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Organization Change: Theory and Practice, Sixth Edition Chapter 3: A Brief History of Organization Change

Scientific Management (1 of 3)

Taylor’s conception of organization.

Broader context of organizational change.

In terms of operating principles.

Data gathering.

3.1. Identify the components of Frederick Taylor’s scientific management approach.

Scientific Management

Taylor’s conception of organization: It was a that of a machine and should therefore be studied in scientific terms.

Broader context of organizational change:

The Industrial Revolution was in full swing,

The predominant type of organization experiencing considerable growth was manufacturing, and

The primary disciplines providing a strong foundation were economics and engineering.

In terms of operating principles: The machine is based on the idea of a physical entity with movable and replaceable parts.

Data gathering:

Amassing “traditional” knowledge about the way work has been done in the past, through discussions with workers and observations of their work; recording the knowledge; tabulating it; and reducing it to rules, laws, and, if possible, mathematical formulas.

Taylor used time-and-motion-study methods.

Scientific Management (2 of 3)

Worker selection and development.

Integration: science and the worker.

Redivision of the work of business.

3.1. Identify the components of Frederick Taylor’s scientific management approach.

Scientific Management

Worker selection and development: One needs to pay attention to selecting and placing the worker in a job that properly matches their human skills and ability.

Integration of the science and the trained worker:

One needs to bring together scientific management and the trained worker to “make” the worker and science come together.

Workers needed to be treated well, taking into consideration their wishes and allowing them “to express their wants freely”.

Taylor was a proponent of incentive pay.

However, if a worker refused to perform the new modes of work, then moving that person out was the proper step to take.

Scientific management did not mean mollycoddling the workers.

Taylor believed that changing managers was far more difficult than changing workers.

For scientific management to succeed, management must assume new modes of work.

Redivision of the work of the business:

Dividing the work of the company into two large parts.

The job of the worker was to perform the work itself, and the job of management was to plan and monitor the work.

Managers were to constantly collect and analyze data and then plan the next segment of the company’s work accordingly.

They were also responsible for providing the requisite resources for the workers to do their jobs.

Cooperation between workers and managers for this division of labor to succeed was very important.

Scientific Management (3 of 3)

Challenges of Taylor’s process.

Workers: feeling animals.

Initiatives evolved from Taylor’s methods.

3.1. Identify the components of Frederick Taylor’s scientific management approach.

Scientific Management

Challenges of Taylor’s process:

Executives were too often desirous of quick gains and only partially or inappropriately applied the methods.

Workers resisted being used for no other reason than to make more money faster, at their expense.

Workers: feeling animals:

Taylor recognized that workers were “feeling animals” and that they should be treated humanely.

The factor that would achieve the greatest efficiencies and have the most powerful and lasting effect on the organization would be data collected systematically, analyzed carefully, and applied rigorously.

Initiatives evolved from Taylor’s methods: Initiatives such as reengineering and business process engineering, ISO 9000, six sigma, and total quality management.

The Hawthorne Studies (1 of 4)

Studying worker productivity.

The illumination experiments.

The relay assembly group experiments.

3.2. Describe the methods used in the Hawthorne Studies.

The Hawthorne Studies

Experiments for studying worker productivity:

Beginning in 1924 and continuing into 1933, the Western Electric Company sponsored a series of experiments for studying worker productivity and morale at its Hawthorne Works, in Chicago.

The researchers, from the Harvard Business School, were led by Fritz Roethlisberger, T. N. Whitehead, Elton Mayo, and George Homans and by W. J. Dickson of Western Electric.

The studies can be categorized according to types of experiments, types of workers studied, and time period.

The illumination experiments:

In the illumination experiments, lighting was changed in a variety of ways for a test group consisting of women.

As lighting was increased, productivity increased.

However, productivity continued to increase even when lighting was subsequently decreased.

In some cases, even when the researchers pretended to change the illumination, the women responded positively and productivity increased.

Throughout these experiments, regardless of whether the workers were in the test group or the control group, production either increased or did not change significantly.

The researchers concluded that worker attitude, not lighting, was a significant factor with respect to employee output.

The relay assembly group experiments:

The relay assembly group experiments, were conducted with a group of six women who assembled part of the standard telephone.

The variables studied were shorter working periods, incentive pay, personal health, and supervision.

The conditions of the study were that (1) the women worked in a special, separate area, (2) they were continuously observed by a researcher, (3) they were consulted by the researcher-observer prior to any change, and (4) although the observer served as a supervisor of sorts, it was clear to the women workers that he was not a formal part of management.

Conclusion: there is no cause-and-effect relationship between working conditions and productivity.

The Hawthorne Studies (2 of 4)

The interviewing program.

The bank-wiring group studies.

Understanding organization change.

3.2. Describe the methods used in the Hawthorne Studies.

The Hawthorne Studies

The interviewing program:

This program began as a vast data-collection process using individual interviews.

The interviews tended to become counseling sessions, and the researchers learnt about employee attitudes, particularly those relating to supervision, worker relationships, and the importance of perceived status.

A major outcome of these interview studies was learning how to teach supervisors about handling employee complaints: teaching them that an employee’s complaint frequently is a symptom of some underlying problem, one that exists either on the job, at home, or in the person’s past.

The bank-wiring group studies:

Conducted with a bank-wiring group of 14 men.

This group’s job was to wire and solder banks of equipment for central connecting services.

The group was separated for study, and data were collected by observers.

The findings of this study concerned the importance of group norms and standards and the informal organization.

Understanding organization change: The Hawthorne studies are significant as a precursor to our understanding of organization change.

The Hawthorne Studies (3 of 4)

Factors influencing worker productivity.

Variables for worker satisfaction.

Humanistic treatment of workers.

3.2. Describe the methods used in the Hawthorne Studies.

The Hawthorne Studies

Factors influencing worker productivity: The Hawthorne Studies demonstrated the important influence of psychological or human factors on worker productivity and morale.

Variables for worker satisfaction: They signaled the criticality of certain variables for worker satisfaction: autonomy on the job, the relative lack of a need for close supervision of people who know their jobs, the importance of receiving feedback on the direct relationship between performance and reward, and having choices and some influence over change.

Humanistic treatment of workers: They ushered in more humanistic treatment of workers on the job.

The Hawthorne Studies (4 of 4)

Evidence for later theory.

Stimulus and data for group dynamics.

3.2. Describe the methods used in the Hawthorne Studies.

The Hawthorne Studies

Evidence for later theory: They provided evidence for later theory, such as Herzberg’s motivation-hygiene notion, that there is no direct cause-effect relationship between working conditions and productivity.

Stimulus and data for group dynamics: They provided the stimulus and data for much of what we now know about group dynamics, especially in a work context.

Industrial Psychology (1 of 2)

Industrial and organizational psychology.

Research project by Fleishman (1953).

Study of leadership.

3.3. Explain the concept of industrial psychology.

Industrial psychology

Industrial and organizational psychology:

Industrial psychology is now called industrial and organizational psychology, and the expanded label reflects changes in the field.

Prior to, during, and immediately after World War II, industrial psychology was largely limited to business, industrial, and military organizations.

Its primary thrust was testing, along with studies of morale and efficiency.

As a result of the war effort, psychological testing came into its own.

Industrial psychologists were also involved in training and development, especially supervisory and management training, during and after the war.

Research project by Fleishman (1953):

It combined supervisory training and the development of a psychological test.

This series of studies was highly significant as provided useful background for our current understanding of organization change.

Study of leadership:

Fleishman (1953) was interested in the study of leadership and in the consequences of supervisory training: whether supervisors’ attitudes and behavior would change as a result of a 2-week training program on leadership principles and techniques.

Using several questionnaires, Fleishman took measures before the training and immediately after the program.

Measures were also taken from a control group of supervisors and from the bosses and subordinates of both groups, the trained and untrained supervisors.

The same tests were administered at various intervals, ranging from 2 to 39 months later.

Industrial Psychology (2 of 2)

Two primary functions of leadership.

Outcome.

Critical point about organization change.

3.3. Explain the concept of industrial psychology.

Industrial psychology

Two primary functions of leadership: The tests reflected two primary functions of leadership: (1) initiation of structure, the provision of task direction and conditions for effective performance, and (2) consideration, the leader’s sensitivity to and consideration of subordinates’ needs and feelings.

Outcome:

Initially, the supervisors who had received the training scored significantly higher on consideration in comparison with both their own previous scores and the scores of the control group.

However, with time, these supervisors not only gradually reverted to their original behavior but ended up being less considerate than the control group.

There was a direct relationship between the attitudes and the behavior of the supervisors and those of their bosses.

Moreover, this relationship was stronger than the effects of training.

Critical point about organization change:

Organization change was not likely to occur as a result of an individual change strategy unless the objective of the training was in the same direction as the desired overall organization change.

The Fleishman study illustrated a critical point about organization change: the difference between focusing on the individual and focusing on contextual variables and systemic factors.

Survey Feedback (1 of 3)

Leadership questionnaires.

Questionnaires for organizational diagnosis.

Likert’s institute.

Organizational survey feedback method.

3.4. Discuss the importance and use of survey feedback.

Survey Feedback

Leadership questionnaires: Leadership questionnaires typically have been associated with a group of psychologists at Ohio State University in the 1950s.

Questionnaires for organizational diagnosis: Questionnaires for organizational diagnosis are more likely to be associated with the psychologists of the 1950s and 1960s at the Institute for Social Research of the University of Michigan.

Likert’s institute:

Rensis Likert, the first director of the institute, started by founding the Survey Research Center in 1946.

Kurt Lewin founded the Research Center for Group Dynamics at the Massachusetts Institute of Technology.

These two centers initially constituted Likert’s institute.

Organizational survey feedback method:

Questionnaire surveys for organization diagnosis and for group dynamics combined to form the organizational survey feedback method.

Since 1947, questionnaires were being used to systematically assess employee morale and attitudes in organizations.

Survey Feedback (2 of 3)

Evolution of survey feedback method.

Survey and feedback.

Interlocking chain of conferences.

3.4. Discuss the importance and use of survey feedback.

Survey Feedback

Evolution of organizational survey feedback method:

Floyd Mann (1957) was important for the development of this method.

He noted that when a manager was given the survey results, any resulting improvement depended on what the manager did with the information.

Survey and feedback:

First, the survey feedback method involves the survey, data collection by questionnaire to determine employees’ perceptions of a variety of factors, focusing mainly on the management of the organization.

Second is the feedback, in which results of the survey are reported back systematically in summary form to all people who answered the questionnaire.

Interlocking chain of conferences:

The feedback occurs systematically, in phases, starting with the top team of the organization and flowing downward according to the formal hierarchy and within functional units or teams.

This process is the “interlocking chain of conferences.”

The chief executive officer, the division general manager, or the bureau chief and his or her immediate group of subordinates receive and discuss feedback from the survey first.

Next, the subordinates and their respective groups of immediate subordinates do the same, and so forth, downward, until all members of the organization who have been surveyed (1) hear a summary of the survey and then (2) participate in a discussion of the meaning of the data and the implications.

Survey Feedback (3 of 3)

Profile of Organizational Characteristics.

Four system types.

Survey feedback a powerful tool.

3.4. Discuss the importance and use of survey feedback.

Survey Feedback

Profile of Organizational Characteristics:

Rensis Likert (1967) developed “Profile of Organizational Characteristics,” a questionnaire and model consisting of six sections: leadership, motivation, communication, decisions, goals, and control.

These six were surveyed within an overall framework of four organizational categories or systems.

Four system types:

System 1: autocratic, System 2: benevolent autocracy, System 3: consultative, and System 4: participative and consensus management.

Likert argued that System 4 was the most desirable and that most employees felt the same way.

Survey feedback a powerful tool:

It is based on data.

It involves organization members directly.

It provides information about what to change and according to which priority.

It focuses change on the larger system, not on individuals per se.

Sensitivity Training

Kurt Lewin’s training workshop (1946).

Impactful and far-reaching results.

Small-group discussions.

T-groups: educational vehicles for change.

3.5. Describe sensitivity training.

Sensitivity Training

Kurt Lewin’s training workshop (1946):

Kurt Lewin brought together a group of colleagues and students to serve as trainers (Leland Bradford, Ronald Lippitt, and Kenneth Benne) and researchers (Morton Deutsch, Murray Horwitz, Arnold Meier, and Melvin Seeman) for the workshop.

The training consisted of lectures, role play, general group discussion, and meetings to evaluate the training to that point by discussing participant behavior as they had observed it during the day.

Impactful and far-reaching results:

The staff and participants discovered that the feedback the participants were receiving about their daytime behavior was teaching them as much as or more than the daytime activities were.

The participants were becoming more sensitive to how they were being perceived by others and the impact their behavior was having on others.

Small-group discussions:

Sensitivity training, T-groups, and laboratory training are labels for small-group discussions in which the primary source of information for learning is the behavior of the group members themselves.

Participants receive feedback from one another on their behavior in the group, and this feedback becomes the learning source for personal insight and development.

Participants also have an opportunity to learn more about group behavior and intergroup relationships.

T-groups educational vehicles for change:

T-groups (T is for training) are educational vehicles for individual change.

The T-group became one of the earliest interventions in what became known as organization development.

Sociotechnical Systems (1 of 2)

Two action research projects.

New paradigm discovered.

Principles of the sociotechnical systems.

Change through a sociotechnical lens.

3.6. Identify a sociotechnical system.

Sociotechnical Systems

Two action research projects:

There were two action research projects at the Tavistock Institute, London, in the late 1940s.

One studied group relations (like the T-group but different in the role of the group trainer, called a consultant).

The other project studied the diffusion of innovative work practices and organizational arrangements.

The former emphasized individual learning about oneself and group and intergroup dynamics, and the latter emphasized organizational matters, especially organization change.

Eric Trist was the leader of this latter project.

New paradigm discovered:

The newly nationalized coal industry, then the major source of power in the United Kingdom, had problems with productivity, turnover, the union, and adaptation to new technology.

One exception occurred in the South Yorkshire coalfield.

Trist (1993) discovered a new paradigm of work which the coal miners had designed it themselves.

Trist conceptualized and further developed the new paradigm, and it became known as sociotechnical systems, a new field of inquiry and approach to organization change.

Principles of the sociotechnical systems:

Work organizations consist of two interdependent systems: the technical system (equipment, machinery, chemical processes, etc.) and the social system (individual workers and groups of workers).

The work system is the basic unit, comprising a set of activities that make up a functioning whole, rather than single jobs and tasks.

The work group, rather than the individual jobholder, is central.

Regulation of the system is performed by the group itself, instead of by supervisors.

An individual worker is complementary to the machine, rather than an extension of it.

Change through a sociotechnical lens:

One would gather data about both the social and technical systems but would then consider and act with the perspective that the two are interdependent.

A change in one system will directly affect the other, and this effect must be treated as another leverage in the change process.

Sociotechnical Systems (2 of 2)

Primary work systems.

Whole organization systems.

Macrosocial systems

3.6. Identify a sociotechnical system.

Sociotechnical Systems

Primary work systems: identifiable and bounded subsystems of a whole organization, such as a department or a business unit.

Whole organization systems: the entire company or institution; they persist by maintaining a reasonably steady state within their environment.

Macrosocial systems: organizations within communities and industrial sectors, as well as institutions operating at a societal level, such as national government.

Organization Development (1 of 3)

Emergence of organization development.

Sensitivity training intervention.

Team building.

Sociotechnical systems change effort.

3.7. Discuss how sensitivity training and sociotechnical systems inform organization development.

Organization Development

Emergence of organization development

Both sensitivity training and sociotechnical systems set the stage for the emergence of organization development (OD)

As the T-group method of learning and change began to proliferate in the 1950s, it gradually gravitated to organizational life.

Sensitivity training:

Sensitivity training began to be used as an intervention for organization change.

In this application, the training was conducted inside a single organization, and members of the small T-groups were either organizational “cousins,” from the same overall organization but not within the same vertical chain of the organization’s hierarchy, or members of the same organizational team, so-called family groups.

One of the first events to improve organization effectiveness by sensitivity training took place with managers at some of the major refineries of Exxon in Louisiana and southeast Texas.

Team building: The events at Esso and Union Carbide represented the early characteristics of OD, which usually took the form of what we now call team building.

Sociotechnical systems change effort:

In the late 1950s, McGregor and Richard Beckhard were working on a sociotechnical systems change effort.

They helped to change some of the work structures at the various plants so that more teamwork and increased decision making took place on the shop floor; more “bottoms-up” management began to occur.

They did not want to call what they were doing “bottoms-up,” nor were they satisfied with “sociotechnical systems” or “organization improvement,” so they eventually labeled their effort “organization development.”

Organization Development (2 of 3)

TRW Systems.

Action research approach.

Applied behavioral science.

3.7. Discuss how sensitivity training and sociotechnical systems inform organization development.

Organization Development

TRW Systems:

The first sustained long-term OD efforts were conducted with TRW Systems, the aerospace division of TRW, Inc., and with the Harwood-Weldon Manufacturing Corporation.

During the early 1960s, Herbert Shepard consulted with TRW Systems and worked particularly with internal employee relations managers James Dunlap and Sheldon Davis.

Team building was the primary intervention used in those early days.

The external and internal consultants at TRW during the 1960s helped to invent much of the OD technology we use toda, such as the organization mirror, and other quick techniques for team diagnosis.

Action research approach:

The primary method at Harwood-Weldon started with an action research approach conducting a study for the purpose of application and corrective action to some problem.

It then gradually incorporated the method of survey feedback developed at the University of Michigan.

Applied behavioral science:

OD is an approach to organization change based on applied behavioral science and is reliant on the action research approach.

It is steeped in the theoretical tradition of applied social psychology, especially the work of Kurt Lewin.

Organization Development (3 of 3)

Methodological model.

Specific techniques used.

Strong humanistic value system.

3.7. Discuss how sensitivity training and sociotechnical systems inform organization development.

Organization Development

Methodological model: The methodological model for OD is action research: Data on the nature of certain problems are systematically collected, and then action is taken as a function of what the analyzed data indicate.

Specific techniques used:

Diagnosis, interviews with both individuals and groups and perhaps the use of a questionnaire and observation, followed by analysis and organization of the data collected.

Feedback, reporting back to those from whom the data were obtained on the collective sense of the organizational problems.

Discussion of what these data mean and planning the steps that should be taken as a consequence.

Taking those steps. In OD language, taking a step is making an intervention into the routine way in which the organization operates.

Strong humanistic value system: The field of OD is imbued with a strong humanistic value system, making certain that organization members are involved in the change decisions that will directly affect them and that interventions are frequently focused on change in the organization’s culture.

The Managerial Grid and Organization Development (1 of 3)

Blake and Mouton’s managerial grid.

Initiation of structure and consideration.

Managerial grid.

Grid organization development.

3.8. Explain the use of a managerial grid with organization development.

The Managerial Grid and Organization Development

Blake and Mouton’s managerial grid: A comparatively highly structured approach to change, both individual and organizational.

Initiation of structure and consideration:

Blake and Mouton (1964) took the two dimensions of leadership, initiation of structure and consideration, relabeled them production and people, respectively, and specified that the typical leader or manager had different concerns about each.

They arranged these two concerns on a graph, using 9-point scales to represent the degree of concern.

Managerial grid:

The juxtaposition on a graph resulted in what they called the “managerial grid,” a two-dimensional model that describes managerial style.

The greater the concern for production, the more autocratic the manager’s style tends to be; the greater the concern with people, the more permissive the management style.

Blake and Mouton argue that a manager who has a simultaneously high concern for both production and people (a “9,9 style”) is likely to be the most effective.

Grid organization development: Blake and Mouton applied the grid model to organization change, calling their approach “grid organization development.”

The Managerial Grid and Organization Development (2 of 3)

Barriers to organizational effectiveness.

Phase 1: training managers.

Phase 2: teamwork development.

Phase 3: intergroup development.

3.8. Explain the use of a managerial grid with organization development.

The Managerial Grid and Organization Development

Barriers to organizational effectiveness:

The most common barriers to organizational effectiveness were (1) communication problems and (2) a lack of planning.

Poor planning or the lack of planning stem from senior management’s not having a strategy or having a faulty one.

Communication problems come from poor supervision and management.

Phase 1: The first phase in the grid OD approach was to train all managers in how to become a 9,9, or participative, manager. This usually required five days.

Phase 2: teamwork development: applying what had occurred in Phase 1 with “cousin” groups to “family” units. In addition, group norms and working characteristics of the team were identified.

Phase 3: intergroup development: it characterized cooperative behavior as opposed to competition between groups in the organization; often referred to as cross-functional group work.

The Managerial Grid and Organization Development (3 of 3)

Phase 4: developing a strategic model.

Phase 5: implementation.

Phase 6: a systematic critique.

Lock-step approach.

3.8. Explain the use of a managerial grid with organization development.

The Managerial Grid and Organization Development

Phase 4: developing an ideal strategic corporate model.

Phase 5: implementation of Phase 4.

Phase 6: a systematic critique of the previous five phases: There is a particular focus on specific barriers to change that still existed and needed to be overcome.

Lock-step approach: It is more a matter of senior management’s tolerance for a lock-step approach that is based on one best way to manage, participative, which goes against the grain of many organizational managers.

Coercion and Confrontation

In-group and out-group theory.

Experiments dealing with conflict.

Reveille for Radicals.

Building community organization.

3.9. Examine coercion and confrontation strategies.

Coercion and Confrontation

In-group and out-group theory:

Groups, such as unions, minorities, and the disabled, who feel disenfranchised by the organization that employs them and confront or attempt to coerce management for changes may be understood to some degree by considering in-group and out-group theory and research.

Experiments dealing with conflict:

The idea of a superordinate goal or common enemy is proposed to focus attention more on cooperation and less on competition and confrontation.

Practical applications of such ideas for organization change may be found in publications such as Blake, Shepard, and Mouton (1964); Burke (1974); and Burke and Biggart (1997).

Reveille for Radicals:

Saul Alinsky’s book Reveille for Radicals became a handbook for how to organize and challenge accepted authority.

Many of his targets were organizations that he attempted to change through coercion and confrontation.

Building community organization:

The phases of Alinsky’s model were entry, data collection, goal setting, and organizing.

Even though the underlying value systems and tactics differ, the overall framework for how to conceptualize the main phases of change is essentially the same.

Management Consulting (1 of 2)

Earliest management consultants.

McKinsey and Taylor.

Strict problem-solving process.

Begins with gathering information.

3.10. Describe how and why management consultants are used.

Management Consulting

Earliest management consultants:

One of the first management consultants of modern times was Frederick Taylor.

From the standpoint of establishing a professional service firm devoted to management consulting, the first in the United States, was James O. McKinsey, and in the United Kingdom was Lyndall F. Urwick.

McKinsey and Taylor:

McKinsey started his consulting company around 1923 in Chicago.

He was impressed with the rigor of Taylor’s approach and stressed the importance of engineering principles for helping organizations improve and change.

Whereas Taylor stressed a scientific approach, McKinsey emphasized professionalism.

McKinsey and Company is a firm of professional practice, not a business per se.

McKinsey believed that three ingredients were critical to establishing a professional practice: Unquestioned respectability, professional exposure, and reputation.

Strict problem-solving process:

The McKinsey way of consulting, as it is for most management consulting firms, is to employ a strict problem-solving process (Rasiel, 1999).

Begins with gathering information:

First, the consultant gathers as much factual information about the client organization’s problem as possible.

Although this presenting problem is real, it is a symptom of something. Finding that “something” is the task.

The consultant uses interviews, particularly with people from the sales force; company records that reflect, for example, sales and marketing strategies and tactics; survey data from customers; and accounting and financial information to collect as many facts as possible.

Experienced management consultants believe that “facts are friendly” and that being fact-based is the same as being a credible, competent consultant.

Management Consulting (2 of 2)

Initial hypothesis formulated.

Highly structured process.

Modus operandi.

Change management.

3.10. Describe how and why management consultants are used.

Management Consulting

Initial hypothesis formulated: After a thorough analysis of the facts, an initial hypothesis is formulated, to be tested with the client.

Highly structured process:

Limiting the recommendations for solving the problem to what can realistically be done with the client’s resources, the consulting firm’s resources, and amount of time required.

Proposing a reasonable number of recommended actions.

Establishing milestones that can be met with targets that can be achieved, along with the verbal assurance that the client will be satisfied.

Modus operandi:

Applying the scientific method of data gathering, analysis, hypothesis generation, testing the hypothesis, and action, and basing remedies for the problem on these facts and the hypothesis.

McKinsey and Company adopted Taylor’s approach and added their own structured way of problem solving.

Change management:

Major firms today include as part of their practice what has been referred to as change management.

Change management is an attempt to integrate some of the standard aspects of management consulting with organization change methods that are based on applied behavioral science, particularly organizational psychology.