical considerations,
acceptability to the group, the extent. to which they are supported by the
facts, and the way the alternative solutions may be combined.
Maier, Norman R. F. Problem-solving Discussions and Conferences: Leadership

Methods and Skills. Now York: McGraw-Hill, 1963.
This book is directed primarily at improving the leadership of discussion

groups. Maier begins by maLing the point that effective decisions have two
aspects: (1) their quality, and (2) their acceptability. These two factors
multiply together to determine the effectiveness of a decision. The extent
to which the decision must be of a high quality or acceptable to others de-
terinines the degree to which the organization's member must be involved in
making it. In this sense, Maier sets the stage for Vroom and Yetton's later
theoretical formulations. Maier emphasizes the importance of presenting well-
stated issues that do not include an implicit: solution and that insure the
clarification of problems before the group attempts to arrive at solutions.
Contains a very useful description of a method known as problem posting,
which is a modified form of "brainstorming."
Maier, Norman R. F. and Solem, Allen R. Improving solutions by turning choice

situations into problems. Personnel Psychloly, 15 (1962), 151-157.
An empirical study demonstrating Maier's repeated assertion in the literature

that groups have a natural tendency to leap to solutions and that problem
51
S...;: j4
solving can be improved when groups are encouraged to be "problem-minded,"
rather than "solution-minded." Using the Change of Work Procedures case,
which has three basic solutions, 264 students and 320 supervisors were divided
into 146 problem solving, role playing, groups of 4 people each. Experimental
groups were given instructions designed to make "them view the situation more
as a problem to solve than as a decision to make." Experimental subjects pro-
duced more than three times as many high quality solutions.
Mausner, Bernard. The effect of one partner's success in a relevant task on

the interaction of observer pairs. Journal of Abnormal and Social Psychology,
49 (1954), 557-560.
This study demonstrates that Ss will have a greater tendency to accept the
judgment of their partners when the partners have previously demonstrated suc-
cess on the task. Subjects were 28 psychology students paired with a con-
federate of the experimenter who was told to fail with some subjects(N = 11)
and succeed with others (N = 17). Ss observed and recorded their partner's
score, who judged the lengths of a number of lines alone. Subjects then per-
formed the same task together, one following the other for each presentation.
Ss who worked with previously successful partners tended to converge on their
judgments. Author suggests that observed prior success or failures may be
an antecedent condition to "prestige."
McGregor, Douglas. The Human Side of Enterparihe. New York: McGraw-Hill,

1960.
In this book, McGregor develops the basic assumptions that guide traditional
approaches to management and control (Theory X), and those suggested by re-
search in the social sciences (Theory Y). Theory X assumes that the average
person (1) dislikes work; (2) must be coerced, directed, threatened, etc.;
(3) wishes to avoid responsibility; and (4) is controlled primarily by money.
Theory Y, in contrast, assumes that (1) work is natural; (2) men will work
for mL~any objectives to which they are comnmitted and do not need to be con-
trolled by threats; (3) people are committed to something when they find it
rewarding; (4) the average person can learn to accept and seek responsibility;
(5) most people are capable of creative problem solving; and (6) peo.ple are
in general underutilized. Discusses a variety of ways of integrating people
into their work including participation and the Scanlon Plan.
Miller, Eric J. Open systems revisited: A proposition about development and

cbhnge. In W. Gordon Lawrence (ed.), Exploring Individual and Organizational
Bomiplaries: A Tavistock Open System Approach. Chichester: John Wiley and
Sons, 1979.
A non-quantitative case study of agricultural developmnt in Mexico in which

the author tries to illustrate the importance of changing the environment if
innovations are to be sustained. The author describes four nidels of dJvel-
opment: (l) top-down; (2) bottom-down; (3) enlightened paternalismi and
(4) a negotiative model, lie endorses the fourth as the only viable model,
but it implies a true sharing of power. "The primary task of a devolopiment
52
S.... ........ I
programmer is to help the client system to increase its control of its en-
vironment." (p. 227) Drawing the implications for OD, Miller believes the
client systems, also, have to change their environments if change is to be
sustained and that consultants (whether OD consultants or psychotherapists)
are implicated in the resulting power struggle.
Miller, Eric J. and Rice, Albert K. Systems of Organizations: The Control of

Task and Sentient Boundaries. London: Tavistock Publications, 1967.
The authors draw an important and useful distinction between task and sentient
groups which is basic to their open systems framework for understandin, or-
ganizations. The primary task of organizations is to parform thosa activitieI
that are essential to their survival, and that is the objective of the task
group. The sentient group demands or receives loyalty from its members--they
are groups to which individuals are loyal and committed. The authors make the
point that the two groups may not coincide and discrepancies between them are
inevitable. Numerous Axamples are discussed of the different degrees of over-
lap in a family owned busincss, for example, or traditional industries. The
authors believe that task systems that tre temporary and tranEitional are
more common and general than stable task systems. Sentient grouips, therefore,
of'ten lie outside of the task group, particularly in these temporary systeams.
From this point of view of innovation, sentience provides a hig)" level of
satisfaction with the status quo and may inhibit change. "To remain adaptive,
the greatest sentience must remain in a group conmuittod to change" (p. 260)--
not in those vho resist and from whom sentience may have to be withdrawn.
Authors stress that task and sentient system boundaries must be clearly de-
fined and controlled.
Miller, James C. The psychology of innovation in an industrial setting. In

W. Gordon Lawrence (ed.), Exploring Individual and Organizational Boundaries:
A Tavistock Open System Approach. Chichester: John Wiley and Sons, 1979.
A non-quantitative case study of a small plant built in New York about 15 years
ago that has managed to achieve a high level of morale and productivity by
creating a "family" atmosphere that encourages innovation at all levels.
Workers serve on production teams, are rotated among jobs, encouraqed to be
involved in decision making, are not required to punch timeclocks, etc.
Management encourages personal growth. The authors believes that the com-
mitment of employees can be explained by their attachment to "Utopian fan-
tasies" about the plant that are gradually being displaced as the physical
plant and employees grow older. Difficulties in the plant today are more
intractable than in the past because all of the easily solved problems have
been solved and can no longer be attributed to growing pains. There is, also,
less upward mobility as people settle into positions. In brief, the "Utopian
fantasies" are disappearing.
Moore, Nancy C. and Reimer, Everett. The experimental change of a major or-
ganizational variable. Journal of Abnormal and So-A.al Psychology, 52 (1956),
120-129
This field experiment was conducted in one department of a nonunionized plant

to test two hypotheses that increased role in decision making would lead to
53
I.
increased (1) satisfaction and (2) productivity. Four parallel aivisions
were compared, two were made more autonomous and two somewhat less autonomous.
Autonomous divisions did make decisions about maný things including work pro-
cesses and methods, personnel matters, etc. Individual satisfactions increased
significantly in the autonomous divisions and decreased in the hierarchical
divisions. Both divisions showed some increased productivity, but it was
greatest in the hierarchical divisions. Since productivity was affected by
other departments, the only direct control which those groups had over pro-
ductivity came by reducing staff which autonomous groups were reluctant to
do.
Oakes, William F., Droge, Arnold E., and August, Barbara. Reinforcement effects
oin participation in group discussion. Psychological Rep rts, 7 (1960), 503-514.
Subjects in this study were either positively reinforced for their verbal com-
monts to psychiatric case histories or punished. The reinforcement was ad-
ministered by a flashing light that indicated their nt;Atements showed "psycho-
logical insight" or "a lack of psychological insight." A strong statistically
significant differential effect was demonstrated. Positively reinforced sub-
jects became very verbal and sometimes talked compulsively. Punished subjects
grow silent. Positively reinforced subjects seemed to enjoy the exporiments:
punished subjects became dejected and left the room with relief.
Organizational Dynamics. At Emory Air Freight positive reinforcement boosts

productivity. Organizational Dynamics (Winter 1973), 41-50.
An enthusiastic, but largely unsystematic and non-quantitaLive study of the

effects of positive reinforcement on performance. Data collected stiggests
substantial improvements in productivity, but the changes seem to involve
motivating employees to utilize (and perhaps generate) innovations. For 1x-
ample, the authors point with pride to a savings of $650,000 made possible
by the simple innovation of combining small shipments in a s:ngle container,
The problem was to motivate employees to follow the procedu:- ! which positive
reinforcement did. Also, there is some suggestion that ompj-. ..os were en-
couraged to problem solve.
Osborn, Alexander F. AplIlied Ima~ljliation: Principles and Procedures of

Croative Thinking. New York- Scribner, 1957.
A text in the area of applied cruotive thinking that gained a fairly large
audience. Written in a simple, easy to read stylu, the message of the book
is that everyone can be helped to make a creative contribution if the blocks
to creativity are removed. As the title imlies, the book tries to provide.
the reader with active practice applying the imagination. Of particular in-
terest are the chapters onl group problem sol.ving and the early efforts to
develop "brainstorming" methods. The author provides some data on the stimnu-
lation of ideas by brainstorming and trios to explain it. The four basic
rules of brainstorming are: (1) criticium is ruled out; (2) freo-wheeling is
welcomed; (3) quantity (numlbeo of ideas) is wanted; and (4) al.aborition.en on
the idoadn of others and conbinationsj of ideas are oncouraged. The author
54
I
also provides suggestions tor posting and screening ideas and devising ques-
tions that stimulate creativity. Subsequent research suggests that brain--
storming is effective in producing more ideas but the quality is unsettled
(see Hoffm•an, 1978).
Parsons, Henry McI. Man Machine System UYperiment:.. Baltimorei The Jolmn•
Hopkins Press, 1972.
Major survey of government sLponsored resarch, usually conducted for the

military, that is seldom referenced in professionaL, academic Journal.-. Many
of the studies described by the author were originally classifies and con.ne-
quently not available to the general public. To collect the infornotion for'
this comprehensive report, the author visited a number of laboratories anid
consulted with many authorities who have worked in the field of man-machine
systems. After reporting the results of a number of projects, Parsons draw-s
some implications from this extensive body of research.
Shils, EIdward A. and Janowitz, Morris. Cohesion and disintegration in the

Wehrmacht in World War II. Public Opinion Quarterly, 12 (1948), 280-31.5,
Basod on an extensive series of interviews with German POW's and re-captured

allied personnel, the reports of combat observers, and captured documents,
the authors conclude that the unity of the German army was sustained largely
by the satisfaction of soldicirs. with theiL primary groups and had little to
do with political convictions. Secondary symbols, e.g., unit insignia, were
important only to the extent that they were associated with primary satis-
faEctions. When primary groups were destroyed, there was little or no last
ditch resistance. Among army groups with a high degree of primary group in-
tegrity, there were few desertions. Deserters tencled to be members of
heteroq;eneous ethnic units, other unassimilated elements, and men with dif-
ficulties adjusting to group life. Propaganda dirtected at secondary symbols
was largely unsucLeseful. When resistance began to disintegrate toward the
cnd of the war, the single most effective leaflet was one with little "propa-
ganda" but a simple, official message assuring personal survival and safe
conduct. Vactors that were found to weaken primary group solidarity wero:
(3) isolation of individuals; (2) symbols of home and family (reestablishing
the old primary group ties) 1 (3) demand for physical survival,
Siegel, Saul M. and Krommerer, W. V. Measuring the perceived support for

innovation in organizations. Journal of AppliedPsIycholoy., 63 (1978)
5, 533-.562.
Defining an innovative organization as "one that fcsters creative functioning

of its members," the authors develo, ed a scale to measurn climate that included
three factors: (1) support of creativity, (2) tolerance of differences, and
(3) personal conmnitment They then attempted to validato the scale in public
schools that wore judged to be innovative or traditional (not oriented to
foster creativity)o 'rhe scale was administered to 1,899 students and teach-
ers in these two typos of institutions. Two factors seemed to differenitLate
among the two types; (1) support of creativity; and (2) tolerance of
differences.
55
Snow, Charles Percy. Science and Government. Cambridge, Mass.: Harvard Uni-
versity, 1960.
Recounts the bitter rivalry between Sir Henry Tizard and PF. A. Lindeman (Lord
Cherwell) over the adoption and developme~nt of one invention (radar) and an
innovation (strategic bombing). Each man was tied to a different political
party and their ideas were inevitably shaped by political events. Snow clearly
feels that Tizard was right in his support of radar and opposition to strategic
bombing, and that Lindeman was wrong. He shows how personal animosity may in-
terfere with the objective assessment of innovations. 8ut, Snow is particu-
larly concerned with the climate of secrecy that surrounds these decisions and
the concentration of power in Lindeman's hanis under Churchill. He recommends
that decisions of this kind be subject to broader review and warns against
giving "gadgeteers" the power to implement their own pet ideas. A powezful
argument against closed politics and in favor of open, informed, scientific
inquiry.
Solem, Allen R. An evaluation of two attitudinal approaches to delegation.

Journal of Applied Psychology, 42. (1958), 36-39.
A role-playing study designed to determine how the set provided to the group
by the leader affects the outcome. Leaders who were selected ,ILrandom, were
told either to: (1) arrive at a decision and discuss it with the groupl or
(2) present a problem to the group and accept the solution, Delegating the
problem to the group (#2 above) yielded better results on the whole in terms
of acceptance, quality, and satisfaction. Subjects were 456 supervisors at-
tending a conference.
Steiner, Ivan D. Group Process and ProcjuctivitZ. New York: Academic tDress,
1972.
A looX az task groups and the factors that influence their productivity in
the performance of different types of tasks. Productivity is declared to be
a function of three variables: (1) Task demands, (2) Resources, and (3) Pro-
cesses. Actual productivity is potential productivity (as detezmined largely
by resources available minus "losses due to faulty process"). The author
distinguishes between different types of tasks: (1) divisible versus unitary
tasks; (2) maximizing versus optimizing tasks; and (3) permitted processes.
disjunctive, conjunctive, addi.tive, and discretionary. Numerous variables
that affect productivity in these different types of groups are then dis-
cussed, including group size, composition, and motivation. Contains useful
taxonomy. Overlooks the rile of innovation in productivity by assuming
that potential productivity is larqely a matter of the resources available
and conformity to appropriate taL_ 1 rocess descriptions.
Whitehead, Alfred N. Science and the Modern World. New York: The Macmillan
Company, 1925.
In this book Whitehead traces the development of science from the earliest
Limes down to the present (1925). Ile develops a number of ideas which are
important features of hib philosophical position, the most notable being that
56
.&I,
process is the ultimate reality, not matter. Simultaneously he describes two
basic assumptions that run through Western thought; the idea of simple loca-
tion and the fallacy of misplaced concreteness. Amonq the propositions de-
veloped is the idea that Western scinnce is an act of faith in the lawfulness
of the universe. This idea of a lawful universa, in turn, is based on Judaeo-
Christian teachings.
.1
;•I
57

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Technical Report 515

THE ROLE OF INNOVATION

LEADERSHIP AND MANAGEMENT TECHNICAL AREA

Aplproved for pubiic relesls; distribution unlimited.

A Field Operating Agency under the Jurisdiction of the

Deputy Chief of Staff for Personnel

DISTRIBUTION; Primary distribution of this report has been mede by ARI.

FINAL DISPOSITION: This report may be destroyed when It Is no longer

NOTE: The findings In this report are not to be construed as an official

Department of the Army portition, unless so designated by other authorized

REPORT DOCUMENTATION PAGE REPOA

THilE ROILE Ol' INNOVATION !N ORGANIZAT.IONAL

7. AUTHOR(&) S. CONTRACT OR GRANT NUMBER(a)

ltbt II. I)avJ s

Army Rosea ch Institute (PERI-IM) AREA & WORK UNIT NUMBERS

6 DISTRIBUTION STATEMENT (of tPlh Report)

ApIiuved for open release. distribution unlimited

Monitored technically by: T'. Owen Jacobs

Innovation Technology Transfer

20, AS"TrRACrT r'earthwe st ro-ver .to it nuagyo m

DOID 1473 EDITIOM OrI 0OV 65,s OSOLETIE UNCLASSIP•]i E

THE ROLE OF INNOVATION

Office, Deputy Chief of Staff for Personnel

Army Project Number Command Processes and Evaluation

Approved for pubikc relearn; distribution unlimited.

The Leadership and Management Technical Area of the Army Research

Theory and practice in the area of organizational development have

The innovation and organizational development literature was reviewed

A critique of the literature reveals that the most frequently cited

This report will be of most value to those involved in programs for

INTRODUCTION . . . . . . . ................. ..... ..... 1

WHAT IS ORGANIZATIONAL DEVELOPMENT? ......... .. , . 2

Organizational Development: Philosophy, Assumptions,

ORGANIZATIONAL CLIMATE AND OD, ............... B

Properties of Organizational Climates . .. . . ..... . . 8

THE PROBLEM SOLVING COMPONENT OF ORGANIZATIONAL DEVELOPMENT .... 19

Variance Identificationt The Basic Strategy of

IMPLEMENTATION AND SURVIVAL OF INNOVATIONS . .... . , .... 31

Successful Failures .............. ...... . 31

ANNOTATED BIBLIOGRAPHY . ............ 37

What follows is a chapter from a larger work that is now in progress

Organizational renewal may be seen as a dynamic process of adapta-

organizational renewal is seen as a search process in which inven-

Innovation, therefore, involves some sort of rearrangement of the

Thus far, I have described innovation as something that is new.

Much of the literature on innovations has been concerned with change

My basic objective in this chapter is to describe the important

August 1, 1980 Dr. Robert H. Davis

The ultimate goal of orqani?.ational renewal is the improvement

The underlying values that guide organizational development ctiv-

What most efforts at organizational development do is to set the

Humans design the organizations in which they participate. Their

Appropriately used, organizational development can help to overcome

1. Eliminating or reducing the impact of system dysfunctional ac-

2. Creating a climate for change--a climate of openness and trust

3. Stimulating problem solving and creating involvement in the

4. Increasing the motivation of the organization's members to

These four outcomes may be thought of as the primary goals of orga-