STET SCHOOL OF MANAGEMENT

(Affiliated to Bharathidasan University)

(Accredited with ‘A’ Grade {3.45/4.00} By NAAC)
(An ISO 9001: 2015 Certified Institution)
Sundarakkottai, Mannargudi-614 016.
Thiruvarur (Dt.), Tamil Nadu, India.

ORGANIZATION DEVELOPMENT

Dr. G.VIJAYALAKSHMI

ASSISTANT PROFESSOR & HEAD

DEPARTMENT OF MANAGEMENT STUDIES

 C : HUMAN RESOURCE

ELECTIVE COURSE – I : ORGANISATION DEVELOPMENT

Objectives: To enable the students to understand the philosophical, historical,

theoretical, political and practical underpinnings of OD as a core area of practice within
HRD and to increase awareness of different tools that are used to diagnose organizations as
well as interventions used through hands-on experience, enhance skills in facilitation, OD
skills, group process, communication, and collaboration.

Unit I

Introduction to Organization Development :Concept, Nature and Scope of O.D. Historical

Perspective of O.D. Underlying Assumptions & Values. Theory and Practice on change and
changing. The Nature of Planned Change. The Nature of Client Systems : Group Dynamics,
Intergroup Dynamics and Organizations as Systems.

Unit II

Operational Components of O.D. Diagnostic, Action and Process – Maintenance Components

Action Research and O.D.

Unit III

O.D. Interventions : Team Interventions, Inter – group Interventions, Personal, Interpersonal

and group process interventions, Comprehensive Interventions, Structural Interventions.

Unit IV

Implementation and Assessment of O.D, Implementation – conditions for failure and success in
O.D. efforts. Assessment of O.D. and change in Organizational performance, The impact of
O.D.

Unit V

Key considerations & Issues in Organizational Development- Issues in consultant – Client

relationships, Mechanistic & Organic systems and the contingency approach, The future of O.D,
Some Indian experiences in O.D

Recommended Text books :

1. Organization Development and Change – By Cummings and Worely

Cengage learning . www.cengage.co.in

2. Management of Change and Organisation Development, SK Bhatia, Deep and

Deep publishers.

3. Organization Development and Transformation, Special Indian Edition by

Wendell .L French and others. Tata Mcgraw Hill. Co.

4. Organisation Development Principles, Process and Performance By Amitab

Mehta , year 2009 - Global India Business Publications, New Delhi.

E-mail: [email protected]
 ORGANIZATION DEVELOPMENT

What is Organization Development?

Organization Development is an effort planned, organization-wide, and managed from the top, to
increase organization effectiveness and health through planned interventions in the
organization’s ‘processes,’ using behavioural-science knowledge.

Characteristics of OD
• OD focuses on culture and processes,
• OD encourages collaboration between organization leaders and members,particularly
important for accomplishing tasks and are targets for OD activities,
• OD focuses on the human and social side of the organization in so doing also intervenes
in the technological and structural sides.
• Participation and involvement in problem solving and decision making by all levels of
the organization are hallmarks of OD.
• OD focuses on total system change and views organizations as complex social systems.
• OD practitioners are facilitators, collaborators and co-learners with the client system.
• OD relies on an action research model with extensive participation by client system
members.
• OD takes a developmental view that seeks the betterment of both individuals and the
organization.
BASIC COMPONENTS OF OD
OD has three basic components. There are,
Diagnosis:
It represents a continuous collection of date about the total system, its subunits, its
processes, and its culture.
Action:
It consists of all the activities and interventions designed to improve the
organizations functioning.
Program management:
It encompasses all activities designed to ensure success of the program
IMPORTANCE OF ORGANIZATIONAL DEVELOPMENT
Organizational development is the use of organizational resources to improve
efficiency and expand productivity. It can be used to solve problems within the
organization or as a way to analyze a process and find a more efficient way of doing it.
Implementing organizational development requires an investment of time and money.
But when you understand its importance, you can justify the costs.
Organizational Change
The process of organizational development identifies areas of company operations
where change is needed. Each need is analyzed, and the potential effects are projected
into a change management plan. The plan outlines the specific ways in which the change
will improve company operations, which will be affected by the change and how it can be
rolled out efficiently to employees. Without organizational development as part of change
management, a company would have a difficult time developing effective change
management programs.
Growth
Organizational development is an important tool in managing and planning
corporate growth. An organizational development analysis brings together sales
projections and consumer demand to help determine the rate of company growth. This
information is used to alter the company business plan and plan the expansion and use of
company resources such as personnel and the distribution network to accommodate
future growth.
Work Processes
When a company is involved in organizational development, it analyzes work
processes for efficiency and accuracy. Any quality control measures required to attain
company standards are put in place. Evaluators analyze duplicate process, or processes
that can be combined for greater efficiency, and develop and implement detailed plans on
how to improve company methods.
Product Innovation
Product innovation requires the analysis of several kinds of information to be
successful. Organizational development is critical to product innovation because it can
help analyze each element of product development and create a method for using it
effectively. Some of the processes that come together in organizational development to
assist in product innovation are competitive analysis, technology development, consumer
preferences, target market research, manufacturing capabilities analysis and patents and
trademarks.
HISTORY OF ORGANIZATION DEVELOPMENT
The organization development as an applied behavioural (sociological and psychological)
discipline is come from America. Its principle is the organizational culture, attitude and
behavior, problem-solving and framing improvement by targeted action. It is identified
relatively new field of sciences, which development has four important distinct sections:
The beginning of organization development was in the forties, when Kurt Lewin
realized with his T-group experiments that “a special learning opportunity resides in, if a
group puts itself into the center of the learning”, The first executed T-group in a small
group training with behavioral scientists and researchers‟ participation was in Bethel in
1947 where they could get experiences about the feedback of the collective interactions.
This behavioral based training supported the basis model of the so-called experimental
learning.
The next formation of organization development was the attendance of feedback
surveys, where the company would be able to know more about itself with using
questionnaire survey and the results and it would be motivated itself to make organization
change.
The third important step is the engagement of the action research method, which
due to the collaboration of social scientists and employees was included organizational
diagnosis, analysis of diagnosis‟ data, exhibition of organizational problems‟ reasons,
proposals to change and examination of obtained results. Under this process the decision
on changes would be improved, commitment for changes and effectiveness of implement

ASSUMPTIONS AND VALUES OF OD

OD is based upon the following assumptions and values:

• Most individuals are driven by the need for personal growth and development as
long as their environment is both supportive and challenging.
• The work team, especially at the informal level, has great significance for feelings
of satisfaction, and the dynamics of such teams have a powerful effect on the
behavior of their members.
• OD programmers aim to improve the quality of working life of all members of the
organization.
• Organizations can be more effective if they learn to diagnose their own strengths
and weaknesses.
• But managers often do not know what is wrong and need special help in
diagnosing problems, although the outside „process consultant‟ ensures that
decision making remains in the hands of the client

Three essentials of Organization Development

People
Any organization development intervention must have people at its center.
Organization Development is about allowing the people in the organization to
create the change the organization is looking for. OD is a holistic intervention,
and therefore isn‟t restricted to the top brass. In fact, it works quite the opposite in
that it releases everyone from the bottom up to have a say, and share their
knowledge, talent and skills in developing the organization.
To Know Tools, Theory
Whether it is Complexity theory, Action Research Theory, Lewin‟s Change
Theory,Systems Theory or Appreciative inquiry the cross discipline theoretical
background of OD is essential to understanding the tools that an OD practitioner
will use in their OD practice.
Be Sustainable
I could have chosen a number of things for number three, but the one I plugged
for is that of legacy. The OD practitioner is the catalyst in OD interventions. They
must have the ability to build the business case for the leadership team, get the
leadership team on board to sponsor the programmer, build relationships with key
change agents within the business and draw together disparate groups to make the
intervention successful.They become the center of the intervention. The use of
self as a catalyst of change is acentral pillar of OD practice.

DEFINE CHANGE
The change means the alteration of status quo or making things different. It may
refer to any alteration which occurs in the overall work environment of an
organization. When an organizational system is disturbed by some internal or
external force, the change may occur. The change is modification of the structure
or process of a system, that may be good or even bad. It disturbs the existing
equilibrium or status quo in an organization. The change in any part of the
organization may affect the whole of the organization, or various other parts of
organization in varying degrees of speed and significance. It may affect people,
structure, technology, and other elements of an organization. It may be reactive or
proactive in nature. When change takes place due to external forces, it is called
reactive change. However, proactive change is initiated by the management on its
own to enhance the organizational effectiveness. The change is one of the most
critical aspects of effective management. It is the coping process of moving from
the present state to a desired state that individuals, groups and organizations
undertake in response to various internal and external factors that alter current
realities.
Organizational change is the process by which organizations move from
their present state to some desired future state to increase their effectiveness. The
goal of planned organizational change is to find new or improved ways of using
resources and capabilities in order to increase an organization’s ability to create
value and improve returns to its stakeholders. An organization in decline may
need to restructure its resources to improve its fit with the environment. IBM and
General Motors, for example, experienced falling demand for their products in the
1990s and have been searching for new ways to use their resources to improve
their performance and attract customers back. On the other hand, even a thriving
organization may need to change the way it uses its resources so that it can
develop new products or find new markets for its existing products. Wal-Mart,
Google, Reliance, Tata group, Godrej like companies have been moving
aggressively to expand their scale of operations and open new avenues to take
advantage of the popularity of their products. In the last decade, over half of all
Fortune 500 companies have undergone major organizational changes to allow
them to increase their ability to create value.

The Importance of Change

One can try to predict the future. However, predictions produce at best a blurred
picture of what might be, not a blueprint of future events or circumstances. The
effective and progressive management of change can assist in shaping a future
which may better serve the enterprise’s survival prospects. Change will not
disappear or dissipate. Technology, civilizations and creative thought will
maintain their ever accelerating drive onwards. Managers, and the enterprises they
serve, be they public or private, service or manufacturing will continue to be
judged upon their ability to effectively and efficiently manage change.
Unfortunately for the managers of the early twenty-first century, their ability to
handle complex change situations will be judged over ever decreasing time scales.
The pace of change has increased dramatically; mankind wandered the planet on
foot for centuries before the invention of the wheel and its subsequent
“technological convergence” with the ox and horse.
The Imperative of Change
Any organization that ignores change does so at its own peril. One might suggest
that for many the peril would come sooner rather than later. To survive and
prosper, the organizations must adopt strategies that realistically reflect their
ability to manage multiple future scenarios. Drucker, for example, argued that:
Increasingly, a winning strategy will require information about events and
conditions outside the institution. Only with this information can a business
prepare for new changes and challenges arising from sudden shifts in the world
economy and in the nature and content of knowledge itself. If we take an external
perspective for a moment, the average modern organization has to come to terms
with a number of issues, which will create a need for internal change. Six major
external changes that organizations are currently addressing or will have to come
to terms with in the new millennium are:
• A large global marketplace made smaller by enhanced technologies and
competition from abroad. The liberalization of Eastern European states,
the creation of a simple European currency, e-trading, the establishment of
new trading blocs such as the ‘tiger’ economies of the Far East, and
reductions in transportation, information and 7 communication costs,
mean that the world is a different place from what it was.
• A Worldwide recognition of the environment as an influencing variable
and government attempts to draw back from environmental calamity.
There are legal, cultural and socio-economic implications in realizing that
resource use and allocation have finite limits and that global solutions to
ozone depletion, toxic waste dumping, raw material depletion, and other
environmental concerns will force change on organizations, sooner rather
than later
• Health consciousness as a permanent trend amongst all age groups
throughout the world. The growing awareness and concern with the
content of food and beverage products has created a movement away from
synthetic towards natural products.
• Changes in lifestyle trends are affecting the way in which people view
work, purchases, leisure time and society. A more morally questioning,
affluent, educated and involved population is challenging the way in
which we will do business and socialize.
• The changing workplace creates a need for non-traditional employees.
Many organizations have downsized too far and created management and
labour skill shortages as a result. In order to make up the shortfall,
organizations are currently resorting to a core/periphery workforce,
teleworking, multi-skilled workers and outsourcing.
Stimulating Forces
What makes an organization to think about change? There are a number of
specific, even obvious factors which will necessitate movement from the
 status quo. The most obvious of these relate to changes in the external
environment which trigger reaction. An example of this in the last couple
of years is the move by car manufacturers and petroleum organizations
towards the provision of more environmentally friendly forms of
‘produce’. However, to attribute change entirely to the environment would
be a denial of extreme magnitude. This would imply that organizations
were merely ‘bobbing about’ on a turbulent sea of change, unable to
influence or exercise direction. The changes within an organization take
place in response both to business and economic events and to processes
of management perception, choice and action.

The change may occur in response to the:

• Changes in technology used Changes in customer expectations or
tastes
• Changes as a result of competition
• Changes as a result of government legislation
• Changes as a result of alterations in the economy at home or
abroad
• Changes in communication media
• Changes in society’s value systems
• Changes in the supply chain
• Changes in the distribution chain

Planned Change

Planned organizational change is normally targeted at improving

effectiveness at one or more of four different levels: human resources, functional
resources, technological capabilities, and organizational capabilities.

Human Resources

Human resources are an organization’s most important asset. Ultimately, an

organization’s distinctive competencies lie in the skills and abilities of its
 employees. Because these skills and abilities give an organization a competitive
advantage, organizations must continually monitor their structures to find the most
effective way of motivating and organizing human resources to acquire and use
their skills. Typical kinds of change efforts directed at human resources include:
• New investment in training and development activities so that employees
acquire new skills and abilities;
• Socializing employees into the organizational culture so that they learn the
new routines on which organizational performance depends;
• Changing organizational norms and values to motivate a multi-cultural and
diverse work force;
• Ongoing examination of the way in which promotion and reward systems
operate in a diverse work force; and
• Changing the composition of the top-management team to improve
organizational learning and decision making.

Functional Resources

Each organizational function needs to develop procedures that allow it to

manage the particular environment it faces. As the environment changes, organizations
often transfer resources to the functions where the most value can be created. Critical
functions grow in 10 importance, while those whose usefulness is declining shrink. An
organization can improve the value that its functions create by changing its structure,
culture, and technology. The change from a functional to a product team structure, for
example, may speed the new product development process. Alterations in functional
structure can help provide a setting in which people are motivated to perform. The change
from traditional mass production to a manufacturing operation based on self-managed
work teams often allows companies to increase product quality and productivity if
employees can share in the gains from the new work system.

Technological Capabilities

Technological capabilities give an organization an enormous capacity to

change itself in order to exploit market opportunities. The ability to develop a constant
 stream of new products or to modify existing products so that they continue to attract
customers is one of an organization’s core competencies. Similarly, the ability to improve
the way goods and services are produced in order to increase their quality and reliability is
a crucial organizational capability. At the organizational level, an organization has to
provide the context that allows it to translate its technological competencies into value for
its stakeholders. This task often involves the redesign of organizational activities. IBM, for
example, has recently moved to change its organizational structure to better capitalize on
its strengths in providing IT consulting. Previously, it was unable to translate its technical
capabilities into commercial opportunities because its structure was not focused on
consulting, but on making and selling computer hardware and software rather than
providing advice.

Organizational Capabilities

Through the design of organizational structure and culture an organization

can harness its human and functional resources to take advantage of technological
opportunities. Organizational change often involves changing the relationship between
people and functions to increase their ability to create value. Changes in structure and
culture take place at all levels of the organization and include changing the routines an
individual uses to greet customers, changing work group relationships, improving
integration between divisions, and changing corporate culture by changing the top-
management team.
These four levels at which change can take place are obviously
interdependent, it is often impossible to change one without changing another. Suppose an
organization invests resources and recruits a team of scientists who are experts in a new
technology – for example, biotechnology. If successful, this human resource change will
lead to the emergence of a new functional resource and a new technological capability. Top
management will be forced 11 to re-evaluate its organizational structure and the way it
integrates and coordinates its other functions, to ensure that they support its new functional
resources. Effectively utilizing the new resources may require a move to a product team
structure. It may even require downsizing and the elimination of functions that are no
longer central to the organization’s mission.
Change Agents

Organizations and their managers must recognize that change, in itself, is

not necessarily a problem. The problem often lies in an inability to effectively manage
change: not only can the adopted process be wrong, but also the conceptual framework
may lack vision and understanding. Why is this the case? Possibly, and many practicing
managers would concur, the problem may be traced to the managers’ growing inability to
approximately develop and reinforce their role and purpose within complex, dynamic and
challenging organizations. Change is now a way of life; organizations, and more
importantly their managers, must recognize the need to adopt strategic approaches when
facing transformation situations. Throughout the 1980s and 1990s organizations, both
national and international, strived to develop sustainable advantage in both volatile and
competitive operating environments. Those that have survived, and/or developed, have
often found that the creative and market driven management of their human resources can
produce the much needed competitive ‘cushion’.
• This is not surprising: people manage change, and well-managed
people manage change more effectively. Managing change is a
multi-disciplinary activity. Those responsible, whatever their
designation, must possess or have access to a wide range of skills,
resources, support and knowledge. For example:
• Communication skills are essential and must be applied for
managing teams.
• Maintaining motivation and providing leadership to all concerned
is necessary.
• The ability to facilitate and orchestrate group and individual
activities is crucial.
• Negotiation and influencing skills are invaluable.
• It is essential that both planning and control procedures are
employed.
 • The ability to manage on all planes, upward, downward and within
the peer group, must be acquired.
• Knowledge of, and the facility to influence, the rationale for
change is essential.

GROUP AND GROUP DYNAMICS

Group is defined as minimum two or more than two individuals
who come together to complete particular task(s) usually towards achievement of
goal(s). These individuals normally related to each other by some organizational or
social relationships. The behavior of individuals in a group may get modified to
certain extent as compared their behavior when they are independent of the group.
This is due to the interactions between the members of the group and their influence
on each other
Group Dynamics
Group dynamics is the study of groups. It is and important subject of organizational
behavior (OB), particularly for the organizational groups
It studies group’s
Formation
Structure
Interaction and behavior

Process.
Study of the group processes forms the most important core subject of the studies
while looking at the group functioning. Due to this reason, many a time, people
understand group dynamics and group process as one and the same.

Formation of Group
Individuals sharing common sentiments, purpose and activities start interacting and
form a group. When individuals perceive that they can expect beneficial exchanges
explicitly or implicitly by forming the group, they do so and become part of the group.
When individuals believe that they can get an identity, belongingness, self-esteem or
prestige by affiliating to a particular or significant or prominent group, they do so.
Bruce Tuckman gave a five stage framework for formation and development of
groups in 1960s. These five stages are given below:
Forming:
• Due to any one of the reasons enunciated.
• Normally, the group gets formed with an incomplete idea of its goals or
purposes. So, at the beginning of formation, there is some confusing and uncertainty.
• Leadership of the group and the roles and tasks to be undertaken by the group do
not emerge clearly. Thus, forming is an induction process through which members get
to know each other and share expectations from the group.
• Members gradually learn the purpose of the group and the guidelines to be
followed. • Forming stage should not be rushed because trust and openness have yet to
develop. These feelings strengthen in later stages of development
Storming:
• In this stage, the group is likely to experience the highest level of disagreement
and conflict as members may voice concerns and criticism.
• Members often question and challenge group goals.
• They also struggle for power or leadership.
• If members can ultimately achieve understanding and cohesiveness through
collaboration and resolution, the group may continue as a group. Otherwise, the group
may disband. However, if it still continues, it may remain ineffective and may not
make progress to the subsequent stages.
Norming:
• In this stage, the members start recognizing their individual differences and also
their shared expectations.
• Members may begin to develop a feeling of group identity and group harmony.
• Cooperative efforts may begin. • Roles and responsibilities among members my
get decided.
They may also decide on how to evaluate progress of the group.
 Performing
• At performing stage, group might have achieved maturity and the will be greater
degree of harmony among its members.
• There is more mutual acceptance among the members now.
• Conflict can be managed and resolved more amicably through collaborative
processes.
• Decisions making takes place more on rational basis aimed at achieving goals
rather than highlighting the emotional issues.
5. Adjourning:
• All groups do not experience this stage at all. Many groups remain permanent.
• Some groups that complete their tasks and goals may decide on disbanding the
group. • This stage is characterized by the feelings of sadness normally associated with
closure of any group and separation of the members.

GROUP PROCESS
The major factors or elements of group process are:
• Extent of task focus (giving information, seeking information, summarizing,
getting on etc) and extent of social focus (encouraging, harmonizing, drawing in,
mirroring, pleasing, entertaining etc)
• Characteristics of communication, coordination, cooperation, support and
collaboration • Patterns of self-oriented behavior 9silence, hurt feeling, withdrawl,
tension, anxiety etc)
• Mix of influencing, conovincing, dictating, bribing, cajoling, flattery etc
• Roles
• Relationships
• Patterns of dominance and submission
• Conflict management and conflict resolution
Types of groups
• Informal groups
• Formal groups Informal Groups
 These groups may get formed within an organization or outside an organization.
They do not necessarily follow the rules and guidelines of the organization. They
informally follow the guidelines of the informal; group. These groups are called
interest groups, friendship groups, reference groups etc. Given below are a few
examples of informal groups:
• Employees meet near water cooler and gossip
• Five secretaries from marketing department meet once a month for lunch to
discuss mutual concerns and to seek relief from tedious aspects of their job
• Four computer programmers form a jogging club that meets three days per week
to run five miles after office hours
• All employees of a section meet and discuss how to improve and beautify office
layouts • Seven workers of a production shop floor meet once a week to solve their
technical problems Formal Groups These groups are formally created in an
organization and follow the rules and guidelines prescribed by the organization. These
are:
1. Command groups
They are explained by a formal organization structure and depicted on the
organizational chart. A company’s organization network starting with the
chairman of board of directors through its various levels of managers right down
to the workers is a typical command group example.
2. Task groups or task forces
People working together to achieve a common task form a task group or a task
force. Members are grouped together either form the same department or
cross-functionally to complete some specified goals on timeline. These task
forces are appointed for a specified period and disbanded after the goals are
achieved.
3. Functional groups
Functional group is created to carry out specific functions in an organization.
These are normally on-going departments of an organization and are
permanent till re-structuring of organization is undertaken

GROUP DYNAMICS THEORY

 Kurt Lewin had a profound impact on thinking regarding Group Dynamics.
Two key ideas emerged out of field theory that are crucial to an appreciation of
group process: interdependence of fate, and task interdependence.
Interdependence of fate –
Groups come into being when people realize their fate depends on the fate of
the grtoup as a whole. A group will contain individuals of very different character,
but when an individual learns how much his own fate depends on the fate of the
entire group he will proactively toke responsibility for his part in the groupps
welfare. However, Lewin argued that Interdependence of fate can be afairlyh
weak form of interdependence in many groups.
Task interdependence – Lewin argued a more significant factor is where
there is interdependence in the goals of group members. In other words, if the
group’s task is such that members of the group are dependent on each other for
achievement, then a powerful dynamic is created. Task interdependence can be
positive or negative. In negative interdependence – known more usually as
competition – one person’s success is another’s failure. Positive interdependence
results in the group being a dynamic whole.’ One of the most interesting pieces of
Group Dynamics work concerned the exploration of different styles or types of
leadership on group structure and member behavior. There classic group
leadership models we studied – democratic, autocratic and laissez-faire. The
research concluded that there was more originality, group-aggression, hostility,
scapegoating and discontent in laissez-faire and autocratic groups
Key points of Group Dynamic Theory
• Groups under conditions of positive interdependence were generally more
cooperative and tend to be productive as compared to those working under
negative task
Democracy must be learned anew in each generation, and that it is a far more
difficult form of social structure to attain and to maintain than is autocracy
• The difference in behavior in autocratic, democratic and laissez-faire
situations is not, on the whole, a result of individual differences.
 • Democracy cannot be imposed on people, but has to be learnt by a process
of voluntary and responsible participation. • Change and periods of transition
needs to be facilitated and guided.
• Motivation for change must be generated before change can occur.
Participants must be helped to re-examine many cherished assumptions about self,
relationships and the group as part of the process.
Inter group Dynamics
Intergroup behaviour, or the way groups interact with other groups, is best
examined in terms of the frequency and interaction type the groups engage in.
Thomas (1976) elaborated on this concept by noting that the nature of intergroup
interactions depends largely on the degree to which groups must interact to
achieve their goals, and the degree of compatibility between the goals of different
groups.
• Accommodation interaction is based on groups having similar goals
and taking part in minimal to moderate mutual concession and
cooperation to achieve them.
• Avoidance interaction is found between groups where there are different
or conflicting goals and even minimal collaboration is not warranted.
Both of these interactions are viewed as having no to low impact on
successfully achieving each group’s goals.
• Collaboration interaction is necessary when two groups must interact to
meet specific goals that are vastly incompatible.
• Competition interaction usually occurs when two groups must interact to
meet specific goals that are vastly incompatible.
Compromise interaction occurs when two groups have a moderate need to
interact to meet specific goals that are moderately compatible. In this interaction,
the two groups may work together on a semi-regular basis to ensure they are on
track to meet the overlapping goals.
• Deindividuation is a phenomenon that occurs when individuals of a group
become less aware of their values.
ORGANISATION AS SYSTEM
 A system is a whole made up of parts. Each part can affect the way other parts
work and the way all parts work together will determine how well the system
works. This is a fundamental challenge to traditional management thinking.
Traditionally we have learned to manage and organization by managing its
separate pieces (sales, marketing, production, logistics, service, etc.) in essence,
the systems perspective emphasizes that everything is connected to everything
else and that it’s often worth while to model businesses and processes in terms of
flows and feedback loops. Systems thinking stresses linkages and relationships
and flows. It emphasizes that any given employer unit of activity is part of a larger
entity end that ultimately those entities, working together, are justified by the
results they produce. To effectively, nimbly, and proactively adapt to the demands
of a rapidly changing environment, all system components – inputs, processes,
outputs, and feedback – must be managed.
The emphasis in OD is that that real systems are open to, and interact with,
their environments. And it is possible to acquire new properties through
emergence, resulting in continual evolution. Rather than reducing and
organization to the properties of its parts or elements, systems theory focuses on
the arrangement of and relations between the parts which connect them into a
whole.
1. The organization is an open system, which interacts with the environment and
continually adapting and improving.
2. 2. The organization influences and is influenced by the environment in which
it operates
3. 3. If and organisation is to be effective it must pay attention to the external
environment, and take steps to adjust itself to accommodate the changes in
order to remain relevant
4. 4. All part of the organization are interconnected and interdependent; If one
part of the system is affected, all parts are.
5. 5. It is not possible to know everything about the system, but if you look hard
enough there are plenty of clues.