Dynamics of Organizational Behavior: Content
Dynamics of Organizational Behavior: Content
Dynamics of Organizational Behavior: Content
MODULE-4
Content:
Teamwork: Nature of Teams, Team Characteristics, Teams Versus Groups, Teamwork, Processes
of Team Development,
Organizational culture and climate: Culture: Meaning, Elements of Organizational Culture,
Importance of Organizational Culture. Factors affecting organizational climate – Importance.
Organizational Change
What is a Group?
People or things located or classed together to represent an entity with some similar property.
Group Characteristics
Group Classification:
1. Groups that have specific organization chart and have a supervisor to manage – Command Groups
2. Groups that work for a particular task or common goal – Task groups
3. Groups that are created to accomplish specific goals like marketing department, HR department -
Functional Group
4. Groups formed naturally out of common interest and naturally – informal groups
5. Groups formed for certain time out of certain interest - interest groups
6. Groups formed out of similar social activities – friendship groups
7. Groups formed to seek social validation and comparison - reference groups
Group Dynamics
A behavioral pattern or attitude of the groups. It is associated with formation, structure and processes of the
group.
A Study of forces within a group. It is a social process by which people interact face to face in small groups.
It refers to the pattern of behaviour and interpersonal relationships within a group. It encompasses how group
members interact, communicate, make decisions and assume specific roles, ultimately shaping the group’s
overall performance.
Group Behavior
It’s an attitude or feeling of a collection of people that is observed or looked upon and also guided by rules and
regulations.
There are two types of impact found on an individual’s behavior on group – Conformity and Asch Effect,
Conformity refers to an individual’s acceptance to go along as the group wishes even if he is not willing to the
group’s decision. Asch effect refers to the impact of group majority on an individual’s decision.
Factors such as
Population of majority
Dissenter’s presence
Response’s nature - public or private
What is a Team?
A set of people with different tasks working towards a common goal. Teams usually have a strong sense of
mutual commitment towards the work that creates synergy among team members. Effective team co-ordination
leads to amplified business productivity and better achievement of business goals.
Clear Goals: Define clear and specific goals that the team is working towards.
Roles and Responsibilities: Clearly define roles, responsibilities, and expectations for each team
member.
Communication: Foster open and transparent communication within the team.
Team Characteristics
These team characteristics encompass various aspects that contribute to effective teamwork and performance.
Here's an explanation of each characteristic:
1. Goal-Oriented: Teams that are goal-oriented have a clear understanding of their objectives and work
collectively towards achieving them. This focus helps in aligning efforts and resources effectively.
2. Hierarchical with Honest Communication: Hierarchical communication refers to clear lines of
authority and reporting within the team, where roles and responsibilities are well-defined. Honest
communication ensures transparency, trust, and open dialogue, which are essential for resolving
conflicts and making informed decisions.
3. Supportive and Risk-Taking: A supportive team environment encourages members to take risks,
innovate, and explore new ideas without fear of judgment or reprisal. This fosters creativity and
resilience, leading to potential breakthroughs and growth opportunities.
4. Identified Leadership: Having identified leadership means that there is clarity about who is leading the
team and guiding its activities. Effective leadership provides direction, motivation, and support to team
members, facilitating goal attainment and overall team success.
5. Diverse Members: Diversity within a team brings together individuals with different backgrounds,
perspectives, skills, and experiences. This diversity can lead to richer discussions, innovative solutions,
and better decision-making by considering a wide range of viewpoints.
6. Group Problem Solving: Team members collaborate to solve problems collectively, leveraging the
diverse expertise and insights of the group. This approach often results in more comprehensive and
effective solutions than individual efforts.
7. Mutual Accountability: Each team member holds themselves and others accountable for their actions,
commitments, and contributions towards team goals. This fosters a sense of responsibility, ownership,
and mutual respect within the team.
Teams Groups
Both group and individual accountability Only individual accountability
More often come together for discussion Discussions are held only when needed
Team goals Individual goals
Collective products Individual products
Individual role and responsibilities, yet work by Individual work role and responsibilities
sharing and rotating work
Concerned with team outcome Concerned with individual outcome
Leader facilitates Leader dominates
Focus on individual task outcomes Focus on group outcome
Interdependent Independent
Teamwork
Teamwork is defined as the set of interdependent work or job done by individuals towards common objective or
goal attainment.
The model of group development, often referred to as Tuckman's stages of group development,
describes the typical phases that groups go through as they work together. Here's an explanation of
each stage:
1. Forming: In this initial stage, group members come together, get acquainted, and start to understand
the goals and objectives of the group. This stage is often characterized by politeness and uncertainty as
individuals try to figure out their roles and how they fit into the group.
2. Storming: This stage is marked by conflict and competition as group members start to express their
opinions and ideas more openly. There may be disagreements about goals, methods, or roles within the
group. Conflict resolution and decision-making processes are often tested during this phase.
3. Norming: As the group works through conflicts and establishes norms for behavior and
communication, they enter the norming stage. Group cohesion begins to develop, and members start to
collaborate more effectively. Roles become clearer, and trust within the group increases.
4. Performing: In the performing stage, the group is highly functional, with members working together
smoothly towards common goals. There is a high level of trust, communication is open and efficient,
and individuals contribute their skills and expertise effectively to achieve group objectives.
5. Adjourning/Re-forming: This stage is not always included in all discussions of Tuckman's model,
but it's relevant especially for temporary groups or projects. In the adjourning stage, the group
disbands after completing its goals or tasks. For ongoing groups, there may be a re-forming stage
where new members join or the group reorganizes to adapt to changing circumstances or objectives.
These stages are not always linear, and groups may move back and forth between stages depending on
various factors such as new members joining, changes in goals or leadership, or external challenges.
Understanding these stages can help leaders and group members navigate the dynamics of group
development effectively.
Types of Teams
In organizational behavior (OB), teams can be classified into various types based on their structure, purpose,
and function. Here are some common types of teams:
1. Functional Teams: These teams are organized based on functional areas within an organization, such
as marketing, finance, or operations. Members of functional teams typically have similar skills and
expertise and work together to accomplish specific departmental objectives.
2. Cross-Functional Teams: Cross-functional teams consist of individuals from different functional areas
or departments working together to achieve a common goal or project. These teams leverage diverse
perspectives and expertise to address complex problems or tasks that require input from multiple areas
of the organization.
3. Self-Managed Teams: Self-managed teams have the autonomy to make decisions regarding their work
processes, scheduling, and problem-solving without direct supervision from a manager. Members of
self-managed teams are responsible for setting goals, managing conflicts, and monitoring their
performance.
4. Virtual Teams: Virtual teams are composed of geographically dispersed members who communicate
and collaborate primarily through technology-mediated channels, such as video conferencing, email, or
project management software. These teams allow organizations to leverage global talent and facilitate
flexible work arrangements but require effective communication and coordination to overcome
geographical barriers.
5. Project Teams: Project teams are formed to complete a specific project or task within a defined
timeframe. Once the project is completed, the team may disband or be reassigned to other projects.
Project teams often include members with diverse skills and backgrounds who collaborate to achieve
project objectives.
6. Temporary Teams: Temporary teams are assembled for a short duration to address a specific issue,
problem, or opportunity. These teams are often formed to respond to emergencies, launch new
initiatives, or address time-sensitive projects. Once their objectives are met, temporary teams are
disbanded.
7. Problem-Solving Teams: Problem-solving teams are focused on identifying and resolving issues or
challenges within the organization. These teams use analytical tools, brainstorming techniques, and
collaboration to generate solutions and implement improvements in processes or systems.
8. Quality Circles: Quality circles are small groups of employees who meet regularly to identify, analyze,
and solve quality-related problems in their work areas. These teams empower front-line employees to
contribute to continuous improvement efforts and promote a culture of quality and innovation.
Each type of team has its unique characteristics, advantages, and challenges, and organizations may use a
combination of these team structures to meet their specific goals and objectives.
Certain pitfalls of team due to individual conflicts and miscommunication between team members. Here's an
explanation of the reasons for team failure due to individual conflicts and miscommunication between team
members:
1. Individual avoiding duties: When team members avoid their responsibilities or fail to contribute their
fair share to the team's efforts, it can lead to resentment among other members, decreased productivity,
and ultimately, failure to achieve team goals.
2. Dominancy in group: If one or a few members dominate the decision-making process or control the
direction of the team without considering others' input, it can lead to frustration, disengagement, and a
lack of commitment from other team members.
3. Lack of trust: Trust is essential for effective teamwork. When there is a lack of trust among team
members, communication breaks down, collaboration diminishes, and individuals may withhold
information or resources, hindering the team's progress and success.
4. Lack of cohesiveness among team members: Cohesiveness refers to the degree of camaraderie, unity,
and mutual respect among team members. When there is a lack of cohesiveness, team members may
work in silos, prioritize individual interests over team goals, and fail to support each other, leading to
poor performance and failure to meet objectives.
5. Misunderstandings: Miscommunications, misinterpretations, or lack of clarity in communication can
lead to misunderstandings among team members. These misunderstandings can escalate into conflicts,
erode trust, and impede collaboration, ultimately undermining the team's effectiveness and success.
6. Skill shortage: If the team lacks the necessary skills, knowledge, or expertise to accomplish its goals, it
can hinder progress and lead to failure. Skill shortages may result from inadequate training, poor talent
management, or insufficient resources allocated to the team.
7. Overcrowded team: Having too many members in a team can lead to coordination challenges,
communication breakdowns, and difficulty in decision-making. Overcrowded teams may experience
role ambiguity, conflicting agendas, and inefficiencies, making it challenging to achieve desired
outcomes.
8. Lack of group thinking: Groupthink occurs when team members prioritize consensus and harmony
over critical thinking and independent analysis. This can lead to conformity, suppression of dissenting
opinions, and flawed decision-making, ultimately resulting in poor outcomes and failure to address
challenges effectively.
Addressing these issues requires proactive communication, conflict resolution skills, fostering a culture of trust
and collaboration, ensuring role clarity and alignment of skills, and being mindful of team dynamics and
composition. Effective leadership plays a crucial role in mitigating these pitfalls and guiding the team towards
success.
CULTURE
Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that
contribute to the unique social and psychological environment of an organization.
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the values
that guide member behavior, and is expressed in member self-image, inner workings, interactions with the
outside world, and future expectations.
Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed
over time and are considered valid. Culture also includes the organization’s vision, values, norms, systems,
symbols, language, assumptions, beliefs, and habits.
If there is a high level of agreement and commitment among the members of an organization on the importance
of these values, their organization has a strong culture. An organization in which members do not agree with
the core values or are not committed to the core values has a weak culture.
Characteristics of Culture
Culture has five basic characteristics: It is learned, shared, based on symbols, integrated, and dynamic.
All cultures share these basic features.
• Culture is learned. It is not biological; we do not inherit it. Much of learning culture is
unconscious. We learn culture from families, peers, institutions, and media. The process of learning
culture is known as enculturation. While all humans have basic biological needs such as food, sleep,
and sex, the way we fulfill those needs varies cross-culturally.
• Culture is shared. Because we share culture with other members of our group, we are able to
act in socially appropriate ways as well as predict how others will act. Despite the shared nature of
culture, that doesn’t mean that culture is homogenous (the same). The multiple cultural worlds that
exist in any society are discussed in detail below.
• Culture is based on symbols. A symbol is something that stands for something else. Symbols
vary cross-culturally and are arbitrary. They only have meaning when people in a culture agree on their
use. Language, money and art are all symbols. Language is the most important symbolic component of
culture.
• Culture is integrated. This is known as holism, or the various parts of a culture being
interconnected. All aspects of a culture are related to one another and to truly understand a culture, one
must learn about all of its parts, not only a few.
• Culture is dynamic. This simply means that cultures interact and change. Because most
cultures are in contact with other cultures, they exchange ideas and symbols. All cultures change,
otherwise, they would have problems adapting to changing environments. And because cultures are
integrated, if one component in the system changes, it is likely that the entire system must adjust.
• The Clan Culture: This culture is rooted in collaboration. Members share commonalities and
see themselves are part of one big family who are active and involved. Leadership takes the form of
mentorship, and the organization is bound by commitments and traditions. The main values are rooted
in teamwork, communication and consensus. A prominent clan culture is Tom’s of Maine, the maker
of all-natural hygiene products. To build the brand, founder Tom Chappell focused on building
respectful relationships with employees, customers, suppliers and the environment itself.
• The Adhocracy Culture: This culture is based on energy and creativity. Employees are
encouraged to take risks, and leaders are seen as innovators or entrepreneurs. The organization is held
together by experimentation, with an emphasis on individual ingenuity and freedom. The core values
are based on change and agility. Facebook can be seen as a prototypical adhocracy organization, based
on CEO Mark Zuckerberg’s famous admonition to, “Move fast and break things – unless you are
breaking stuff, you are not moving fast enough.”
• The Market Culture: This culture is built upon the dynamics of competition and achieving
concrete results. The focus is goal-oriented, with leaders who are tough and demanding. The
organization is united by a common goal to succeed and beat all rivals. The main value drivers are
market share and profitability. General Electric under ex-CEO Jack Welch is a good example of this
culture. Welch vowed that every G.E. business unit must rank first or second in its respective market
or face being sold off. Another example of the market culture is software giant Oracle under hard-
driving Executive Chairman Larry Ellison.
• The Hierarchy Culture: This culture is founded on structure and control. The work
environment is formal, with strict institutional procedures in place for guidance. Leadership is based
on organized coordination and monitoring, with a culture emphasizing efficiency and predictability.
The values include consistency and uniformity. Think of stereotypical large, bureaucratic
organizations such as McDonald’s, the military, or the Department of Motor Vehicles.
The five major dimensions of organisational culture, i.e, (1) Dominant Culture and Subcultures, (2)
Strong Culture and Weak Culture, (3) Mechanistic and Organic Cultures, (4) Authoritarian and
Participative Cultures, and (5) National Culture vs. Organisational Culture.
A dominant culture is a set of core values shared by a majority of the organization’s members. When
we talk about organisational culture, we generally, mean dominant culture only. The dominant culture
is a macro view, that helps guide the day to day, behaviour of employees.
(ii) A strong culture is always widely shared. Sharedness refers to the degree to which the
organisational members have the same core values.
(iii) A strong culture is intensely held. Intensity refers to the degree of commitment of the
organisation’s members to the core values.
A strong culture will have a great influence on the behaviour of its members because high degree of
sharedness and intensity create an internal climate of high behavioural control. A weak culture is just
the reverse of strong culture in every aspect.
In the mechanistic type of culture, the values of bureaucracy and feudalism are exhibited. People
restrict their careers to their own specializations only and organisational work is concerned as a system
of narrow specialism. It comprises of a traditional form of organisation where the authority flows from
the top level of the organisation to the lower levels. Communication channels are also well defined and
prescribed.
The main limitation of this method is that though the people are loyal to their departments but
interdepartmental rivalry and animosity is always there. This sort of culture resists any type of change
as well as innovations.
Organic culture is just the contrast of mechanistic culture. There are no prescribed communication
channels, departmental boundaries, hierarchies of authority or formal rules and regulations. In this
form of culture more stress is on flexibility, consultation, change and innovation. There is free flow of
communication-both formal and informal.
In authoritarian culture, power is centralized in the leader and all the subordinates are expected to obey
the orders strictly. Discipline is stressed and any disobedience of orders is severely punished to set an
example for the others. This culture is based on the basic assumption that the leader knows what is
good for the organisation and he or she always acts in the organisational interests. This type of culture
The participative culture is based on the assumption that when all the people working in the
organisation participate in the decision making, they are likely to be more committed to the decisions
rather than to those decisions which are imposed on them by one authoritarian leader. Group problem
solving always leads to better decisions because several minds working together are considered better
than one mind working alone. If we discuss something new, points and information emerge, which
help in the decision making.
Organisational culture is always influenced by the culture of the land, irrespective of the origin of the
company. Or in other words, if there is a clash between the organisational culture and the national
culture, the organisational culture generally prevails. For example, any company operating in India,
whether Indian or foreign, observes the local culture.
They declare the same holidays, celebrate the same festivals and organize the same functions and
cultural activities as reflected by the Indian ethos. But research also indicates that though
organisational culture is important in understanding the behaviour of people at work, national culture
is even more so.
It’s important to preface any major changes by assessing your current structure. Begin by recognizing
that every organization has its own culture, and strive to identify all of the positive and negative
elements of your existing culture. For example, your culture may bring in great sales, but also foster
unhealthy levels of competition between team members. Some negative culture warning signs to look
out for include poor internal communication, office gossip, and low employee engagement.
Consider some of these strategies for understanding your current organizational culture:
• Be mindful of the link between an organization’s culture and its mission and vision. Your
organization’s documented values are guidelines for its culture. Read up and ensure that these
• Observe the day-to-day interactions between employees. Do you notice a culture that helps
employees reach their full potential, or one where they struggle to be heard?
• Review current practices for recruiting, promoting, performance management, and other
organizational procedures. What kinds of cultural expectations do they set?
• Find out what areas your organization is already excelling in by conducting employee
interviews. Try asking employees why they’d recommend their workplace to a friend and one thing
they’d change about it.
• Take a close look at your organization’s turnover and retirement rates. A low turnover rate can
indicate a high-engagement culture!
• Consider utilizing a research-validated cultural assessment tool, which can measure and
analyze your current culture based on surveys. These solutions can simplify the process by compiling
responses into a profile detailing common behavioral norms in your organization.
Once you’ve identified what makes up your existing culture, take the time to decide what your
organizational culture should look like. The culture you shape should ultimately support your
organization’s goals and future. Only proceed to the next step once you’ve determined the elements of
your culture that require intervention.
2. Do Your Research
After you’ve narrowed down the cultural elements that need a boost, conduct research into how you
can improve them. Look into what top companies have done and consider how their methods might
translate over to your organization. Keep in mind that despite their frequent association, great culture
isn’t dependent upon pricey perks, like frequent company outings or catered meals. Instead, strive to
create an environment where everyone’s input is celebrated and day-to-day interactions are positive.
were paired to spend a coffee break together. This helps employees feel more incorporated in their
workplace, in turn increasing their loyalty. It also opens up the possibility of collaboration between
departments!
• Emulate your values within your own HR department! Managing company policies and federal
or state guidelines, such as the FMLA, with a human touch can have a positive effect on organizational
culture. Consider utilizing a leave management solution to ensure that your application of such pieces
of legislation is consistent and timely, especially during sensitive times, when it can become necessary.
A solution also helps optimize efficiency, giving you the time to make your leave process more
aligned with cultural values.
While HR often sparks the movement, organizational change must be embraced by leaders in order to
be effective, as they set the tone for the rest of the organization by leading by example. Offering your
assistance to leadership, who are often too tied up to conduct investigations themselves, will help your
push for cultural change. Be prepared to communicate organizational culture’s bottom-line value and
impact on success to really drive home the importance of your movement!
Once you have their buy-in, encourage leaders to take ownership by collaborating on next steps. You
can ease this process by proposing clear priorities and solutions based on your research. You’ll also
want to ensure you’re prepared to equip leaders with strategies to positively influence culture
themselves, in case they’re unsure of how they can help.
The success of organization-wide change depends upon the agreement that change is necessary across
all departments and positions. Ease this transformation by distributing documentation that details the
benefits, from an employee perspective. Communicating changes across the board in a transparent and
Involve employees throughout your roll-out process to reduce resistance. Consider holding meetings to
openly discuss changes and address any questions. These could be company-wide or departmental,
depending on the size and needs of your organization. You can provide assistance throughout this
process by bridging the gap between employees and leadership, to ensure a smooth transition.
5. Monitor Effectiveness
Following the initial roll out process, you’ll need to continually monitor your organization’s culture to
ensure that changes are effective. Fortunately, there are a number of tools and strategies available for
assessing the changes made to your organizational culture:
• If you’ve implemented any new programs or initiatives, monitor their uptake and lend a hand to
any employees who may not understand how to utilize or benefit from them.
• Keep a close eye on your rate of turnover. A strong organizational culture supports employee
engagement and provides employees with a sense of purpose, giving them a reason to stick around!
• Continue to conduct employee surveys and interviews and assess how and if their answers
change. Be sure to address the feedback you receive!
• Look for some of the common signs of cultural shift, including improved company reputation,
greater quality of work, and increased productivity.
1. Define desired values and behaviors. Do people understand them and how they relate to day-
to-day behavior? Come up with behavioral descriptors for each value you define and articulate how
those would translate into actionable behaviors at all levels—from secretaries to middle managers to
executives, Sabapathy advises.
2. Align culture with strategy and processes. Do your mission, vision and values line up with
your HR processes, including hiring, performance management, compensation, benefits and the
promotion of talent?
3. Connect culture and accountability. It is easy, particularly in difficult times, to forget the
values you set in place to define your company, he says, citing Enron and WorldCom as examples.
However, companies have a better chance at weathering disaster if they take responsibility for their
actions, Sabapathy says.
4. Have visible proponents. For culture change to stick, it must be a priority of the CEO and
board of directors. “Show the board a framework for understanding organizational culture and its
impact on performance,” Sabapathy says. Work with the board to create a standing performance
objective for the CEO that evaluates culture.
5. Define the non-negotiables. When contemplating a culture change, look at your current
culture and call out which aspects you want to retain. Determining what’s not up for debate is
particularly important during mergers and acquisitions, when leaders of two or more organizations
must figure out how to blend identities.
6. Align your culture with your brand. Culture must resonate with both employees and the
marketplace. To accomplish this, HR increasingly is partnering with marketing, he says. This is
especially relevant in our current online world, where today’s bad customer experience can become
tomorrow’s viral sensation.
7. Measure your efforts. Help demonstrate the effectiveness of your efforts by implementing
employee surveys and analyzing gaps between desired and actual behavior.
8. Don’t rush it. Changing a culture can take anywhere from months to several years. Start by
making sure there’s a clear rationale for why the company should change, he advises.
9. Invest now. Don’t wait for staff and resources that may never come. “It takes years of
investment to get to that point where [your culture] just automatically becomes part of how you behave
and act,” so begin whatever way you can.
10. Be bold and lead. You don’t have to be in a position of influence to have influence. “When we
step up, it encourages others to step up as well,” he says.
CLIMATE
Organizational climate refers to the prevailing atmosphere or environment within an organization that
influences the behavior, attitudes, and performance of its members. It reflects the shared perceptions,
values, norms, and expectations that shape how individuals interact and work together within the
organization.
It reflects the collective experiences, interactions, and behaviors of individuals within the organization,
shaping their attitudes towards work, relationships with colleagues and management, and overall
satisfaction with the work environment. The organizational climate influences employee motivation,
engagement, productivity, job satisfaction, and ultimately, organizational performance and success.
1. Leadership Style: The leadership style adopted by top management can significantly impact
the organizational climate. Authoritative, participative, and transformational leadership styles,
among others, can shape the culture and atmosphere within the organization.
3. Work Environment: Factors such as physical work conditions, office layout, amenities, and
safety measures contribute to the overall climate. A comfortable and safe work environment
can foster positive attitudes and productivity.
4. Employee Relations: The quality of relationships among employees, between employees and
management, and the presence of teamwork, collaboration, and conflict resolution mechanisms
affect the climate. Trust, respect, and open communication are vital in shaping a positive
organizational climate.
5. Organizational Culture: The values, beliefs, and norms shared by employees contribute to the
organizational culture and climate. A strong, positive culture aligned with organizational goals
can enhance motivation and engagement.
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PRINCIPLES OF MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
6. Recognition and Rewards: The way in which employees are recognized, rewarded, and
incentivized for their contributions impacts morale and motivation. Fairness and transparency
in reward systems are crucial for a positive climate.
7. Job Design and Roles: The design of jobs, clarity of roles and responsibilities, opportunities
for skill development, and career growth influence how employees perceive their work
environment. Meaningful and challenging roles can enhance job satisfaction and contribute to a
positive climate.
The importance of organizational climate lies in its profound impact on employee engagement, job
satisfaction, motivation, productivity, innovation, and overall organizational performance. A positive
climate fosters a conducive and supportive environment where employees are motivated to perform at
their best, collaborate effectively, and contribute to achieving organizational goals. It also helps in
attracting and retaining talent, enhancing organizational reputation, and ensuring long-term success
and sustainability.
The importance of organizational climate lies in its significant impact on various aspects of
organizational functioning and success:
5. Organizational Culture: The organizational climate plays a crucial role in shaping the overall
organizational culture. A positive climate reinforces shared values, norms, and beliefs that
support the organization's mission and vision, creating a strong cultural foundation that guides
behavior and decision-making at all levels.
8. Customer Satisfaction: A positive climate can have a direct impact on customer satisfaction
and loyalty. Engaged and satisfied employees are more likely to deliver exceptional customer
service, build positive relationships with clients, and contribute to a positive brand image.
Overall, the organizational climate plays a crucial role in shaping organizational culture, employee
behavior, performance outcomes, and long-term success. Investing in creating and maintaining a
positive climate is essential for fostering a thriving and resilient organization.
Change Management
Change management is defined as the ideology in which an organisation describes and brings
modifications from original within both its internal and external processes. This includes preparing and
supporting employees, establishing the necessary steps for change, and monitoring pre- and post-
Dr Harshini C S, Associate Professor, Department of MBA, SJBIT Page 19
PRINCIPLES OF MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
Change management is defined as the methods and manners in which a company describes and
implements change within both its internal and external processes. Effective communication is one of
the most important success factors for effective change management.
Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing.
The model represents a very simple and practical model for understanding the change process. For
Lewin, the process of change entails creating the perception that a change is needed, then moving
toward the new, desired level of behavior and finally, solidifying that new behavior as the norm. The
model is still widely used and serves as the basis for many modern change models.
Unfreezing
Before you can cook a meal that has been frozen, you need to defrost or thaw it out. The same can be
said of change. Before a change can be implemented, it must go through the initial step of unfreezing.
Because many people will naturally resist change, the goal during the unfreezing stage is to create an
awareness of how the status quo, or current level of acceptability, is hindering the organization in some
way. Old behaviors, ways of thinking, processes, people and organizational structures must all be
carefully examined to show employees how necessary a change is for the organization to create or
maintain a competitive advantage in the marketplace. Communication is especially important during
the unfreezing stage so that employees can become informed about the imminent change, the logic
behind it and how it will benefit each employee. The idea is that the more we know about a change and
the more we feel it is necessary and urgent, the more motivated we are to accept the change.
Changing
Now that the people are 'unfrozen' they can begin to move. Lewin recognized that change is a process
where the organization must transition or move into this new state of being. This changing step, also
referred to as 'transitioning' or 'moving,' is marked by the implementation of the change. This is when
the change becomes real. It's also, consequently, the time that most people struggle with the new
reality. It is a time marked with uncertainty and fear, making it the hardest step to overcome. During
the changing step people begin to learn the new behaviors, processes and ways of thinking. The more
prepared they are for this step, the easier it is to complete. For this reason, education, communication,
support and time are critical for employees as they become familiar with the change. Again, change is
a process that must be carefully planned and executed. Throughout this process, employees should be
reminded of the reasons for the change and how it will benefit them once fully implemented.
Refreezing
Lewin called the final stage of his change model freezing, but many refer to it as refreezing to
symbolize the act of reinforcing, stabilizing and solidifying the new state after the change. The
changes made to organizational processes, goals, structure, offerings or people are accepted and
refrozen as the new norm or status quo. Lewin found the refreezing step to be especially important to
ensure that people do not revert back to their old ways of thinking or doing prior to the implementation
of the change. Efforts must be made to guarantee the change is not lost; rather, it needs to be cemented
into the organization's culture and maintained as the acceptable way of thinking or doing. Positive
rewards and acknowledgment of individualized efforts are often used to reinforce the new state
because it is believed that positively reinforced behavior will likely be repeated.
Some argue that the refreezing step is outdated in contemporary business due to the continuous need
for change. They find it unnecessary to spend time freezing a new state when chances are it will need
to be reevaluated and possibly changed again in the immediate future. However - as I previously
mentioned - without the refreezing step, there is a high chance that people will revert back to the old
way of doing things. Taking one step forward and two steps back can be a common theme when
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To better understand Lewin's change model, let's take a look at the following example.
Characteristics of change:
We often talk of Stone Age, agricultural age, machine age and the current information age. The ‘ages’
indicate that society has been constantly changing over time. This suggests that change is, and always
has been a continuous process. ‘Every moment the time changes – every second, millisecond,
microsecond, nanosecond and at to second.’ It is this continuity, an indicator of dynamism.
2. Change can be exciting and bring about the best work of a life-time:
Change always gives hope for the betterment, and this hope brings out the best of a person.
3. The Pace, Amount, and Complexity of change only Continue to Rise, with no signs of let up:
We have seen within last one decade that the speed of change has increased many folds. The change is
all round. And, there is no likelihood of any slowing of it. Thus, change is also changing.
Change is when someone is there to feel and something is there to change. Change occurs in a system.
Change, like death and taxes, is permanent. Somebody has rightly said that nothing (except God) is as
permanent as change. Process of change is not restricted to one country or organisation. It is pervasive.
Change always follows systems approach. Hence a change at one place requires simultaneous changes
in related aspects as well.
Change has been here for times immemorial, and hence, it is not a new thing.
9. Change is a continuum:
The transition from night today is called dawn whereas the transition from day to night is called dusk.
But no one can tell when the day ceases to be day or night ceases to be night. No one can! Since
change is a continuum.
Types of Change:
The change may be Individual Change and Organisation Change. Organisations bring in change
through people. Organisation change, when introduced by management, is always intentional and
planned. Individuals are made to learn to adapt their attitude to be willing to meet changing
environment.
Organisation change means process of growth, decline and transformation within the organisation.
Organisation change can be brought in through behavioural approach (changing attitudes and
behaviours) and non- behaviour approach (Change in policies, structure, etc). Both of these changes
are interdependent. To change a part may be organisational change but not organisation change.
The change may be Evolutionary (steady growth) and Revolutionary (rapid). 95% of the organisational
changes are evolutionary. Evolutionary change is unlikely to make any fundamental change.
Revolutionary change is seen as a jolt to the system. Consequently nothing will be the same again.
Organisations changing their vision or mission statements exemplify revolutionary change.
The change may be Closed, Contained and Open-Ended change. Closed change means one is able to
clearly say what happened, why it happened and what are the consequences. In case of Contained
Change one is able to say only what probably happened, why it probably happened, and probably what
the consequences are. Open-ended change means unpredictable surprises. Environmental forces are far
from certainty.
The change may be Reactive or Proactive. Reactive Change means passive compliance to the
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environment. Most organisational change consists of a reaction to some other event or situation.
Whereas proactive change is intentional, goal oriented, planned change. Proactive change involves
anticipation of the need to change.
There are four scales of change – fine-tuning, incremental adjustment, modular transformation, and
corporate transformation. Fine-Tuning refers to create a fit between the organisation’s strategy,
structure, people and processes.
This change is made at the level of department or division. The objective of fine-tuning is to do better
than what is already done well. Fine-tuning is also called as strategic adjustment.
Incremental Change involves distinct modifications, but not radical change, to corporate strategies,
structures and management processes. The change evolves slowly in a systematic and predictable way.
Some people call it as ‘ten percent change’ or strategic orientation.
The two changes may be included in ‘Covering Period Change’. Incremental change may be adaptive
as well as evolutionary change. Incremental change may be bumpy change too, which is characterized
by relative calm punctured by acceleration in the pace of change.
The change may be planned and Emergent. Planned Change takes place through fine-tuning and
incremental change. In a planned change the process is usually linear. Emergent change means
continuous response with the open system.
There may be Organisation Growth and Organisational Transformation. The focus in Growth is more
on outside (markets, customers, etc.); while in case of transformation the focus is more on the “inside”
(people, existing systems, etc).
The change may be Transitional Change and Transformational Change. Transitional change means
moving from the current stage to a known new stage through transitional state. Transformational
change means fundamental reinvention of the organisation.
On the basis of frequency change may be Episodic Change and Continuous Change. Episodic change
is infrequent, discontinuous, and intentional and follows Kurt Lewin’s model (unfreeze, change, and
refreeze). Episodic change may also be called as ‘big bang change’, which can be further divided into
reconstruction and revolution. Continuous change is ongoing, evolving, and cumulative.
The change may be First-Order and Second-Order change. First Order change results from a shift in
alignment between the needs of the environment and the capabilities of the organisation to meet those
needs. On the other hand, second-order change is the response to the misalignment between the
organization and the environment. It includes multiple elements of change.
Political Forces: With the rapidly changing global political scenario and the upheavals in the global
politics, the worldwide economy is equally undergoing a quick change and presenting several
challenges before the organization in the form of changes in regulations, policies and also the
economic framework in the form of globalization and liberalization.
Economic Forces: The economic forces influence organization’s change management strategy by
either presenting opportunities or challenges in the form of economic uncertainties or growing
competitive pressures.
Various factors such as changes in the business cycle, prevalent inflation or deflation rate in the
economy, fluctuation in the interest rates, economic recession, changes in the economic policies or tax
structures, import/export duties, fluctuation in the oil prices globally, financial stability of the country
and also loss/increase in the consumer confidence towards the economic conditions of the country are
some of the crucial factors. For example change in the global market, economies create a ripple like
effect and affect the Indian markets too in terms of fluctuations in the capital markets, employment
opportunities and rise or fall in the consumer demand.
Advancements in the technological field greatly contribute to the overall economic development in the
country and also the organization’s success or failure in the competitive environment. One of the
glowing examples is Singapore, which has emerged as one of the powerful economies within recent
times in spite of no natural resource availability. With the usage of Information Technology in the
strategic decision making and overall planning, today Singapore holds the status of being the world’s
first completely networked economy in which all homes, administrative offices,
schools/colleges/professional institutions, businesses and government branches are connected
electronically.
Governmental Forces: Governmental regulations and also the extent of intervention may influence
the need for change. The following governmental forces have been described below which determine
the need for organizational change:
2. Foreign Exchange: Foreign exchange rates directly affect the international trade, as the
variations in the exchange rates influence the currency payment structure. Issues or constraints
with the foreign exchange rate may compel the government in moving ahead with the
imposition of import restrictions on selected items or deregulating the economies for attracting
the foreign exchange for investment purposes.
3. Anti-Trust Laws: Anti-Trust laws are enforced by most of the governments for
restricting/curbing unfair trade practices. For example, these restrictions have been enforced in
India by enacting an act called Monopolies and Restrictive Trade Practices (MRTP), 1971.
4. Suspension Agreements: Suspension agreements are the agreements which are finalized
between the governments to waive off anti-dumping duties.
5. Protectionism: Due to the growing competitive pressures, most of the governments try to
enforce certain regulations or intervene for safeguarding their threatened industries. For
example, by enforcing certain trade barriers, the Indian government protects the local industries
such as Handicrafts and Textiles. These trade barriers may take the form of either anti-dumping
laws, levy of tariffs or import duties, quantity quotas, and various government subsidies.
Competitive Pressures: The increase in the global competition and the challenges enforced due to the
competitive pressures, force the organizations in changing their strategies for ensuring their global
presence. Japanese majors like Nissan, Toyota and Mitsubishi, have been continuously relocating their
manufacturing as well as their assembling operations to South East Asian countries for achieving a
competitive advantage in the form of reduced cost of labour and economies of scale.
Changes in the Needs and Preferences of Customers: Changes in the needs of the customers are
compelling the organizations to adapt and innovate their product offerings constantly for meeting the
changing demands of the customers.
Internal Forces
Systemic forces
Inadequate Administrative Processes
Individual or group speculations
Changes in structure
Technological changes
Constraint in resources
Systemic Forces: An organization is made up of a system and several subsystems which are
interconnected, just like the way in which a human system functions. The subsystems of an
organization are in direct interaction and influence the organizational behaviour as well. A change in
any subsystem, result in a change in the existing organizational processes and the complete alignment
as well as the relationship.
Inadequate Existing Administrative Processes: Each organization function by following a particular
set of procedures, rules, and regulations. With the changing times, an organization needs to change it’s
rules and existing administrative processes, failing which the administrative inadequacy might result in
organizational ineffectiveness.
individual as well as group expectations. Various factors on the positive front such as how ambitious
an individual is, achievement drive, career growth, personal and professional competencies and
negative factors such as one’s own fears, complexes and insecurities are some of the inter-individual as
well as inter group factors which influence an organizational functioning on a day to day basis and also
its overall performance.
Structural Changes: These changes alter the existing organizational structure as well as its overall
design. Structural changes can be regarded as a strategic move on the part of the organization’s to
improve profitability and for achieving a cost advantage. These changes may take the form of
downsizing, job redesign, decentralization, etc. For example, IBM for introducing reforms in its
existing system and procedures and for achieving cost effectiveness has enforced downsizing strategy.
Changes in the Technology: Within an organization, the technological changes may take the shape of
changes in the work processes, equipment, level/degree of automation, sequence of work, etc.
People Focused Change: In this context, the major focus is laid on people and their existing
competencies, human resource planning strategies, structural changes and employee reorientation and
replacement of an employee which mean shifting an employee to a different work arena where his/her
skills are best suited. It may also be involving establishing new recruitment policies and procedures in
line with the changes in the technology.
Issues with the Profitability: This can also be one of the primary causes which compel an
organization to restructure (downsize or resize) or to reengineer themselves. The organization may
have profitability issues either due to a loss in revenue, low productivity or a loss in the market share.
Resource Constraint: Inadequacy of the resources, may result in a powerful change force for the
organization.
Time of implementation
Following are the factors responsible for difficulty in Change Management
Without step-by-step planning, change in an organization is likely to fall apart or cause more problems
than benefits. You need to understand exactly what changes will take place and how those changes
will occur.
For example, if you're transitioning to a new content management system, you'll need to know if the
new system is compatible with the old system. You also need to know how you will transition the old
information to the new system and if there will be limited access during the transition. And you have
to assign roles to individuals who are responsible for the change so all duties are covered. The timeline
for the change is also a key component. You need to plan for downtime or difficulties in completing
regular work tasks while the change occurs.
In many instances, employees dislike change unless it is one that they have requested or lobbied for,
which means that obtaining buy-in is a major barrier to change. For example, let’s say you are
changing your organizational structure from a flat structure in which all employees are encouraged to
give feedback and help make decisions to a top-down structure in which all power and decision-
making is in your hands. You can expect that employee morale will take a big hit as your staff
members realizes they are losing the power to have a real say in how things are done.
Low morale becomes a barrier to your organizational change because your staff is likely to resist the
changes. That resistance will make it difficult for you to facilitate a smooth transition and may impact
productivity and efficiency as well. When employees are unhappy with your decisions, they are far
less likely to implement those decisions in a manner that helps your company achieve success.
Lack of Consensus
If you fail to get everyone on board with corporate changes, you are likely to face barriers during the
process. The decision to implement changes should come from the top level of the organization. All
management level staff needs to be on board and able to deal with the changes or you may face dissent
within the staff.
In many cases, you may not have everyone on board right from the beginning. Showing managers how
the changes will affect the company and the steps for implementing the changes can help get them on
board if they initially have reservations.
Technology has become the linchpin on which many businesses grow and thrive but it does have its
challenges. One challenge is integrating new technology with your existing platforms in a way that
doesn’t cause huge logistical issues. Another challenge is getting your staff up to date on how to use
the new technology. Your employees are the “end user” when it comes to implementing a new system
at the workplace.
If they don’t believe that new technology will make their jobs easier, they will question why you are
making the changes. Communicating the specific ways in which the technology will streamline work
processes is an effective way of overcoming this barrier.
Failing to Communicate
Employees want to know what's going on, whether it is positive or negative news. The feeling of
uncertainty when management doesn't communicate disrupts work and makes employees feel as if
they aren't a part of the decision. Keep employees updated regularly about the plans and progress
toward the change implementation. Involve all employees as much as possible through meetings or
brainstorming sessions to help during the planning phase.
Engage
Plan
Roll out
Reinforce
6 Steps to Effective Organizational Change Management
1. Clearly define the change and align it to business goals.
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It might seem obvious but many organizations miss this first vital step. It’s one thing to articulate the
change required and entirely another to conduct a critical review against organizational objectives and
performance goals to ensure the change will carry your business in the right direction strategically,
financially, and ethically. This step can also assist you to determine the value of the change, which will
quantify the effort and inputs you should invest.
Key questions:
• What do we need to change?
• Why is this change required?
Once you know exactly what you wish to achieve and why, you should then determine the impacts of
the change at various organizational levels. Review the effect on each business unit and how it
cascades through the organizational structure to the individual. This information will start to form the
blueprint for where training and support is needed the most to mitigate the impacts.
Key questions:
• What are the impacts of the change?
• Who will the change affect the most?
• How will the change be received?
Although all employees should be taken on the change journey, the first two steps will have
highlighted those employees you absolutely must communicate the change to. Determine the most
effective means of communication for the group or individual that will bring them on board. The
communication strategy should include a timeline for how the change will be incrementally
communicated, key messages, and the communication channels and mediums you plan to use.
Key questions:
• How will the change be communicated?
• How will feedback be managed?
With the change message out in the open, it’s important that your people know they will receive
training, structured or informal, to teach the skills and knowledge required to operate efficiently as the
change is rolled out. Training could include a suite of micro-learning online modules, or a blended
learning approach incorporating face-to-face training sessions or on-the-job coaching and mentoring.
Key questions:
• What behaviors and skills are required to achieve business results?
• What training delivery methods will be most effective?
Providing a support structure is essential to assist employees to emotionally and practically adjust to
the change and to build proficiency of behaviors and technical skills needed to achieve desired
business results. Some change can result in redundancies or restructures, so you could consider
providing support such as counseling services to help people navigate the situation. To help employees
adjust to changes to how a role is performed, a mentorship or an open-door policy with management to
ask questions as they arise could be set up.
Key questions:
• Where is support most required?
• What types of support will be most effective?
Throughout the change management process, a structure should be put in place to measure the business
impact of the changes and ensure that continued reinforcement opportunities exist to build
proficiencies. You should also evaluate your change management plan to determine its effectiveness
and document any lessons learned.
Key questions:
1. Inability: Some individuals or organizations resist change because they lack the necessary
skills, knowledge, or resources to adapt to the new situation.
2. Unwillingness: This refers to a reluctance or resistance to change due to personal preferences,
beliefs, or attitudes. Some people may simply not want to change because they are comfortable
with how things are.
3. Change fatigue: Continuous or frequent changes can lead to fatigue among individuals or
within an organization. This fatigue can make people resistant to further changes as they may
feel overwhelmed or exhausted from previous changes.
4. Fear of the Unknown: Change often involves uncertainty, and this fear of what the change
might bring can lead to resistance. People may prefer the familiar and predictable, even if the
current situation is not ideal.
5. Loss of Control: Change can sometimes make people feel like they are losing control over
their work, responsibilities, or environment. This loss of control can be a significant factor in
resistance to change.
6. Comfort with the Status Quo: Similar to unwillingness, some individuals or organizations
resist change because they are comfortable with how things are and see no need for change.
7. Perceived Lack of Benefits: If people do not see the benefits or advantages of the proposed
change, they may resist it. They need to understand how the change will positively impact them
or the organization.
8. Poor Communication: When changes are not communicated effectively or transparently, it
can lead to confusion, mistrust, and resistance. Clear and open communication is essential for
managing change effectively.
9. Organizational Culture: The existing culture within an organization can either support or
hinder change efforts. A culture that values innovation, flexibility, and adaptability is more
likely to embrace change, while a rigid or resistant culture may resist it.
10. Past Negative Experiences: Previous experiences with change that did not go well can create
a negative attitude towards future changes. People may be hesitant to support or participate in
change initiatives due to these past experiences.
11. Lack of Involvement: When people feel excluded or not involved in the change process, they
are more likely to resist the change. Involving stakeholders and employees in the planning and
decision-making can help mitigate resistance.
12. Competing Priorities: Sometimes, there are competing priorities or initiatives within an
organization that make it challenging to focus on and implement a new change effectively.
13. Lack of Skills or Resources: If individuals or teams do not have the necessary skills,
knowledge, or resources to implement the change successfully, they may resist it due to fear of
failure or inability to meet expectations.
Understanding these reasons can help organizations develop strategies to address and overcome
resistance to change effectively.
Individual resistance: Individual sources of resistance to change reside in basic human characteristics
such as perceptions, personalities, and needs. The following summarizes five reasons why individuals
may resist change.
HABIT As human beings, we're creatures of habit. Life is complex enough; we don't need to consider
the full range of options for the hundreds of decisions we have to make every day. To cope with this
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PRINCIPLES OF MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
complexity, we all rely on habits or programmed responses. But when confronted with change, this
tendency to respond in our accustomed ways becomes a source of resistance. So when your department
is moved to a new office building across town, it means you're likely to have to change many habits:
waking up ten minutes earlier, taking a new set of streets to work, finding a new parking place,
adjusting to the new office layout, developing a new lunchtime routine, and so on.
• Organizations, by their very nature are conservative. They actively resist change. Reason of
organizational resistance
• Resource constraint: resources are major constraints for many organizations. The necessary financial
material & human resources may not be available to the organization to make the needed changes.
Group Resistance
• Structural inertia – some organizational structures have in- built mechanism for resistance to change.
Eg in bureaucratic structure where jobs are narrowly defined & lines of authority are clearly spelled
out, change would be difficult.
Organizational Resistance: Organizations, by their very nature, are conservative. They actively resist
change. You don't have to look far to see evidence of this phenomenon. Government agencies want to
continue doing what they have been doing for years, whether the need for their service changes or
remains the same. Organized religions are deeply entrenched in their history. Attempts to change
church doctrine require great persistence and patience. Educational institutions, which exist to open
minds and challenge established doctrine, are themselves extremely resistant to change. The majority
of business firms, too, appear highly resistant to change.
Overcoming resistance to change often requires a multifaceted approach that encompasses various
strategies. Let's explore each of the strategies you mentioned in the context of addressing resistance to
change:
1. Education and Communication: This involves providing information about the reasons for
change, its benefits, and how it aligns with the organization's goals. Clear and transparent
communication helps employees understand the rationale behind the change and reduces
uncertainty and resistance.
2. Participation and Involvement: Involving employees in the change process by seeking their
input, feedback, and ideas can increase their sense of ownership and commitment. Participation
can occur through focus groups, brainstorming sessions, and involving employees in decision-
making.
3. Facilitation and Support: Providing support, resources, and training to employees helps them
adapt to the change more effectively. This can include offering coaching, mentoring, and skill
development programs to enhance employees' capabilities and confidence in navigating the
change.
4. Manipulation and Co-option: While manipulation and co-option are less desirable
approaches, they involve influencing individuals or groups to support the change through
persuasion, incentives, or rewards. However, these tactics should be used judiciously and
ethically to maintain trust and credibility.
5. Negotiation and Bargaining: Engaging in negotiations and bargaining with stakeholders who
are resistant to change can help find mutually acceptable solutions. This involves
understanding their concerns, addressing them through compromises or alternative solutions,
and finding common ground for moving forward.
6. Explicit and Implicit Coercion: Coercion involves using authority, power, or threats to force
compliance with the change. While explicit coercion (such as imposing strict policies or
consequences for non-compliance) should be used sparingly and as a last resort, implicit
coercion (such as emphasizing the consequences of not changing) can sometimes be necessary
to motivate action.
It's important to note that the effectiveness of these strategies may vary depending on the specific
context, culture, and nature of the change. A combination of these approaches, tailored to the situation
and the individuals involved, is often most effective in overcoming resistance to change while
maintaining trust, engagement, and collaboration within the organization.