Management and Organisational Behaviour

7th Edition

CHAPTER 22

Organisation Development (Culture, Conflict and Change)

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

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Organisational development (OD)

Organisational development is concerned with the diagnosis of organisational health & performance, & the ability of the organisation to adapt to change
It involves the application of organisational behaviour & the recognition of the social processes of the organisation

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Figure 22.1

Major topics associated with organisational development

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Intervention strategies

Survey research & feedback T-groups (or sensitivity training) Teambuilding Grid training Role analysis Life & career planning Quality of work life Counselling
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Organisational culture
A general concept that is difficult to explain or define precisely No consensus on its meaning or its application to the analysis of work organisation Wide diversity of interpretations relating to organisational development gives rise to a large number of definitions Can be confusion over the difference between the interpretation of organisational culture & organisational climate
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Organisational culture defined

Reflects the underlying assumption about the way work is performed, what is acceptable and not acceptable, and what behaviour and actions are encouraged and discouraged
Atkinson

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Organisational culture defined (continued)

The collection of traditions, values, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organisation
McLean & Marshall

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Culture & communication

Culture & communication cannot be separated

For us to communicate & co-operate we must share some common assumptions about the world we live in and some common standards by which to judge our own and each others actions
Varey

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Levels of culture
1. Artefacts physical space and layout, technological output, written and spoken language, overt behaviour of group members 2. Values values and beliefs become part of the conceptual process by which groups members justify actions and behaviour 3. Basic underlying assumptions unconsciously held learned responses
Schein
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Types of organisational culture

Power culture
Role culture Task culture Person culture
Handy
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Types of culture according to Deal & Kennedy

Tough-guy, macho culture

Work-hard / play-hard culture Bet-your-company culture

Process culture

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Influences on the development of culture

History Primary function & technology Goals & objectives Size Location Management & staffing The environment

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Figure 22.2

The cultural web

Source: Long Range Planning, vol. 25, no. 1, Johnson, G. Managing Strategic Change Culture and Actions, p.31, 1992, Elsevier Science. Reproduced with permission from Excerpta Medica Inc.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

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Criterion needed to develop a suitable culture

It must be strategically relevant It needs to be strong in order that people care about what is important The culture must have an intrinsic ability to adapt to changing circumstances

Chatman & Cha

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Managerial tasks

Chatman & Cha suggest the following tools for leaders to develop, manage, and change culture
Recruitment and selection Social tools and training Reward systems

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National & international culture

Culture helps to account for variations among organisations and managers nationally and internationally Culture helps to explain why different groups of people perceive things in their own way and perform things differently from other groups (Potter) With greater international competition, an understanding of national cultures has become of increasing importance to managers
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Organisational climate

Applied to organisations, climate refers to the prevailing atmosphere surrounding the organisation, to the level of morale, and to the strength of feelings or belonging, care and goodwill among members

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Organisational climate

Climate will influence the attitudes which organisational members bring to bear on work performance and personal relationships The extent to which staff accept the organisational culture has a significant effect on climate

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Characteristics of a healthy organisational climate

Integration of organisational and personal goals Appropriate organisation structure Democratic functioning Equitable HRM policies & practices Mutual trust & consideration Open discussion of conflict Managerial behaviour & leadership styles appropriate to work situations
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Characteristics of a healthy organisational climate

Acceptance of psychological contract Recognition of peoples needs and expectations Equitable systems of rewards Concern for quality of working life Opportunities for personal development and career progression Sense of identity with and loyalty to the organisation

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Improving staff morale

Managers need to review four main areas in which to develop the best possible attitudes in their staff:
A sense of importance in their job

Team working among staff

Management care about staff welfare Economic rewards that are fair and individualised
Petrick & Manning

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Employee commitment

Typically conceived as an individuals psychology bond to the organisation, including a sense of job involvement, loyalty, & a belief in the values of the organisation
OReilly

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Model of commitment

A sense of belonging to the organisation informed, involved, sharing in success A sense of excitement in the job pride, trust, accountability for results Confidence in management authority, dedication, competence

Martin & Nicholls

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Securing staff commitment

Genuine commitment requires not just a recognition or understanding of what the organisation expects but an emotional and behavioural response from staff
If loyalty, long service, or expertise appear to be no longer regarded, this may have an adverse effect on those surviving members and they are less likely to have a high level of commitment to the organisation

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Securing staff commitment

Commitment of staff to the organisation has long been valued and is coming back into fashion as the costs to loyalty of downsizing and re-engineering come to be felt

Guirdham
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Developing news ways to increase loyalty & commitment

Attention to reward strategies based on contribution rather than status or position
Systematic training and development including skills for working in cross-functional teams Training managers in counselling, coaching and leadership skills
Hiltrop
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Organisational conflict Approaches & perspectives

Unitary perspective conflict is seen as a dysfunction outcome, explained by poor communication, personality clashes, work of agitators
Pluralistic approach conflict among competing sub-groups is inevitable, an inherent feature of organisations

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Organisational conflict Approaches & perspectives

Structuralist (radical) approach conflict is a feature of the unequal nature of organisational life and a means of bringing about change Interactionist perspective conflict is a positive force and is necessary for effective performance

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Defining conflict

Behaviour intended to obstruct the achievement of some other persons goals Can be viewed at the individual, group, or organisational level

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Conflict

Is not necessarily bad

Properly managed, it can have potentially positive outcomes Can be an energising and vitalising force

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Conflict

Can aid incremental improvements in organisational design and functioning and decision-making Can be an agent for evolution and for internal and external change
Properly identified and handled it can help minimise the destructive influences of the win lose situation
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Positive outcomes of conflict

Better ideas produced People are forced to search for new approaches Long-standing problems brought to the surface and resolved Clarification of individual views Stimulation of interest and creativity A chance for people to test their capacities

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Negative outcomes of conflict

Some people feel defeated and demeaned The distance between people increased A climate of mistrust and suspicion developed Individuals and groups concentrate on their own narrow interests Resistance developed rather than teamwork An increase in employee turnover

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Main sources of conflict

Differences in perception Limited resources Departmentalism and specialisation The nature of work activities Role conflict Inequitable treatment Violation of territory Environmental change
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Strategies for managing conflict

The strategies adopted will vary according to the nature and sources of conflict but could include: Clarification of goals and objectives Resource distribution HRM Non monetary rewards

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Strategies for managing conflict (continued)

Development of interpersonal skills Group activities Leadership & management Organisational processes Socio-technological approaches

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Behaviour modification

Unfreezing

Movement
Refreezing

Lewin

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Figure 22.4

Stages in planned change

Source: Adapted from French, W.L., Kast, F.E. and Rosenzweig, J.E. Understanding Human Behaviour in Organizations, Harper and Row (1985) p.9.

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Individual resistance to change

Selective perception Habit Inconvenience of loss of freedom Economic implications Security in the past Fear of the unknown

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Organisational resistance to change

Resources

Processes
Values

Christensen & Overdorf

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Actions to secure effective change

1. 2. 3. 4. Create a sense of urgency among relevant people Build a guiding team which has credibility Create visions that are sensible, clear and uplifting Communicate the vision and strategy to induce understanding and commitment Empower action and remove obstacles Produce short term wins Dont let up but maintain momentum Make change stick by nurturing a new culture

5. 6. 7. 8.

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The role of people in implementing change

The successful implementation of new work methods and practices is dependent upon the willing and effective co-operation of staff, managerial colleagues and unions If change is to work it must change the perceptions, attitudes and behaviour of people

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005