10.10.12

PARTICIPATION AND ORGANISATIONAL CLIMATE:



Participation is based on democratic value of organizational life. The basic feature of democracy as applied to organizational life can be seen by quoting Bennis. He observes that democracy is not permissive or laissez faire, but system of values – a climate of beliefs governing behavior – which people are internally compelled to affirm by deeds as well as words. These values include:

1.    Full and free communication, regardless of rank and power.
2.    A reliance on consensus rather then on the more customary forms of coercion of compromise, to manage conflict.
3.    The idea that influence is based on technical competence and knowledge than on the vagaries of personal whims or prerogative of power.
4.    An atmosphere that permits and even encourages emotional expressions as well as task oriented acts and
5.    A basically human bias, one which accepts the inevitability of conflict between the organization and individual but which is willing to cope with  and mediate in this conflict on rational grounds.

Such values involve participative management in the organization which incorporates getting things done through other people by creating a situation in which subordinates may develop mental and emotional involvement in a group situation which encourages them to contribute to group goals and share the responsibility in them. There are important ideas in this concept of participation. Mental and emotional involvement , acceptance of responsibility and motivation to contribute.


1.    Mental and emotional involvement: Perhaps the basic feature of participative system is mental and emotional involvement which emphasizes humanization of administrative system. The involvement is psychological rather then physical. A person who participates is ego – involved instead of merely task – involved. If there is no mental and emotional involvement, it is not participation in real sense, rather a pseudo – participation which implies that the manager tries to make people think they are participating and having an influence while really they do not. It is manipulation in nature.
2.    Acceptance of responsibility: A second characteristic of participation is that it encourages people to accept responsibility. Since people have active participation in decision – making, they are both decision – makers and executors. Thus, it is a social process by which people become self – involved in an organization and want it to work successfully. Davis observes that ‘as individuals begin to accept responsibility for group activities, they begin to be interested in, and receptive to ream work, because they see in it a way to do what to do, that is to get a job done for which they feel responsible. This idea of getting the group to want teamwork is the key step in developing it into a successful work unit. When people want to do something, they will find a way. Under these conditions, employees perceive managers as supportive contributors to the team. Employees are ready to work actively with mangers, rather reactively against them.

3.    Motivation to contribute: A third feature of participation is that it motivates persons to contribute to the situation. They are given opportunities to release their won resources of initiative and creativity towards the objectives of the organization. Thus, it is different from consent in that the latter process only confirms what has already been decided. A consenter does not contribute to decision – making rather he merely approves. Participation uses the creativity of all persons thereby all of them contributes something in decision making.
ORGANISATIONAL CHANGE
“Around 25 to 30 percent of the existing companies might be forced to stop operations in the country in the next 2 – 3 years. This trend is likely to take place because of the increasing change in the Indian economy which has moved from the regulated and protected regime towards a more open and competitive the regulated and protected regime towards a  more open and competitive economy. In this changing perspective, only those who have capacity to compete and survive would emerge and take over the place of old ones.” 
FACTORS IN ORGANISATIONAL CHANGE
Organizational changes are required to maintain equilibrium between various external and internal forces to achieve organizational goals. Therefore various factors which may be important for necessitating organizational changes may be grouped into two categories: external and internal.
EXTERNAL FACTORS
Every organization exists in some context: no organization is an island in itself. Each must continually interact with other organizations and individuals – the consumers, suppliers, unions, shareholders, government – and many more. Each organizations has goals and responsibility related to others in its environment. Thus not only an organization must deal with its environment in conducting its affairs, but it must also give considerations to the goals of others as it establishers its foals and conducts its operations. The present – day environment is dynamic and will continue to be dynamic. Changes in social, political, economic technological and legal environment force organizations to change themselves. Such change may result in organizational changes like major functions, production process, labour – management relations, nature of competition, economic constraints, organization methods etc. in order to survive in the changing environment, organization must change. How the change in various environmental factors necessitate change in the organization may be seen in the following context:
1.    Technological Changes: when there is a change in technology in the organization’s environment and other organizations adopt the new technology, the organization under focus becomes less cost effective and its competitive position weakens. Therefore, it has to adopt new technology. When the organizations adopts a new technology, its work structure is affected and a now equilibrium has to be established. For example computers and automation have made significant impact on organizational functioning.

2.    Changes in Marketing Conditions: Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization – other organizations supplying the same products and buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when Indian economy was liberalized (the process still continues), there were many foreign organizations which entered the Indian market. This forced many Indian organizations to realign themselves with the new situation. The result is that there have been many cases of divesting the businesses and concentrating on the core businesses, acquiring core businesses, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking – disliking and income disposal for a product. These changes force the organizations to bring those products which meet buyers requirements.

3.    Social changes: Social changes reflect in terms of people’s aspirations, their needs, and their way to working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people.

4.    Political and Legal Changes: Political and legal factors broadly define the activities which an organization can undertake and the methods which will be followed by it in accomplishing those activities. Any change in these political and legal factors may affect the organizational operation.


INTERNAL FACTORS
It is not only the change in external factors which may necessitate organizational change, any change in organization’s internal factors may also necessitate change. Such a change is required because of two reasons: change in managerial personnel and deficiency in existing organizational practices.
1.    Change in Managerial Personnel: Besides environmental; changes, there is a change in managerial personnel. Old managers are replaced by new managers which is necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working in the organization. The manager brings his own ideas and way of working in the organization. The relationships more particularly informal ones, change because of changes in managerial personnel. Moreover, attitudes of the personnel change even though there is not change in them. The result is that an organization has to change accordingly.

2.    Deficiency in Existing Organization:   Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lacks in coordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co – operative between line and staff and so on.

PLANNED CHANGE: 
One of Newton’s law is that “bodies in motion tend to stay in motion: bodies at rest”. There is an organizational version of this basis truth. Those who believe in growth and forward movement tend to be exemplars of change, while those who believe in “this is how we do things around here” lead to doom. Therefore, bringing change in planned manner is the prime responsibility of all managers who are forward looking. Planned change aims to prepare the total organization, or a major portion of it, to adapt to significant changes in the organization’s goals and direction. Thomas and Bennis have defined planned change as follows:
“Planned change is the deliberate design and implementation of a structural innovation, a new policy or goal or a change in operating philosophy, climate or style.”


Planned change attempts at all aspects of the organization which are closed interrelated: technology, task, structure, people as shown in figure 25.1

Structure
Task
Technology
People
 







TECHNOLOGY RELATED CHANGES:
Technology refers to the sum total of knowledge providing ways to do things. It may include inventions and techniques which affect the way of doing things, this is designing, producing and distributing products. Technology related changes may include:
1.    changing problem – solving and decision making procedures.
2.    introduction of automated data processing devices like computers to facilitate managerial planning and control.
3.    change in methods of production like conversion of unit production to mass production.

Thus any change in technology necessitates change in all these factors.
TASK RELATED CHANGES:
Technology – related changes determine the types of task that may be required to complete an operation. However what alternatives are chosen must consider the core job characteristics – skill variety, task identity, task significance, autonomy, and feedback from the job. Task related changes must focus on :
1.    High internal work motivation.
2.    High quality work performance.



STRUCTURE – RELATED CHANGES
Structural changes redefine nature of relationships among various organizational positions and may include:
1.    changing the number of hierarchical levels.
2.    changing one form of organization to another form.
3.    changing span of management and
4.    changing line – staff and functional authority.
5.     
When structural changes are effected, these may affect the formal reporting relationships, formal interaction pattern and consequently informal relations. 
PEOPLE – RELATED CHANGES
Changes of any type as pointed out above require changes in people in an organization. These changes may be of two types – skills and behavior. The magnitude of these changes depends on the type of change. For example , if there is a change in technology say from manual to automated, it requires different type of skills in the operators as compared to the previously used skills. Similarly, changes in behavior and the social – psychological factors determining behavior are required.
OBJECTIVES OF PLANNED CHANGE
The planned change is needed to meet the overall objectives of the organization. Since there may be changes in the forces – both internal and external – affecting organizational functioning the organization has to make suitable change to meet its objectives. Thus objectives for such change may be two fold:
1.    modification of the organizations mode of adaptation to changes in its environment and
2.    modification of structure, technology attitudes, values and other behavioral construct of people in the organization.

1.    Environmental Adaptation: Organization is basically adaptive – coping system . it has to work in an environment which is marked by dynamic characteristics. Every organization has a tendency to maintain balance and equilibrium. Because of changes in the environment, the organizational equilibrium is affected. If the changes are minor and come within the preview of existing programmers, the organization will accommodate them automatically. However, if the changes cannot be adapted to the existing framework, the organizational equilibrium will be imbalanced and organizational effectiveness is adversely affected. IN this case, the organization requires some innovation. This innovation is in the form of various changes which the organization has to incorporate. Simply because of this reason, every organization has adaptive subsystem, such as research and development department, marketing research department and so on.

2.    Individual Adaption: The second objective of planned change is to achieve individual adaptation. The organization cannot reach to the objective of its environmental adaptation unless some basic internal adaptation is achieved. These internal factors may be individuals, organization structure, technology, and task. Individuals are the first in this contact. For organizational effectiveness, people have to change themselves so that they can cope with the requirement of changed circumstances. Such changes may be required in their attitudes, communication system, way of behaving, leadership and work styles, and other relevant organizational behavior. Such changes must be made according to the need for the new situation.


3.    Structural Adaption: Organization structure is the pattern of relationships among various positions and among various position holders. Structural adaptation involves changing the internal structure of the organization. This change may be in the whole set of relationships, work assignment and authority structure. Change in organization structure is required because old relationships and interactions no longer remain valid and useful in the changed circumstances.

4.    Technological Adaptation: The impact of recent technological development has forced the organization to take into account the role of technology in organizational success. In order to cope with the changed environment which may include technological factor as well, the organization has to incorporate new technology. Thus this technological adaptation forces directly the organization to change its task.


5.    Task Adaptation: Technological changes may bring many types of changes in organizational task. Task forces on the job performed by the individuals in the organization. Since, there may be many new type of jobs, the existing job performing techniques may not be suitable. Moreover there may be new job load because of the job enlargement. In such a case, a new equilibrium has to be found out which matches people with jobs. In this matching process, there may be several problems which must be encountered by planned change.

Chapter II CORPORATE STRATEGY

Our principles: We recognize that we must integrate our business values and operations to meet the expectations of our stakeholders. They ...