COLLEGE OF DEFENCE MANAGEMENT

GENERAL MANAGEMENT

INDEX – HDMC-05 - VOLUME – 1

S.No. Subject Reference Page Nos

No.

1. Challenges to Defence Management CDM/GM/1 1-10

2. Functions of Management CDM/GM/2 11-22

3. Organisation – Structure and Design CDM/GM/3 23-32

4. Organisation Design : “Fashion or Fit” – Henry

Mintzberg’s Views on Organisation Design CDM/GM/4 33-56

5. Organisational Effectiveness CDM/GM/5 57-66

6. Authority and Delegation CDM/GM/6 67-82

7. Management of Change CDM/GM/7 83-97

8. Attitudinal Changes by Training CDM/GM/8 98-105

9. Knowledge Management & Learning CDM/GM/9

Organisation 106-122

10. Measuring Organisation Effectiveness :

Goal Setting and Bench Marking CDM/GM/10 123-129

11. Member Development CDM/GM/11 130-140

12. Leader Member Relationship CDM/GM/12 141-148

13. Effective Counselling & Mentoring CDM/GM/13 149-164

14. Organisation Climate CDM/GM/14 165-177

15. Negotiations CDM/GM/15 178-191

16. Management of Time CDM/GM/16 192-201

17. Appraisal CDM/GM/17 202-213

18. Systems Approach to Training CDM/GM/18 214-223

19. Performance Management CDM/GM/19 224-241

 CDM/GM/1

COLLEGE OF DEFENCE MANAGEMENT

CHALLENGES TO DEFENCE MANAGEMENT

Enabling Objectives
• To be able to appreciate the nuances of defence management.
• To be able to obtain a broad perspective of the differences between corporate
business management and defence management, and compare the concepts of
leadership and management.
• To get a overview of the contemporary challenges to defence management in
India.

Learning Objectives

• To analyse the complexities of defence management in India and explore

feasibility of possible approaches to the problems.

“The warriors of legend, the commanders who achieved great feats on

the battlefield, were first and foremost, highly effective managers ……
Campaigns don’t result in many, or any, actual battles. The skills required to
manage a campaign successfully were those that separated the ‘Great
Captains’ from rest of the pack. Thus, most of the ‘Great Captains’ time was
spent managing… In war, it is preparation that makes the difference….. Until
the past century or so, there was nothing like the large modern business to
manage, except armies.
- J Dunnigan & D Masterson in “The Way of the Warrior”.

GENERAL

1. The armed forces of a nation are a vital component of its national security.
The defence sector of a nation comprises the military, the civilian bureaucracy, the
infrastructure and the industry. The Indian defence sector is a complex fighting
machine comprising nearly 2.8 million combatants and civilians, with an annual
budget of about 2.5 percent of the GDP. In a situation of constantly changing
national and international politico-socio-economic and technological environment,
the development and maintenance of the desired force capability demands a very
high quality of management and leadership at all levels.

2. Defence Management encompasses the basic functions of Management, viz,

forecasting, planning, organizing, directing, coordinating and controlling human,
physical (weapons, equipment, material and finance) and informational resources for
achieving the aims of national security through Force Development (i.e., force
structuring, training, logistics and intelligence) and when required, Force Application
 2 CDM/GM/1

(combat operations on land/sea/air). The diagram below shows the conceptual

framework of defence management.
CONCEPT OF DEFENCE MGT
MANAGEMENT- OPTIMAL UTILISATION OF RESOURCES FOR ACHIEVING ORGANISATIONAL
OBJECTIVES- PROCESS OF CONVERTING RESOURCES INTO RESULTS
RESOURCES RESULTS
INTERNATIONAL ENVIRONMENT
P NATIONAL
H SECURITY
ENVIRONMENT IN INDIA
Y WEAPONS THROUGH
S
I EQPT O WAR/OPERATIONS
C
A
MATERIALS POLITICAL ARMED ECONOMIC B ON LAND/SEA/AIR
NEED TO BE
FINANCE
L ARMED
FORCES
FORCES
J OPERATIONALLY
READY AT ALL
PROCESS TIMES
H DIRECTING
E
U COMMAND I FORECASTING O THROUGH

M
N
P
COORDINATING
PLANNING
CONTROLLING
U
T
C LEADERSHIP
DIRECTING P
A
N
STAFF
U
T COORDINATING U
T
T TACTICS/ DOCTRINE
CONTROLLING TRAINING
I INFRASTRUCTURE
OTHERS TECHNOLOGICAL
SOCIAL
V OPERATIONAL
SUPPORT
E (LG./WPNS&EQPT/
I OP LGS
N INTELLI- S INTELLIGENCE
F
O
GENCE

3. The very scale and heterogeneity of resources, criticality of achievement of

objectives in combat/non combat situations and the peculiar environment in which
the armed forces operate, make the concept of defence management markedly
different from any other field such as business or industry.
4. The main areas of activities for business/industry can be production,
marketing, finance, personnel, and industrial relations etc, most of which are
tangible/ measurable. However, in defence services, the main areas of activities can
be divided into combat operations, operational logistics, training, intelligence
gathering, equipment management etc. It is obvious that a large number of these
activities are intangible and therefore difficult to quantify. Yet another unique feature
of defence management is the environment in which the armed forces function. The
operational areas extend from the high altitude region of Himalayas to the arid
deserts of Rajasthan. The ongoing Low Intensity Conflict Operations (LICO) pose
many challenges to the commanders and the logisticians and are fraught with
extreme danger and uncertainties. Scarce resources in almost every area pose a
dilemma of sorts to the commanders. At the same time, the public continues to
expect the very best from the armed forces despite the large scale shortages and
inordinate delays in modernisation due to shrinking budgetary allocations.

AIM

5. The aim of this paper is to discuss the nuances of management and

leadership in defence, and to highlight the challenges to defence management in the
Indian armed forces.
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SCOPE

6. Following issues are being addressed in the paper : -

(a) Management Vs Leadership.

(b) Military Leadership Vs Corporate Leadership.

(c) Challenges to Defence Management

(i) Optimisation of Scarce Resources.

(ii) Restructuring and Change Management.

(iii) Technology Management and indigenisation.

(iv) Equipment Management.

(v) Organization and Process Reforms.

(vi) Jointmanship
(vii) Human Resource Management and Leadership Challenges.

MANAGEMENT VS LEADERSHIP

7. The traditional management thinkers held the view that leadership is integral
part of management. On the other hand, some others like Warren Bennis believe
that both are different and therefore advocate pre-eminence of leadership over
management. The advocates of this thought like to quote McNamara as a good
manager but a bad leader, General Patton as a good leader but as a bad manager
and Montgomery as an ideal combination of both. It is thus argued that
management deals primarily with management science (quantitative aids, material
resources and logistic support systems), whereas leadership emphasizes on the
human dimension.
8. It is suggested that the following attributes of the leader further highlight the
distinction between leadership and management.
(a) Managers supervise people. If their people are not willing to accept and
follow the supervisory authority, the managers are not leaders. Subordinates
may comply with supervisory authority out of fear but such compliance is not a
response to leadership. Similarly, not all leaders are managers. Some
leaders may have followers but no formal authority to manage, hence they are
not managers. For example, informal leaders in a work group are leaders but
may not be managers.
(b) Zalenik points out the difference in our expectations of the behaviour of
managers and leaders. Managers are expected to use their analytical minds
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in establishing and achieving organizational goals, problem solving and

decision making, whereas leaders are expected to be charismatic people with
great vision who can alter the mood of their followers and raise their hopes
and expectations.
(c) Both managers and leaders are responsible for meeting the
organizational demands, as well as those of its members. However,
managers are more concerned with achieving organizational goals and tend to
achieve these in an impersonal manner, while leaders are expected to be
more deeply involved with their followers in doing so.
9. There is no doubt that in military, the leader and the men who follow him
represent one of the oldest, natural and most effective of all human relationships.
However, in an organizational context, where a superior must work with and through
people to achieve organizational goals, regardless of whether he is called a manager
or a leader, if he is to achieve results of a high order, he needs to not only manage
resources available to him effectively but also influence his subordinates in such a
way as to obtain their willing obedience, confidence, respect and co-operation.
Particularly in the military, it is impossible to persuade men to risk their lives for little
or no material reward without a powerful substitute. The substitute must always be a
moral factor, which is created by high quality leadership. We therefore, need to
continue to emphasise the pre-eminence of human factor in military affairs and our
officers should accordingly be trained and influenced to consider themselves
primarily as leaders and inherent in this term should be the ability to manage
effectively the material resources as well as to achieve the goals of the organization.
Thus, it is more wholesome for a military officer aspiring to be an effective leader, to
look at management and leadership as the two sides of the same coin.

MILITARY LEADERSHIP VS CORPORATE LEADERSHIP

10. The qualitative differences between the concepts of leadership in military and
corporate sector can be viewed in two ways – by looking at the ‘levels of leadership
hierarchies’ and ‘stages of activities’.
(a) Levels of Hierarchies. The leadership hierarchy in any organization
can be divided into the functional (or activity), directional and conceptual
levels. In the armed forces, the functional level leadership is qualitatively
different from that in the corporate field. You obviously cannot order a man to
his death. Neither can you risk a failure to accomplish a mission, due to the
criticality of objectives. Therefore the functional level or ‘contact level’
leadership in military lays a very strong emphasis on the concept of ‘Inside
Out’ leadership, which is leadership by personal example and intrinsic (rather
than extrinsic) motivation. It advocates transformational (rather than
transactional) approach to leadership. To a certain extent, this approach to
leadership is also required at the directional level in the military field.
However, at the conceptual and to a certain extent at directional levels, the
emphasis seems to shift from the functions of “leading men” (directing) to the
functions of forecasting, planning, organizing, coordinating and controlling the
complex military machine: in other words, the traditional ‘managerial’
functions. In this sense, there seems to be no qualitative difference between
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the requirements in the mil ‘leader’ and a corporate ‘leader’ at the directional
and conceptual levels.
(b) Stages of Activities. Military activities can broadly be divided into
the two distinct areas: Force Development and Force Application. The first
one involves Human Resource Management (including selection and
recruitment of personnel, reward management – pay structure, adm and
welfare – training and development of individuals), perspective planning, force
structuring, training, and force maintenance. The second one involves
combat, or operations in its military sense. The peculiarities of decision
situations facing a military decision maker in the Force Development stage,
like uncertain, complex and fluid environment, pressure to constantly maintain
the right ‘fit’ between the organisation and the environment and the pressures
of optimum utilization of resources compare favourably with a corporate
decision maker. Here, there is adequate room and emphasis on ‘managerial’
aspects of leadership. However, there is one basic difference. While in a
corporate environment, vision, mission and goals are comparatively easily
quantifiable in terms of performance, quality, productivity, profits etc, the same
is difficult to quantify for a military leader. A military leader therefore must
have a very high conceptual clarity for evolving an appropriate vision and
superior communication skills and dynamism for obtaining the ready
commitment and enthusiasm of the organizational members towards the
vision.
11. In the area of “Force Application”, the proverbial ‘litmus test’ and the ‘raison
d'être’ of the armed forces, the military leader is faced with a unique situational
dilemma, incomparable with his corporate counterpart. In this critical area of
leadership, he has no opportunity for “On the Job” training. Further, notwithstanding
the planning, preparation and training which a military officer undergoes throughout
his life for various contingencies, at the point of decision, he would invariably be
faced with a uniquely new situation with its complexities of uncertainty, insufficient
and often ambiguous information and a very high pressure of the time dimension.
The stress on the military decision maker in the force application stage becomes all
the more apparent when we consider the criticality of achieving the objective, the
stakes involved and frequent moral/ethical dilemmas in terms of the lives of the men
under his command. Therefore, a military leader must have a very high tolerance for
ambiguity, an internal locus of control, the right mix between task and people
orientation and finally, a much higher tolerance for stress, as compared to his
corporate counterpart.

CHALLENGES TO DEFENCE MANAGEMENT

12. Having seen the various important aspects of defence management and the
peculiar circumstances in which military leadership must be applied, we shall now
discuss the challenges facing the military decision maker with specific reference to
the Indian military environment.
13. Pressure to Optimize. In any nation, particularly a developing economy like
ours, there is a maximum limit on resources, which can be spent on defence. In our
context, defence spending over the last few years has stabilized at about 2.5% of the
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GDP. Thus in real terms, the allocation for defence has actually remained constant.
On the other hand, there is the obvious requirement of modernization of defence
forces, demanding mobilization of additional resources. This implies that there is
now a basic requirement of optimizing resources for force maintenance (Revenue
expenditure). Only then shall we be able to spend more towards acquisitions and
modernization (capital expenditure). The problem of finding resources for
modernization is accentuated due to the rising costs of high end technologies.
Finally, defence forces are no more a ‘holy cow’. The management of defence is
coming increasingly coming under media and public scrutiny, forcing the decision
makers to be more accountable than in the past. We therefore seriously need to be
cost conscious and be willing to apply modern management techniques for resource
optimization.
14. Restructuring and Change Management. The strategic compulsions have
forced us to undertake restructuring of the armed forces in certain critical areas. The
establishment of HQ Integrated Defence Staff, and the two integrated commands are
the most glaring examples. The range and depth of such restructuring will only
increase in the near future as a result of the combination of strategic as well as
economic imperatives. Some of the critical issues which can no longer be ignored
are: synergising the training, logistics and operational infrastructure within and
between the services, eliminating duplication of efforts/resources, cutting down on
the ‘noncore’ areas by outsourcing and even Private Finance Initiatives, defence
industry cooperation, and indigenisation to minimize dependence on foreign
technologies. There is obviously a vast room for restructuring in all these and other
such areas. It is axiomatic that these changes would entail substantial financial,
psychological and social costs. Management of change is thus a major challenge
before the military leadership. Military Leadership should seriously conceptualise,
plan and design these changes in order to ensure commitment of stake holders and
bring about attitudinal changes for successful change implementation.
15. Technology Management. According to Ronald Compton, the renowned
CEO of Aetna Life and Casualty, a $590 billion US insurance giant and a highly
successful example of organization reengineering, “Technology is never really a
problem. The problem is how to use it”. In other words, military decision makers will
have to be more deliberate and methodical than hither to fore in their approach to
induction and absorption of technology into the armed forces. The other critical area
in technology management is the ‘Make or Buy’ decisions. The delays and cost
overruns in the Main Battle Tank and Light Combat Aircraft projects for Army and the
Air Force respectively, and possible adverse impact on our force capability are some
of the glaring examples of our lop sided approach in these areas. We therefore need
to address this problem urgently and focus on developing very high skills and
institutionalized structures for environment and technology forecasting, coordination
between all agencies, synergy of efforts and training of personnel.
16. Issues in Defence Technology Management in India. There is growing
demand and need of new technologies in the field of defence and risk of obsolesce
has made it essential to focus on the issues of development and management of
such technologies. Weapon systems are becoming technology intensive and
reduction in ‘development time’ of high technology products and weapons and
increasing obsolescence rate make decisions very important. R & D activities need
tremendous skill and capital. Therefore investments need to be carefully worked out.
There have been numerous instances where DRDO has overshot its stated delivery
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schedule. Although a lot of progress has been made in this direction; yet it still lacks
trust with the user agencies and technology managers. Time cycles are being
compressed to critical levels that challenge not only military commanders but also all
those who are in the loop for application of military force from the political leadership
to the soldier on the front. The main cause is the delays in executing projects
contracted and in their inability to deliver the requisite weapon sys / eqpt to maintain
the combat edge over our adversaries. Technology is changing so rapidly that if a
weapon system with certain specifications is not delivered in time, it then loses its
relevance and is not able to give out the combat superiority, for which it was
designed originally. A delayed induction also results not only in economic and human
losses but at times, loss of morale of the troops. A classic example has been the
development of AJT (Advanced Jet Trainer) by the DRDO / HAL. Finally after
continued delays, the Govt decided to ‘buy’ the product from vendors. Another such
example is the integrated indigenous Electronic Warfare System `SAMYUKTA’. In
this regard, the GoM report states, “ the ways and means of linking financial
commitments in R & D with performance milestones, also need to be evolved with a
view to ensure strict accountability and time responsiveness”.
17. Research and Development in the frontiers of ‘high end’ technologies is thus,
an extremely expensive and time consuming process. It demands clear strategic
vision and evolving a strategy, which must relate the technological needs of the
country to the national Science and Technology capabilities. Considering the global
technological environment and various control regimes, it is extremely important for
India to focus on indigenisation in the area of defence technology management.
18. Indigenisation Strategy. India has a vast reservoir of knowledge and skills.
Unfortunately, we, as a nation, lack the self belief in our technological capabilities.
Thus, the indigenisation strategy must focus on harnessing the talent and
competencies of all players involved in Research and Development- the DRDO, Def
/ Govt PSUs, Civil industry, IITs and a host of other agencies who have developed
these competencies over the years. Indigenous development of technologies further
must be encouraged in the civil industries by funding of high quality research by the
Govt, similar to the processes followed in other developed nations. The DRDO may
itself take a lead in `Outsourcing’ such research and development to the civil sector
through a carefully chalked out strategy. Currently, the post of SAs to our senior
military leadership and RM is held by the R & D scientists of the DRDO, making
objective, unbiased and a holistic scientific advice difficult. Therefore, there is a need
to review this structure. The posts of Scientific Advisor may, if required, be tenanted
by any prominent and competent personality, independent of his affiliations, with a
view to boost the indigenisation process. Finally, the services must believe in the
process of indigenisation and align their acquisition plans to encourage the same.
19. Equipment Management. Rapid induction and proliferation of a wide variety
of state of the art equipment has been a major concern for the maintenance
organisations in the three services, which are finding it difficult to keep pace with the
modernization process. On the other hand, the varied terrain, weather and
operational conditions continue to pose difficulties in maintenance of equipment,
men and materials. In addition, modern equipment calls for high quality of user
maintenance and the requirement to minimize the repair and recovery chain for
optimum exploitation during combat. The inadequate maintenance support for the
night vision devices in the Army and for the modern aircrafts and radars in the Air
Force can be attributed to our inability to adopt a life cycle concept at the conception
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and procurement stage of equipment. We therefore need to develop a ‘systems

approach’ in management of equipment, and consider all issues in the equipment life
cycle, including procurement, infrastructure, operation, maintenance, upgradation,
disposal and training.
20. Organisational and Process Reforms. The establishment of HQ IDS is
only the first step in the long awaited reforms in higher defence organization. A great
deal of maturity, long term planning and high degree of commitment will be required
to achieve the desired integration of the defence services. The other area of reforms
calling for urgent attention is integration of MoD and Service HQs to bring about the
desired synergy between the military and the bureaucratic hierarchy.
21. Jointmanship. A high level of synergy in the development and
application of land, sea and ‘aerospace’ power is the essential requirement of the
modern battlefield environment. Although this basic issue is widely appreciated in
principle, it is often forgotten that jointmanship is first and foremost, a matter of
attitude, followed by the requirement to evolve an objective, impartial, integrated and
institutionalised vision and to devise a well defined roadmap towards credible joint
doctrines, structures and processes. Admittedly, the march towards this goal, as in
any management of change, will not be without its ‘costs’. A very deliberate cost-
benefit and cost-eff analysis of what is desired to be joint and what is possible to be
joint needs to be done, rather than adopting a peripheral/symbolic jointmanship or an
“All or None” approach. We should exploit the inputs from the experiences of other
countries in their experiments in evolving models of jointmanship. Evolving a
consensus on the concept, process and plan for achieving jointmanship in the areas
of force development and force application, and a vigorous implementation of the
plan is indeed a real challenge before us.
22. Human Resource Management. The socio-economic landscape in the
country has undergone a paradigm shift during the last decade or so. The
globalisation, liberalization and prospering of the economy has resulted in opening of
innumerable opportunities, increase in general standard of living and rising
expectations. The break up of the joint family systems even in our rural areas has
resulted in the erosion of the vital social and psychological support systems, which
were inherent strengths of our society. As a result if these changes, there is a
drastic reduction in suitably qualified motivated young men willing to choose a career
in the armed forces. Those who join the armed forces are increasingly getting
dissatisfied with the perceived inability of the organization to take care of their
increasing hygiene needs. Furthermore, a vast majority of our personnel today are
much more aware, educated and qualified than their predecessors. Therefore, there
is an increasing desire for autonomy in work areas and intense competition within
the organisation. Military leaders will increasingly be faced with complex situations
in these areas. For example, how do we attract motivated and suitably qualified men
to the armed forces? How does the organization obtain their commitment to the
organizational goals and values, keep them motivated to perform optimally and
prepare them to willingly sacrifice their lives when required? How do we create
greater opportunities for growth? How do we ensure maximum job satisfaction?
How do we minimize the impact of erosion of social and psychological support
systems with a view to keep up the morale? What kind of systems and emotional
support processes do we need, to develop a high level of “emotional intelligence”
amongst our personnel, so that they are better equipped to deal with the increasingly
complex combat and non combat situations in a high stress environment? What kind
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of reward system in terms of pay and allowances, administration and welfare

policies, promotions and opportunities, support for post retirement employment etc
are desirable and how much can the organisation afford? How do we bring about a
cultural change in the org, where autonomy, delegation and creativity in job
performance are encouraged? How do we satisfy the esteem needs of a soldier?
These are some of the challenges in the area of Human Resource Management,
which need to be addressed in a holistic manner. Creation of a vibrant organization
climate, in which the vital processes of leadership, communication, motivation and
decision-making, propel rather than hinder the spirit of excellence, is vital towards
achieving these goals. We also need to look afresh at our individual training system,
including identification of training needs, designing of training systems and finally,
evaluation of training effectiveness, with a view to make training more wholesome,
realistic and bring about the desired attitudinal changes.
23. Management of Information Systems. The ongoing IT revolution is no
doubt having its impact on the armed forces. The large scale proliferation of IT
equipment and IT enabled services calls for drastic changes in our outlook and work
culture. The leaders have to continuously upgrade their knowledge of the IT
spectrum in order to be able to harness its full potential. At the same time
information security has assumed a new dimension because of the increased
vulnerability of these systems.

CONCLUSION

24. Armed forces are the ultimate instrument of expression of power of a nation.
They are the vital tools with which a nation aspires to guard against threats to its
core values and national interests. It is extremely essential that this instrument of
state policy must keep a ‘good fit’ with the changes taking place in the internal and
external political, social, economic and technological environment. The pace of these
changes has accelerated during the last decade and is likely to accelerate even
further. Enunciation of a clear vision for change, obtaining commitment of all
concerned for the change, and planned implementation of the proposed change is
vital for the growth of our armed forces. We must adopt the modern management
tools and exploit the vast potential in areas like IT to achieve optimization of
resources through restructuring the organisation and integrating the diverse
subsystems across the services. Acute awareness of and willingness to address
these challenges to defence management is the only way to a bright future.

Bibliography
1. ‘Essentials of Organisation Development and Change’ by Thomas G
Cummings and Christopher G Worley, South Western College Publishing, Ohio,
2001.
2. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fourth
Edition, Pearson Education, 2004.
3. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,
McGraw Hill, New York, 2005.
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Questions
1. Explain the concept of defence management with the help of a diagram.
2. What are the major differences between corporate business management and
defence management?
3. ‘Leadership and management are the two sides of the same coin’. Explain.
4. Explain briefly the major challenges to defence management in the Indian
context.

***
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COLLEGE OF DEFENCE MANAGEMENT

THE FUNCTIONS OF MANAGEMENT

Enabling Objectives

• To obtain an overall perspective of the concept of management.

• To be able to identify and analyse the functions of management.

Learning Objectives

• To obtain an insight into the implications of the functions of management.

• To be able to apply the functional approach to management in resolving

organizational problems in the context of the defence forces.

Introduction

1. Management is getting things done through and with people. It is the

process of efficient and effective employment of resources to achieve
organisational objectives. A manager/commander/leader has more work than he
can do himself and has therefore to get some of it done through others.

2. It may appear that each leader’s function is different from that of another.
It may be difficult to identify the functions common to all, because of the widely
differing activities; for example, the jobs of Military/Naval/Air Force officers vis-à-
vis their civilian counterparts. Yet on a closer look, it becomes apparent that
fundamentally they are all performing similar functions. There is universality in
the functions of management carried out in different fields. No mission can be
efficiently accomplished unless it is clearly understood, carefully planned,
properly organized and effectively coordinated at all levels. Every man in the
Services, except possibly the fighting Jawan, therefore carries out managerial
functions.

3. Various functions of management, considered as a whole, make up the

management process. Hence forecasting, planning, organising, directing,
coordinating and controlling are separate management functions, but collectively
in terms of achieving objectives, they form the management process. Salient
features of various functions are discussed in the succeeding paragraphs.

Forecasting

4. Forecasting is an essential input to planning. To forecast is to predict the

future so as to facilitate planning. Forecasting must make as realistic an
assessment as possible of the total environment in which an organisation will
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function at a given point of time in the future. The purpose and importance of
forecasting lies in realistically looking into the future and reducing the areas of
uncertainty. There are two main categories of forecasting:-

(a) Quantitative.

(b) Technological.

5. Quantitative Forecasting. Quantitative forecasts are used mainly for

predictions within those fields where past data is available and can be used as a
basis for predicting the future e.g. manpower and logistic planning, demand
forecasting etc. Techniques used are generally statistical, though non-statistical
techniques may also be used.

6. Technological Forecasting. Technological forecasts deal primarily with

environmental and technological predictions. These are concerned mainly with
events of the long run which by their nature are not easily quantifiable or subject
to extrapolations of past patterns. There are two sub-divisions in this category:-

(a) Exploratory. It aims at exploring the possible future inherent in

present capabilities. Starting from the present in a systematic manner,
one identifies and explores future alternatives and their probability of
occurrence.

(b) Normative. It is the opposite of the exploratory method. Here one

starts with the future by stating the expected goals/objective to be
achieved.. These goals/objectives determine the development of
technologies capable of achieving them. An example of normative
forecasting is President Kennedy’s stated objective of landing a man on
the Moon before the close of the decade of 1960s.

7. Forecasting Techniques. A brief description of some technological

forecasting techniques is given at Appendix ‘A’. Quantitative techniques will be
covered during Statistics series.

8. Time Horizon for Forecasting. An important aspect of forecasting is the

time horizon of a forecast. Different plans require different lead times for
implementation. Forecasting should meet these lead time requirements. The
longer the time span of a forecast, the greater the opportunity a planner has to
develop strategies which can either modify the events or the timing of their
occurrence.

9. Forecasting involves an integration of relevant analysis i.e. economic,

strategic, technological, statistical and management judgment. The latter based
on wide experience, is a vital element in the development of forecasts. The
starting point for this function is the identification of the planning requirement
e.g., manpower planning, demand forecast for logistical planning, integrated air
defence planning and so on.
 13 CDM/GM/2

10. Forecasting is a staff function. The staff should therefore possess

working knowledge of the relevant techniques. It is also essential that the
concerned staff maintain frequent interaction with the decision makers. The
main function of staff concerned with this function are:-

(a) Collection and organising of data from primary and secondary

sources. (internal and external).

(b) Preliminary statistical analysis i.e., identification of relevant

variables from raw data, analysis of questionnaires and so on.

(c) Regular discussions with the commanders for validation of criteria

and findings.

(d) Updating of existing forecasts in consonance with environmental

dynamics.

11. The commander’s responsibility is to specify to the staff the frequency and
the accuracy of the needed forecast. The commander should also assist the staff
in finalising the model and the assumptions about the variables. In the Services,
‘Intelligence Appreciation’ and ‘Threat Assessment’ are typical examples of
forecasts.

Planning

12. Planning bridges the gap between where we are and where we want to
go. Planning involves choosing a particular course of action from all available
alternatives to achieve the selected objectives.

13. Planning deals with the futurity of present decisions. Since situational
changes may dictate modifications or even complete changes in our plans,
contingency planning needs to be done on the basis of probabilities. Planning,
therefore, is concerned with the future impact of present decisions.

14. In any organisation there is a hierarchy of objectives and corresponding

plans to achieve them. It is essential that the plans of various time frames, - long,
intermediate and short range – and different levels/sub systems are fully
integrated in order to achieve overall organisational objectives/goals.

15. Planning can be classified in many ways. Functionally speaking, there can
be operational plans, financial plans, maintenance or production plans. On the
basis of time frame we have long, intermediate or short range, contingency or
emergency plans. By scope of activity, there are strategic, tactical or operational
plans. Approaches to planning can be top down, participatory, purely line
responsibility or a specialist staff assisted processes. Notwithstanding the
classification or approaches to planning the following aspects are important:-

(a) Involvement in the planning process generates better

understanding, commitment and co-operation at all levels during the
execution stage.
 14 CDM/GM/2

(b) Planning at lower levels is essentially derivative and concerned

with details of accomplishment of higher intentions and objectives.

(c) Regardless of the level, the planner has to cope with the common
problems of uncertainty, change and real-life difficulties of implementation
at the operating level.

(d) The quality of planning can be considerably refined by use of

analytical and quantitative techniques like operations research, systems
analysis and networks. Planning staff should therefore learn to employ
these tools and techniques for greater effectiveness.

Organising

16. Organising is the process of establishing relationships between functions,

materials, and men grouped together for a common purpose. It is a basic
management function essential for the effective and efficient achievement of a
mission.

17. Organisations are established to accomplish missions/goals/objectives.

An organisation’s structure refers to the relative fixed relationships which exist in
terms of role, responsibilities and delegation of authority. In recent years the
traditional concepts of division of work and specialisation have been challenged
and newer insights developed in this field. The basic question in designing a job
is ‘Does the job control the man or vice versa?’ Currently there is greater
emphasis on providing greater meaning and value to the job through job
enlargement and job enrichment.

18. In organising work, activities can be grouped in various ways. The more
recent ‘Systems Approach’ to organising, envisages determining the output or
end result desired, the processes necessary to convert inputs into outputs, and
the alternatives ways of designing and integrating various sub-systems in an
organisation.

19. While organizing it is necessary to lay down the span of control at various
levels. This span of control should be based on situations and determined on the
basis of:-

(a) Intensity and frequency of interaction between various

commanders.

(b) Degree of competence and level of training of subordinates.

(c) Need for control and degree of stability i.e., structured/fluid nature
tasks.

20. A wider span of control forces delegation of authority, shortens lines of

communication and reduces administrative distances in management. Though
 15 CDM/GM/2

more demanding in terms of managerial competence, it has obvious advantages

from the point of view of flexibility accorded to middle level managers as also the
overall effectiveness of the organisation. There are however conflicting
considerations and practical difficulties in determining the optimal degree of
delegation or decentralisation in an organisation. These problems sometimes
result in the relative neglect of the organising function.

Directing

21. Directing is the process of guiding the performance of subordinates

towards achievement of a common goal. The main ingredients are motivation,
leadership and communication. Directing involves dealing with the most complex
of all resources – the human resource. There are many grey areas in the field of
human behaviour, and many complexities about how and why people behave
the way they do. Nevertheless, for a leader to be effective, he should have a
sound understanding of the knowledge now available in this field.

22. Communication is the bloodstream of an organisation’s life because

communication and interpersonal relations are interdependent and interrelated.
An understanding of the barriers to good communication and also the means of
overcoming these is essential if the process of directing is to be purposeful and
effective.

23. As regards motivation, the earlier emphasis on satisfying the material

needs of ‘passive’ individuals has undergone a change. It is now considered
unrealistic to expect individuals to always subordinate their interests and
objectives for the sake of the organisation. For organisational effectiveness
these interests must be integrated and made mutually supportive.

24. The function of directing is sometimes taken for granted due to the
authority normally associated with military command. In practice it demands
more than merely giving orders. It involves the development of men on the job
and satisfying their individual needs and aspirations while achieving the
organisational objectives. The importance of legitimacy in the exercise of power
and the concept of ‘acceptance’ by subordinates as the real basis of power is
becoming increasingly relevant in the Defence Services also. The current trend
is to de-emphasize the coercive use of authority and to stress upon the use of
moral and normative powers as effective means of influence.

Coordination

25. Coordination is the process of combining interrelated and independent

activities to ensure unification of effort. When goals are not stated precisely,
individuals will interpret them in different ways and contribute to what they think
is the goal/objective. A leader should so coordinate efforts that the
organisation’s goal is the one that individuals strive for. The purpose of
organisation itself is coordination and it pervades all management activity.

26. Mary Parker Follett, a well known authority on management, has

enunciated the following principles of coordination:-
 16 CDM/GM/2

(a) Direct Contact. Interpersonal horizontal relationships of people

are the best means of coordination. Ideas, prejudices and purposes are
conveyed more effectively by direct contact than by any other means.

(b) Coordination in Early Stages. Coordination must commence at

the planning stage itself. It becomes increasingly more difficult to
coordinate during the implementation stage.

(c) All Factors in a Situation Reciprocally Related. Everyone has

an effect on everyone else. No one cannot exist in isolation. To be
successful, one has to give, in order to receive.

(d) Coordination is a Continuos Process. For any plan to be

effective there is a need to ensure coordination at each stage. This
ensures efficient utilisation of resources and saves time and effort.
Organisations that have to regularly resort to special coordinating devices
are inefficient and ineffective.

27. Good coordination is largely horizontal rather than vertical. Meetings to

resolve conflicts are very useful provided the purpose is to agree. Coordination
depends on cooperation but is not the same thing. Cooperation is a result of
voluntary attitudes on the part of people in the organisation. Coordination cannot
always be voluntarily produced by cooperating persons, it must be planned
through deliberate action.

28. The problems in coordination often arises due to constant change,

ineffective leadership, and complexities inherent in designing and operating
largescale organisations. Individuals with their variable responses, contribute
largely to the complexity through perverseness and self interest. Similarly, larger
the number of functional groups/departments, greater the problem of
coordination. Problems of coordination can be offset by :-

(a) Setting clear objectives/goals (goal clarity).

(b) Defining functions to be performed (role clarity) and proper

delegation of authority.

(c) Participation of concerned individuals in decision making and

institution of other measures to ensure commitment of all to organisational
objectives.

(d) Creation of an appropriate climate by the top leadership wherein

the organisation is receptive to change and prepared to accommodate it..

(e) The use of appropriate staff.

29. The dangers of overcoordination however should not be lost sight of. A
point of diminishing returns is reached when precious time of others is spent in
 17 CDM/GM/2

effecting coordination at the cost of timely accomplishment of the mission/

objective.

30. Setting clear objectives, ensuring good communications and commitment

of subordinates facilities coordination. This is an integrative and pervasive
functions of management. The effort should be to set up systems and processes
which facilitate mutual coordination at all levels.

31. Effective coordination also calls for efficient problem solving and decision
making processes. It involves balancing the demands of the external
environment with that of the internal environment of the organisation.

Controlling

32. Controlling is a process of measuring current performance to detect

deviation from the planned course, so that action can be initiated to return to the
chosen course or to an appropriately modified one. It ensures that performance
continues to conform to plans. There are four main elements of a control
system:-

(a) A predetermined goal, plan, policy or standard. These should be

quantitative as far as possible.

(b) A means of measuring current activity. The value of a control

system largely depends on the speed of reporting actual performance so
that deviations can be rectified at the earliest.

(c) A means of comparing current activity with the laid down criterion.
The nature and magnitude of deviation determines its significance.
Graphical techniques are among the best methods available for
comparison. Other methods are the use of ratios, trends and
mathematical equations.

(d) Some means of correcting the current activity. There are two
general types of corrective action:-

(i) Immediate - e.g. repair of a defective equipment.

(ii) Remedial - follow up action to prevent similar problems

occurring in the future.

33. The important principles of control are listed below:-

(a) Strategic Point Control. Since it is not possible to review all

aspects of performance, leaders should select certain key areas of activity
to get adequate and timely indication of what is going on. Critical activities
must be given due importance while selecting strategic point controls.

(b) Control by Exception. It seeks to ease the burden on higher

commanders by resorting to a system of reporting by exception. This
 18 CDM/GM/2

system will work only if the overall plan is clear to the subordinates and
there is definite understanding of the conditions for reporting exceptions.

(c) Feedback. Depends on the effectiveness of communication and

reporting systems in vogue.

(d) Flexibility. Controls should be flexible and should be responsive

to changing conditions, unforeseen circumstances or outright failures.

(e) Self Control. This is the most effective form of control. Self
Controlled subsystems enmeshed into the overall control system are
useful in any organisation.

(f) Economical. A control system must be cost-effective in terms of

time and resources.

Level of Control

34. The general rule is that the person who is responsible for results is the
one who should exercise control over the operations. Control is coexistent with
responsibility at each level. In large and complex organisations like ours there is
considerable misuse of his function. At times the control function is seen as a
whip to keep the organisation, its commanders and subordinates in line. Such
overemphasis on managerial controls can be avoided by a constant review of
the purpose of the existing control measures.

35. Controlling can be defined as the maintenance of conformity between

plans, their standards and action. The emphasis should be on events in relation
to plans i.e. identification of causes of deviations rather than on human beings
and their inadequacies. The latter approach is threatening and can cause
various undesirable consequences such as distrust, faked results, tighter
surveillance and resultant higher costs - both administrative and psychological.
Some common weaknesses of control systems are:-

(a) Backward looking – too much emphasis on the past.

(b) Mistake centered rather than correction centered.

(c) Uneconomical and complex – thus becoming an end in

themselves.

(d) Lack of focus on key factors or ‘strategic’ points.

36. A good leader encourages self control. He establishes an effective control

system by setting up verifiable objectives, a sound system of reporting,
interpreting and evaluating of feedback and institutes corrective measures at the
level closest to the problem.
 19 CDM/GM/2

Conclusion

37. Management encompasses the functions of forecasting, planning,

organising, directing, coordinating and controlling. All combined make up the
management process. Effective leaders make judicious use of these functions in
order to derive maximum benefit out of available resources. Organisations also
use various techniques to achieve their stated goals/objectives. Some of the
salient aspects of the functions of management have been discussed in this
paper in order to provide a broad overview of how organisations convert
resources into results.

Bibliography

1. ‘Essentials of Organisation Development and Change’ by Thomas G

Cummings and Christopher G Worley, South Western College Publishing, Ohio,
2001, ISBN 0-324-02399-5
2. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fouth
Edition, Pearson Education, 2004, ISBN 81-297-0412-9
3. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et
al, McGraw Hill, New York, 2005, ISBN 0-07-111131-X

4. “Principles of Management” by Koontz and O Donnel.

5. “Management – Analysis, Concepts & Cases” by Haynes & Massie.
6. “Management Principles & Practices” by McFarland.
7. “Technological Forecasting for Decision Making” by J Martino.
8. “How to Choose a Leadership Pattern” by Tannebaum and Schmidt in
Harvard Business Review, May-Jun 73.
9. General and Industrial Management, Henri Fayol.
10. Principles of Scientific Management – FW Taylor.
11. The Practice of Management – Peter Drucker.
12. The Function of the Executive – Chester Barnard.
 20 CDM/GM/2

Questions
1. What is management?
2. List out the various functions of management.
3. Write short notes on :-
(a) Approaches to forecasting.
(b) Principles of Coordination.
(c) Principles of Control.
4. Enumerate some examples from your experience where principles of
control and coordination were violated, and the impact they had on the
effectiveness and efficiency of the organization.

*****
 21 CDM/GM/2

Appendix
(Refers to Para 7)

SOME FORECASTING TECHNIQUES

Technological Forecasting Techniques

1. Technological forecasts can be used independently or in conjunction with

some quantitative methods. They are primarily used for long range forecasts to
provide information for long range planning and resource allocation By its
nature a forecast longer than two years has to mainly concern itself with the
environment and the technology which will exist within the timeframe of
prediction.

2. Delphi Approach (Intuitive Thinking Sub-Group). Delphi Approach is

probably the most commonly used of all the technological forecasting methods.
It involves a panel of experts in a given field who respond to a series of
questionnaires about situations to be forecasted. The results of the first
questionnaire are analysed and returned to the participants with a summary of
their responses. The participants again respond after seeing this ‘feedback’ on
what others have predicted. The results of the second questionnaire are also
analysed and summarised and sent back to the panel members, who again
respond individually. This process continues a few times until a consensus is
reached.. The advantages of the Delphi technique are its relatively low cost and
the elimination of the group pressure on the individual members to conform to
the majority opinion, since the panel members are never brought together as a
group.

3. Morphological Forecasting. Morphological forecasting aims first at

identifying all possible future technological advances and then systematically
screening these possibilities to determine their feasibility, costs and
characteristics, so that predictions about future technologies can be made. The
advantage of morphological research is that it explores all possibilities around a
given technology, thus unveiling alternatives that would be impossible to
discover with other methods. The problem with such an approach however, is
the time and resources which are required before all alternatives have been
identified and explored.

4. Relevance Trees. A Relevance Tree is designed to present the various

inputs and their perceived importance in order that a certain achievement can be
realised. Once all inputs have been identified and ranked in each level according
to their importance, an overall index of importance among all inputs and levels
of
the decision tree can be constructed indicating the desirability of each of the
inputs. According to this approach the inputs with the highest indices (most
wanted) will be the ones in which technological or environmental factors will
have to be introduced. According to this method, normative criteria of desirability
 22 CDM/GM/2

are used to influence the introduction of new technological factors or

environmental changes rather than simply extrapolating historical patterns.

Conclusion

5. If the aim is to access future technological capabilities in a certain area,

then the Delphi technique can be used to identify long range technological
possibilities. Morphological forecasting can be used to point out the technical
breakthroughs required, and the Relevance Tree method can be employed to
indicate the amount of resources needed and the changes that will be addressed
to fulfill future goals .However with the rapid changes in technology and other
environmental factors the need to use a combination of these techniques is also
considered necessary.

*******
 23 CDM/GM/3

COLLEGE OF DEFENCE MANAGEMENT

ORGANISATION - STRUCTURE AND DESIGN

Enabling Objectives
• To appreciate the importance of analysing various facets of structure and
design of organisations.
• To study various types of structural approaches.

Learning Objectives
• To analyse the impacts of environment and information processing on design
of organisations.
• To analyse the impact of span of control on organisation design.
• To acquaint with network design of organisations.

Introduction

1. Once a group of people has established an organisation to accomplish

collective goals, organisational structure evolves to increase the effectiveness of the
organisation’s control of the activities necessary to achieve its goals.
Organisational structure is the formal system of task and authority relationships
that control how people coordinate their actions and use resources to achieve
organisational goals. The principal purpose of organisational structure is one of
control: to control the way people coordinate their actions to achieve organisational
goals and to control the means used to motivate people to achieve these goals. At
Microsoft, for example, the control problems facing Bill Gates were how to
coordinate scientists’ activities to make the best use of their talents, and how to
reward scientists when they developed innovative products. Gates’ solution was to
place scientists in small, self-contained teams and to reward them with stock in
Microsoft based on team performance.

2. For any organization, an appropriate structure is one that facilitates effective

responses to problems of coordination and motivation – problems that can arise for
any number of environmental, technological, or human reasons. As organisations
grow and differentiate, the structure likewise evolves. Organisational structure can
be managed through the process of organisational design and change.

3. Organisational design is the process by which managers select and

manage aspects of structure and culture so that an organisation can control the
activities necessary to achieve its goals. Organisational structure and culture are
the means the organisation uses to achieve its goals; organisational design is about
how and why various means are chosen. An organisation’s behaviour is the result
of its design and the principles behind its operation. It is a task that requires
managers to strike a balance between external pressures from the organisation’s
 24 CDM/GM/3

environment and internal pressures from, for example, its choice of technology.
Looking outward, the design can cause organisational members to view and
respond to the environment in different ways. Looking inward, an organisation’s
design puts pressure on work groups and individuals to behave in certain ways.
Achieving the proper balance helps to ensure that the organisation will survive in the
long run.

4. In the Services too the study of organisation is gaining importance and

attention. This is as it should be because of the vast manpower involved, the high
threshold technologies used and the huge quantities of material resources expended.
As officers transit towards position of responsibility on the scalar chain, they ought to
have the skill to diagnose their organisation in its total functioning and the
competence to prescribe such measures that would be necessary to eliminate
dysfunctional influences and promote organisational effectiveness. As the first step,
therefore, an overview of organisational structure and design is a necessity.

Traditional Concepts

5. Analysis of organisation in terms of easily identifiable features has always

been a problem. Some of the traditional concepts, improved upon by modern
researchers are extremely helpful in understanding the structural design of
organisation. An attempt is being made here to present them briefly.

Differentiation and Division of Labour

6. As organisations grow, managers must decide how to control and coordinate

the activities that are required for the organisation to create value. The principal
design challenge is how to manage differentiation to achieve organisational goals.
Differentiation is the process by which an organisation allocates people and
resources to organisational tasks and establishes the task and authority
relationships that allow the organisation to achieve its goals. In short, it is the
process of establishing and controlling the division of labour, or degree of
specialization, in the organisation.

7. Departmentalisation. For an organisation to be viable in terms of co-

ordination and efficient functioning, differentiated activities have to be clubbed
together into departments. When departmentalisation is carried out correctly the
organisation is in a better position to expand and grow in size. Two methods of
departmentalising will be discussed below:-

(a) Functional Departmentalisation. The basis of differentiation is the

kind of work done, like for instance, operations, training, maintenance etc.
This is a common form of departmentalisation, particularly at lower levels.

(b) Divisional Departmentalisation. When demands for goods and

services from a particular organisation increases, it may have to resort to,
departmentalisation either on the basis of products (e.g. repair complexes on
the basis of MiGs, Gnats, Transport planes etc.). or geographic location (e.g.
Western Command, Northern Command etc.)
 25 CDM/GM/3

8. There are advantages and disadvantages in both the methods. of

departmentalisation. These have to be carefully considered before making
decisions on the design of the structure.

9. Span of Control. There is a limit to the number of subordinates that can be

managed by a superior. However, there is no particular formula for arriving at the
size of the span of control. Some theorists prescribe a number of 7 as the span
which at best is arbitrary and not valid in all situations. A number of factors influence
the size of span and in turn the span itself causes certain organisational and
behavioural characteristics. Some of the effects of different sizes of span and the
determining factors are briefly mentioned below:-

(a) A narrow span of control leads to:-

(i) Increase in levels of hierarchy causing problems of communication

and decision delays.

(ii) Limited job-related autonomy to people.

(b) A broad span of control makes the pyramid squat which can provide
job satisfaction to subordinates by enlarging the range and depth of their jobs.
On the other hand, this could make co-ordination difficult, since arithmetic
increase in the number of subordinate’s results in geometric increase in
potential relationships.

(c) The number of subordinates a manager can handle depends on the

frequency and intensity of relationships between them. This will depend on the
nature of work and the quality of people.

10. Decentralisation. The concept of decentralisation is inextricably tied to the

philosophy, values and ideology that underlie the organisation. However, the extent
of delegation of authority to various positions and decentralisation in the total
organisation also depend on factors like size of unit, management expertise,
feedback and control system available etc. That the effect of decentralisation is
quite significant on the shape of organisational pyramid needs no emphasis. The
process of delegation and consequent power equalisation will be discussed in
another paper.

Tall and Flat Organisations

11. An organisation in which the hierarchy has many levels relative to the size of
the organisation is a tall organisation. An organisation that has few levels of
hierarchy is a flat organisation. Research evidence suggests that an organisation
that employs 3000 people is likely to have seven levels in its hierarchy. Thus, a
3000 people strong organisation with only four levels of hierarchy would be ‘flat’ and
one with say nine levels would be tall. Unduly tall organisations are likely to have
communication and motivation problems.

12. Some of the traditional concepts, relating to organisational structure, and

design are still valid. However with the rapid pace of change there is a continuous
 26 CDM/GM/3

search for identifying and characterising new structural features which will facilitate
design of organisations to meet current requirements. The more recent studies
indicate that new sets of principles are being evolved on the basis of contingency
theories. A few of the more prominent studies shall be examined in the succeeding
paragraphs.

Environment and Design

13. Environment has been considered for a long time to determine differences
among organisations. Pursuing this line of thought, Lawrence and Lorsh have
carried out certain analysis and thrown new light on the subject. They introduced
three key concepts to explain structure.

14. Differentiation. Differentiation denotes division of organisation into sub-

systems, each of which, responding to the requirements of its relevant environment,
tends to develop its own attributes but related to the demands. The departments in
an organisation could, therefore, be organised in different ways, ranging from
bureaucratic to system 4. In part, this concept refers to departmentalisation, but the
major thrust is in the area of behaviour of employees in sub-systems.

15. Integration. Integration refers to coordination of effort among various sub-

systems in accomplishing organisation objectives. According to classical theorists
integration ought to be achieved through rules and procedures. Critics, however,
observe that this method of integration can be effective only in stable and
predictable situations. They advocate use of plans and mutual adjustments for
integration in unstable environment. Communication would, therefore, become an
important process in the organisation. In a highly differentiated organisation,
integration would tend to rely more on mutual adjustment for integration.

16. Environment. The basic assumption of researchers is that the rationale for
differentiating into sub-systems is for each to cope with the sub-environments.
Three main sub-environments identified are: market, technical-economic and
scientific. Degree of differentiation is supposed to vary with certain attributes of
corresponding sub-environment. Following three dimensions have been identified,
along which a sub-environment is said to vary:-

(a) Rate of change of conditions over time.

(b) Certainty of information about conditions at any particular time.

(c) Time span of feedback on the results.

17. It is hypothesised that greater the difference among three sub-environments

in terms of the dimensions mentioned above, the greater will be the differences in
structure and behaviour within the sub-system. The greater the differentiation, the
greater is the need for integration among sub-systems.

18. Effectiveness. The researchers have found people in bureaucratically

organised departments to be more task oriented and have shorter time horizon than
those in system 4 organisation. They also feel that in a stable and homogeneous
 27 CDM/GM/3

environment a general manager can act as an integrator, whereas a separate staff

would be required in a highly dynamic and heterogeneous situation.

19. The researchers further contend that when an organisation is optimally

differentiated and integrated as necessitated by the environment there will be
greater effectiveness.

Information Processing and Design

20. This part of the paper will deal with the process of designing a structure. To
simplify the complex process and make it easy to understand, organisation is
considered as an information processing network. The development of structure is
shown as resulting from an effort to solve problems of uncertainty in organisation.
When an organisation is departmentalised and high performance is expected of it, a
sizeable amount of information will be required for integrating the efforts of the
interdependent sub-units. At times uncertainty may arise as a result of lack of
information. Various strategies will have to be adopted in order to handle different
degrees of information involved in an organisation. These strategies and the
resultant structures are discussed in the subsequent paragraphs.

21. Rules, Programmes and Procedures. The most basic method of

coordination of interrelated subtasks is to clearly specify the expected behaviour of
each. People are trained how to handle each situation, and by their appropriate
behaviour in situations as they arise, coordination is achieved easily. Training is
supplemented by rules and procedures. Thus, need for communication among sub-
units is obviated. In stable conditions, where each situation can be precisely
predicted, this method of integration will work most effectively.

22. Hierarchy. However, if an organisation faces a situation altogether new it

will have no ready-made answer. No answer can be considered without taking into
account its effect on other subtasks since they are all inter-related. Thus the volume
of information that has to be collected and processed becomes substantial,
necessitating the creation of new roles of managers. All unanticipated problems are
referred to these role occupants, who are supposed to possess greater information
for decision making. In order to make these decisions work they are given authority,
and powers of reward and punishment. Hierarchy is thus formed. However, these
managers also have a limited capacity. When organisational uncertainties increase
and many of them are referred upwards the hierarchy becomes overloaded. Delays
start occurring. The organisation, therefore, has to devise new processes to
supplement rules and hierarchy.

23. Goal Setting. When there is a hierarchical overload, one solution in

bringing the decision points down to where information originates. This entails
enhancement of discretion exercised at lower levels which would bring in its wake
problems of control of behaviour of members. One remedy that can be resorted to is
stringent selection and proper professional training. Through this alternative to
centralisation, predicted responses of people can be ensured. While this strategy
may work well in the case of small departments, the same cannot be assured in
large organisations. The strategy, therefore, for reducing uncertainties and
problems of information processing is to set goals for each interdependent group.
 28 CDM/GM/3

Goals would describe the results expected in terms of specifications. Goal setting
differs from rules in that it allows members to select behaviour appropriate to targets
and goals.

24. So far, the organisational strategies enumerated are that of simple methods
of coordination. However, the problem of uncertainty does not terminate here. With
growth and progress, the problems of uncertainty and consequent information
processing overwhelm the capacity of the hierarchy to cope with them. The need,
therefore, arises to seek fresh alternatives. For this, two sets of strategies have
been suggested. While one aims to reduce the need for processing information, the
other sets forth to increase the capacity to process information in organisations.
These will be briefly touched upon here.

25. Creation of Slack Resources. The number of referrals upwards for decision
in an organisation can be minimised by creating additional or slack resources. This
entails acceptance of over expenditure, increased man-hours etc., and high
tolerance of standard of output. While this strategy reduces levels in an
organisation, the cost of operations would escalate.

26. Creation of Self-Contained Tasks. This is similar to departmentalisation on

the basis of products. The basis of authority structure would shift from that of skill,
occupational category etc., to output or geographical groupings.

27. The last two strategies solve design problems by reducing level of
performance, diversity of output and of division of labour. the next two proceed with
the assumption that the required level of information cannot be reduced, and aim to
develop methods and mechanisms to tackle the problem.

28. Vertical Information Systems. Briefly, according to this strategy, the

organisation should invest in man-machine combination for information processing.
The system should be able to collect large amounts of information, store them and
retrieve as required. This would help replanning and correcting organisation
activities as they continue.

29. Creation of Lateral Relation. In this method, lateral decision processes

that cut across lines of authority are employed. Here the level of decision making is
shifted down to where actual information exists. Depending on the requirements in
the organisation one of the several mechanisms can be resorted to which range
from simple direct contact between two positions and liaison role to matrix
organisation. Of these, matrix organisation is of greater relevance in the present
context.

30. When in an organisation a number of large tasks or projects have to be

executed, involving use of multiple, a specialised resource, an integrator role is
created. The occupant of the role is given sufficient authority to coordinate the
activities of the project, to which he is assigned, by cutting across the normal line
authorities. This will give rise to the system of dual reporting. Subordinates are
likely to be controlled by both the functional manager and the integrator.
 29 CDM/GM/3

Matrix Organisation Structure

31. A matrix structure is a mixed organisational form in which the normal vertical
hierarchy is “overlaid” by some form of lateral structure, combining characteristics of
both, functional and project structures. It is a mixed model with multiple channel
communication, an evenly balanced compromise between functional and project
organisation. It is defined as any organisation that employs a multiple command
system that includes related support mechanisms and an associated organisational
culture and behaviour patterns. In simple terms when a project structure is
superimposed on a functional structure the result is a matrix.

32. The advantages of a matrix organisation are flexibility, maintenance of high

technical standards, balance between time, cost and performance, and finally
empowerment, development and a high level of motivation of subordinate, since it
encourages decision making at lower levels. However, a matrix organisation has
inherent weaknesses, which must be addressed and minimised by the top
management. Some of the weaknesses are: power struggles between functional
and project managers, a high level of stress due to role conflict, role ambiguity and
role overload, possibility of cost overruns due to high administrative costs and finally
the problems related to striking a balance between functional and project authority.
However, matrix organisational structure is very popular in industries like aerospace,
electronics, chemicals, insurance, banking etc. A typical example of matrix
organisation in the armed forces is the naval dockyard. A structural sketch of matrix
organisation is given at Appx A.

Network Organisation

33. A type of boundary less design that has been adopted by many multinational
firms in recent years is the network design. The network design consists of a series
of strategic alliances or relationships that a company develops with suppliers,
distributors, or manufactures in order to produce and market a product. A strategic
alliance is an agreement between two or more companies to collaborate by sharing
or exchanging resources to produce and market a product. For example, Hewlett-
Packard and Canon formed a network design to produce laser printers that has
endured for over 15 years. Hewlett-Packard provides its computer technologies and
knowhow which is combined with Canon’s knowledge of imaging and laser
technology. By sharing the knowledge and technologies, the laser printers that are
marketed by Hewlett-Packard own a dominant share of the market. A conceptual
framework of a typical network design of comprising of various complementary
organisations like Designers, Producers, Distributors, Suppliers and Brokers is
shown below.
 30 CDM/GM/3

Designer Producer
Organisation Organisation

Broker
Organisation

Supplier Distributor
Organisation Organisation

Network Design of Organisation

Conclusion

34. Structural dilemma will continue to influence organisations. It will also urge
scholars and practitioners to seek new frontiers of knowledge that will make
organisations effective. The foregoing overview of structure and design has brought
to light many factors and their possible effects that need to be carefully considered
while structuring an organisation. It also reminds one that concepts and guiding
principles need not be discarded just because they are old. On the contrary, a
number of them are still valid and can be gainfully applied.

35 Organisation Design Challenges. The challenges for leaders/managers in

designing organisations can be categorised as follows:-

(a) Vertical Differentiation Vs Horizontal differentiations.

(b) Centralisation Vs Decentralisation.

(c) Standardisation Vs Innovations and Mutual adjustments.

(d) Mechanistic Vs Organic Organisations.

 31 CDM/GM/3

36. In the services, there is generally a trend to structure all the units, irrespective
of purpose, size and other characteristics, in more or less the same way.
Sometimes emphasis is laid on only one particular sub-system. For instance, when
a new technology is inducted into a unit, the structure may be entirely biased
towards the technical system, not taking into account the possible effect on the
human system. All these may eventually reflect adversely on the effectiveness of
organisational functioning.

37. The emerging ideas like contingent theory appear to have considerable
relevance to the defence services. The matrix structure is already being used in
many defence projects. In the world of organisation, the designers seem to adopt
revolutionary and hitherto untried models. However, this kind of structure is likely to
lead to interpersonal conflicts and behavioural problems, although the design itself
may be the outcome of various evolutionary forces in modern society. It is claimed
that the new designs have the potential for harmonising the economic needs of the
organisation and the self-actualising needs of modern man. The debatable question
is whether man, inspite of his avowed pursuit of higher needs, is capable of
adjusting to the potentially conflict situation (organisational) resulting from new
structures. Design based on matrix and other integrative forms, of course, is going
to extensively influence structures in the coming years. It is, therefore, inescapable
that the ongoing organisation develops new types of leadership, good superior-
subordinate relationships and social skills related to managing people in order to
cope with problems emanating from new structures. Selection processes, methods
of training motivational practices and appraisal systems will have to be taken more
seriously. In certain cases, radical changes may be called for. Knowledge of
structure and design of organisation, thus assumes significant importance.

Bibliography

1. 'Organisations' by Dale E.

2. 'Organisation, Structure, Process, Behaviour' by lames L Gibson.

3. 'Theories of Organisational Structure and Process' by John B Miner.

4. ‘Organisation Theory and Management' by Warren B Brown Dennis

J Moberg.

5. 'Organisation' by Gibson Ivanlevich Donnelly.

6. 'Organisation and Management - A Systems Approach' by Kast and

Rosenzweig.

7. 'Organisation Design' by Jay R Galbraith.

8. 'Designing Complex Organisations' by Jay R Galbraith.

9. 'Management - An Integrated Approach’ by Torgersen and Winstock.

 32 CDM/GM/3

10. 'Organisation Theory and Behaviours' by VSP Rao and P S Narayana.

11. 'Organisational Designs for Excellence' by PN Khandelwala, Tata McGraw

Hill, 1992.

12. 'Organisation Analysis' by AD Newman and RW Rowbottom, 1968.

13. 'Organisatiaon Development' by Amitasha Chaudhury 1992.

14. 'Organisation Analysis ~ Theory and Applications' by Elmer Bdrack.

15. 'Organisational Design and Structure' by M Gangadhara Rao and Surya P.

Rao.

’16. Essentials of Organisation Development and Change’ by Thomas G

Cummings and Christopher G Worley, South Western College Publishing, Ohio,
2001.

17. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fourth

Edition, Pearson Education, 2004.

18. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,

McGraw Hill, New York, 2005.

Questions

1. What is organisation structure?

2. What do you understand by differentiation and division of labour?

3. Analyse the impact of environment and information processing on the various

facets of organisation design.

4. Write short notes on:-

(a) Span of Control.

(b) Tall and Flat organisations.

(c) Matrix Organisation

(d) Network Design of Organisation

 33 CDM/GM/4

COLLEGE OF DEFENCE MANAGEMENT

ORGANISATION DESIGN : FASHION OR FIT

HENRY MINTZBERG’S VIEW ON ORGANISATION DESIGN

Enabling Objectives

• To acquaint participants with the vies of Henry Mintzberg, on

organisation design
• To be capable of analysing organisations from the basic building
blocks described by Mintzberg

Learning Objectives
• To able to perceive the right fit between the organisation and its
environment.
• To be able to apply the concepts in the context of the defence
forces.

Introduction

1. A conglomerate takes over a small manufacturer and tries to impose

budgets, plans, organisational charts, and untold systems on it. The result :
declining sales and product innovation – and near bankruptcy - until the division
managers buy back the company and promptly turn it around.

2. Consultants make constant offers to introduce the latest management

techniques. Years ago PERT and MBO were in style, later it was LRP and OD,
and now it's QWL and ZBB.

3. A government sends in its analysts to rationalise, and formalise city-wide

school systems, hospitals, and welfare agencies. The results are devastating.

4. These incidents suggest that a great many problems in organisational

design stem from the assumption that organisations are all alike: mere
collections of components parts to which elements of structure can be added
and deleted at will ; a sort of organisational bazaar.

5. The opposite assumption is that effective organisations achieve

coherence among their components parts, that they do not change one element
without considering the consequences to all of the others. Spans of control,
degrees of job enlargement, forms of decentralisation, planning systems, and
matrix structure should not be picked and chosen at random. Rather, they
should be selected according to internally consistent groupings. And these
groupings should be consistent with the situation of the organisation - its age
and size, the conditions of the industry in which it operates, and its production
technology. In essence, my argument is that - like all phenomena from atoms to
stars - the characteristics of organisations fall into natural clusters, or
configurations. When these characteristics are mismatched - when the wrong
 34 CDM/GM/4

ones are put together - the organisation does not function effectively, does not
achieve a natural harmony. If managers are to design effective organisations,
they need to pay attention to the fit.

6. If we look at the enormous amount of research on organisational

structuring in light of this idea, a lot of the confusion falls away and a striking
convergence is revealed. Specifically, five clear configurations emerge that are
distinct in their structures, in the situations in which they are found, and even in
the periods of history in which they first developed. I call them the simple
structure, machine bureaucracy, professional bureaucracy, divisionalised form,
and adhocracy. In this article, I describe these configurations and consider the
message they contain for managers.

Deriving the Configurations

7. In order to describe and distinguish the five configurations, I designed an

adaptable picture of five component parts (see part A, Exhibit I). An organisation
begins with a person who has an idea. This person forms the strategic apex, top
management if you like. He or she hires people to do the basic work of the
organisation, and is called the operating core. As the organisation grows, it
acquires intermediate managers between the Chief Executive and the workers.
These managers form the middle line. The organisation may also find that it
needs two kinds of staff personnel. First are the analysts who design systems
concerned with the formal planning and control of the work; they form the
technostructure. Second is the support staff providing indirect services to the
rest of the organisation everything from the cafeteria and the mail room to the
public relations department and the legal counsel.

8. Put these five parts together and you get the whole organisation (see part
B, Exhibit I). Now, not all organisations need all of these parts. Some use few
and are simple, others combine all in rather complex ways. The central purpose
of structure is to coordinate the work divided in a variety of ways; how that
coordination is achieved - by whom and with what dictates what the organisation
will look like (see Exhibit II):

9. In the simplest case, coordination is achieved at the strategic apex by

direct supervision - the chief executive officer gives the orders. The
configuration called simple structure emerges, with a minimum of staff and
middle line.

10. When coordination depends on the standardisation of work, an

organisation's entire administrative structure - especially its techno structure,
which designs the standard - needs to be elaborated. This give rise to the
configuration called machine bureaucracy.

11. When, instead, coordination is through the standardization of skills of its

employees, the organisation needs highly trained professionals in its operating
core and considerable support staff to back them up. Neither its techno
structure nor its middle line is very elaborate. As a result, we get the
configuration called professional bureaucracy.
 35 CDM/GM/4

12. Organisations will sometimes be divided into parallel operating units,

allowing autonomy to the middle-line managers of each, with coordination
achieved through the standardisation of outputs (including performance) of
these units. The configuration called the divisionalised form emerges.

13. Finally, the most complex organisations engage sophisticated specialists,

especially in their support staffs, and require them to combine their efforts in
project teams coordinated by mutual adjustment. This results in the adhocracy
configuration, in which line and staff as well as a number of other distinctions
tend to break down.

14. I shall describe each of these five configurations in terms of structure and
situation. But first let me list the elements of structure, which are described in
more detail in the Appendix. These include the following :-

(a) Specialisation of tasks.

(b) Formalisation of procedures (job descriptions, rules, and so forth).

(c) Formal training and indoctrination required for the job.

(d) Grouping of units (notably by function performed or market

served).

(e) Size of each of the units (that is, the span of control of its
manager).

(f) Action planning and performance control systems.

(g) Liaison devices, such as task forces, integrating managers, and

matrix structure.

(h) Delegation of power down the chain of authority (called vertical

decentralisation).

(j) Delegation of power outwards from the chain of authority of line

managers (called horizontal decentralisation).

15. Also included in the Appendix, together with their impact on these
elements of structure, are the situational factors namely, the age and size of the
organisation, its technical system of production, and various characteristics of its
environment (e.g., how tightly it is controlled externally).

16. Our job now is to see how all of these elements cluster into the five
configurations. I describe each in the sections that follow and summarise these
descriptions in Exhibit III, where all the elements are displayed in relation to the
configurations. In the discussion of each configuration, it should become
evident how all of its elements of structure and situation form themselves into a
 36 CDM/GM/4

tightly knit, highly cohesive package. No one element determines the others;
rather, all are locked together to form an integrated system.

Simple Structure

17. The name tells all, and Exhibit II shows all. The structure is simple - not
much more than one large unit consisting of one or a few top managers and a
group of operators who do the basic work. The most common simple structure
is, of course, the classic entrepreneurial company.

18. What characterises this configuration above all is what is missing. Little
of its behaviour is standardised or formalised, and minimal use is made of
planning, training, or the liaison devices. The absence of standardisation means
that the organisation has little need for staff analysts. Few middle-line managers
are hired because so much of the coordination is achieved at the strategic apex,
by direct supervision. That is where the real power in this configuration lies.
Even the support staff is minimised to keep the structure lean and flexible -
simple structures would rather buy than make.

19. The organisation must be flexible because it operates in a dynamic

environment, often by choice because that it is the one place it can
outmanoeuvre the bureaucracies. And that environment must be simple, as
must the organisation's system of production, so that the chief executive can
retain highly centralised control. In turn, centralised control makes the simple
structure ideal for rapid, flexible, innovation, at least of the simple kind. With the
right chief executive, the organisation can turn on a dime and run circles around
the slower-moving bureaucracies. That is why so much innovation comes not
from the giant mass producers but from small entrepreneurial companies. But
where complex forms of innovation are required, the simple structure falters
because of its centralisation. As we shall see, that kind of innovation requires
another configuration, one that engages highly trained specialists and gives
them considerable power.

20. Simple structures are often young and small, in part because ageing and
growth encourage them to bureaucratise but also because their vulnerability
causes many of them to fail. They never get a chance to grow old and large.
One heart attack can wipe them out - as can a chief executive so obsessed with
innovation that he or she forgets about the operations, or vice versa. The
corporate landscape is littered with the wrecks of entrepreneurial companies
whose leaders encouraged growth and mass production yet could never accept
the transition to bureaucratic forms of structure that these changes required.
Yet some simple structures have managed to grow very large under the tight
control of clever, autocratic leaders, the most famous example being the Ford
Motor Co. in the later years of its founder.

21. Almost all organisations begin their lives as simple structures, granting
their founding chief executive considerable latitude to set them up. And most
revert to simple structure - no, matter how large or what other configuration
normally fits their needs - when they face extreme pressure or hostility in their
 37 CDM/GM/4

environment. In other words, systems and procedures are suspended as power

reverts to the chief executive to give him or her a chance to set things right.

22. The heyday of the simple structure probably occurred during the period of
the great American trusts, late in the nineteenth century. Although today less in
fashion and to many a relic of more autocratic times, the simple structure
remains a widespread and necessary configuration - for building up most new
organisations and for operating those in simple, dynamic environments and
those facing extreme hostile pressures.

Machine Bureaucracy

23. Just as the simple structure is prevalent in pre-Industrial Revolution in

industries such as agriculture, the machine bureaucracy is the off-spring of
industrialisation, with its emphasis on the standardisation of work for
coordination and its resulting low-skilled, highly specialised jobs. Exhibit II
shows that, in contrast to simple structure, the machine bureaucracy elaborates
its administration. First, it requires many analysts to design and maintain its
systems of standardisation - notably those that formalise its behaviours and plan
its actions. And by virtue of the organisation's dependence on these systems,
these analysts gain a degree of informal power, which results in a certain
amount of horizontal decentralisation.

24. A large hierarchy emerges in the middle line to oversee the specialised
work of the operating core and to keep the lid on conflicts that inevitably result
from the rigid departmentalisation, as well as from the alienation that often goes
with routine, circumscribed jobs. That middle-line hierarchy is usually structured
on a functional basis all the way up to the top, where the real power of
coordination lies. In other words, machine bureaucracy tends to be centralised
in the vertical sense - formal power is concentrated at the top.

25. And why the large support staff shown in Exhibit II? Because machine
bureaucracies depend on stability to function (change interrupts the smooth
functioning of the system) , they tend not only to seek out stable environments in
which to function but also to stabilise the environments they find themselves in.
One way they do this is to envelope within their structures all of the support
services possible, ones that simple structures prefer to buy. For the same
reason they tend to integrate vertically - to become their own suppliers and
customers. And that of course causes many machine bureaucracies to grow
very large. So we see the two side effects of size here - size drives the
organisation to bureaucratise ("we do that every day; let’s standardise it”) but
bureaucracy also encourages the organisation to grow larger. Ageing also
encourages this configuration; the organisation standardises its work because
"we have done that before."

26. To enable the top managers to maintain centralised control, both the
environment and the production system of the machine bureaucracy must be
fairly simple. In fact, machine bureaucracies fit most naturally with mass
production, where the products, processes, and distribution systems are usually
rationalised and thus easy to comprehend. And so machine bureaucracy is
 38 CDM/GM/4

most common among large, mature mass- production companies, such as

automobile manufacturers, as well as the largest of the established providers of
mass services, such as insurance companies and railroads. Thus McDonald's is
a classic example of this configuration - achieving enormous success in its
simple industry through meticulous standardisation.

27. Because external controls encourage bureaucratisation and centralisation

(as discussed in the Appendix) this configuration is often assumed by
organisations that are tightly controlled from the outside. That is why
government agencies, which are subject to many such controls, tend to be
driven toward the machine bureaucracy structure regardless of their other
conditions.

28. The problems of the machine bureaucracy are legendary - dull and
repetitive work, alienated employees, obsession with control (of markets as well
as workers), massive size, and inadaptability. These are machines suited to
specific purposes, not to adapting to new ones. For all of these reasons, the
machine bureaucracy is no longer fashionable. Bureaucracy has become a dirty
word. Yet this is the configuration that gets the products out cheaply and
efficiently. And here too there can be a sense of harmony, as in the Swiss
railroad system whose trains depart as the second hand sweeps past the twelve.

29. In a society consumed by its appetite for mass-produced goods,

dependent on consistency in so many spheres (how else to deliver millions of
pieces of mail every day?) and unable to automate a great many of its routine
jobs, machine bureaucracy remains indispensable, and probably the most
prevalent of the five configurations today.

Professional Bureaucracy

30. This bureaucratic configuration relies on the standardisation of skills

rather than work processes or outputs f or its coordination and so emerges as
dramatically different from the machine bureaucracy. It is the structure
hospitals, universities, and accounting firms tend most often to favour. Most
important, because it relies for its operating tasks on trained professions - skilled
people who must be given considerable control over their own work - the
organisation surrenders a good deal of its power not only to the professionals
themselves but also to the associations and institutions that select and train
them in the first place. As a result, the structure emerges as very decentralised;
power over many decisions, both operating and strategic, flows all the way down
the hierarchy to the professions of the operating core. For them this is the most
democratic structure of all.

31. Because the operating procedures, although complex, are rather

standardised - taking out appendices. in a hospital, teaching the American
Motors case in a business school, doing an audit in an accounting firm - each
professional can work independently of his or her colleagues, with the assurance
that much of the necessary coordination will be effected automatically through
standardisation of skills. Thus a colleague of mine observed a five-hour open
 39 CDM/GM/4

heart operation in which the surgeon and anaesthesiologist never exchanged a

single word!

32. As can be seen in Exhibit II, above the operating core we find a unique
structure. Since the main standardisation occurs as a result of training that
takes place outside the professional bureaucracy, a technostructure is hardly
needed and because the professionals work independently, the size of operating
units can be very large, and so few first-line managers are needed. (I work in a
business school where 55 professors report directly to one dean.) Yet even
those few managers, and those above them, do little direct supervision; much of
their time is spent linking their units to the broader environment, notably to
ensure adequate financing. Thus to become a top manager in a consulting firm
is to become a salesman.

33. On the other hand, the support staff is typically very large in order to back
up the high-priced professionals. But that staff does a very different kind of work
- much of it the simple and routine jobs that the professionals shed. As a result,
parallel hierarchies emerge in the professional bureaucracy - one democratic
with bottom-up power for the professionals, a second autocratic with top-down
control for the support staff.

34. Professional bureaucracy is most effective for organisations that find

themselves in stable yet complex environments. Complexity requires that
decision-making power be decentralised to highly trained individuals,' and
stability enables these individuals to apply standardised skills and so to work
with a good deal of autonomy. To further ensure that autonomy, the production
system must be neither highly regulating, complex, nor automated. Surgeons
use their scalpels and editors their pencils, both must be sharp but are otherwise
simple instruments that allow their users considerable freedom in performing
their complex work.

35. Standardisation is the great strength as well as the great weakness of

professional bureaucracy. That is what enables the professionals to perfect
their skills and so achieve great efficiency and effectiveness. But that same
standardisation raises problems of adaptability. This is not a structure to
innovate but one to perfect what is already known. Thus, so long as the
environment is stable, the professional bureaucracy does its job well. It
identifies the needs of its clients and offers a set of standardised programs to
serve them. In other words, pigeonholing is its great forte; change messes up
the pigeonholes. New needs arise that fall between or across slots, and the
standard programmes no longer apply. Another configuration is required.

36. Professional bureaucracy, a product of the middle years of this century, is

a highly fashionable structure today for two reasons. First, it is very democratic,
at least for its professional workers. And second, it offers them considerable
autonomy, freeing the professionals even from the need to coordinate closely
with each other. To release themselves from the close control of administrators
and analysts, not to mention their own colleagues, many people today seek to
have themselves declared "professional" -and thereby turn their organisations
into professional bureaucracies.
 40 CDM/GM/4

Divisionalised Form

37. Like the professional bureaucracy, the divisionalised form is not so much
an integrated organisation as a set of rather independent entities joined together
by a loose administrative overlay. But whereas those entities of the professional
bureaucracy are individuals - professionals in the operating core - in the
divisionalised form they are units in the middle line, called divisions.

38. The divisionalised form differs from the other four configurations in one
central respect: it is not a complete but a partial structure, superimposed on
others. Those others are in the divisions, each of which I shall be arguing is
driven toward machine bureaucracy.

39. An organisation divisionalises for one reason above all because its
product lines are diversified. (And that tends to happen most often in the largest
and most mature organisations, those that have run out of opportunities or
become stalled in their traditional markets). Such diversification encourages the
organisation to create a market-based unit, or division, for each distinct product
line (as indicated in Exhibit II) and to grant considerable autonomy to each
division to run its own business.

40. That autonomy notwithstanding, divisionalisation does not .amount to

decentralisation, although the terms are often equated with each other.
Decentralisation is an expression of the dispersal of decision-making power in
an organisation. Divisionalisation refers to a structure of semiautonomous
market based unit. A divisionalised structure in which the managers at the
heads of these units retain the lion's share of the power is far more centralized
than many functional structures where large numbers of specialists get involved
in the making of important decisions.

41. In fact, the most famous example of divisionalisation involved

centralisation. Alfred Sloan adopted the divisionalised form at General Motors to
reduce the power of the different units, to integrate the holding company William
Durant had put together. That kind of centralisation appears to have continued
to the point where the automotive units in some ways seem closer to functional
marketing departments than true divisional.

42. But how does top management maintain a semblance of control over the
divisions? Some direct supervision is used - headquarters managers visit the
divisions periodically and authorise some of their more important decisions. But
too much of that interferes with the necessary autonomy of the divisions. So
headquarters relies on performance control systems or, in other words, on the
standardisation of outputs. It leaves the operating details to the divisions and
exercises control by measuring their performance periodically. And to design
these control systems, headquarters creates a small technostructure. It also
establishes a small central support staff to provide certain services common to
the divisions (such as legal counsel and external relations).
 41 CDM/GM/4

43 This performance control system has an interesting effect on the internal

structure of the division. First, the division is treated as a simple integrated
entity with one consistent, standardized, and quantifiable set of goals. Those
goals tend to get translated down the line into more and more specific subgoals
and, eventually, work standards. In other words, they encourage the
bureaucratisation of structure. And second, headquarters tends to impose its
standards through the managers of the divisions, whom it holds responsible for
divisional performance. That tends to result in centralisation within the divisions.
And centralisation coupled with bureaucratisation gives machine bureaucracy.
That is the structure that works best in the divisions.

44. Simple structures and adhocracies make poor divisions because they
abhor standards - they operate in dynamic environments where standards of any
kind are difficult to establish. (This might partly explain why Alan Ladd, Jr. felt he
had to leave the film division of Twentieth Century Fox.) And professional
bureaucracies are not logically treated as integrated entities, nor can their goals
be easily quantified. (How does one measure cure in a psychiatric ward or
knowledge generated in a university?).

45. This conclusion is, of course, consistent with the earlier argument that
external control (in this case, from headquarters) pushes an organisation toward
machine bureaucracy. The point is invariably illustrated when a conglomerate
takes over an entrepreneurial company and imposes a lot of bureaucratic
system .and standards on its simple structure.

46. The divisionalised form was created to solve the problem of adaptability in
machine bureaucracy. By overlaying another level of administration that could
add and subtract divisions, the organisation found a way to adapt itself to new
conditions and to spread its risk. But there is another side to these arguments.
Some evidence suggests that the control systems of these structures
discourages risk taking and innovation, that the division head who must justify
his or her performance every month is not free to experiment the way the
independent entrepreneur is.

47. Moreover, to spread risk is to spread the consequences of that risk; a

disaster in one division can pull down the entire organisation. Indeed, the fear of
this is what elicits the direct control of major new investments, which is what
often discourages ambitious innovation. Finally, the divisionalised form does not
solve the problem of adaptability of machine bureaucracy, it merely deflects it.
When a division goes sour, all that headquarters seem able to do is change the
management (as an independent board of directors would do) or divert it. From
society's point of view, the problem remains.

48. Finally, a social perspective, the divisionalised form raises a number of

serious issues. By enabling organisations to grow very large, it leads to the
concentration of a great deal of economic power in a few hands. And there is
some evidence that it sometimes encourages that power to be used
irresponsibly. By emphasising the measurement of performance as a means of
control, a bias arises in favour of those divisional goals that can be
operationalised, which usually means the economic ones, not the social ones.
 42 CDM/GM/4

That the division is driven by such measures to be socially unresponsive would

not seem inappropriate - for the business of the corporation is, after all,
economic.

49. The problem that in big businesses (where the divisionalised form is
prevalent) every strategic decision has social as well as economic
consequences. When the screws of the performance control system are turned
tight, the divisional managers, in order to achieve the results expected of them,
are driven to ignore the social consequences of their decisions. At that point,
unresponsive behaviour becomes irresponsible.

50. The divisionalised structure has become very fashionable in the past few
decades, having spread in pure or modified form through most of the “Fortune
500" in a series of waves and then into European companies. It has also
become fashionable in the non-business sector in the guise of "multiversities,"
large hospital systems, unions, and government itself. And yet it seems
fundamentally ill suited to these sectors for two reasons.

51. First, the success of the divisionalised form depends on goals that can be
measured. But outside the business sector, goals are often social in nature and
non quantifiable. The result of performance control, then, is an inappropriate
displacement of social goals by economic ones.

52. Second, the divisions often require structures other than machine
bureaucracy. The professionals in the multiversities, for example, often balk at
the technocratic controls and the top-down decision making that tends to
accompany external control of their campuses. In other words, the
divisionalised form can be a misfit just as can any of the other configurations.

Adhocracy

53. None of the structures discussed so far suits the industries such as
aerospace, petrochemicals, think-tank consulting, and film making. These
organisations need above all to innovate in complex ways. The bureaucratic
structures are too inflexible, and the simple structure is too centralised. These
industries require "project structures" that fuse experts drawn from different
specialities into smoothly functioning creative teams. Hence they tend to favour
our fifth configuration adhocracy, a structure of interacting project teams.

54. Adhocracy is the most difficult of the five configurations to describe

because it is both complex and non-standardised. Indeed, adhocracy
contradicts much of what we accept on faith in organisations - consistency in
output, control by administrators, unity of command, strategy emanating from
the top. It is a tremendously fluid structure, in which power is constantly, shifting
and coordination and control are by mutual adjustment through the informal
communication and interaction of competent experts. Moreover, adhocracy is
the newest of the five configurations, the one researchers have had the least
chance to study. Yet it is emerging as a key structural configuration, one that
deserves a good deal of consideration.
 43 CDM/GM/4

55. These comments notwithstanding, adhocracy is a no less coherent

configuration than any of the others. Like the professional bureaucracy,
adhocracy relies on trained and specialised experts to get the bulk of its work
done. But in its case, the experts must work together to create new things
instead of working apart to perfect established skills. Hence for coordination
adhocracy must rely extensively on mutual adjustment, which it encourages by
the use of the liaison devices integrating managers, task forces, and matrix
structure.

56. In professional bureaucracy, the experts are concentrated in the

operating core, where much of the power lies. But in adhocracy, they tend to be
dispersed throughout the structure according to the decisions they make - in the
operating core, middle lines, technostructure, strategic apex, and especially
support staff. Thus whereas in each of the other configurations power is more
or less concentrated in strategic apex, and especially support staff, in
adhocracy it is distributed unevenly. It flows, not according to authority or status
but to wherever the experts needed for a particular decision happen to be found.

57. Managers abound in the adhocracy - functional managers, project

managers, integrating managers. This results in narrow “spans of control” by
conventional measures. That is not a reflection of control but of the small size of
the project teams. The managers of adhocracy do not control in the
conventional sense of direct supervision; typically, they are experts too who take
their place alongside the others in the teams, concerned especially with linking
the different teams together.

58. As can be seen in Exhibit II, many of the distinctions of conventional

structure disappear in the adhocracy. With power based on expertise instead of
authority, the line/staff distinction evaporates. And with power distributed
throughout the structure, the distinction between the strategic apex and the rest
of the structure also blurs. In a project structure, strategy is not formulated from
above and then implemented lower down; rather, it evolves by virtue of the
multitude of decisions made for the projects themselves. In other words, the
adhocracy is continually developing its strategy as it accepts and works out new
projects, the creative results of which can never be predicted. And so everyone
who gets involved in the project work - and in the adhocracy that can mean
virtually everyone - becomes a strategy maker.

59. To describe what happens to be distinction between operating core and

administrative structure, I need to introduce two basic types of adhocracy. The
operating adhocracy carries out innovative projects directly on behalf of its
clients, usually under contract, as in a creative advertising agency, a think-tank
consulting firm, a manufacturer of engineering prototypes. Professional
bureaucracies work in some of these industries too, but with a different
orientation. The operating adhocracy treats each client problem as a unique
one to be solved in creative fashion; the professional bureaucracy pigeonholes it
so that it can provide a standard skill.

60. For example, there are some consulting firms that tailor their solutions to
the client's order and others that sell standard packages off the rack. When the
 44 CDM/GM/4

latter fits, it proves much cheaper. When it does not, the money is wasted. In
one case, the experts must cooperate with each other in organic structures to
innovate; in the other, they can apply their standard skills autonomously in
bureaucratic structures.

61. In the operating adhocracy, the operating and administrative work blends
into a single effort. That is, the organisation cannot easily separate the planning
and design of the operating work - in other words, the project - from its actual
execution. So another classic distinction disappears. As shown above the
dotted lines in Exhibit II, the organisation emerges as an organic mass in which
line managers, staff, and operating experts all work together on project teams in
ever-shifting relationships.

62. The administrative adhocracy undertakes projects on its own behalf, as

in a space agency or a producer of electronic components. NASA, for example,
as described during the Apollo era by Margaret K. Chandler and Leonard R.
Sayles, seems to be perfect example of administrative Adhocracy. In this type
of adhocracy, in contrast to the other, we find a sharp separation of the
administrative from the operating work - the latter shown by the dotted lines in
Exhibit II. This results in a two part structure. The administrative component
carries out the innovative design work, combing line managers and staff experts
in project teams. And the operating component, which puts the results into
production, is separated or ‘truncated’ so that its need for standardisation will not
interfere with the project work.

63. Sometimes the operations are contracted out altogether. Other times,
they are set up in independent structures, as in the printing function in
newspapers. And when the operations of an organisation are highly automated,
the same effect takes place naturally. The operations essentially run
themselves, while the administrative component tends to adopt a project
orientation concerned with change and innovation, with bringing new facilities on
line. Note also the effects of automation - a reduction in the need for rules,
since these are built right into the machinery, and a blurring of the line/staff
distinction, since control becomes a question more of expertise than authority.
What does it mean to supervise a machine? Thus the effect of automation is to
reduce the degree of machine bureaucracy in the administration and to drive it
toward administrative adhocracy.

64. Both kinds of adhocracy are commonly found in environments that are
complex as well as dynamic. These are the two conditions that call for
sophisticated innovation, which requires the cooperative efforts of many different
kinds of experts. In the case of administrative adhocracy, the production system
is also typically complex and, as noted, often automated. These production
systems create the need for highly skilled support staffers, who must be given a
good deal of power over technical decisions.

65. For its part, the operating adhocracy is often associated with young
organisations. For one thing, with no standard products or services
organisations that use it tend to be highly vulnerable, and many of them
disappear at an early age. For another, age drives these organisations toward
 45 CDM/GM/4

bureaucracy, as the employees themselves age and tend to seek an escape

from the .instability of the structure and its environment. The innovative
consulting firm converges on a few of its most successful projects, packages
them into standard skills, and settles down to life as a professional bureaucracy;
the manufacturer of prototypes hits on a hot product and becomes a machine
bureaucracy to mass produce it.

66. But not all adhocracies make such a transition. Some endure as they
are, continuing to innovate over long periods of time. We see this, for example,
in studies of the National Film Board of Canada, famous since the 1940s for its
creativity in both films and the techniques of film making.

67. Finally, fashion is a factor associated with adhocracy. This is clearly the
structure of our age, prevalent in almost every industry that has grown up since
World War II (and none I can think of established before that time). Every
characteristic of adhocracy is very much in vogue today - expertise, organic
structure, project teams and task forces, diffused power, matrix structure,
sophisticated and often automated production systems, youth, and dynamic,
complex environments. Adhocracy is the only one of the five configurations that
combines some sense of democracy with an absence of bureaucracy.

68. Yet, like all the others, this configuration too has its limitations.
Adhocracy in some sense achieves its effectiveness through inefficiency. It is
inundated with managers and costly liaison devices for communication: nothing
ever seems to get done without everyone talking to everyone else. Ambiguity
abounds, giving rise to all sorts of conflicts and political pressures. Adhocracy
can do no ordinary thing well. But it is extraordinary at innovation.

Configurations As a Diagnostic Tool

69. What in fact are these configurations? Are they (1) abstract ideals, (2)
real-life structures, one of which an organisation had better use if it is to survive,
or (3) building blocks f or more complex structures? In some sense, the answer
is a qualified yes in all three cases. These are certainly abstract ideals,
simplifications of the complex world of structure. Yet the abstract ideal can
come to life too. Every organisation experiences the five pulls that underlie
these configurations: the pull to centralize by the technostructure, the pull to
professionalize by the operators, the pull to balkanize by the managers of the
middle line, and the pull to collaborate by the support staff.

70. Where one pull dominates - where the conditions favour it above all - then
the organisation will tend to organize itself close to one of configurations. I have
cited examples of this throughout my discussion - the entrepreneurial company,
the hamburger chain, the university, the conglomerate, the spare agency.

71. But one pull does not always dominate; two may have to exist in balance.
Symphony orchestras engage highly trained specialists who perfect their skills,
as do the operators in professional bureaucracy. But their efforts must be tightly
coordinated; hence the reliance on the direct supervision of a leader - a
conductor - as in simple structure. Thus a hybrid of the two configurations
 46 CDM/GM/4

emerges that is eminently sensible for the symphony orchestra (even if it does
generate a good deal of conflict between leader and operators).

72. Likewise, we have companies that are diversified around a central theme
that creates linkages among their different product lines. As a result, they
continually experience the pull to separate, as in the divisionalized form, and
also integrate, as in machine bureaucracy or perhaps adhocracy. And what
configuration should we input to an IBM? Clearly, there is too much going on in
many giant organisations to describe them as one configuration or another. But
the framework of the five configurations can still help us to understand how their
different parts are organised and fit together - or refuse to.

73. The point is that managers can improve their organisation designs by
considering the different pulls their organisations experience and the
configurations toward which they are drawn. In other words, this set of five
configurations can serve as an effective tool in diagnosing the problems of
organisational design, especially those of the fit among component parts. Let
us consider four basic forms of misfit to show how managers can use the set of
configurations as a diagnostic tool.

Are the Internal Elements Consistent?

74. Management that grabs at every structural innovation that comes along
may be doing its organisation great harm. It risks going off in all directions;
today long-range planning to pin managers down, tomorrow outward bound to
open them up. Quality of working life programmes as well as all those
fashionable features of adhocracy - integrating managers, matrix structure, and
the like - have exemplary aims: to create more satisfying work conditions and to
increase the flexibility of the organisations. But are they appropriate for a
machine bureaucracy? Do enlarged jobs really fit with the requirements of the
mass production of automobiles? Can the jobs ever be made large enough to
really satisfy the workers - and the cost-conscious customers?

75. I believe that in the fashionable world of organisational design, fit remains
an important characteristic. The hautes structures of New York - the
consulting firms that seek to bring the latest in structural fashion to their clients -
would do well to pay a great deal more attention to that fit. Machine
bureaucracy functions best when its reporting relationships are sharply defined
and its operating core staffed with workers who prefer routine and stability. The
nature of work in this configuration - managerial as well as operating - is rooted
in the reality of mass production, in the costs of manual labour compared with
those of automated machines, and in the size and age of the organisation.

76. Until we are prepared to change our whole way of living - for example, to
pay for handcrafted instead of mass-produced products and so to consume less
- we would do better to spend our time trying not to convert our machine
bureaucracies into something else but to ensure that they work effectively as the
bureaucracies they are meant to be. Organisations, like individuals, can avoid
identity crises by deciding what it is they wish to be and then pursuing it with a
healthy obsession.
 47 CDM/GM/4

Are the External Controls Functional?

77. An organisation may achieve its own internal consistency and they have it
destroyed by the imposition of external controls. The typical effect of those
controls is to drive the organisation toward machine bureaucracy. In other
words, it is the simple structure, professional bureaucracies, and adhocracies
that suffer most from such controls. Two cases of this seem rampant in our
society: one is the takeover of small, private companies by larger divisionalized
ones, making bureaucracies of entrepreneurial ventures; the other is the
tendency for governments to assume increasingly direct control of what used to
be more independent organisations - public school systems, hospitals,
universities, and social welfare agencies.

78. As organisations are taken over in these ways - brought into the
hierarchies of other organisations - two things happen. They become
centralized and formalized. In other words, they are driven toward machine
bureaucracy. Government administrators assume that just a little more formal
control will bring this callous hospital or that weak school in line. Yet the cure -
even when the symptoms are understood - is often worse than the disease. The
worst way to correct deficiencies in professional work is through control by
technocratic standards. Professional bureaucracies cannot be managed like
machines.

79. In the school system, such standards imposed from outside the
classroom serve only to discourage the competent teachers - as that of all other
professionals - depends primarily on their skills and training. Retraining or, more
likely, replacing them is the basic means to improvement.

80. For almost a century now, the management literature - from time study
through operations research to long - range planning has promoted machine
bureaucracy as the "one best way,” That assumption is false; it is one way
among a number suited to only certain conditions.

Is There a Part That Does Not Fit?

81. Sometimes an organisation's management, recognising the need for

internal consistency, hives off a part in need of special treatment - establishes it
in a pocket off in a corner to be left along. But the problem all too often is that it
is not left alone. The research laboratory may be built out in the country, far
from the managers and analysts who run the machine bureaucracy back home.
But the distance is only physical.

82. Standards have a long administrative reach: it is difficult to corner off a

small component and pretend that it will not be influenced by the rest. Each
organisation, not to mention each configuration, develops its own norms,
traditions, beliefs - in other words, its own ideology. And that permeates every
part of it. Unless there is a rough balance among opposing forces - as in the
 48 CDM/GM/4

symphony orchestra - the prevailing ideology will tend to dominate. That is why
adhocracies need especially tolerant controllers, just as machine bureaucracies
must usually scale down their expectations for their research laboratories.

Is The Right Structure in the Wrong Situation?

83. Some organisation do achieve and maintain an internal consistency. But

then they find that it is designed for an environment the organisation is no longer
in. To have nice, neat machine bureaucracies in a dynamic industry calling for
constant innovation or, alternately, a flexible adhocracy in a stable industry
calling for minimum cost makes no sense. Remember that these are
configurations of situation as well as structure. Indeed, the very notion of
configuration is that all the elements interact in a system. One element does not
cause another; instead, all influence each other interactively. Structure is no
more designed to fit the situation than situation is selected to fit the structure.

84. The way to deal with the right structure in the wrong .environment may be
to change the environment, not the structure. Often, in fact, it is far easier to
shift industries or retreat to a suitable niche in an industry than to undo a
cohesive structure. Thus the entrepreneur goes after a new, dynamic
environment when the old one stabilizes and the bureaucracies begin to move
in. When a situation changes suddenly - as it did for oil companies some years
ago - a rapid change in situation or structure would seem to be mandatory. But
what of a gradual change in situation? How should the organisation, adapt, for
example, when its long-stable markets slowly become dynamic?

85. Essentially, the organisation has two choices. It can adapt continuously
to the environment at, the expense of internal consistency - that is, steadily
redesign its structure to maintain external fit. or it can maintain internal
consistency at the expense of a gradually worsening fit with its environment, at
least until the fit becomes so bad that it must undergo sudden structural
redesign to achieve a new internally consistent configuration. In other words,
the choice is between evolution and revolution, between perpetual mild
adaptation, which favours external fit over time, and infrequent major
realignment, which favours internal consistency over time.

86. In his research on configuration, Danny Miller finds that effective

companies usually opt for revolution. Forced to decide whether to spend most
of their time with a good external fit or an established internal consistency, they
choose consistency and put up with brief periods of severe disruption to realign
the fit occasionally. It is better, apparently to maintain at least partial
configuration than none at all. Miller calls this process, appropriately enough, a
“quantum” theory of structural change.

Fit over Fashion

87. To conclude, consistency, coherence, and fit - harmony - are critical
factors in organisation design, but they come at a price. An organisation cannot
be all things to all people. It should do what it does well and suffer the
consequences. Be an efficient machine bureaucracy where that is appropriate
and do not pretend to be highly adaptive. Or be an adaptive adhocracy and do
 49 CDM/GM/4

not pretend to be highly efficient. Or create some new configuration to suit your
own needs. The point is not really which configuration you have; but that you
achieve configuration.
 50 CDM/GM/4

Appendix
(Refers to para 14)
ELEMENTS OF THE CONFIGURATIONS

Elements of Structure

1. Job Specialisation. Refers to the number of tasks in a given job and the
worker's control over these tasks. A job is horizontally specialised to the extent
that it encompasses few narrowly defined tasks, vertically specialised to the
extent that the worker lacks control of the tasks he or she performs. Unskilled
jobs are typically highly specialised in both dimensions, while skilled or
professional jobs are typically specialised horizontally but not vertically. Job
enrichment refers to the enlargement of jobs in both the vertical and horizontal
dimensions.

2. Behaviour Formalisation refers to the standardisation of work

processes by imposition of operating instructions, job descriptions, rules,
regulations, and the like. Structures that rely on standardisation for coordination
are generally referred to be bureaucratic, those that do not as organic.

3. Training and Indoctrination refer to the use of formal instructional

programmes to establish and standardise in people the requisite skills,'
knowledge, and norms to do particular jobs. Training is a key design parameter
in all work we call work we call professional. Training and formalisation are
basically substitutes for achieving the standardisation (in effect, the
bureaucratisation) of behaviour. In the one, the standards are internalised in
formal training as skills or norms; in the other, - they are imposed on the job as
rules.

4. Unit Grouping refers to the optional bases by which positions are

grouped together into units and these units into high-order units. Grouping
encourages coordination by putting different jobs under common supervision, by
requiring them to share common resources and achieve common measures of
performance, and by facilitating mutual adjustment among them. The various
bases for grouping - by work process, product, client, area, etc., can be reduced
to two fundamentals: the function performed or the market served.

5. Unit Size refers to the number of positions (or units) contained in a single
unit. The equivalent term span of control is not used here because sometimes
units are kept small despite an absence of close supervisory control. For
example, when experts coordinate extensively by mutual adjustment, as in an
engineering team in a space agency, they will form into small teams. In this
case, unit size is small and span of control is low despite a -relative absence of
direct supervision. In contrast when work is highly standardised (because of
either formalisation or training), unit size can be very large because there is little
need for direct supervision. One foreman can supervise dozens of assemblers
because they work according to very tight instructions.
 51 CDM/GM/4

6. Planning and Control Systems are used to standardise outputs. They

may be divided into two types - action planning systems, which specify the
results of specific actions before they are taken (for example, that holes should
be drilled with diameters of three centimeters), and performance control
systems, which specify the results of whole range of actions after the fact (for
example, that sales of a division should grow by 10% in a given year).

7. Liaison Devices refer to a whole set of mechanisms used to encourage

mutual adjustment within and among units. They range from liaison positions
(such as the purchasing engineer who stands between operators and
engineering); through task forces, standing committees that bring together
members of many departments, and integrating managers (such as brand
managers) ; and finally to fully developed matrix structure.

8. Vertical Decentralisation describes the extent to which decision making

is delegated to managers down the middle line, while Horizontal
decentralisation describes the extent to which non-managers (that is, people in
the operating core, techno structure, and support staff) control decision
processes. Moreover, decentralisation may be selective, concerning only
specific kinds of decisions, or parallels, concerning many kinds of decisions
altogether. Five types of decentralisation may be found : vertical and horizontal
centralisation, where all power decentralisation (selective), where the strategic
apex shares some power with the techno structure that standardises every body
else’s work; limited vertical decentralisation (parallel) ; where managers of
market-based units are delegated the power to control most of the decisions
concerning their line units; vertical and horizontal decentralisation, where most
of the power rests in the operating core at the bottom of the structure; and
selective vertical and horizontal decentralisation, where the power over different
decisions is dispersed widely in the organisation, staff experts, and operators
who work in groups at various levels in the hierarchy.

Elements of Situation

9. The age and size of the organisation affect particularly the extent to
which its behaviour is formalised and its administrative structure, (techno
structure and middle line) elaborated. As they rests at the strategic apex; limited
horizontal age and grow, organisations appear to go through distinct structural
transitions, such as insects metamorphose - for example, from simple organic to
elaborated bureaucratic structure, from functional grouping to market based
grouping.

10. The technical system of the organisation influences especially the

operating core and these staff units most clearly associated with it. When the
technical system of the organisation regulates the work of the operating core -
as it typically does in mass production - it has the effect of bureaucratising the
organisation by virtue of the standards it imposes on lower-level workers.
Alternately, when the technical system succeeds in automating the operating
work (as in such process production), it reduces the need for external rules and
regulations : the necessary rules are automatically incorporated into the
machines, enabling the structure to be organic. And when the technical system
 52 CDM/GM/4

is complex, as is often the case in process production,' the organisation must

create a significant professional support staff to deal with it and then must
decentralise selectively to that staff many of the decisions concerned with the
technical system. The environment of the organisation can vary in its degree of
complexity, in how static or dynamic it is, in the diversity of its markets,' and in
the hostility it contains for the organisation. The more complex the environment,
the more difficulty central management has in comprehending it, and the greater
the need for decentralisation. The more dynamic the environment, the greater
the difficulty in standardising work, outputs, or skills, and so the less
bureaucratic the structure. These relationships suggest four kinds of structure
two in stable environments (one simple, the other complex) leading,
respectively, to a centralised and a decentralised organic structure. Market
diversity as noted earlier, encourages the organisation to set up market-based
divisions (instead of functional departments) to deal with each, while extreme
hostility in the environment drives the organisation to centralise power
temporarily - no matter what its normal structure - to fight off the threat.

11. The power factors of the organisation include external control, personal
power needs, and fashion. The more an organisation is controlled externally,
the more centralised and bureaucratic it tends to become. This can be
explained by the fact that the two most effective means to control an
organisation from the outside are to hold its most powerful decision maker, the
chief executive officer, responsible for its actions and to impose clearly defined
standards on it (performance targets or rules and regulations).

12. Moreover, because the externally controlled organisation must be

especially careful about its actions - often having to justify these to outsiders - it
tends to formalise mast of its behaviour and insist that its chief executive
authorises key decision. A second factor, individual power needs (especially by
the chief executive) tend to generate excessively centralised structures. As
fashion has been shown to be a factor in organisation design, the structure of
the day often being favoured even by organisations for which it is inappropriate.

Bibliography

1. Structures in Fives - Designing Effective Organisation by Mintzberg

Questions
1. Explain briefly, the various basic elements of an organisation design, as
described by Mintzberg.
2. Write short notes on:-
(a) Simple Stricture.
(b) Machine Bureaucracy.
(c) Professional Bureaucracy.
(d) Divisionalised Form.
(e) Adhocracy.
3. Identify and analyse some more organisations from the armed forces and
from some other sectors in each of the above categories. Give brief reasons for
your answer.
 53 CDM/GM/4

EXHIBIT 1

(The five basic parts of the organisation)

Sp Staff
Str uctur e
Techno
Str ategic apex

Oper ating Cor e

Middle
Line

Strategic
Apex
Sp Staff
Structure
Techno

Middle Line

OPERATING CORE
 54 CDM/GM/4

EXHIBIT II

The five configurations :

 55 CDM/GM/4

EXHIBIT III

DIMENSIONS OF THE CONFIGURATIONS

Simple Machine Professional Divisionalised Adhocracy

Structure Bureaucracy bureaucracy form
Key Direct Standardisat Standardisation Standardisati Mutual
Means of supervisi ion of work of skills on of outputs adjustment
Coordinat on
ion
Key part Strategic Techno Operating Core Middle line Support
of apex structure staff (with
organisati operating
on core in
operating
adhocracy)

STRUCTURAL ELEMENTS

Specialis Little Much Much Some Much

ation of specialisa horizontal Horizontal horizontal horizontal
jobs tion and vertical specialisation and vertical specialisati
specialisa- specialisation on
tion (between
divisions and
HQrs).
Training Little Little training Much training Some Much
and training and Indoctri- and training and training
Indoctrin and nation Indoctrination indoctrination
ation Indoctrina of division
tion managers
Formalis Little Much Little Much Little
ation of formali- formalisation formalisation formalisation formalisat-
behav- sation bureaucratic bureaucratic (within ion organic
iour divisions
bureaucr bureaucratic)
atic /
organic
Grouping Usually Usually Functional and Market Functional
functional functional market and market
Unit size Wide Wide at Wide at bottom Wide at top Narrow
bottom narrow through out
narrow elsewhere
elsewhere
 56 CDM/GM/4

Planning Little Action Little planning Much Limited

and planning planning and control performance action
control and control Planning
systems control (esp. in
admin
adhocracy)
Liaison Few Few liaison Liaison devices Few liaison Many
devices liaison devices in devices liaison
devices administration devices
throughout
Decentra Central- Limited Horizontal and Limited Selective
-lisation isation horizontal vertical vertical decentre-
decentre- decentralisation decentrali- lisation
lisation sation

SITUATIONAL ELEMENTS

Age and Typically Typically varies Typically Typically

size young and old and old and young
small large very large (operating
adhocracy)
Technical Simple, not Regulating Not Division Very
system regulating but not regulating otherwise complex
automated or complex like machine often
not very bureaucracy automated
complex (in admin
adhocracy),
not
regulating
or complex
(in
operating
adhocracy)
Environment Simple and Simple and Complex Relatively Complex
dynamic, stable and stable simple and
sometimes dynamics
hostile sometimes
desperate
(in admin
adhocracy)
Power Chief Technocratic Professi- Middle line Expert
executive and external onal control; controversy
control; controls not operator fashionable fashionable
often fashionable control; (esp in
owner fashionable industry)
manage
not
fashionable
 57 CDM/GM/5

COLLEGE OF DEFENCE MANAGEMENT

ORGANISATIONAL EFFECTIVENESS

Enabling Objectives

• Difference between organisational effectiveness and efficiency.

• What are the major determinants/core variables of organisational

effectiveness?

Learning Objectives

• What are the intervening factors which influence the core variables?

• Relationship between the intervening factors, the core variables and

organisational effectiveness.

Introduction

1. Organisations are social systems with “Specific Purposes”. In other words,

organisations exist for certain goals. Therefore, effectiveness of organisations is a
measure of its ability for goal attainment. For example, a prisoner of war camp which
has a custodial goal, and which has very low escape rate among its inmates, would
be considered an effective organisation. Or DSSC, which has training officers to be
grade II staff officers as its goal, produces high percentage of good quality staff
officers, would be considered an effective organisation.

2. It will be noticed, that clarity of goals or objectives become important if one

has to comment on the effectiveness of an organisation. Effectiveness says
something about how well an organisation is doing in achieving its objectives. What
then are the determinants of organisational effectiveness? One can recall a myriad
of variables which impinge on effectiveness – Task Accomplishment, Adaptability,
Flexibility, Morale, Conformity etc. any of these determinants may contribute towards
effectiveness. Some criteria for accepting these variables become necessary if the
discussion is to be kept to the high pay-off areas. The variables or the determinants
must have universality of application. That is, the contributions of the variables
towards effectiveness, must be generally high for most of the organisations.
Secondly, the determinants must tell us something on the present state of the
organisation, the capability of the organisation to meet unforeseen situations.
Presence of these attributes in some measure or the other should determine the
effectiveness of an organisation – both from the view of the output and its ultimate
potential.
 58 CDM/GM/5

The Effectiveness Variables

3. The core variables which contribute towards effectiveness are:-

(a) Task Accomplishment.

(b) Adaptability.

(c) Flexibility.

4. Task Accomplishment. The present state of the organisation, that is, what is
its output? Effective organisations are those that achieve better results most
efficiently. Thus maximisation of output and minimisation of input will be a measure
of the efficiency of an organisation. But the output must contribute towards goals
attainment. The output or the product could be anything : number of aircraft engines
produced, services rendered by the ASC or MES etc

5. Adaptability. No organisation operates under static conditions. There is

constant flux in the environment. The environment keeps changing. The ability of an
organisation to monitor this change and keeping pace with this change would be a
measure of its adaptability. Human beings as a species have survived because of
their highly adaptive capability. Therefore, the very survivability of an organisation
depends on its adaptability. A firm manufacturing piston driven aeroengines will find
it extremely difficult to exist in an environment of jet age. In short, an organisation
should be endowed with a structure which can monitor the change in the
environment and to take suitable action to modify organizational activity to meet the
change. Somewhat like the Cybernectics Theory – a closed loop system, where
deviations are measured and corrective action is triggered. Adaptability does not
only mean coping with change. Anticipating change could be an even more vital
function. In an area of competition, it pays to be pro-active than to be reactive. In an
environment which is fast changing, a reactive system may itself lag when compared
to the rate of change outside.

6. Flexibility. Situations do not arise as expected. The future is uncertain. The

arrival of unforeseen situations are stochastic in nature. Not only the arrival is
stochastic, the very nature of situations may be different. When is the unusual
demand going to occur, and what kind of a demand would that be? Overload of the
same type of job would be one contingency, and a totally new situation could be
another. Both would require the flexibility of an organization to cope with the unusual
demand. If this flexibility is found wanting, naturally the organisation cannot keep up
with its goal-attainment. Flexibility can vary from highly programmed to completely
improvised. Fire drills, accident prevention plans etc are examples of programmed
responses to emergencies, to temporarily unpredictable overloads of work. At the
other end of the continuum no programme exists, each emergency is treated as a
novel experience in which improvisation is the key ingredient.

7. Our criteria for effectiveness are summarised as follows:-

(a) Organising the centers of power for routine performance:-

 59 CDM/GM/5

(i) The quality of the result/task to be achieved/service to be

rendered.

(ii) The quantity of the task/service.

(iii) The efficiency with which it is achieved.

(b) Organising centers of power to change routines (Adaptability):-

(i) Anticipating problems in advance and developing satisfactory

and timely solutions to them.
(ii) Staying abreast of new technologies and methods applicable to
the activities of the organisation.

(C) Organising centers of power to cope with temporarily unpredictable

overloads of work (Flexibility).

Factors Influencing the Core Variables

8. The variables have been identified as those which contribute towards

effectiveness. An organisation high on Productivity is meeting to some degree its
goal-attainments. Similarly organisations high on Adaptability and Flexibility have the
potential to meet the threats of the environment and thus contribute to organisational
effectiveness on a futuristic basis. It can be said that Performance decides how well
you are doing at present, but Adaptability and Flexibility decide whether you can
survive or not.

9. Each of these core variables get further enhanced or reduced by impact of

many other factors. For example, ‘Centralisation’ may be functionally or
dysfunctionally related to the three core variables. This issue can be further
complicated, if we can consider that centralisation, for example, is functionally
related to Performance and dysfunctionally to Flexibility. Then, is a high degree of
centralisation desired? Which is more important; Performance or Flexibility? This
would depend on the goal of the organisation. Ideally, maximisation of all the three
core variables should lead to high organisational effectiveness, but the constraints of
resources will limit the necessity to maximise all the three. Hence, a mix, depending
on the goal of the organisation will determine the best alternative. In a defence
organisation, for example, flexibility may be more desirable than productivity. Simple,
because the goal of the Defence is futuristic. The present is only for the future.
Operational preparedness today is for victory tomorrow.

10. There are thus any number of factors which would impinge on the core
variables, and which in turn will determine effectiveness. Some of the factors often
encountered in an organisation are as follows:-

(a) Leadership.
(b) Centralisation.
(c) Conformity.
 60 CDM/GM/5

(d) Morale.
(e) Communication.
(f) Autonomy.
(g) Culture.
(h) Sanctions.
(j) Mobility (Transfers).

Factor – Variable Interaction

11. A step-by-step analysis of the factors vis-à-vis the variables, will now be
considered.

12. Leadership. We have many types of leadership. On one end of the continuum
we have the high-task and low-people style, and on the other end of the continuum
we have high people and low task style. The high-task, low-people style obviously is
suitable for short term increase in productivity and, therefore, a positive correlation
exists between high productivity and this style of leadership particularly for short
runs. In the long term, productivity is bound to come down as the morale of the
workers is also likely to suffer under the influence of the high-task, low-people
relationship. Hence the high-task, low people style has more dysfunctions than
functions towards productivity in the long run. But this style may be suitable during
high overloads of work (flexibility). That means when overloads of work arise,
temporarily, this style is likely to be functional. Any number of such arguments can
be developed, and the style most suited will be determined by the organisational
goals itself. For example, a high-people, low-task style will enhance morale, but
unless that morale leads to a spurt in enthusiasm to work more, it has very little to
contribute to the effectiveness of an organisation.

13. Centralisation. A high degree of centralisation has been found to be

positively correlated to routine type of jobs. That is, where the job is of a routine
nature, a high degree of centralisation enhances productivity by optimising use of
resources. But, where the job is more contingent than routine, high centralisation
becomes dysfunctional as the managers have very little flexibility in decision making.
Thus centralization affects flexibility. For example, in an organisation where routine
jobs exist side by side of a research laboratory, high centralization may be desirable
in the former case but decentralisation is a must in the latter. Therefore, the degree
of centralisation should be determined depending on the type of job people are
doing. In the same organisation, this aspect may have to be varied, depending upon
the level of the subordinates. In the defence forces, high degree of centralisation at
the unit level may lead to higher productivity, but at the service headquarter level, a
fairly high degree of decentralisation is desirable if adaptability and flexibility have to
be taken into account.

14. Conformity. Conformity implies the degree to which performance

corresponds to norms. The implications are, high degree of conformity at the activity
level will result in higher productivity for routine jobs. Where jobs are specialized
conformity will restrict dependent action thereby depriving qualitative changes.
 61 CDM/GM/5

Where qualitative changes are desirable, like research laboratories, conformity will
be dysfunctional to productivity. Similarly, at higher levels, conformity will breed ‘yes
men’ rather than honest advisors. Not only is the restricted field of action likely to cut
into flexibility, adaptability is also likely to suffer. Conformity also tends to affect
morale, which in turn affects productivity. Nevertheless, in organisations like the
defence forces, conformity at the lower levels is a desirable trait. Questioning of
orders and instructions under battle conditions will, without doubt, curb operational
success. At the directional and conceptual levels, any kind of pressure to ensure
adherence to norms is likely to frustrate individual opinion, and consequently growth
of the organisation

15. Morale. Morale may be defined as the degree to which individual motives
are gratified. Rates of turnover, absent without leave (AWL) and sick reports are
common measures of morale. Low morale arises out of repetitive jobs and,
therefore, dysfunctional to productivity where routine jobs are concerned. Its
functional aspect relates to the dexterity and job competence that is developed by
the worker. On the whole, dysfunctions are more predominant where the job content
is of a routine and repetitive nature. Low morale essentially has dysfunctions running
through all the core variables, viz Productivity, Adaptability and Flexibility. The only
time when low morale gets positively correlated is during routine overloads of jobs,
when the manager/commander has to resort to High Task-Low Relationship
approach.

16. Communication. Communication may be defined as the transmission of

information with the intent of changing the recipient’s knowledge, attitudes or overt
behaviour. Free flow of communication gets negatively correlated to productivity due
to information overload at the decision nodes. Communication which is spontaneous
at the work place is found functional to core variables. Organisational structures
which attempt to break the information overload at the decision nodes often resort to
vertical (tall) organisations. This also becomes dysfunctional due to the distortions at
the many interfaces of the organisational hierarchy. It has been found that highly
centralised organisations imbibe the practice of vertical flow of communication from
“Top” to the “Bottom”. In such situations, as we have seen, communication gets
positively correlated to productivity of routine kind of jobs. Also the flexibility for
routine overloads of work increases. The dysfunctions due to top to bottom approach
of communication manifests itself in the area of flexibility for situational contexts. In
such situations authority and responsibility needs to be delegated to the peripheries
of the organisation where lateral and vertical communication flow play a vital part.
Horizontal communication on the other hand, is positively correlated to Adaptability
as it permits free and quick exchange of information. Open organisation system
permit a lot of lateral communication to react to environmental change.

17. Autonomy. Autonomy may be defined as the degree to which a social system
has freedom to make decisions with respect to its environment. The autonomy of an
organisation is related to its centralisation. Whenever centralisation is high autonomy
decreases. Therefore, autonomy is negatively correlated to productivity for routine
jobs and flexibility on routine overloads. Autonomy is positively correlated to
adaptability and flexibility for contingent situations. Predominantly autonomy at work
increases productivity due to higher morale of the workers.
 62 CDM/GM/5

18. Culture. Culture becomes an important determinant of effectiveness as it

directly contributes to behavioural pattern of individuals. Its effect on the core
variables are ‘segmented’ because where culture sanctions conformity, its effect is
functional to productivity for routine jobs and to an extent on flexibility for routine
overloads. Adaptability and flexibility on contingent situations gets completely
vitiated. Conversely, where culture sanctions non-conformists behaviour, the effect is
opposite on the core variables. Sometimes, cultures due to religion, caste and
community contribute heavily towards productivity if the job requirements are in
consonance to the held beliefs and practices of the cultural background. For
example, members of the ‘martial races’ have proved themselves highly functional
on high risk tasks, like engagement in battles etc. At least people belonging to such
cultural backgrounds need not be motivated to the same degree as others, to
accomplish highly dangerous tasks.

19. Sanction. A sanction may be defined as role performance, the primary

significance of which is gratificational deprivation. Positive sanctions are
gratificational and negative sanctions are deprivational. The sanction system of an
organisation compliments its system of decision making. A high degree of
centralisation, for example, will not increase the degree of effectiveness, no matter
how well these decisions are designed to achieve the goals of the organisation,
unless the decisions can be enforced. Sanctions are a key mechanism to secure this
enforcement. Positive sanctions are growth oriented and augments morale. Such
sanctions increase individual productivity, and if properly accorded, generate a
healthy system of competition. The only dysfunction to positive sanctions systems is
when the group perceives the sanction unjustifiable. Augmentation in individual
productivity is counter-balanced by low productivity of the rest of the members due to
low morale. Negative sanctions, sometimes essential for compliance of routine
overloads, breeds in tension and consequently low morale. Thus the core variables
get negatively correlated in the long run.

20. Mobility. There are two kinds of mobility. The first one involves changes of
location coupled with change of job, and the second one relates to change in
location and continuation of the same job. The first type of mobility is called Type A
and the second the Type B. Type A mobility is functional for semi-skilled jobs since a
shift in ability helps in dealing with contingent situations. However, where jobs are
specialised, Type A becomes dysfunctional to all the core variables. Type B mobility
is functional for specialised jobs and also to an extent on semiskilled jobs. Though
sometimes, the morale is lowered due to domestic problems which are commonly
involved in shift of residence and children schooling.
 63 CDM/GM/5

Conclusion

21. The degree to which an organisation can mobilise itself to achieve the goals,
is a measure of its organisational effectiveness. The effectiveness measure has to
be seen from the point of view of the present state, the future and the potential to
handle unforeseen situations. The relationship among the three core variables can
be understood by the following model:-

PRESENT FUTURE

ADAPTABILITY

PRODUCTIVITY FLEXIBILITY

22. Productivity is concerned about present state; Flexibility is concerned about

the potential of an organisation to handle unpredictable situations in the future, and
Adaptability is the line joining the present and the future. Adaptability would
safeguard the very survivability of an organisation. The line demarcating adaptability
and flexibility is indeed thin. Flexibility essentially is a special case of adaptability.
Flexibility implies temporary changes to meet a contingent situation, after which the
organisation returns to its original state. Adaptability is seen as a long term change
forced by the environment.

23. The core variables determine the effectiveness of an organisation. But these
core variables are affected by many intervening factors like centralisation, morale,
autonomy etc. Therefore, the relationship between the intervening factors, the core
variables and organisational effectiveness are interdependent in nature. This will be
clear by the following model:-
 64 CDM/GM/5

VARIABLES AFFECTING ORGANISATIONAL EFFECTIVENESS

Intervening Variables

Centralisation

Leadership
FUNCTION AND DYSFUNCTIONS

Morale
CORE VARIABLES
Productivity Organisational
Adaptability
Communication Flexibility Effectiveness

Autonomy

Culture

Sanctions

Mobility

24. The intervening factors are functionally or dysfunctionally related to the core
variables. A factor may functionally contribute to productivity but dysfunctional
tolexibility. Another factor may do quite the reverse. Therefore, the interaction among
the various factors will finally shape the total effect on the core variables and
consequently on organisational effectiveness.

25. The maximisation of the core variables should lead to maximise the
organisation effectiveness. But constraints of resources will force a compromise in
their mix. In fact, the best solution would lie in varying the mix from level to level in
an organisation, depending upon whether the level is on activity, directional or is
conceptual. The following model will illustrate this:-
ADAPTABILITY FLEXIBILITY
CONCEPTUAL
LEVEL

DIRECTIONAL
LEVEL

ACTIVITY
LEVEL
PRODUCTIVITY

26. This model is not universal in nature because the mix of the core variables
would depend from organisation to organisation depending on their objectives. The
model is more representative of a service organisation like the armed forces, where
 65 CDM/GM/5

maximum productivity is desirable at the activity level (unit level) and maximum
adaptability at the conceptual (headquarters) level. Flexibility is constant which runs
equally throughout the organisational hierarchy due to the very nature of the
objectives of a service organisation. That is, objectives are biased more towards
future situations rather than the present.

Bibliography

1. ‘Characteristics of an Organisation’ by Paul E, Mott.

2. ‘Organisational Effectiveness – An Inventory of Propositions’ by Price.
3. ‘Behavioural Aspects of Organisational Effectiveness’ by Richard M. Steers.
4. AIMA Journals.
5. Defence Management Journal (October 79, January 80 and April 80 issues),
6. ‘Improving Organisational Effectiveness’ by Ravishankar and Mishra RK,
Bombay, Jaico, 1991.
7. ‘Organisation Theory & Behaviour’ by NS Gupta, Himalaya Publishing – 1992.
8. ‘Tips for Improving Performance,’ by Sethi, R, Beacon Books, 1996.
9. ‘Org Development for Excellence,’ by Prasad K, Macmillan, 1996.
 66 CDM/GM/5

Exercise

1. What is organizational effectiveness?

2. What are the core variables which contribute towards organizational
effectiveness? Write short notes on the core variables with examples.
3. Explain the effect of the following intervening factors on the core variables and
the resultant organizational effectiveness:-
(a) Leadership
(b) Centralisation
(c) Conformity
(d) Communication
(e) Autonomy
(f) Culture.

********
 67 CDM/GM/6

COLLEGE OF DEFENCE MANAGEMENT

AUTHORITY AND DELEGATION

Enabling Objectives

• Understand the concepts of Authority, Power and Influence.

• Understand the relevance of delegation in context of responsibility, authority and

accountability.

Learning Objectives

• Identify the sources of power and be able to differentiate between power and
authority.
• Be able to relate the concepts, processes and barriers in delegation.
• Be Able to appreciate the significance of empowerment as a positive strategy in
managing behaviour in an organisation.
• Be able to analyse the impact of Information Technology on empowerment and
self regulated work teams.

Introduction

1. Authority is perhaps one of the terms in management badly mired in a

semantic jungle. It is subject to a number of interpretations, primarily because of a
result of misunderstanding of the various terms associated with it such as
Leadership, Power and Influence. Also, Authority is linked to delegation, as an
organisation becomes operational primarily through delegation of work and
authority, by a manager to a subordinate.

2. With a large number of people in an organisation, individually different and

given to varied ways of responding, how does the organisation elicit appropriate
behaviour from each? Obviously, by exertion of some influence through its leaders.
Leaders use ‘power’ and ‘authority’ to exert that influence. It is therefore necessary
to understand these concepts and their effect on people in an organisation. It is also
necessary to understand the ‘concept of delegation’ as a process of power
equalization, which is one of the demands generated by not only socio-economic
conditions in the present context, but also by increasing complexity of the
organisations and dynamics of the environment.

INFLUENCE, POWER AND AUTHORITY

3. The terms influence, power and authority sometimes tend to be confused with
each other and therefore need to be clearly understood.
 68 CDM/GM/6

4. Influence. It is an all-inclusive concept that covers both power and

authority. It also includes any means by which change is induced in individuals or
groups. It covers a wide spectrum of ways such as emulation, suggestion,
persuasion or even coercion.

5. Katz and Kahn bring these terms in clearer perspective when they say
“Influence includes virtually any interpersonal transaction which will have the effects
intended by the influencing agent. Power is the potential for influence
characteristically backed by the means to coerce compliance. Finally, authority is
legitimate power; it is power which accrues to a person by virtue of his role, his
position in an organised social structure”.

6. In an organisation it is not only leaders who possess power but competent

subordinates may also wield power. Similarly, two commanders with equal authority
may have different degrees of power over their respective subordinates.

6. The differences between ‘Authority’ and ‘Power’ are as shown below :-

Authority Power

(a) It is the right to do something. It is the ability to do something.

(b) It is the legitimate power given by It requires no formal position. It is a

the organisation to the role occupant. personal quality.

(c) It is derived from organisational

It is derived from many sources.
position only.

8. It is therefore essential that in any organisation there needs to exist a happy

balance between power and authority both of which need to be examined in greater
detail.

Power

9. Sources of Power. If Power is a personal quality and is derived from

many sources, the obvious question is where does power emanate from? Power is
said to emanate from seven sources as shown in Fig 1 below :-
 69 CDM/GM/6

LEGITIMATE REWARD

INFO LEADER/ROLE CONNECTION

(RAVEN & OCCUPANT (HERSEY &
KRUGLANSKI) GOLDSMITH)

COERCIVE EXPERT REFERENT

(FRENCH & RAVEN)

(a) Legitimate Power. It is inherent in the position. The role

occupant has control over organisational resources to the extent laid down by
the organisation. In society, people accept the right of the leader to direct the
organisation. They are conditioned to accept the authority of leaders.

(b) Reward Power. It is the ability to reward or punish. Therefore, those

who control resources and can distribute rewards or give out punishments, as
against those in advisory positions, are perceived as more powerful in an
organisation.

(c) Coercive Power. Leaders who have reward power also have coercive
power. It is generally exercised against unproductive or disciplinary elements.
It is associated with ability to assign distasteful tasks, harassment and
withholding due promotions/rewards etc. If properly used it can be very
effective but indiscriminate use can seriously damage the organisation.

(d) Expert Power. It stems from one’s own knowledge, expertise or

special skills. Both superior and subordinate can possess it. The expert
power reduces as the knowledge, expertise or special skills become more
widely available or become obsolete.

(e) Referent Power. Also called Charismatic power. Those with unusual
flair and pleasing personality and are capable of influencing others through
attraction are said to possess referent power. It quite often elicits imitative
behaviour from others.

(f) Information Power. People who have valuable information are

perceived to have more power giving rise to coining of the phrase
“Information Is Power”. Since information is required at all levels of the
organisation people throughout the hierarchy can possess this power.
 70 CDM/GM/6

(g) Connection Power. Connections or links with people inside or outside

the organisation also bring some power to the individual. It can therefore be
possessed both by the superior and subordinate.

Authority

10. Definition. One of the definitions of authority is that it is the sanctioned

legal right of a role occupant in an organisation to act at his own discretion. It is
legal or rightful power, a right to command or to act. It is important to underline that
the scope of authority is limited to the accomplishment of those responsibilities that
are related to the position. At the time of joining an organisation, an individual
enters into a “psychological contract”, subjecting himself to the authority system
therein.

11. Basis of Authority. The configuration of authority in any given situation

depends to a large extent on the basis of acceptance. How authority is legitimized
is a function of culture, values and political system, and hence it varies from society
to society and from time to time. The basis of authority is classified into four as
shown in the figure below:-

Traditional

Competence Rational - legal

LEADER

Charisma

Basis of Authority

(a) Traditional. People often come to accept those who rule them
because they believe the position of the former has always been that. The
divine right, supporting monarchy of bygone days is similar to tradition based
authority.

(b) Rational – Legal. According to this, authority is on the basis of

rational criteria in terms of formal laws and rules prescribed in the
organisation. It will be seen that these are the same principles that underlie
the concept of democracy. Authority is vested in a rationally selected agency
commensurate with the responsibility that is involved in a duty assigned to it.
Superiors issue orders and subordinates obey them because that is how the
organisation is established. Positional authority i.e. institutional and based on
the position enjoyed by a person in the organisation is also a form of it.

(c) Charisma. Although charisma is also identified as a basis for

authority, it is in fact a type of power. When authority of a person gets
 71 CDM/GM/6

accepted because of his personal magnetic qualities, it is charismatic. Such

authority is common in political and religious fields. However, even in
organisations this kind of authority can be experienced. It transcends all
rational procedures and rules.

(d) Functional / Competence. Authority of a person can also become

legitimate purely on the basis of his competence. It is different from the
rational-legal type, in that legality is not a prerequisite. Authority of
professional people like doctors, engineers can be cited as an example of
competence based legitimacy.

12. The legitimacy of authority finds its source either in the political system or the
individual personality. In either case the person on whom authority is wielded is
passive. He has no active role to play in configuring the authority normally found in
traditional organisation. Some experts opine that it is this aspect which has given
rise to the belief that authority is a commander’s sole prerogative. On the other
hand, the “moderates” among the scholars insist that it is not inherent in the concept
of authority, for a particular group of people in an organisation, to abrogate
proprietorship of authority. The academic controversy apart, the meaning and
implication of authority, particularly in work organisations, have changed perceptibly
in recent years. Impact of this change is already being felt in organisations,
particularly in the areas of directing and controlling of people. This profile of
authority will be discussed in the following sections of the paper.

Modern Context

13. The institutionalised authority in almost all walks of life is being challenged
with varying degrees of intensity. Authority is being perceived more in terms of its
connotative meaning, the repressive aspect of power. The explanation for this
development is perhaps to be found in the manner in which authority was generally
exercised in organizations. Misuse and overuse of authority was quite often
exercised to show off personal strength. Most people associated the raw power
thus used in organisations with authority. Gradually, authority itself has come to be
looked upon as an instrument of feudal system.

14. The modern social milieu is characterised by evolutionary trends set by fast
changing politico-economic and technological forces. A general awareness among
people about human rights and worth, and a gradual surge towards egalitarianism
have ushered in new attitudes and approaches towards life. What were hitherto
considered non-questionable facts are being questioned and challenged.
Institutionalized authority has come under severe criticism in recent times. In
organisations there is a general clamour for greater sharing of responsibility and
authority amongst various levels of members. The source of authority is being seen
in a new light. Legitimacy of authority, as defined now, and its unilateral exercise by
those in command position, is being considered inadequate by many for making
authority complete and acceptable in organisations. It is therefore necessary to look
at various theories relating to the concept of authority.
 72 CDM/GM/6

Theories of Authority

15. Some important theories of authority, contradictory to some extent, are as

given below:-

(a) Formal Authority Theory.

(b) Acceptance Theory of Authority.

(c) Competence Theory of Authority.

16. Formal Authority Theory. Authority is termed as ‘legitimate power’. Fayol

called it ‘the right to give orders and the power to exact obedience’. It, therefore, is
implied that leaders receive the right to issue orders and the power to exact
obedience from the organisation. Their orders are legitimate because they originate
from a legitimate source and as they are legitimate, subordinates have to accept
them.

17. Acceptance Theory. The new approach which is gaining wider recognition,
redefines the real source of authority in organisations as ‘acceptance’. It is
because of the fact that each person possesses the ultimate control of his own
behaviour. Even though an individual voluntarily joins an organisation, whether he
will comply with the demands placed on him depends on his motives and the
resultant decisions made by him. In other words, the authority exercised over him
becomes valid to the extent he accepts it. In fact it is the individual who “delegates”
the authority that is subsequently used by his superior over him. TENNENBAUM
writes:-

“The real source of authority possessed by an individual lies in the

acceptance of its exercise by those who are subject to it. It is subordinates of
an individual who determine the authority which he may wield. Formal
authority is, in effect nominal authority. It becomes real only when it is
accepted.”

An individual will accept an exercise of authority if the advantages accruing to him

from accepting exceed the advantage accruing to him from not accepting plus the
disadvantages accruing to him from accepting; as shown below. Conversely, he will
not accept an exercise of authority if the latter factors exceed the former.

Advantages from Advantages from Not accepting

Accepting the Plus
Authority Disadvantages from Accepting It.

Acceptance Theory
(Cost – Benefit Analysis)
 73 CDM/GM/6

18. Organisations, of course, may take recourse to various measures if

acceptance is not forthcoming. However, when such measures are extreme and
punitive in an organisation, they ignore the social cognizance necessary for the
exercise of authority and merely exert power. Judged against the value systems of
today’s emerging society, such an organisation would be viewed as regressive.

19. Zone of Acceptance. Although an individual is capable of critically

analysing alternatives and choosing one among them, his choice can be solely
influenced by command from above. Following the logic, it has been suggested that
he has a range of tolerance within which he will accept directives without critically
examining the merits of outcome. This is termed the “zone of acceptance” which is
similar to the idea expressed by BERNARD as the “zone of indifference.” Formal
authority is limited by this concept. In modern organisations members are likely to
exercise their own judgment more often and view directives uncritically very rarely.
Thus, the ‘zone of acceptance’ in today’s context is something that is gradually
shrinking.

20. However, experience shows that this ‘zone of acceptance’ in organisations

can be maintained at a reasonable level. In organisations if the style and practice of
command and leadership are such that they can be perceived as reasonable and
just by people at all levels, the probability is more that the ‘zone of acceptance’ of
most individuals would be large. When the exercise of authority is without sharp
edges and these people are not subjected to the harsh aspect of power, authority
will be more easily accepted. A proper synthesis of legal authority and that based
on competence in a person would find ready acceptance. ‘The zone of acceptance’
will increase if decisions taken by superiors are generally capable of enhancing
organisational effectiveness. Thus, it can be seen that the theory of acceptance
does not necessarily promote a climate of questioning every order. If the theory is
practised by the organisations, authority will become less repugnant and not cause
much of anxiety to all concerned. The relationships that are established in
organisations within the framework of such authority will be more enabling and
growth promoting.

21. Competence Theory. According to this school of thought, the decision to

respect the orders by the subordinates depends on the competence of the
leader/commander. If the leader/commander is perceived as competent they readily
accept their authority. Seniority, experience, education, skill, intelligence and such
factors bring this kind of competence to the leader.

Types of Organisational Authority

22. There are different types of authority operating within an organisation at any
time. There is generally some ambiguity about the definition, and implication of
each type. With the changes that have taken place in structure of organisations
over the years, there have been changes also in the degree of influence of various
types of authority. In the subsequent paragraphs these aspects are amplified a little
more in detail.

23. Line Authority. Line authority is the formal power to act and command.
Line denotes the unbroken chain from the top to the bottom of the organisational
 74 CDM/GM/6

pyramid. Those vested with line authority are involved in activities that directly
relate to the organisation’s objectives. Normally, one reaches the top position in the
organisation only by working up the “line”.

24. Staff Authority. This is the formal authority to advise line management or
otherwise to facilitate the performance of line functions. Technological complexities
and other environmental factors have led to a gradual expansion of the concept of
staff to include command and control in certain organisational situations.

25. Functional Authority. The formal power to command, limited to a specified

field of area of expertise, is known as functional authority. It may also be directed
across departmental boundaries. It is the right to give orders within a segment of
organisation in which this right is normally non existent. This authority is usually
assigned to individuals to complement the line or staff authority already possessed.
Functional authority generally covers only specific task areas and is operational for
only designated amounts of time. It typically is possessed by individuals, who in
order to meet their responsibilities, must be able to exercise some control over
organisation members in other areas. The Vice President for finance is usually
delegated the functional authority to order various depts to furnish him with the
information he needs to perform his analysis. Such an authority also enables a staff
functionary to give direct orders to operating personnel in his own name. In military
organisations this type of authority is often exercised by staff officers when they
issue orders “In the name of the commander”. Functional authority can sometimes
be very tempting and used in a restrictive manner over operating units. This can
lead to intra-organisational conflict and organisational problems. Functional
authority, therefore, should not be allowed indiscriminately, and granting this to the
staff should be only under certain conditions. NEWMAN, SUMMER and WARREN
recommend that at least two of the following conditions should be present for
delegating functional authority.

(a) Only a minor aspect of the total operating job is likely to be affected by
such authority.

(b) The required technical or specialised knowledge is not possessed by

line functionaries.

26. The conflict between role occupants possessing different types of authority is
a way of life in organisations. Line-Staff conflict is the most common phenomenon
and it is on the increase because of the changing nature of organisational
relationship. If such conflicts are not handled properly, there could be serious
problems in organisations. Breakdown of communication can take place with
adverse effects on performance. Individual frustration can also mount and lead to
psycho-social problems.

DELEGATION

27. In centralised organisations authority is concentrated in a limited number of

peak points. Only a few are directly and fully involved in creative and problem-
solving aspects of the organisation. Others merely carry out what they have been
directed to do..
 75 CDM/GM/6

28. Leaders who fully utilise the knowledge, aptitude, experience and
commitment of their subordinates not only enhance their own effectiveness but
broaden and enrich the professional experience of their subordinates for betterment
of the organisation. In today’s complex environment, as better educated
subordinates aspire for greater autonomy and job satisfaction; delegation has never
been perhaps more relevant and necessary.

Context of Delegation : Responsibility, Authority, Accountability

29. In order to understand the full significance of delegation it is essential to

understand the contextual aspects of responsibility, authority and accountability.

30. Responsibility is all about moral ownership of the task which has been
delegated. When a subordinate is entrusted with a task he is expected to carry it out
and complete it in the fashion demanded by the superior. It is something like
passing of the baton in a relay race. The authority is the power vested in the
subordinate to enable him to accomplish the assigned task.

31. In spite of the delegation of the task, the superior will continue to be
responsible for the end result. It will therefore be seen that responsibility is intrinsic
to each duty and morally expected of one who delegates. It is an obligation and has
value overtones. Delegation of responsibility is therefore not possible. During the
process of delegation the superior only shares his job or duties with his subordinates
but remains responsible for its accomplishment and accountable to his own
superiors. Accountability is the management philosophy whereby individuals are
held liable or accountable, for how well they use their authority and live up to their
responsibility of performing predetermined activities. The concept of accountability
implies that if the predetermined activities are not performed, some type of penalty
or punishment is justifiably forthcoming. Thus, even the subordinate, being
delegated the task, would be held accountable for it.

32. Also sometimes the terms delegation and decentralization tend to get mixed
up. Delegation is an individual endeavour when a superior decides to pass some of
his authority and some of his jobs to the subordinate. Decentralization is an
organisational phenomenon. It is the formal dispersion of decision making centres
which is inbuilt in an organisation’s structure and needs no delegation. To achieve
decentralisation organisational structure may need to be changed even for the
duration of accomplishing the task. Delegation is situation specific and can also take
place in a centrally controlled organisation.

Steps in Delegation

33. While deciding on delegation the consideration of following steps may prove
to be helpful:-

(a) Decide on the result to be expected from the subordinate.

(b) Assign the task to the subordinate, accordingly.

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(c) Delegate appropriate authority commensurate with the task to be

accomplished.

(d) Hold the subordinate accountable to accomplish the task.

(e) While keeping the hands off, keep eyes and ears open.

Extent of Delegation

34. One of the dilemmas in organisations is to what extent authority should be

delegated to various functionaries. The extent is contingent on various factors.
Following factors may be considered in this regard:-

(a) Consistency and Coordination. The need for consistency in

operations may be so demanding that the organisation may be constrained to
invest operational control at relatively high levels. Similarly, where close
coordination of activities is involved, with synchronised effort of many
agencies, a centralised organisation with minimal delegation may be
preferred.

(b) Competency. In organisations where commanders at lower

levels are competent and considered capable of making correct decisions,
probability of delegation is more.

(c) Motivation. Mere competence alone is not sufficient in an individual

to perform duties assigned to him. His performance is determined by his
motives. Thus motivation of subordinates is another factor that determines
extent of delegation.

(d) Feedback Mechanism. Where organisational objectives can be

specified and progress towards attainment of the goals by each unit/individual
can be identified and measured, senior commanders will feel more
comfortable to delegate authority. The latter depends on a proper feedback
system and in the absence of which delegation becomes difficult.

(e) Information Flow. One justification for decentralisation is that the

individual on the spot has a better feel of problems because of the
information readily available. However, today with the improved
communications, technology, centralised information, this poses no problems.
Further, because of interdependent nature of operations and environmental
constraints, localised decision making, without taking into consideration the
data concerning other units, may not be desirable. The extent of delegation,
therefore, will be limited to the positions which have the proper information
mix.

(f) Command Philosophy. Whether the commander is prepared to

delegate is a factor in decentralisation. This readiness would depend upon
assumptions about subordinates, the value systems and motivation of
leaders.
 77 CDM/GM/6

(g) Subordinate Acceptance. Finally, it is the subordinate who

influences the degree of delegation by showing his acceptance or otherwise
of authority and accountability. A subordinate needs to be confident,
desirous of shouldering greater responsibilities and achievement oriented, for
a superior to assign him duties of importance, requiring additional authority.

Barriers to Delegation

35. Even if the organisational philosophy encourages delegation, there are

numerous barriers that may be encountered which do not facilitate delegation.
Identifying and removing these obstacles is very essential before effective
delegation can be hoped for. These obstacles are set up by superiors, as well as
subordinates.

36. Superiors. Following are some of the possible reasons why superiors hold
back delegation:-

(a) They feel they can do it better themselves.

(b) Training and instructing subordinates are considered difficult tasks.

(c) Taking a chance is disliked.

(d) Control warnings are inadequate.

(e) Subordinates are not considered capable.

(f) Some superiors fear loss of satisfaction.

(g) Some are apprehensive that subordinates may overshadow them.

37. Subordinates. Following are some of the possible reasons for

subordinates not accepting additional responsibility:-

(a) They are so insecure that they would rather consult the superior on
everything.

(b) Many are afraid of possible harsh criticism.

(c) Some subordinates lack self-confidence.

(d) Resources are not sufficient to carry out given tasks.

(e) Incentives are not adequate.

Encouraging Delegation

38. In the present day context our organisations, cannot afford to be

overwhelmed by the obstacles to delegation. Commanders cannot aim to contribute
 78 CDM/GM/6

to effectiveness if they are unable to devote most of their time for conceptual
thinking and creative problem solving. They should have valuable time by letting
subordinates perform routine tasks. Thus, delegation becomes imperative. Further,
only through delegation, commanders of the future can be developed effectively.
The top leadership should be aware of these organisational needs for delegation
and also its role in motivating people. Training and guiding people for higher
responsibilities should be given proper emphasis. Superiors should be prepared to
accept mistakes of subordinates. The attitudes of both superiors and subordinates
should be shaped to accept delegation in organisation.

Empowerment

39. Another positive strategy for managing behaviour is empowerment – sharing

power within an organisation. As modern organisations grow flatter, eliminating
layers of management, empowerment becomes more and more important. Jay
Conger, defines empowerment as “creating conditions for heightened motivation
through the development of a strong sense of personal efficacy” this means sharing
power in such a way that individuals learn to believe in their ability to do the job.
The driving idea of empowerment is that the individuals closest to the work and to
the customers should make the decisions and that this makes the best use of the
employee’s skill and talents. One can empower oneself by developing own sense of
self efficacy.

40. Empowerment is easy to advocate but difficult to put into practice. Managers
should express confidence in employees and set high performance expectations.
Managers should create opportunities for employees to participate in decision
making. Managers should remove bureaucratic constraints that stifle autonomy.
Managers should set inspirational or meaningful goals.

41. Empowerment is a matter of degree. Jobs can be thought of in two

dimensions, viz. Job content and Job context. Job content consists of task and
procedures necessary for doing a particular job. Job context is broader. It is the
reason that organisation needs the job and includes the way the job fits into way
organisations, missions, goals and objectives. These two dimensions are depicted
in figure below.
 79 CDM/GM/6

Decision Making Authority over Job Context

Implementation/
Follow-up Point D Point E
Mission Defining Self-Management
Alternative
Choice
INCREASING

Alternative Point C
Evaluation Participatory
Empowerment
Alternative
Development
Point A Point B
Problem No Discretion Task Setting
Identification

Problem Alternative Alternative Alternative Implementation/

Identification Development Evaluation Choice Follow-up

INCREASING

Decision-Making Authority over Job Content

IT, Empowerment and Self Managed Teams

42. An important trend throughout the 1990s, often brought about by the use of
new information technology, is the increasing use of empowered workers, self-
managed teams, cross-functional teams and contingent or temporary workers. IT is
making it much easier for organisations to cost-effectively design a structure and
control system that gives managers much more and much better information to
monitor subordinates’ behaviour and to intervene when necessary. IT, providing as it
does a way of standardizing behaviour through the use of a consistent, and often
cross-functional, software platform is an important means of controlling behaviour.
When all employees or functions use the same software platform to provide up-to-
date information on their activities this codifies and standardizes organizational
knowledge and makes it easier to monitor progress toward goals. IT provides
people at all levels in the hierarchy with more of the information and knowledge they
need to perform their roles effectively. For example, employees are able easily to
access information from other employees’ viz. cross-functional software systems
that keep them all informed about changes in product design, engineering,
manufacturing schedules and marketing plans that will impact their activities. In this
sense, IT overlays the structure of tasks and roles that is normally regarded as the
“real” organisational structure.

43. Thus, the increasing use of IT has led to a decentralization of authority in

organisations and an increasing use of teams. As discussed earlier, decentralizing
 80 CDM/GM/6

authority to lower level employees and placing them in teams reduces the need for
direct, personal supervision by managers, and organizations become flatter.
Empowerment is the process of giving employees at all levels in an organization’s
hierarchy the authority to make important decisions and to be responsible for their
outcomes. Self-managed teams are formal work groups consisting of people who
are jointly responsible for ensuring that the team accomplishes its goals and who
are empowered to lead themselves. Cross-functional teams are formal work
groups of employees from across an organisation’s different functions who are
empowered to direct and coordinate the Value-creation activities necessary to
complete different programs or projects.

44. The management to flatten organisations by empowering workers in this way

has been increasing steadily in the 1990s and has met with great success according
to many stories in the popular press. However, while some commentators have
forecasted the “end of hierarchy” and the emergence of new organisational forms
based purely on lateral relations both inside and between functions, other
commentators are not so sure. They argue that even a flat, team-based
organisation composed of empowered workers must have a hierarchy and some
minimum set of rules and standard operating procedures if the organisation is to
have enough control over its activities. Organisations sacrifice the gains from
bureaucratic structure only at their peril. The problem for managers is to combine
the best aspects of both systems – of bureaucratic structure and empowered work
groups. Essentially, what this comes down to is that managers must be sure they
have the right blend of mechanistic and organic structure to meet the contingencies
they face. Managers should use bureaucratic principles to build a mechanistic
structure, and they should enhance the organisation’s ability to act in an organic way
by empowering employees and making teams a principal way of increasing the level
of integration in an organisation.

Conclusion

45. Authority is an essential instrument of organisation and its exercise an

inevitable managerial process. How authority is perceived and how it is used will
determine not only the organisational efficiency, but human aspects like morale,
motivation, personal growth and development. The connotation of authority and
basis of its acceptance keep changing with the ever evolving social factors. An
understanding of this is very essential for those who are responsible for
organisational leadership.

46. The significance of authority in the services needs no emphasis. In certain

situations one may find a great deal of authority vested in oneself and in other
situation may be called upon to carry out duties with little or no authority. Authority
may also be delegated to young and inexperienced individuals who may be placed
above a group of veterans. Today, people in the services are influenced by outside
environment and, therefore, their response to authority is different from that of the
earlier generations. All these make it amply clear that those in command should not
only exercise authority in a productive manner but instruct their subordinates in the
correct use of authority.
 81 CDM/GM/6

47. That there is a general awareness of the need to use authority appropriately
and judiciously in the services can be seen from that the directions given to the
Commanding Officer of naval ship in the Regulations Navy : “The Commanding
Officer shall, while upholding the legitimate authority of all the officers under his
command, check by timely reproofs any tendency he may notice to abuse the
power, showing by his example that a firm but conciliatory manner of conducting
duty is the surest way to gain the respect and confidence of sailors”.

Bibliography

1. Organisational Psychology by EDGAR SCHEIN.

2. Organisations by GIBSON, IVANCEVITCH & DONNELLY.

3. Principles of Management by KOONTZ & DONNEL.

4. Organisation and Management - A Systems Approach by KAST &

ROGENZWEIG.

5. Management - An Integrated Approach by TORGERSEN and WEINSTOCK.

7. New Processes of Management by NEWMAN, SUMMER and WARREN.

8. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fourth

Edition, Pearson Education, 2004.

9. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,

McGraw Hill, New York, 2005.

 82 CDM/GM/6

Questions

1. What are the various sources of power?

2. What do you understand by authority? Discuss any one theory of authority in

detail.

3. Enumerate the various types of authority. Write short notes on any two.

4. What is meant by delegation?

5. What are the factors that influence delegation?

6. What are the inhibitors to delegation? What are the ‘Commandments’ for

effective delegation?

7. What do you understand by empowerment? What is the impact of IT on

empowerment?
 83 CDM/GM/7

COLLEGE OF DEFENCE MANAGEMENT

MANAGEMENT OF CHANGE

Enabling Objectives

• Appreciate that change is inevitable in a dynamic environment.

• Understand the pressure for change.
• Understand reasons for resisting change and approaches to handle
change.

Learning Objectives

• Understand approaches for analysing a change situation.

• Understand the change process.
• Understand how to manage change in organisations

Introduction

1. Organisations exist to fulfil the felt need of the environment. As the

environment is dynamic in nature these ‘felt needs’ also keep changing. For an
organisation to not only grow in effectiveness but even to survive at times, it
has to keep adapting to the felt needs through a process of change. Change is
the law of nature. Charles Darwin sailed extensively in HMS BEAGLE from
1831 to 1836 throughout the world and at the end propounded the theory of,
"the origin of species." The extinction of the giant reptiles and dinosaurs,
according to this theory, was because they could not cope up with the,
changing environment. What is relevant for an organism is very relevant for an
organisation too. The rate of charge, however, varies from organisation to
organisation. Change is a necessary way of life. A person’s very first breath
depends on ability to adapt from one environment to another.

2. Since human beings are adaptive and familiar with change, how is it that
they often resist change in their work environment? Why is it that Poland was
swept across by Germany just three days during World War II? Why is it that
the Indian Army could not sustain the Chinese in 1962? Simplistically, both
were not organised and prepared for the changed environment!

3. In the context of an organisation there are mainly six long-term

objectives calling for change. These are :-

(a) Improving Productivity.

(b) Improving Performance.
(c) Image.
(d) Human relationships.
(e) Ability to cope with anticipated future conditions.
(f) Improving effectiveness and efficiency.
 84 CDM/GM/7

Types of Change

4. Changes come about in a variety of ways. Various types of changes and

their implications are given below:-

(a) Evolutionary Changes. These changes are evolutionary and

very slow in nature, like the evolution of human beings from apes. These
do not violate the traditions and status quo expectations, and therefore,
they seldom promote great enthusiasm, arouse deep resistance, or have
dramatic results. These changes could be Natural, like child growing up,
or Adaptive, like the Eskimos.

(b) Revolutionary Changes. Revolutionary changes cause violent

upheavals and result in overturning the status quo arrangements,
violations, rejections or suppression of old expectations; e.g., the French
revolution imposition of martial laws, emergency etc., Such cataclysmic
changes generally pose strong resistance, and are, therefore, rarely
introduced except where situations become highly intolerable having no
other acceptable options. These would give way to other acceptable
options, if any, at the earliest opportunity.

(c) Planned Changes. It is a scientific way of viewing change.

Planned change is the intentional attempt by an organisation to embrace
the anticipated mismatch, in the organisation so that the state of
equilibrium continues to be maintained. It minimises instability and
uncertainty and is better accepted by the people. It brings about
development and growth.

(d) Proactive versus Reactive Change. Proactive change takes

place when an organisation adapts itself to desirable changes in
anticipation rather than after being forced to. Reactive change occurs
when these “forces to change” make it necessary for a change to be
implemented. A planned proactive change is the best-preferred option.

Cost and Benefits

5. Changes occur mainly due to some causes. These may manifest by

way of temporary disruption of work and reduction of motivation. They may be
in the form of the cost of new equipment or technology. These costs are not
merely economic; they also are psychological and social. Changes therefore
require careful analysis to determine their usefulness. Unless changes can
provide definite tangible or intangible benefits, there is no reason to affect any
changes. The overall benefits of the organisational goal should always be
paramount whilst changes are being considered.

6. In determining benefits and costs, all aspects must be considered. It is

not worthwhile to examine economic benefits and costs alone because even if
there is a net economic benefit, social or psychological costs may be too large
 85 CDM/GM/7

to pay. Although it is not very practical to calculate social or psychological

costs in terms of numbers, they must nevertheless be given adequate priority in
the decision making process.

Peoples Response to Change

7. Change always produces responses. These responses may be positive

or negative, but are largely conditioned by the attitudes towards the change, of
the personnel implementing the change. According to psychologists, a
person’s attitude depends on three sets of factors – psychological, personal
and social. We obtain four basic human behaviour reactions / attitudes when
we evaluate the proposed change vis-à-vis these sets of factors. They are
rejection, resistance, tolerance and acceptance. A comprehensive view of
these attitudes and reactions is presented in Fig 1 below:-

Psychological
factors Acceptance
(Enthusiastic
cooperation and
support)

Tolerance
(Loss of interest is
Attitudes Evaluation of about to creep in)
Pr oposed change pr oposed change
Resistance
(Protest, doing as
little as possible)

Rejection
Social Personal
(Active resistance,
factors factors committing errors
deliberate
sabotage)

Responses to Change
Fig 1

Analysis of Change

8. Organisational dynamics relating to change are explained through Force

Field Analysis, a technique developed by a psychologist, Kurt Lewin. He
assumes that in any situation there are both driving and restraining forces,
which influence any change that may occur. 'Driving forces' are push forces
which tend to initiate a change in a given direction and keep it going.
Pressures from superiors, competition, rewards and internal quest for
excellence may be examples of driving forces. 'Restraining forces' are forces
acting to decrease the driving forces. Apathy, hostility and lack of knowledge
of the benefits of the change or the causes and effects, poor maintenance of
equipment may be examples. Equilibrium is reached when the sum of 'driving'
 86 CDM/GM/7

and 'restraining' forces becomes equal. This concept is diagrammatically

depicted in Figure 2.

H
I
G
H
E

Present Restraining Forces

Effectiveness

L
O
W
E
R

Fig.2
Driving and Restraining
Forces in Equilibrium

9. This analysis of any organisation will give a clear and useful insight into
understanding of various forces operating. The equilibrium or level of
effectiveness can be raised by changes in relationship between these two
forces. The Commander can analyse the short and long term implications of
these changes. The options lie in strengthening the driving forces or
alternatively in decreasing the restraining forces.

10. This analysis applied to a Service situation could be that of a

Commander who takes over a new formation/unit/ship. The effectiveness of the
organisation had been high and, let us say, was achieved by strengthening the
'Driving forces', in that, his predecessor was autocratic and continually applied
pressure. The effectiveness of the organisation had been then gradually
dropping as new 'Restraining forces' such as apathy and hostility developed,
and were manifest in the form of higher AWL rate, disobedience of orders, and
requests for transfer. The present equilibrium, at a lower level, is faced by the
new Commander. An understanding of this concept would help him to
appreciate that strengthening the 'Driving forces' may result in short term
improvements but also cause the 'Restraining' forces to emerge more strongly.
He should therefore, concentrate on weakening the 'Restraining forces' through
problem solving, improving people's commitment to tasks and better training.
There may be short-term losses but in the long run the balance will move
towards a higher level of effectiveness.
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Systems View of Change

11. One of the ways of looking at organisations that we have discussed is to

see them as systems with their component sub-systems, which are inter-linked
and inter-dependent. Changes in the environment influence changes in one or
more of the components of the system. Similarly a change brought about in
any one sub-system would influence changes in one or more of the other sub-
systems. A Service organisation seen as a system would be as represented in
Figure 3.
Services Organisation as a System
Fig 3

Environment

Goals

Commander

Structure Personnel

Technology

12. The model describes the subsystem as Goals, Structure, Personnel and
Technology with the Commander being focal to the entire system. A brief
description of each component is relevant.

(a) Environment. The environment is all that is external to the system

and in which an organisation operates. It could be the higher formation,
the society, other formations or the enemy etc. They all influence the
system as a whole and may be any of the subsystems in particular. For
an organisation to be effective the environmental analysis and
understanding this facet in its entirety is mandatory.

(b) Goals. These are the raison d’etre of organisations. They are
related to the needs of the environment hence the purpose of any
organisation lies outside the organisation. For a combat unit, the goals
would be in relation to the enemy in times of war. In peace times
however the goals would also lie in relation to the environment which
could be dictated by the higher formation. It may be to satisfy their
expectations in the areas of training, combat readiness and so on.
Clarity of the goals will facilitate Commanders to give the direction that is
needed to achieve them. It is also necessary that the goals of the
organisation are known and understood by all the people in the
organisation. This will help in ensuring that the individuals would
sincerely endeavour to ensure congruence between the organisational
 88 CDM/GM/7

goals and their own individual goals at different levels and hence an
improved commitment towards realising the organisational goals.

(c) Structure. The structure of an organisation indicates the way the

organisation is arranged in respect of its work and people, creating
relatively stable relationships which determine work flow,
communications, the systems of authority and responsibility and
decision-making. Informal structures may co-exist with the formal ones.
An understanding of the structure with all its relationships helps the
Commander to determine the way to use it to the best advantage of the
organisation.

(d) Personnel. This is the human component of organisations and

the most complex facet of the organisation. It does not limit itself to
numbers and trades but encompasses knowledge levels, skills, values,
attitudes, culture and behavioural patterns of the personnel. This is the
most important sub-system of all as it has close linkages with all the
others. Sound knowledge of various facets of human behaviour in the
organisation is always essential for a successful command.

(e) Technology. This is the dimension of weapons, equipment,

tools, training and procedures used to perform the tasks. The
technology of military hardware is usually very complex. Enmeshing of
technology – people – goal and structure is of great significance.
Organisations are required to simplify the high technology through
procedures and training into simple work technology which will increase
effectiveness of the individual.

13. The influence of change in the environment and its effect on

organisations, seen from a systems view, helps in anticipating the dimensions
affected by it and permits Commanders to be proactive. Let us consider the
dynamic process of change in the acquisition of Deep Penetration Strike
Aircraft (DPSA) as an illustration:-

(a) Environment. Changes in the environment i.e. the potential

adversaries created the need for certain types of operations to be
conducted.
(b) Goals. To satisfy this need the Air Force has to set new goals or
modify the present goals. To meet these new goals it would be seen that
the performance of existing aircraft was not adequate.

(c) Technology. New aircraft with capability to achieve the goals now
set would have to be acquired. This would lead to changes in the
technological dimension. The need for developing maintenance/repair
processes in keeping with existing facilities would have to be met.

(d) Structure. The existing structures would have to be changed to

meet the new needs. New project cells would need to be created during
the acquisition phase and the command and control may need to
 89 CDM/GM/7

undergo a change in view of the changed operations and tactical

concepts.

(e) Personnel. The change in technology would necessitate changes

in various aspects such as:-

(i) Personnel skills and training of pilots and maintenance staff.

(ii) Induction of qualified personnel.
(iii) Attitudinal changes in staff as the old staff may perceive a drop
in their importance in the organisation.

(iv) Attitudinal changes in pilots as new operations may involve

sorties of longer duration deep into hostile territory.

14. A major change in the environment used in this example stimulated many
simultaneous changes in the sub-systems. The Commander’s ability to
foresee these and to effect the changes in a smooth manner without causing
undue pressures and strains would enhance the effectiveness of the
organisation to a very great degree.

The Change Process

15. The responsibility and challenge to improve the effectiveness of the

organisation falls on the Commander. His commitment is of primary
importance. Since change invariably affects people, the involvement of the
personnel in various components of the organisation is essential. Affecting
change is usually a long term process. The organisation must be prepared to
commit its resources over the entire duration. An appreciation of the process
of change will help the Commander to usher in planned organisational change
effectively.

16. Changes do not take place overnight, they take place in stages.
A Commander wanting to bring in new procedures in his formation, would
realise that the desirable change is not affected by merely issuing fresh
instructions on the subject but by ensuring that the change is accepted,
implemented and sustained.

17. Change fundamentally involves bringing about a change of behaviour in

the people of an organisation. The change cycle commences with change in
knowledge and skill which leads to changes in attitude of an individual leading
to change in his behaviour. When applied collectively, it leads to change in the
behaviour of the group. This change cycle could be brought about through
Participative or Directive Change.

(a) Participative Change. Participative change takes place when

new knowledge is made available to group anticipating that the group
will accept the data and will develop a positive attitude in the direction of
the desired change. A leader achieves this through active group
 90 CDM/GM/7

participation and use of personal power. Participative change cycle is

shown in Fig 4.

Gr oup behaviour

I ndividual behaviour

attitudes

K nowledge
and skills

Participative Change
Fig 4

(b) Directive Change. Directive change is a change imposed on the

organisation by some external force, such as higher management, the
community, new laws etc. The hope is that if people will only have a
chance to see how the new system works, they will willingly support it. A
directive change is brought about by the use of positional power, as
shown in Figure 5.
Fig 5 Directive Change

Gr oup behaviour

I ndividual behaviour

Attitudes

K nowledge
and skills

18. Kurt Lewin propagated a three stage process for affecting change.
These are:-

(a) Unfreezing. This is the first stage which is necessary to make

people realise the need for change. Some provocative problem or
event is highlighted to get people to recognise the need for change and
 91 CDM/GM/7

to search for new solutions. Here the effort is towards breaking down of
existing norms, old taboos and traditions.

(b) Changing/Moving. This is the stage in which the change is

introduced, accepted by the people and then implemented. The
organisation moves to a new level of activity. Change may occur
through assimilation of new information, exposure to new concepts and
development of a new perspective.

(c) Refreezing. In this stage the necessary reinforcements are

provided to ensure that the achieved levels, behavioural patterns and
group life are adopted on a more permanent basis and do not slide back
to their earlier state.

Organisational Learning Curve for Change

19. During any change process, in the initial stages there would be decline
in the effectiveness during the period of unfreezing and changing due to
resistance to change. However, later, when the change is accepted
effectiveness soars to higher level as anticipated. This is illustrated in Fig 6
below.

Restr aining For ces

E
F
F
E
C
T
I
V
E
N
Dr iving For ces
E

Prior to Unfreezing And Refreezing

change Changing

TI M E

Fig 6

Resistance to Change

20. Any change process usually would be met with resistance. Resistance
may be overt or implicit, may be subtle and cumulative. Resistance to change
may be individual or organisational based. These are known as ‘barriers to
change’. Some of the salient barriers to change are given below.
 92 CDM/GM/7

21. Individual Resistance

(a) Economic Reasons

(i) Obsolescence of skills – Due to fast pace of technology
change.
(ii) Fear of economic loss – Possibility of reduced income.

(b) Personal Reasons

(i) Ego defensiveness – Perception that his / her status may
be lowered by accepting change.
(ii) Status quo – Vested interest in maintaining the current
structure and environment.
(iii) Fear of unknown – uncertainty about the future.

(c) Social Reasons

(i) Social displacement – Disturbance of existing social
relationships.
(ii) Peer pressure – Change acceptable to individual but
refuse to accept it for the sake of the group.

22. Organisational Resistance

(a) Threats to power and influence – Disrupt the power relationships.
(b) Organisational structure – Have in-built mechanism for resistance
to change.
(c) Resource constraints – Financial, material and human resources
may not be available.
(d) Sunk costs – Large resources already utilised / committed.

Overcoming Resistance to Change

23. Techniques for dealing with resistance to change are as follows:-

(a) Education and Communication. It is essential that individuals

who will be affected must be convinced / educated on the necessity of
change. Communication plays an important role in this regard. A chief
merit of this method is that once persuaded people will often help in the
implementation of change.

(b) Participation and Involvement. When subordinate is allowed to

participate and involve in the change process (decision – making
regarding the implementation of the change) he / she generally feels
satisfied and does not oppose change. The main advantage of this
 93 CDM/GM/7

method is that people who participate will be committed to implementing

change.
(c) Facilitation and Support. Leaders may sometimes deal with
potential resistance by providing facilitative and emotional support. This
includes listening, providing emotional support, providing training in new
skills or giving subordinates time off after a certain demanding period
etc.
(d) Negotiation and Agreement. Where some persons in a group
clearly lose out in a change, and where group has considerable power to
resist, negotiation and agreement are helpful.
(e) Manipulation and Co-optation. Manipulation is a covert
attempt by a leader to influence others, and is resorted to when all other
tactics are not possible or have failed when applied. Co-optation is a
form of manipulation and it involves giving individuals a desirable role in
design or implementation of change. One potential danger of this
technique is that it can lead to future problems if people feel they are
being manipulated.
(f) Explicit or Implicit Coercion. When leaders do not have other
ways, they sometimes resort to coercion. They force people to accept a
change by explicitly and implicitly threatening them. One definite
advantage of this method is that it can be speedy, and can overcome
any kind of resistance. But at the same time, it can be risky if it leaves
people opposed to initiators.

24. In the context of our organisations, the steps involved in ‘change’ are
shown in Fig 7. The processes involved in each of the steps shown are
discussed in the succeeding paragraphs.

Assessment

Evaluation Planning

Implementation

A Model for Organisational Change Fig. 7

 94 CDM/GM/7

25. Assessment. The information gathered provides a base for carrying

out an analysis of the environment and the organisation. This analysis will
bring out the following :-

(a) Goal Achievement. How well is the organisation achieving its

goals? What are the charges in the environment which influence the
organisation?

(b) Performance Discrepancies. Are there differences between

desired and actual performance levels? Which are the areas in which
problems are perceived.?

(c) Diagnosis of the Problems. This is identification of the real

problem. Quite often real problems are clouded and are mistakenly
attributed to other causes. Through a systematic examination of the
data relating to it the real problem can be surfaced. For example, let
us say that one branch of an organisation is not getting sufficient co-
operation from the others and the inter-branch relations are bad. One
may diagnose the problem as interpersonal conflict and take measures
to train people to improve this competence. A full diagnosis may
reveal the real problem to be due to ambiguous job descriptions and
overlaps in their tasks. The solutions to this problem would be entirely
different.

26. Planning. Based on the assessment, the leader will have to decide
as to what changes he should bring about, what methods and strategies that
are available and which of these should be adopted. The process of
examination of each technique should be focussed on the expected results and
strengths and weaknesses. Such an approach will help in foreseeing the
future impact and aid in selecting the most appropriate ones with the least
drawbacks. This selection would largely depend on the limitations of
competence and the resources available internally as well as from outside.
Some of the limiting factors may be due to prevalent organisational culture and
the group norms in existence. From these considerations, the
techniques/interventions that he could adopt for implementation emerge. In the
process of selection it is very important that the leader involves his/her chain of
command as this will result in emergence of a wider range of choices and also
generate commitment in implementing the technique selected.

27. There are three types of approach that can be used to bring about
change. These relate to the dimensions of organisation discussed earlier i.e.
Structure, Technology and Personnel and are briefly discussed here:-

(a) Structural Approach. This approach involves the technique of

organisational analysis, which may indicate changes in areas such as:-

(i) Authority and responsibility relationships.

(ii) Span of control.
 95 CDM/GM/7

(iii) Goal setting process.

(iv) Communication.

(b) Technological Approach. This approach involves change in work

technology. Techniques such as Work-study, Operations Research,
Electronic Data Processing and so on could be utilised for improving the
work methods used in the organisation to accomplish its tasks.

(c) People Approach. This approach aims at changing the

organisation by changing the behaviour of the people in it. It assumes
that bringing about changes in the attitudes and values of people,
behavioural change follows. The methods used in this approach can
only be handled by qualified and experienced personnel with knowledge
of human psychology. Leaders should adopt this approach only when
expert assistance of this nature is available.

28. This is the process of putting into effect the methodologies for change
selected during the planning stage. This is the most crucial stage and
demands the involvement of people at all levels and the availability of the
needed resources. It also requires the necessary preparation to ensure its
success.

29. Implementation. The implementation process in a Service

organisation would have the following pre-requisites:-

(a) Creation of Acceptance. People must not see proposed changes

as a threat. This would be partly achieved by involving them, up to a
level, in the planning stage. Educating people on the benefits of the
change will improve its acceptance.

(b) Clear Methodology. People must know the methodology of

implementing the change. Prior training of the necessary staff is
essential. External help should be obtained where required.

(c) Resource Commitment. The resources necessary for

implementation must be assured for the period of the change
programme.

(d) Responsibility. The responsibility for implementing the

programme and the time frame over which it is to be accomplished must
be determined and laid down.
(e) Feedback System. A system, of periodic feedback on how the
implementation programme is progressing must be devised for the
leaders to take decisions for mid-course corrections.
(f) Evaluation. The criteria against which the progress of the
implementation programme can be evaluated should be laid down.
These will mainly be in terms of results achieved both in quantity and
quality. Some other criteria which may be relevant are:-
 96 CDM/GM/7

(i) Reaction - How well is the programme liked?

(ii) Learning - To what extent were facts, principles and

approaches learnt?
(iii) Behaviour - How much did the job behaviour change due to
the programme?
30. Evaluation. The final step in the change process is evaluation of the
change and OE process. At the end of the implementation step, organisations
may wrongly assume that the intended objectives have been achieved. A
systematic evaluation with a follow-up process is a necessity, though time and
effort may be difficult to spare. Any deficiencies in the achievements should
reactivate the change cycle for the resolution of the remaining problems. An
evaluation procedure that provides a sound basis for evaluation is through
controlled experimentation, in which the change is implemented in a part of the
organisation and at the end of the cycle their present performance is compared
with their earlier results as well as with others who have not been yet put
through the change process.
31. The change process does not stop when one problem has been solved.
It yields the best results if it is a continuous and ongoing process which should
be a part of the normal operations of an organisation. With the commitment of
the leaders the involvement of the people and its proper implementation, it
helps in enhancing organisational effectiveness.

Conclusion

32. Change is a universal phenomenon. Over the years the speed of

change has increased, especially because of the rapid changes in technology.
Change of attitude is the key ingredient of a change process and is influenced
by an individual’s psychological, social and personal factors. Resistance to
change is a normal part of the process of change. Leaders are often dumb-
founded by the resistance and are ill prepared to respond to it. Therefore, a
planned proactive stance should be adopted to bring about a change.
Educating and communicating the necessity of change to people is very
essential. Subordinates should be involved in the change process and
implementation, which would ensure their commitment. Negative techniques,
like coercion, should be used as a last resort. And above all, the commitment
of the leader in the change process is of paramount importance.
 97 CDM/GM/7

Bibliography

1. Keith Davis and John W. New Strom, Human Behaviour at Work in

Organisational Behaviour, M.C.Graw-Hill, 1985.

2. VSP Rao and P.S Narayana, Principles and Practice of Management,

Konark Publication Pvt Ltd, New Delhi, 1987.

3. Dalton, Gene E, Influence and Organisational Change, In Dalton, et'al

Organisational Change and Development, Richard D Irwin, Inc, 1970.

4. Grenier, Larry E. Patterns of Organisation Change, In Dalton, et'al,

Organisational Changes and Development, Richard D Irwin, Inc, 1970.
 98 CDM/GM/8

COLLEGE OF DEFENCE MANAGEMENT

ATTITUDINAL CHANGES BY TRAINING

Enabling Objectives

• To be able to perceive the attitudinal issues in management of change.

• To understand the nuances of attitudes
• To be able to adopt the appropriate training strategy for attitudinal
changes.
Learning Objectives

• To be able to measure attitudes in individuals.

• To be an effective change agent by bringing about attitudinal changes.

Introduction

1. The purpose of training is to bring about behavioural changes in

individuals through change of knowledge, skills and attitudes, which are needed
by the organisation to accomplish its goals. Of the three changes, attitudinal
change is the most difficult to achieve. In dealing with attitudes, we are
concerned with a person’s internal psychological world. Attitudes, as we know,
are our feelings, thoughts and behavioural tendencies or predispositions towards
specific object or situation. These play a major role in influencing the behaviour
of people and their performance in organisations. Therefore, in organisations,
leaders need to know and understand subordinate’s attitudes and modify these
through training so that ultimately the group behaviour is congruent with the
organisational needs.

2. The model shown below depicts the four levels of change in people -
knowledge and skill changes, attitudinal changes, behavioural changes and
group or organisational performance changes, which ultimately leads to
organisational effectiveness. Imparting of knowledge and skills helps in bringing
about development of a positive attitude and commitment in the direction of the
desired change. This leads on to change of individual behaviour, group
behaviour and finally enhancement of organisational effectiveness. It is relatively
easy to bring about changes in knowledge and skills. But, it is increasingly more
difficult and time consuming to bring about changes in attitudes, individual and
group behaviour, in that order.
 99 CDM/GM/8

Characteristics of Attitudes

3. Attitudes can be distinguished/characterised by the following :-

(a) Valence. It refers to the magnitude or degree of favourableness or

unfavourableness towards the object/event. If a person is relatively
indifferent towards an object then his attitude has low valence; if he is
extremely favourable/unfavourable then his attitude has high valence.

(b) Multiplexity. It refers to the number of elements constituting the

attitude. For example, an individual may feel simply loyal to an
organisation; but another may feel loyal, respectful, fearful and dependent
etc.

(c) Relation to Needs. Attitudes can also vary in relation to the needs
they serve. For example, attitude of an individual towards the pictures may
serve only entertainment needs, but attitude towards task may serve
strong needs for security, achievement, recognition and satisfaction.

(d) Centrality. It refers to the importance of the attitude-object to the

individual. The attitudes which have high centrality for an individual, will be
less susceptible to change.

Components of Attitude

4. The structure of a person's attitude comprises of three vital components -

Affective, Cognitive and Overt / Conative.
 100 CDM/GM/8

Stimulus

Attitude

Affective Cognitive Overt /

Conative
(Feelings/Emotions) (Beliefs) (Behavioural)

5. Affective Component. It basically consists of the feelings/emotions a

person has towards an attitude-object; often expressed as like or dislike, good or
bad, favourable or unfavourable, love or hate etc. It is this affective feature that is
most commonly associated with the idea of attitude.

6. Cognitive Component. It represents the beliefs of a person about an

attitude-object. It consists of individual's perceptions, beliefs and ideas about an
object. There may be incongruency between the affective and cognitive
component. For example, you may have a positive feeling towards a person but
still believe that he has negative characteristics.

7. Overt / Conative Component. It is the behavioural component. It is

concerned with the way one intends to behave towards an attitude-object. Both
the affective (feelings) and cognitive (beliefs) components influence the way a
person intends to behave towards an attitude-object. For example, if a person
has a negative feelings or belief towards an object, he is likely to behave
negatively towards that object.

Determinants of Attitudes

8. According to psychologists, a person’s attitude depends on three sets of

factors- personal, social and psychological factors. The determinants of an
individual’s attitudes are as follows :-

(a) Experience. With experience, people form/develop attitudes by

coming in direct contact with an attitude-object. For example, through job
experiences individuals develop attitudes about such factors as salary,
performance reviews, job design, work group affiliation and managerial
capabilities.

(b) Association. People are highly influenced by the association to which

they belong. Factors like, geographic region, religion, educational
background, race, sex, age and income-class strongly influence our
attitudes.

(c) Family. Individuals develop certain attitudes from their family

members, parents, brothers, sisters etc. The family characteristics and the
 101 CDM/GM/8

extent of control exercised, influences the formation of his initial attitude

pattern.

d) Peer Group. As people approach their adulthood, they increasingly

rely on their peer group for approval/attitudes. How others judge an
individual determines his self-image and approval seeking behaviour.

(e) Society. The culture, language and the structure of society provide an
individual with the boundaries of his initial attitudes. At the very early age
an individual is taught that certain attitudes are acceptable and certain
others are not acceptable in the society.

(f) Personality Factors.

(i) As individuals mature, they develop habit patterns, or

conditioned responses, to various stimuli. The sum of these habit
patterns as perceived by others determines their personality. As
individuals begin to behave in a similar fashion under similar
conditions, this behaviour is what others learn to recognize as them
- as their personality. They expect, and can even predict, certain
kinds of behaviour from these people. Many psychologists contend
that basic personality structures are developed quite early in life. In
fact, some claim that few personality changes can be made after
age of seven or eight. Personality differences between individuals
appears to be a very important factor in bringing about changes in
attitudes.

(ii) Self-concept, a salient ingredient of personality, has a major

role to play in individual’s attitude formation. Self-concept is
basically how a person views himself. This self-awareness or
perception of self changes positively (high self-concept) or
negatively (low self-concept) as a result of novel experiences in life,
which forces us to retrospection. This retrospection keeps
reinforcing the self-concept and shapes one’s attitudes. People with
high self-concept have a positive accepting attitude towards other
people, whereas people with low self-concept are likely to display
negative attitudes.

Attitude Formation

9. Attitude is basically learned. People are not born with specific attitudes
rather they acquire them through one or more of the four learning processes as
given below :-

(a) Classical Conditioning. This suggests that behaviour can be

learned by repetitive association between a stimulus and a response, i.e.,
by conditioned reflex. For example, the words- lazy, dirty generate
negative reactions. Classical conditioning has a limited value (usually
produces negative attitude) and represents an insignificant part of total
human learning.
 102 CDM/GM/8

(b) Instrumental Learning (Reinforcement). This suggests that

individuals emit responses that are rewarded and will not emit responses
that are either not rewarded or are punished. In other words, an
individual’s behaviour is instrumental in determining the consequences,
which accrue to him. It is a powerful tool in managing people in
organisations.

(c) Observational Learning. This is a result of watching the behaviour

of another person and appraising the consequences of that behaviour.
When X observes that Y is rewarded for superior performance, X learns
the positive relationship between performance and rewards without
actually obtaining the reward himself.

(d) Cognitive Learning. Here the primary emphasis is on knowing,

how events and objects are related to each other. Most of the learning that
takes place in classroom is cognitive learning. Cognitive learning is
important because it increases the chance that the learner will do the right
thing first time, without going through a lengthy instrumental learning.

Changing of Attitudes

10. Change of attitude in an individual or a group of persons is essentially a

motivational problem. Kurt Lewin's model of change relating to the behavioral
change of subordinates believes that, for a change in attitude to occur, the
person needs to go through three stages - dissatisfaction with the present and
the removal of support for present values or behavioural patterns (unfreezing),
exposure to new behaviours (changing), and reinforcement of the new attitudes
and behaviour patterns and the integration of these into the person's
psychological constructs (refreezing).

11. A leader attempting to change a subordinate’s attitudes should keep in

mind the following factors :-

(a) The Characteristics of the Communicator. The most important

thing in attitudinal change is the characteristics of communicator. One
very important variable is the status of the leader. The higher the status
the higher is the probability that he will be able to change the
subordinate’s attitude. Similarly, a leader having high prestige and trusted
and liked by the subordinates can produce the greatest amount of
attitudinal change.

(b) The Method of Communication. Communication should be easy

and convincing so that it creates change without any discomfort. People
when presented with two-sided views will be more convinced as they
perceive that the argument is not biased. At times communication through
'fear appeals' (highlighting the terrible consequences of continuance of the
present attitude) can bring about change in attitude; for example, anti
smoking advertisements constantly emphasizing the dangerous possibility
of cancer attacks.
 103 CDM/GM/8

(c) Characteristics of the Subordinate. The single most important

factor influencing the attitudinal change is the degree of commitment of
the subordinate to the initial attitudes. Attitudes that are publicly
expressed are more difficult to change. Furthermore, people who appear
to be self-confident, strong and have high self-esteem are difficult to
change because they feel their attitudes are more correct.

(d) Situational Factors. Situational factors are not only extensive but
also play a major role in influencing the change in attitudes of people.
Research has found that in a group discussion, attitudinal changes are
more likely to take place in the direction of prevailing attitudes. Perceived
peer group characteristics, like being favourably disposed towards the
leader or its importance to the organisation, will make the subordinate less
hesitant in changing his attitudes.

Measurement of Attitudes

12. The behaviour change brought about by the training function must be
measurable in terms of the organisation's requirements. Behaviour changes
brought about by the change of knowledge and skills is observable and
measurable. However, attitude change, the most difficult of the behaviour
changes, is very difficult to measure. Attitudes comprising of feelings and
emotions are carried inside an individual, and the behaviour, which an individual
displays may not reflect the attitude which is held.

13. A most common way of measuring attitudes and opinions is to handout a

questionnaire at the start and at the end of a training programme. These ask the
respondents to evaluate and rate the attitude towards a particular object directly
and to respond favourably or unfavourably about their belief regarding the
attitude-object. Generally, bipolar scales are used to assess the attitudes of
individual people in an organisation. Different types of scales are in use with
respect to measurement of attitudes viz, Thurstone's scale, Likert's scale,
Bogardus's scale, Guttman's scale, Semantic Differential scale etc. However,
only Likert's scale and Semantic Differential scale will be discussed.

14. Likert's Scale. It was developed by Rensis Likert. It consists of five boxes
ranging from 'Strongly Agree' to 'Strongly Disagree' as shown below :-
 104 CDM/GM/8

Strongly Agree Undecided Disagree Strongly

Agree Disagree
5 4 3 2 1

I like my work to be
predictable
I like taking risks in
things I do at work
I do not like working
under instruction
I like my work to be
challenging
I like to work alone
I do not mind working
long hours
I believe in quantity not
quality of work

Under each statement of attitude the respondent ‘ticks’ one of the boxes and
finally all the ratings are summed up. The Likert's scale is also called Summed-
Rating Measure because several statements are collected in an attitude area,
such as one's attitude about a job, and the scales are added up or summed to
obtain a person's attitude towards his job.

15. Semantic Differential Scale. It is a collection of scales each anchored on

extremes of bipolar adjectives. Here too the respondent is required to ‘tick’ one
of the boxes on the continuum. It is a simple method of obtaining feedback on
individual's attitudes to a subject matter. An example is given below :-

Compulsory Military Service

Good Bad
Wise Foolish
Free Constrained
Valuable Worthless
Active Passive
Exciting Dull
Strong Weak
Interesting Boring

Conclusion

16. In training, probably the most difficult area is bringing about change in
attitude, as also its measurement. There is no foolproof method of measurement
and quantification of attitudinal changes. The trainer has to rely on unstructured
and unquantified feedback. He must constantly be trying to probe into the
 105 CDM/GM/8

attitudes of trainees, trying to get beyond their spoken statements, to their real
thoughts to the question whether training is providing them any new insights,
which may cause attitudinal changes.

Bibliography

1. Warren Malcolm W Training for Results Massachusetts : Addison

Wesley, 1969
2. Mumford Alan The Manager and training London : Pitman
Publishing, 1971
3. Rao VSP and Narayan PS Organisation theory and Behaviour New
Delhi : Konarak Publishers, 1987

4. Hersey Paul and Blanchard Kenneth H Management of

Organisational Behaviour New Delhi : Prentice Hall of India Pvt Ltd, 1992.
5. Changing Minds, Howard Gardner, Harvard Business School
Publication 2004.
6. Change Without Pain, Eric Abrahamson, Harvard Business School
Publication 2004.

Questions

1. What are attitudes ? What are the different components of attitude?

2. What role do attitudes play in behaviour of individuals?
3. What strategies would you adopt for bringing about positive
attitudinal changes?
4. Describe briefly various methods of measuring of attitudes.
 106 CDM/GM/9

COLLEGE OF DEFENCE MANAGEMENT

KNOWLEDGE MANAGEMENT

Enabling Objectives
• Understand the concept of Knowledge Management.
• Understand the processes involved in knowledge management.
• Develop an understanding of the pillars that support Knowledge management.

Learning Objectives
• Identify the Knowledge Management Cycle to present day organizations.
• Be able to draw relevance of Knowledge Management to the Armed Forces.

Introduction
"Knowledge Management caters to the critical issues of organizational
adaptation, survival, and competence in face of increasingly discontinuous
environmental change.... Essentially, it embodies organizational processes
that seek synergistic combination of data and information processing capacity
of information technologies, and the creative and innovative capacity of
human beings."
1. This is a strategic view of Knowledge Management that considers the synergy
between technological and behavioral issues as necessary for survival in 'future
environments.' The need for synergy of technological and human capabilities is
based on the distinction between the 'old world of business' and the 'new world of
business.'
2. Within this view, the 'old world of business' is characterized by predictable
environments in which focus is on prediction and optimization based efficiencies.
This is the world of competence based on 'information' as the strategic asset and the
emphasis is on controlling the behavior of organizational agents toward fulfillment of
pre-specified organizational goals and objectives. Information and control systems
are used in this world for achieving the alignment of the organizational actors with
pre-defined 'best practices'. The assumption is that such 'best practices' retain their
effectiveness over time.
3. In contrast, the 'new world of business' is characterized by high levels of
uncertainty and inability to predict the future. Use of the information and control
systems and compliance with pre- defined goals, objectives and best practices may
not necessarily achieve long-term organizational competence. This is the world of
're-everything,' which challenges the assumptions underlying the 'accepted way of
doing things.' This world needs the capability to understand the problems afresh
given the changing environmental conditions. The focus is not only on finding the
 107 CDM/GM/9

right answers but on finding the right questions. This world is contrasted from the 'old
world' by its emphasis on 'doing the right thing' rather than 'doing things right.'
Knowledge and Its Creation
4. Knowledge Defined. Knowledge Management (KM) literature is full of
definitions of Knowledge. There is, however, universal agreement on two counts,
one that it is something created in the human mind and second that
communications, both internal to the human being and external, with his fellow
beings, is a pre-requisite for Knowledge Creation. Some definitions that could be
considered are:-
(a) Knowledge is that which causes a change in behaviour.
(b) Knowledge is reasoning about information and data to actively enable
performance, and problem solving, decision-making, learning and teaching.
(c) Knowledge is a fluid mix of contextual information, values, experiences
and rules.
(d) Knowledge is that which enables action.
5. Types of Knowledge. Forty years ago, Michael Polanyi provided an
explanation of knowledge upon which models of knowledge creation have been built.
He differentiated between explicit, tacit and implicit forms of knowledge.
(a) Explicit knowledge is that which is stated in detail and leaves nothing
merely implied. It is termed “codified” or “formal” knowledge because it can be
recorded.
(b) Tacit knowledge is that which is understood, implied and exists without
being stated. It is informal, experiential, and difficult to capture or share. It is
knowledge that cannot be expressed. For example, an individual knows how
to reach with his arm to grasp an object, but cannot describe how he knows
how to do it.
(c) Implicit knowledge is that which could be expressed, but has not been.
It is most often thought of as existing within the minds of individuals or in
social relationships.
6. Knowledge Creation. Nonaka and Takeuchi have explained the creation
of knowledge through interaction of previous knowledge with present sensory inputs
and the creative abilities of the brain. Such interaction is enabled through a process
of communication – intra-personal and inter-personal. Direct transference of implicit
knowledge takes place through a Socialization process while expression in
analogies or metaphors is examples of the Externalising process. Externalised
knowledge combines with the existing external knowledge base in a process of
Combination that enhances and enriches it while the assimilation of knowledge from
the written word or spoken expression into the core of a person is called
Internalisation. As knowledge goes through the process of socialization,
externalisation, combination and internalisation, it increases in richness of content
and firmness of belief to enrich and expand knowledge. This, in KM jargon, is called
the Epistemological Spiral.
 108 CDM/GM/9

The Four Knowledge Transformations – the Epistemological Spiral

Nonaka and Takeuchi Model

7. Organizational Knowledge is created through an Ontological Spiral, which

involves transference of knowledge from the individual to his group, then to the
division, department and up the organizational hierarchy. In the process of such
transference, knowledge grows and expands to fill the needs of each level of
hierarchy. Knowledge develops and builds through the establishment of both these
spirals.
Knowledge Management Definitions
8. Knowledge Management is the explicit and systematic management of vital
knowledge and its associated processes of creation, organisation, diffusion, use and
exploitation.
9. KM is a multi-disciplinary field that draws from theories in economics,
sociology, philosophy and psychology. Applied disciplines such as information
technology, library science and business also contribute to understanding this field.
KM combines and applies multiple theories to practical problems within
organizations. It has a pragmatic approach that is concerned with real solutions and
the ability to analyze and measure its applications accurately.
First generation Knowledge Management
10. First generation Knowledge Management involves the capture of information
and experience so that it is easily accessible in a corporate environment. An
alternate term is "knowledge capture". Managing this capture allows the system to
grow into a powerful information asset.
11. This first branch had its roots firmly in the use of technology. In this view
Knowledge Management is an issue of information storage and retrieval. It uses
ideas derived from systems analysis and management theory. This approach led to
a boom in consultancies and in the development of so-called knowledge
technologies. Typically first-generation Knowledge Management involved developing
sophisticated data analysis and retrieval systems with little thought to how the
information they contained would be developed or used. This led to organisations
 109 CDM/GM/9

investing heavily in technological fixes that had either little impact or a negative
impact on the way in which knowledge was used.
12. A typical scenario might have seen an organisation install a sophisticated
intranet in order to categorize and disseminate information, only to find that the extra
work involved in setting up the metadata meant that few within the organisation
actually used the intranet. This occasionally led to management mandating the use
of the intranet, resulting in resentment amongst staff, and undermining their trust in
the organisation. Thus first generation solutions are often counterproductive.
13. Management theory functions as a branch of economics, and to a large
extent it adopts econometric standards. When it became apparent that it would be
useful to be able to manage knowledge, it was natural for managers to attempt to
apply their preferred econometric methods to the cause. But econometrics is about
commodities and cash flow. It found it therefore necessary to treat knowledge as if it
were a commodity.
14. This, of course, was a surprisingly difficult thing to do, essentially because
knowledge is not a commodity but a process. But a suitable epistemology was
found, in the form of that developed by Michael Polanyi. Polanyi’s epistemology
objectified the cognitive component of knowledge – learning and doing – by labelling
it tacit knowledge and for the most part removing it from the public view. Learning
and doing became a 'black box' that was not really subject to management; the best
that could be done was to make tacit knowledge explicit.
15. Its failure to provide any theoretical understanding of how organisations learn
new things and how they act on this information meant that first generation
Knowledge Management was incapable of managing knowledge creation.
Second Generation Knowledge Management
16. Faced with the theoretical and practical failure of first generation techniques
to live up to its promise, theorists began to look more closely at the ways in which
knowledge is created and shared.
17. Along with this realisation came a change in metaphor. Organisations came
to be seen as capable of learning, and so a link grew between learning theory and
management.
18. At the same time hierarchical models of organisational structure were
replaced by more organic models, which see effective organisations as capable of
structural change in response to their environment.
19. The advent of complexity theory and chaos theory provided more metaphors
that enable managers to replace models of organisations as integrated systems with
models of organisations as complex interdependent entities that are capable of
responding to their environment.
20. Second generation Knowledge Management gives priority to the way in which
people construct and use knowledge. It derives its ideas from complex systems,
often making use of organic metaphors to describe knowledge growth. It is closely
related to organizational learning. It recognises that learning and doing are more
important to organisational success than dissemination and imitation.
 110 CDM/GM/9

Knowledge Management Cycle

21. The Knowledge Management Cycle is illustrated below. There are three
general perspectives in the cycle: management, application and people.
22. Management focuses on capturing, organizing and facilitating knowledge.
Many of these activities span the externalization and combination quadrants of the
Nonaka model.
23. Application focuses on effective retrieval of relevant content through
advanced searches and mining to conduct knowledge related work and tasks and on
the use of the results for discovery. It relies on the knowledge combination portion of
the model.
24. People focus on learning, sharing and collaboration. This is the education
component of the cycle that is within the internalization quadrant, moving into the
socialization portion.

The Knowledge Management Cycle

25. Pillars of KM. Given that knowledge is abstract content stored in the human
mind, its management must be somewhat different from the management of other
resources of the enterprise. There are four pillars that support KM, which are
leadership, organisation, technology and learning.
26. Leadership. Knowledge has been acknowledged to be the most important
resource of an organization. It is logical therefore that Knowledge Management must
be the focus of attention of the Strategic Leadership of any organization. Leaders
must make organizational objectives the focus of knowledge creation and create
organisation culture and structure to facilitate KM. They must place demands that
stretch mental abilities and encourage knowledge creation
27. Organisation. People do what organisation rewards and therefore the
organisation culture must support KM. Organisation culture and climate should
encourage, support and enhance knowledge creating activities. The organisation
structure of services should facilitate KM.
 111 CDM/GM/9

28. Technology. Technology has to be exploited to manage knowledge.

Technology can efficiently capture, store, synthesise, and maintain a knowledge-
base. Technology provides reliable and secure connectivity. It is used to make
search, retrieval, navigation, sharing and collaboration easy and convenient.
29. Learning. Learning has to become the focus of all aspects of the
organisation. Individual learning should translate into organisation learning.
KM and Soldiering
30. Relevance of KM to Soldiering. The art of warfare lies in the ability to get
the better of the adversary, through superior strategy, better tactics, greater agility
and faster responsiveness in battle. Military history is replete with examples that
indicate that brain power, more than brawn power, decides the outcome of battle. To
phrase it in modern terminology, the side that manages its knowledge better wins.
Superiority must therefore be measured in terms of own Knowledge Creating
Capability and the ability to retain and reuse the created knowledge vis-à-vis that of
the adversary. Modern warfare relies on information from many sources that must be
assessed and compiled for immediate use. The timelines are shorter, and the
players more individually significant in their roles. This type of warfare requires
superiority at all levels of command and control. The challenge therefore is to truly
Knowledge Enable the Armed Forces so that every action by every soldier is
empowered by knowledge
31. Knowledge management in the military varies not in premises or theory from
corporate versions, but in terms of context, content and pace. Whereas corporate
KM tools can depend on a more sedentary infrastructure, military operational
settings require mobile solutions with corresponding issues of security, bandwidth,
robustness and reliability. The content varies as well, often more targeted to the
particular operation. Finally, most corporate situations do not need the comparable,
quick reaction time required in conflict situations. KM in the military context requires:-
32. Knowledge processes that are robust and reliable within operational contexts.
33. Knowledge content and intellectual assets that are focused, precise, and
reliable, with suitable recall levels.
34. Knowledge creation and conversion processes that match the pace of
operations.
35. KM and Intelligence. Battlefield intelligence requires KM that is accurate
and timely to determine enemy or potential enemy force composition, position,
capabilities and intentions; while reducing the potential for strategic, operational,
tactical, or technological surprise. KM can be applied to the battlefield intelligence
cycle to provide a commander with more effective battlefield visualization. The
objective will be to capitalize on advanced technologies to enhance the intelligence
production capability through the integration of mature and emerging information
technologies, storage and retrieval, information fusion, data mining, knowledge
discovery, visualization and dissemination activities.
Conclusion
36. The wide spread impression that Knowledge Management is a new fangled
technological invention of a corporate fad, having little relevance to the Armed
 112 CDM/GM/9

Forces is anything but true. Knowledge is recognized as the most prized asset of an
organization since knowledge enables action and also enables organizations to
adapt to changing environments. The ability to adapt to change and to lead change
is the source of sustainable competitive advantage, which, in the case of the Armed
Forces translates to dominance over the adversary. Knowledge En Enablement is
therefore a critical necessity for the Armed Forces.
Bibliography
1. Ikujiro Nonaka and Hirotaka Takeuchi, The Knowledge Creating Company,
Oxford University Press, 1996
2. Kochicker VP and Suresh JK, The Infosys KM Experience, pp 245 to 269 in
Leading with Knowledge, Tata McGraw Hill Publishing Company, New Delhi, 2003
3. Skyrme, David, Dr , Knowledge Management, Making it Work, in The Law
Librarian, Vol. 31, No. 2, pp.84-90
4. Senge Peter, The Fifth Discipline, Random House, 1990
5. Argyris C, Knowledge for Action, Jossey-Bass 1993
6. Garratt, Bob, The Learning Organization, Profile, 2000

Questions
Q1. Differentiate between first and second generation Knowledge Management.
Q2. Explain the Knowledge Management Cycle with the help of a model.
Q3. What are the four pillars that support Knowledge Management ?
Q4. How is Knowledge Management relevant to the Armed Forces ?
 113 CDM/GM/9

COLLEGE OF DEFENCE MANAGEMENT

LEARNING ORGANISATION

Enabling Objectives

• Understand the concept of learning organization.

• Understand the building blocks forming the foundation of learning

organizations.

• Understand the importance and role of such organizations in the future.

Learning Objectives

• Imbibe the prerequisites for creating a learning organization.

• Be able to differentiate between the traditional organizations and learning

organizations.

• Be able to identify the roles of leaders in learning organizations.

Introduction

1. The importance of learning was first put forward by a Chinese philosopher,

Confucius (551 - 479 BC). He believed that everyone should benefit from learning.

"Without learning, the wise become foolish; by learning, the foolish become
wise."
"Learn as if you could never have enough of learning, as if you might miss
something."

2. The underlying cause for recent emphasis on organisational learning is

because of the increased pace of change. Classically, work has been thought of as
being conservative and difficult to change. Learning was something divorced from
work and innovation was seen as the necessary but disruptive way to change. The
corporation which is able to quickly learn and then innovate their work will be able to
change their work practices to perform better in the constantly changing
environment. Change is now measured in terms of months not years as it was in the
past. Business re-engineering used to concentrate on eliminating waste and not on
working smarter and learning.

Historical Background

3. Major research into `the art of learning' did not actually start until the 1900's.
In the 1950's, the concept of Systems Thinking was introduced but never
implemented. Gould-Kreutzer Associates, Inc. defined Systems thinking as “A
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framework for seeing interrelationships rather than things; to see the forest and the
trees."

4. This means that organisations need to be aware of both the company as a

whole as well as the individuals within the company. Up until the introduction of this
concept, companies concentrated on their own needs not the needs of their workers.
Systems Thinking tries to change the managerial view so that it includes the
ambitions of the individual workers, not just the business goals. One of the systems
used was called Decision Support Systems (DSS). This was for the use of corporate
executives to help them make decisions for the future. It was in fact the building of
the models, which defined the systems, which benefited the management rather than
the system's operation. This was because the building of the model focused on what
the business really was and the alternatives available for the future.

5. One benefit of DSS was that it made implicit knowledge explicit. This makes
extra knowledge available to the organisation and will tend to allow the organisation
to learn better because explicit knowledge will tend to spread faster through an
organisation. In this respect DSS can be considered as an additional method of
communication in organisations. This systems tool was predicted to be necessary for
every executive's desktop. But this did not happen.

6. In the 1970's, the same idea was renamed to Organisational Learning. One of
the early researchers in this field was Chris Arygris from Harvard. He published a
book on the subject in 1978. Even with this published information the concept still
wasn't physically taken on by any companies. In the 1980's, companies discovered
time as a new source of competitive advantage. This lead to `capabilities-based
competition' which included the capability of learning. Many other people have
continued along this line of research, such as Peter Senge - one of the modern day
management thinkers. Information on the topic has been passed into various
companies. These companies are now trying to become Learning Organisations. If
the changeover to a Learning Organisation happens overnight, the environment
around the workers will be complex and dynamic. There will be agitations and
confusion which means learning may not take place because of the chaos caused.
So it can only be introduced into a company that is prepared to reach a balance
between change and stability, i.e. a balance between the old and the new.
Organisations must interact with the environment around them, so the environment
must be suitable for that interaction.

Definition

7. An organisation that learns and encourages learning among its people. It

promotes exchange of information between employees hence creating a more
knowledgable workforce. This produces a very flexible organisation where people
will accept and adapt to new ideas and changes through a shared vision.

The Future

8. In the future the following areas will become increasingly more important:-
 115 CDM/GM/9

(a) Investment in Learning.

(b) Technology.
(c) Information Highway.
(d) Knowledge.
(e) Learning Culture.
(f) Customer - Client Relationships

Investment in Learning

9. There will be more emphasis on learning and hence more investment in

improving individuals, teams and the organisation. There will be more emphasis on
the ability to learn and take on board new ideas and methods. Training will be
provided by people within the company who actually do the work. Training will no
longer be a separate activity but an integral part of the teams in the company.

Technology

10. The price per performance ratio of technology will increase greatly. The value
of technology compared to labour will improve by an even greater amount.
Technology will become increasingly, as time passes, more cross functional and
transparent.

Information Highway

11. The increased access to the information highway will make information more
available and to a wider audience. Barriers to learning, such as lack of information
and the availability of material will be reduced. Learning Organisation will harness
this form of information and use it to their advantage. Employees regardless of their
status will have access to information that previously only their managers had.

Knowledge is the Key

12. In the future, organisation will be based on knowledge and not just physical
assets such as land or products. The most important employee will be a `knowledge
worker' and employees will be judged on their ability to learn.

Learning Culture

13. Previous organisation cultures which are based on position or hierarchy will
disappear. The culture of an organisation will be based on learning and the skills of
individuals.
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Customer - Client Relationships

14. A learning culture will help customers and clients understand each other's
needs better. It will allow a greater degree of co-operation between customer and
clients.

Implementation Strategies

15. Any organisation that wants to implement a learning organisation philosophy

requires an overall strategy with clear, well defined goals. Once these have been
established, the tools needed to facilitate the strategy must be identified.

16. It is clear that everyone has their own interpretation of the "Learning
Organisation" idea, so to produce an action plan that will transform groups into
Learning Organisations might seem impossible. However, it is possible to identify
three generic strategies that highlight possible routes to developing Learning
Organisations. The specific tools required to implement any of these depends on the
strategy adopted, but the initiatives that they represent are generic throughout.
These initiatives are ably described using Peter Senge's Five Disciplines of
Learning Organisations. The three strategies are: -

(a) Accidental. For many companies, adopting a learning organisation

philosophy is the second step to achieving this Holy Grail. They may already
be taking steps to achieve their business goals that, in hindsight, fit the
framework for implementing a Learning Organisation. This is the accidental
approach in that it was not initiated through awareness of the Learning
Organisation concept.

(b) Subversive. Once an organisation has discovered the Learning

Organisation philosophy, they must make a decision as to how they want to
proceed. This is a choice between a subversive and a declared strategy. The
subversive strategy differs from an accidental one in the level of awareness;
but it is not secretive! Thus, while not openly endorsing the Learning
Organisation ideal, they are able to exploit the ideas and techniques.

(c) Declared. The other option is the declared approach. This is self
explanatory. The principles of Learning Organisations are adopted as part of
the company ethos, become company "speak" and are manifest openly in all
company initiatives.

The Building Blocks

17. Before a Learning Organisations can be implemented , a solid foundation can

be made by taking into account the following : -

(a) Awareness .
(b ) Environment.
(c ) Leadership.
(d ) Empowerment.
(e ) Learning.
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Awareness

18. Organisations must be aware that learning is necessary before they can
develop into a Learning Organisation. This may seem to be a strange statement but
this learning must take place at all levels; not just the Management level. Once the
company has accepted the need for change, it is then responsible for creating the
appropriate environment for this change to occur in.

Environment

19. Centralised, mechanistic structures do not create a good environment.

Individuals do not have a comprehensive picture of the whole organisation and its
goals. This causes political and parochial systems to be set up which stifle the
learning process. Therefore a more flexible, organic structure must be formed. By
organic, we mean a flatter structure which encourages innovations. The flatter
structure also promotes passing of information between workers and so creating a
more informed work force.

20. It is necessary for management to take on a new philosophy; to encourage

openness, reflectivity and accept error and uncertainty. Members need to be able to
question decisions without the fear of reprimand. This questioning can often highlight
problems at an early stage and reduce time consuming errors. One way of
overcoming this fear is to introduce anonymity so that questions can be asked or
suggestions made but the source is not necessarily known.

Leadership

21. Leaders should foster the Systems Thinking concept and encourage learning
to help both the individual and organisation in learning. It is the leader's responsibility
to help restructure the individual views of team members. For example, they need to
help the teams understand that competition is a form of learning; not a hostile act.

22. Management must provide commitment for long-term learning in the form of
resources. The amount of resources available (money, personnel and time)
determines the quantity and quality of learning. This means that the organisation
must be prepared to support this.

Empowerment

23. The locus of control shifts from managers to workers. This is where the term
Empowerment is introduced. The workers become responsible for their actions; but
the managers do not lose their involvement. They still need to encourage, enthuse
and co-ordinate the workers. Equal participation must be allowed at all levels so that
members can learn from each other simultaneously. This is unlike traditionally
learning that involves a top-down structure (classroom-type example) which is time
consuming.
 118 CDM/GM/9

Learning

24. Companies can learn to achieve these aims in Learning Labs. These are
small-scale models of real-life settings where management teams learn how to learn
together through simulation games. They need to find out what failure is like so that
they can learn from their mistakes in the future. These managers are then
responsible for setting up an open, flexible atmosphere in their organisations to
encourage their workers to follow their learning example.

25. Anonymity has already been mentioned and can be achieved through
electronic conferencing. This type of conferencing can also encourage different sites
to communicate and share knowledge, thus making a company truly a Learning
Organisation.

The Golden Rules

26. As an organisation which learns and wants its people to learn, it must try to
follow certain concepts in learning techniques and mould itself to accommodate for a
number of specific attributes. In particular: -

(a) Thrive on Change .

(b) Encourage Experimentation.
(c) Communicate Success and Failure.
(d) Facilitate Learning from the Surrounding Environment.
(e) Facilitate Learning from Employees .
(f) Reward Learning .
(g) A Proper Selfishness.
(h) A Sense of Caring.

Why a Learning Organisation ?

52. An organisation that performs badly easily recognizable. The signs are :-

(a) Employees seem unmotivated or uninterested in their work.

(b) Your workforce lacks the skill and knowledge to adjust to new jobs.
(c) You seem to be the only one to come up with all the ideas.
(d) Your workforce simply follows orders.
(e) Your teams argue constantly and lack real productivity.
(f) Your teams lack communication between each other.
(g) You are always the last to hear about problems.
(h) The first to hear about customer complaints.
(i) And the same problems occur over and over.

How to Create a Learning Organisation

53. There are five disciplines (as described by Peter Senge) which are essential
to a learning organisation and should be encouraged at all times. These are:-

(a) Team Learning .

(b) Shared Visions.
 119 CDM/GM/9

(c) Mental Models.

(d) Personal Mastery.
(e) Systems Thinking

Team Learning

54. Virtually all important decisions occur in groups. Teams, not individuals, are
the fundamental learning units. Unless a team can learn, the organisation cannot
learn. Team learning focuses on the learning ability of the group. Adults learn best
from each other, by reflecting on how they are addressing problems, questioning
assumptions, and receiving feedback from their team and from their results. With
team learning, the learning ability of the group becomes greater than the learning
ability of any individual in the group.

Shared Visions

55. To create a shared vision, large numbers of people within the organisation
must draft it, empowering them to create a single image of the future. All members of
the organisation must understand, share and contribute to the vision for it to become
reality. With a shared vision, people will do things because they want to, not because
they have to.

Mental Models

56. Each individual has an internal image of the world, with deeply ingrained
assumptions. Individuals will act according to the true mental model that they
subconsciously hold, not according to the theories which they claim to believe. If
team members can constructively challenge each others' ideas and assumptions,
they can begin to perceive their mental models, and to change these to create a
shared mental model for the team. This is important as the individual's mental model
will control what they think can or cannot be done.

Personal Mastery

57. Personal mastery is the process of continually clarifying and deepening an

individual's personal vision. This is a matter of personal choice for the individual and
involves continually assessing the gap between their current and desired
proficiencies in an objective manner, and practising and refining skills until they are
internalised. This develops self esteem and creates the confidence to tackle new
challenges.

The Fifth Discipline - Systems Thinking

58. The cornerstone of any learning organisation is the fifth discipline - systems
thinking. This is the ability to see the bigger picture, to look at the interrelationships
of a system as opposed to simple cause-effect chains; allowing continuous
processes to be studied rather than single snapshots. The fifth discipline shows us
that the essential properties of a system are not determined by the sum of its parts
but by the process of interactions between those parts.
 120 CDM/GM/9

59. This is the reason systems thinking is fundamental to any learning

organisation; it is the discipline used to implement the disciplines. Without systems
thinking each of the disciplines would be isolated and therefore not achieve their
objective. The fifth discipline integrates them to form the whole system, a system
whose properties exceed the sum of its parts. However, the converse is also true -
systems thinking cannot be achieved without the other core disciplines: personal
mastery, team learning, mental models and shared vision. All of these disciplines are
needed to successfully implement systems thinking, again illustrating the principal of
the fifth discipline: systems should be viewed as interrelationships rather than
isolated parts.

Behaviour to Discourage

60. An organisation which is not a learning one also displays behaviours, however
these should definitely not be encouraged. Rosabeth Moss Kanter studied a range of
large
American corporations and came up with rules for stifling initiative.:-

(a) Regard any new idea from below with suspicion -- because it is new
and because it is from below.
(b) Express criticisms freely and withhold praise (that keeps people on
their toes). Let them know they can be fired at any time.
( c) Treat problems as a sign of failure.
(d) Make decisions to reorganise or change policies in secret and spring
them on people unexpectedly (that also keeps people on their toes).
(e) Above all, never forget that you, the higher-ups, already know
everything important about business.
(f) These rules are expanded in her book "The Change Masters". The
Learning Organisation needs to break every one of these rules frequently.

Why Learning Organisations Work

• The People Develop.

• Greater motivation.
• The workforce is more flexible.
• People are more creative
• Improved social Interaction .
• Teams and Groups Work Better.
• Knowledge sharing.
• Interdependency .
• The Company Benefits.
• Breakdown of traditional communication barriers .
• Customer relations.
• Information resources.
• Innovation and creativity .
 121 CDM/GM/9

Conclusion

61. The Learning Organisation is a concept that is becoming an increasingly

widespread philosophy in modern companies, from the largest multinationals to the
smallest ventures. What is achieved by this philosophy depends considerably on
one's interpretation of it and commitment to it. The quote below gives a simple
definition that we felt was the true ideology behind the Learning Organisation.

"A Learning Organisation is one in which people at all levels, individuals and
collectively, are continually increasing their capacity to produce results they really
care about."

62. Hopefully reading this has given you an insight into the Learning Organisation
philosophy. The perfect Learning Organisation is not an attainable goal; it is merely a
desirable concept: there is no correct implementation of the Learning Organisation.
Every company can continuously adapt and adjust and some will be better Learning
Organisations than others, but every one of them has something new to learn.

63. Finally it should be mentioned that the Learning Organisation is just a means
to a business goal, created to improve productivity and most importantly profit. Quite
how long this philosophy will remain fashionable is unknown. What is certain is that
for any company in today's global marketplace continuous change and adaptation is
the only way to survive.

Bibliography

1. The Dance of Change. Peter Senge. Random House, New York,1999.

2. Changing Organisations, Raymon Bruce and Sherman Wyman, Sage
Publications,1998.
3. Changing Minds, Howard Gardner,Harvard Business School Publication 2004.
4. Change Without Pain, Eric Abrahamson, Harvard Business School Publication
2004.
5. The Planning of Change (2nd Edition). Warren G. Bennis, Kenneth D. Benne,
and Robert Chin (Eds.). Holt, Rinehart and Winston, New York: 1969.
6. Human Problem Solving. Allen Newell and Herbert A. Simon. Prentice-Hall,
Englewood Cliffs: 1972.
7. Organizations in Action. James D. Thompson. McGraw-Hill, New York: 1967.
8. ‘Essentials of Organisation Development and Change’ by Thomas G Cummings
and Christopher G Worley, South Western College Publishing, Ohio, 2001, ISBN 0-
324-02399-5
9. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fouth Edition,
Pearson Education, 2004, ISBN 81-297-0412-9
10. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,
McGraw Hill, New York, 2005, ISBN 0-07-111131-X
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Questions

Q1. What are the building blocks for creating a learning organization ? Elaborate
on any two.

Q2. What are the implementation strategies to be followed in a learning

organization ?

Q3. What are the indicators that there exists a need for developing an
organization into a learning organization ?

Q4. What are the golden rules to be followed in a learning organization ?

 123 CDMGM/10

COLLEGE OF DEFENCE MANAGEMENT

MEASURING ORGANISATION EFFECTIVENESS: GOAL SETTING AND

BENCHMARKING

Enabling Objectives

• To understand the process of goal setting.

• To appreciate the importance of functional analysis, value chain analysis and

bench marking for enhancing Organisational Effectiveness

Learning Objectives

• To be able to set official goals and operative goals for an organization

• To be able to analyse and enhance effectiveness of organizations in the

defence forces as a process of Organisation Development.

Introduction

1. The first step towards enhancing the effectiveness of any organization is to

measure the present state of effectiveness of the organization. Obviously,
effectiveness is related to the goals of the organization. Therefore, the process of
setting of goals is extremely important. Further, a number of approaches are
available to managers for measuring the effectiveness of the organization. Some of
the important ones are functional analysis, value chain analysis and benchmarking.
The process of benchmarking has emerged as a prominent field of research, for the
OD specialists and practicing managers and would have an important relevance to
the defence forces. We shall briefly study these aspects in this chapter.

Measuring Effectiveness : Organizational Goals

 124 CDMGM/10

2. Managers create goals that they use to assess how well the organization is
performing. Two types of goals used to evaluate organizational effectiveness are
official goals and operative goals. Official goals are guiding principles that the
organisation formally states in its annual report and in other public documents.
Usually these goals lay out the mission of the organisation – they explain why the
organisation exists and what it should be doing. Official goals are meant to
legitimize the organisation and its activities, to allow it to obtain resources and the
support of its stakeholders. For example, mission and goals of Amazon.com have
changed during the period 1995-2003 as its managers have changed its business
to better manage its environment.

3. Operative goals are specific long and short-term goals that guide managers
and employees as they perform the work of the organisation. These are goals that
managers can use to evaluate organisational effectiveness. Managers can use
operative goals to measure how well they are managing the environment. Is
market share increasing or decreasing? Is the cost of inputs rising or falling?
Similarly, they can measure how well the organisation is functioning by measuring
how long it takes to make a decision or how great conflict is between organisational
members. Finally, they can measure how efficient they are by creating operative
goals that allow them to “benchmark” themselves against their competitors – that is,
compare their competitors cost and quality achievements with their own. GM used
Toyota’s cost and quality as benchmarks for what it sought to achieve in its Saturn
plant.

4. An organisation may be effective in one area but not in others. For example,
in 1975 GM was a very efficient producer of full-size cars. Few other companies
could produce a full-size car at as low a cost per unit. GM, however, was not an
effective organisation, because it was not producing cars that people wanted and
thus was not managing its external environment. Nobody wanted to buy a full-size
gas guzzler when oil cost $35 a barrel and gasoline prices were soaring. Thus, GM
was very ineffective when judged by measures of being innovative or quick in
responding to customers’ changing needs. Customers did not want GM cars, GM
dealers and suppliers were suffering, and the company’s performance was declining
rapidly. How did GM get into this unfortunate position?

5. One possibility is that GM was ineffective on the internal systems/innovation

dimension of effectiveness. GM was a successful global company at this time. Its
European operation, which had an extensive history of innovation in small-car
production, was one of Europe’s largest automobile companies. Why then did GM
not transplant its skills and competences in small car production to the United
States? The answer is that GM failed to coordinate and utilize its internal resources
effectively. The company was dominated by a few powerful top managers who had
no background or expertise in small-car production and who would not heed the
 125 CDMGM/10

message being sent by U.S consumers, who were buying large numbers of small
foreign cars. The dominant philosophy of GM’s management was that small cars
meant small profits; thus no coordination of U.S and European operations was
introduced.

6. It has taken GM 20 years to recover from these problems, learn from its
mistakes and find the right way to redesign its structure to allow it to coordinate its
skills and resources on a global basis. Throughout the 1990s GM lagged behind
Ford and Chrysler, which had found ways to lower costs and improve the quality of
their cars. Finally, in 2002 GM announced that it had matched the efficiency of other
U.S car companies after spending hundreds of billions of dollars in the process.
While it still lags behind the most efficient Japanese auto companies, it appears that
GM might have gained the momentum to increase its effectiveness in all three
dimensions in the 2000s.

7. Managers must be careful to develop goals that measure effectiveness in all

three dimensions: control, innovation, and efficiency. Moreover, companies must be
careful to align their official and operative goals and eliminate any conflict between
them. For example, throughout the 1980s and 1990s, GM’s annual reports
reiterated the company’s determination to reduce its costs, increase product quality,
and remain a leading global car company. During this same period, however,
management’s operative goals never allowed it to achieve these stated goals, often
because of infighting between its top managers. Mistaken choices of strategy and
were harming the company. Managers were not making concerned efforts to lower
production costs and raise quality, and they were not making hard decisions about
downsizing the organisation and laying off managers and employees. By the time it
became obvious that GM’s operative goals conflicted with its official goals, the
organisation was in crisis. Subsequent layoffs were much more severe than they
would have been if managers had been following the official goals they claimed to
believe in. When managers create a set of goals to measure organisational
effectiveness, they must make sure that official goals and operative goals work
together to enhance effectiveness.

Analyzing the Organisation’s Capabilities

8. Successful organizations excel or have the potential to excel in a specific

activity. The Federal Express guarantee of next-day delivery anywhere within the
United States in such a competitive advantage. British retailer Marks & Spencer
ensures a high and consistent level of product quality across a wide range of
merchandise through meticulously managed supplier relationships. General Electric
reconciles control, coordination, flexibility, and innovation in one of the world’s
largest and most diversified corporations.
 126 CDMGM/10

9. Company leaders can choose from three approaches to examine their

capabilities. The first analyzes organisational capabilities for each of the major
functional areas of the business. This type of approach is easy for most people to
understand, and provides the basis for meaningful discussion of the firm’s strategy.

10. The second method breaks the firm down into a sequential series of activities
and attempts to identify the value-added of each activity. It is normally referred to as
a value-chain analysis. The figure below shows the categories that may be used
to analyze the value chain of a manufacturing company. Michael Porter developed a
more elaborate model for analyzing the value chain. He distinguishes between
primary activities, concerned with the transformation of inputs and outputs, and
direct customer contact and support activities, which make it possible to effectively
carry out the primary activities. In other words, rather than analyzing the firm’s
capabilities in terms of what different functions contribute, Porter suggests that it is
better to identify those activities that create value and those that do not. This
approach has the distinct advantage of focusing the analysis on value creation. That
is, it can help managers determine the extent to which the value created by a
particular activity is greater than the cost incurred to create that value. This is
referred to as “margin”. The greater the margin, the better. To be a source of
competitive advantage, the firm must be able to obtain a margin from the activity that
is superior to that of competitors. Thus, a value chain analysis requires an
examination of each activity relative to each competitor’s abilities. In the long run,
the firm will lose market share to competitors if the company routinely extracts a
lower margin from primary and support activities.
 127 CDMGM/10

Product Manufactu-
Technology Marketing Distribution Service
design ring
Source Function Integration Prices Channels Warranty
Sophistication Physical Raw materials Advertising/ Integration Speed
Patents Characteristics Capacity Promotion Inventory Chain or
Product Aesthetics Location Sales force Warehousing Independent
Process Quality Procurement Package Transport Prices
Choices Parts production Brand
Assembly

Chain Analysis

11. While theoretically useful for understanding competitive advantage, the value
chain concept is difficult to apply in practice. For one thing, it may be impossible to
meaningfully assess the net value added (margin) of singular primary or support
activity. Company activities tend to be so intertwined that they are seldom carried
out in isolation. For instance, customer service, which is deficient (a production
issue, which is also a primary activity) or if recruits are poorly trained (a human
resource issue, a support activity). Making those comparisons in relation to
competitors in even more difficult, because this information is very hard to obtain.

12. A third approach assesses capabilities by comparing the firm’s activities or

functions with those of other firms. In other words, it involves study and analysis of
the ‘Best Practices’. This approach, normally referred to as benchmarking, has four
stages:-

(a) Identifying activities or functions that are weak and need improvement.

(b) Identifying firms that are known to be at the leading edge of each of
these activities or functions.
 128 CDMGM/10

(c) Studying the leading edge firms by visiting them, talking to managers
and employees, and reading trade publications to ascertain how and why they
perform so well.

(d) Using the information gathered to redefine goals, modify processes,

acquire new resources, and engage in other activities to improve the firm’s
functions.

13. Benchmarking has been used as an important strategic tool by a number of

well-known companies. It played a central role in the revitalization of Xerox during
the 1980s. Detailed comparisons of Xerox copiers and those of competing
manufacturers revealed that Japanese rivals made copiers at half the cost in half the
time and with half as many workers. Xerox’s defects per thousand in assembly were
10 to 30 times greater than those of Japanese competitors. The result was the
establishment of a continuous program of benchmarking in which every Xerox
department is encouraged to look globally to identify “best in class” companies
against which to benchmark. Similarly, ICL, the British computers subsidiary of
Fujitsu, benchmarks against the manufacturing processes of Sun Microsystems and
the distribution system of the retailer Marks & Spencer.

Conclusion

14. In the end, all approaches used to analyze the firm’s capabilities have
advantages as well as disadvantages. And while there is no model or rule that is
clearly best for every situation, having an understanding of all of these perspectives
(functional, value chain or benchmarking) can help strategists make better decisions
and form higher quality strategies. In the defence forces too, these concepts can be
successfully employed to enhance the effectiveness of our organizations.

Bibliography

1. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fourth

Edition, Pearson Education, 2004, ISBN 81-297-0412-9

2. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,

McGraw Hill, New York, 2005, ISBN 0-07-111131-X
 129 CDMGM/10

Questions

1. What is goal setting?

2. What are the various types of goals which an organization should/ may
have? What is the inter se relationship between the goals?
3. Write short notes on:-

(a) Functional Analysis

(b) Value Chain Analysis
(c) Benchmarking
4. Do you think that the above concepts are relevant to the defence forces? Can
you identify specific areas and organizations where these can be applied for
enhancing effectiveness of our organizations?
 130 CDM/GM/11

COLLEGE OF DEFENCE MANAGEMENT

MEMBER DEVELOPMENT

Enabling Objectives

• Understand the nuances of member development.

• Understand the methodology of member development.

Learning Objectives

• Be able to identify the factors that affect development.

• Identify the salient aspects affecting member development.

• Appreciate the dimensions of job enlargement and job enrichment and

their role in member development.

• Identify the training methods that contribute towards member

development.

Introduction

1. An organisation is as effective as those who man it. The type of leaders

that prospered two decades ago may not necessarily do so well now. Too many
rapid changes have taken place, and as time goes by the pace of change is
getting even faster. The quantum changes in technology, education, societal
values and ethos and the environmental aspects like geo-political scenario,
globalisation, information explosion etc are having a great impact on the people
in the organisations. Growing complexities of society requires members who can
think for themselves and adapt to new situations. Therefore, the leaders of
tomorrow have to be trained and developed to meet the future challenges
effectively. This is especially so in the Armed Forces, where to command and
lead men into battle ‘to do or die’ will require a leadership of higher caliber and
competence. It is the duty of the superiors of today to ensure that the members
become capable of leading the organisations of future in a manner most
desirable.
 131 CDM/GM/11

Effects of Environment on Member Development

2. External Environment. The changes in the external environment of

organisations will affect the organisations to a degree commensurate with the
gravity of the changes. Some of the important changes that have taken place are
as follows:-

(a) Education. The general standard of education of a member has

greatly improved. He possesses greater awareness and is a ‘thinking
man’, who expects more stimulating work and adequate opportunity for
personal growth.

(b) Authority. In the Armed Forces, authority is in the form of positional

power vested in a leader. Increasingly there is a tendency to question the
power based on authority of position. The acceptance of authority today is
not solely based on the hierarchal position but increasingly based on the
competence level. Focus now is on earning the respect of the
subordinates by acquiring personal power through display of
professionalism and transformational leadership.

(c) Communication. The information revolution has brought about

greater need for more open lines of communication in organisations, with
greater transparency in functioning.

(d) Value System. Members today, with higher levels of education and
professionalism have greater aspirations and ambitions. Therefore, there
is increasing demand for participative decision making. There is also
tendency to question the old values, ethos, traditions, customs and the
ways of doing things.

3. Internal Dynamics. The effect of internal dynamics of an organisation on

subordinate development are as follows :-

(a) Technology. Rapid changes in technology are bringing about quicker

obsolescence in equipment, weaponry and knowledge. Therefore, for
organisations to remain efficient and effective, members will have to be
highly motivated to face the challenges through their use of initiative,
innovativeness and creativity. High reliance on being bureaucratic, whose
basic strength is stability and predictability may be counterproductive. We
need to create appropriate environments to promote initiative and
creativity.
 132 CDM/GM/11

(b) Management Functions. With new technology, the boundary of

operational and staff functions is getting blurred. New decision making
processes are being developed, with their problems of control and
coordination. Technology with its accompanied specialisation is prone to
the adverse effects of compartmentalisation, i.e, commitment to own
specialist group rather than to organisation. Therefore, member
development programme would have to take this into account.

Nature of Member Development

4. Definition. “Member development is a conscious and systematic process

to control the development of future leadership resources in the organisation for
achievement of orgsanisational goals and strategies.” There is no one right
recipe for subordinate development, but will depend on the culture, structure and
problems faced by each organisation.

5. Keeping the organisational goal in mind the member activities have to

remain focussed on the individual, the group and the organisation, and ensure
their integration as a whole. The impact of the individual activities and other two
activities is shown in Fig 1 below :-

Development of the Develop-

individual ment of the
work-group
or team
Develop-
ment of
the Org

Member Development : Integration of the Major Components

Fig 1

6. The purpose of member development is to develop leadership and

manage real responsibilities in members enabling them to be effective and
capable individuals with abilities to share the organisation’s performance and
 133 CDM/GM/11

commit themselves to joint responsibility for overall excellence. This would

involve bringing about changes in his/her behaviour as required.. This is
achieved by providing him relevant knowledge and skills which will ultimately
lead to change in his attitude. The behavioural changes can also be brought
about by changing the environment in which the individual works. Restatement of
command objectives followed by redefinition of the roles of various role players
can bring about desired change in individual / group behaviour.

7. All organisations, like the Armed Forces, and their sub-divisions have their
own distinct culture and climate. Members are quite capable of reading the
culture for what it really is and adapting their behaviour accordingly. Therefore,
the focus of subordinate development efforts per-se may go beyond both
individual and the group and may have to do with the organisation itself.
Consequently it is important to develop a suitable culture and climate, which will
effectively guide the behaviour of individuals.

Aim of Member Development

8. The aim of member development is to inculcate the following qualities in

the subordinate :-

(a) To be Self-Reliant. He must have faith in his abilities and

confidence in his ideas. He should be able to visualise the problem as a
whole, set a course of action and be decisive.

(b) To Develop a Strong Urge to Accomplish. He should have great

capacity for hard work and be committed to accomplish challenging tasks.
He should be able to accept responsibility and the risks that go with it. He
should insist on high sense of performance, but should not set unrealistic
goals. He should work with enthusiasm, which itself is a good motivator
for juniors.

(c) To have Urge to Develop. He should possess mental curiosity and

have the urge to enhance his knowledge in varied fields. He should,
importantly, have the capability to analyse the reasons for his success /
failures from his experiences.

(d) To be Emotionally Mature. He should be able to develop good

interpersonal relations, allow differences in opinions and should be
willing to accept good ideas from wherever they come from. Apart from
IQ, in this age of increased stress there is a need for the subordinate to
further develop his Emotional Quotient.

(e) To be Committed to Organisational Goals. Enhancement of the

above will also manifest in the form of greater commitment to the
organisation and its goals.
 134 CDM/GM/11

Member Development Process

9. Member development process starts with early identification of talented

subordinates and developing them as potential future leaders. Training and
development are important activities related to member development. By
‘development’ we mean something different from ‘training’ or even ‘education’.
By ‘training’ we mean highly focused learning activities which enable’ someone
to perform a set of procedures or tasks in a pre-defined way. By ‘education’ we
mean a much broader approach to learning. Education does not seek an
immediate practical application, but has the primary function of broadening the
mind, of adding new perspectives. ‘Development’ synthesizes the advantage of
both the training and educational approaches. It teaches one to be analytical;
weigh all the evidence before arriving at a conclusion. It focusses on the present
and more importantly the future needs of the subordinate. From ‘training’,
development takes the focus, the sense of purpose, and the practicality of
application. From education, development takes the analytical and mature
thinking and then strives for creativity and innovativeness. Any member
development programme would have to find its own right mix of ‘training’ and
‘educational’ approaches.

10. Self-Development. All development is basically self-development and

the organisation can only provide the right climate and conditions for
development or advancement. The members must have the motivation and the
capacity to learn and develop themselves.

Methods of Member Development

11. Any member development programme should seek to develop the overall
personality of members and not limited to the skill necessary to do the job
efficiently. Emphasis should be on increasing knowledge, decision-making
ability, interpersonal skills and maturity of the members.

12. The two principal methods which can be used to help members to acquire
knowledge, skills and attitudes to become competent members, are ‘On–the--
Job’ and ‘Off-the –Job’ training.

13. On-the-Job Training. This provides on-the-job experience for which and
various methodologies are as follows :-

(a) Coaching.

(b) Creation of ‘Assistant – to’ positions.

(c) Job rotation, job enlargement and job enrichment.

(d) Special projects and committee assignments.

 135 CDM/GM/11

14. Off-the-Job Training. This involves training and education courses away
from the job. The various methods are :-

(a) Special courses.

(b) Role playing.

(c) Case study.

(d) Conference.

(d) Management games.

(e) Syndicate method.

(h) Sensitivity training.

(j) Programmed instruction.

15. Both ‘on-the-job’ and ‘off-the-job’ methods need to be properly balanced

as real learning can only occur when the member has an opportunity to practise
and apply his knowledge acquired through formal courses.

Salient Aspects Affecting Member Development

16. The salient aspects which affect subordinate development are as follows:-

(a) Core dimensions of the job.

(b) Delegation.

(c) Counselling.

(d) Appraisal.

17. Core Dimensions of the Job. Research has shown that the nature of
the job itself (to the extent it is meaningful and challenging) is a strong motivating
factor and contributes substantially towards subordinate development. The
degree of job variety, responsibility and growth provided by different job
programmes is shown in Fig 2 below:-

Job Variety, Responsibility and Growth

Job Rotation Job Enlargement Job Enrichment

Fig 2
 136 CDM/GM/11

(a) Job Rotation. In this the member is exposed to several jobs, but
returns to his original job. Purpose is to broaden the knowledge, but in
these programmes members do not have managerial authority.

(b) Job Enlargement. Enlarging the scope of the job by adding

similar tasks without substantially enhancing responsibility.

(c) Job Enrichment. Here an attempt is made to build a higher sense

of challenge into the job, achievement and recognition. Jobs may be
enriched by variety, as also by setting challenging objectives and targets.
But they may also be enriched by :-

(i) Giving a person a whole, natural unit of work.

(ii) Assigning specific or specialised task to individuals,

enabling them to become experts.

(iii) Making periodic report directly available to the subordinate.

(iv) Increasing the responsibility and accountability of individuals

for entrusted work.

18. Delegation. It is only through delegation that the commanders of future

can be developed effectively. Delegation has a major role in motivating
members. Training and guiding people for higher responsibilities should be given
proper emphasis.

19. Counselling. Counselling is a process of helping the member to help

himself to solve his problem, which builds his confidence and self-reliance.
Performance counselling helps in determining the training and developmental
needs of the subordinate. It is also an effective means of giving a member feed
back on his performance.

20. Appraisal. Appraisal helps in evaluating the performance of a member, in

terms of their strengths and weaknesses and demonstrated performance for
certain purposes such as placements, promotions, development and career
planning. To be effective, an appraisal system should serve as information
system to the organisation and feed back system to the member.
 137 CDM/GM/11

Methodology / Styles of Member Development

21. The methodology/ style of achieving member development could involve

either Prescriptive or Consultative Style. Some examples of these two styles are
shown in Fig 3.

Styles of Member Development

P Individual Group Organisation

R
E
S Task specific courses (e.g., QFI) Team Building MBO
C
R
I
P
T Career specific courses ( e.g., Project based
OD
I JCC) learning, MBO
V
E

C
O Appraisal
N
S
U
Analysis of
Counselling OA
L problems
T
A
Identification of
Coaching, Analysis of needs,
T needs, Role Feedback
Career Planning
I negotiation
V Task Specific courses (e.g. Action Learning, Learning
E DSSC, LDMC, HCC, NDC ) Team Building Organisation

Fig 3

22. Prescriptive Style. Member development programmes are introduced

without taking into account the expressed needs of the member himself. Not all
of these are inappropriate and certain professional courses like QFI, JCC,
though follow prescriptive style, are appropriate. But when certain new ideas are
being introduced, which are likely to affect the members, then prescriptive
approaches may be difficult to sustain.

23. Consultative Style. This approach has more to offer towards achieving
overall member development. Here both the leader and the member share
information, identify problems and aspirations, and mutually agree to a planned
development programme; e.g. appraisal and counselling. In this style, the
 138 CDM/GM/11

member knowing what motivates him and what does not, has a say in the
direction in which he would like his career to develop.

Role of Leaders in Member Development

24. In order to reach the top and become an effective and a successful
leader, the potential of a young member needs to be recognised and developed
by his leader. ‘Succession Planning’ has a greater relevance in the Armed
forces, where there are no lateral induction of members. Leaders are not only
responsible for leadership development of the members but also for their career
planning. It is natural that the officers, who have embarked upon the Services as
their profession would want to move up the ladder as high as they can. The
steps on the ladder are promotions, more important jobs, larger responsibilities
and bigger challenges.

25. If one reminisces about his climb up the professional ladder, he would
realise that some of his erstwhile Commanding Officers have played a significant
role in it. The fact or the truth about leadership is that leaders are inspiring. In
order to become one, they need to be inspired themselves. Thus, the onus to a
large extent lies on the leaders for genuine development of the members in all
spheres of life.

26. A leader is characteristically a mentor for member development. He

should be able to gauge his potential, set demanding goals and inspire him to
feel competent to deliver the results. What a superior expects of his subordinates
and the way he treats them largely determine their performance and career
progress. A good leader – member relationship is the key to effective member
development.

Organisational Climate

27. The greatest influence on a member within an organisation is his working

environment, including organisational policies, the way he is treated, information
and advice furnished, the examples set for him, the working conditions, the
interest displayed in him, and the things that the organisation emphasises and
stands for. The Commanding Officer or a superior has a major role in setting the
right organisational climate.

Personality Development

28. One of the major areas of member development is personality

development. Members lacking in maturity, may need to be transformed, the
characteristics which may be as varied as given below :-
 139 CDM/GM/11

Immature Characteristics Mature Characteristics

Dependency Autonomy
Passive personality Active personality
Limited Responsibility Wide Responsibility
Selfishness Altruism
Self Rejection Self Acceptance
Imitation Originality
Need for Certainty Tolerance for Ambiguity

Role of the Individual/Member in His Own Development

29. No amount of hard work by the superior will pay dividends unless the
member understands his own responsibility towards his personal development.
All development is basically self development and the member must possess the
will and desire to learn. He must also have an open mind, so that he can accept
new ideas after weighing all the pros and cons.

Conclusion

30. Developing members is one of our important leadership responsibilities.

Essentially people learn by doing. The members must be given development
opportunities to practice their skills and to exercise their capacities. The issues,
which are of relevance to the members as well as the leaders pertaining to
effective member development can be summarised as follows :-

(a) Clarity of task.

(b) Consistency of policies / instructions.

(c) Mutual trust and respect.

(d) Confidence in self and member.

(e) Freedom of action.

(f) Encouragement.

(g) Acceptance of mistakes

(h) Motivation

(j) Growth of knowledge.

 140 CDM/GM/11

(k) Provision of good working conditions .

(l) Open culture/information sharing.

(m) Feedback.

31. A leader through his own conduct and self example and by being a role
model for his members can very effectively contribute towards their
development. The future belongs to those junior leaders who can demonstrate
the necessary leadership skill and imagination in coping with the enormous
changes around them. Development must be related to the present and future
needs of the organisation and the individuals own abilities and potentials

Bibliography

1. Dear Boss, by Nicholson T; Excel Books, New Delhi – 1994.

2. Managements and subordinates, by Gellerman S.W., Illinois, Dryden,
1976.
3. ‘Organisational Theory, Design and Change’, by Gareth R Jones, Fourth
Edition, Pearson Education, 2004, ISBN 81-297-0412-9
4. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et
al, McGraw Hill, New York, 2005, ISBN 0-07-111131-X

Questions

1. What do you understand by Member Development ? Why is it necessary

for us to address this issue ?
2. Environment affects an organisation in myriad ways. What are the effects
of it on the members ?
3. In developing members what are the areas that we should focus on ?
What are the development methods available to us?
4. Write short notes on job enlargement and job enrichment.
 141 CDM/GM/12

COLLEGE OF DEFENCE MANAGEMENT

SUPERIOR SUBORDINATE RELATIONSHIP

Enabling Objective

At the end of the session the participants should be able to understand

the Dynamics of Leader –Member relationship.

Learning Objective

• To appreciate the stages of development of working relationships

between the leader and the member

• To be able to identify the strength in a member and methods to handle

various types of members towards achievement of organizational goals.

Introduction

1. Defence Services, like any other organization, have hierarchy wherein an

officer from the time he enters till he retires is either a superior or a subordinate
to some one or the other. During the entire length of his service, to remain an
effective part of the organisation, an individual has to interact both with his
superiors, and subordinates in his day to day functioning. This context of
relationship has undergone a paradigm shift in the recent years from Superior-
Subordinate relationship to ‘Leader – Member’ relationship. In this group
dynamics, the relationships that evolve have a major role to play in the success
and job satisfaction of an individual in the organisation.

2. Though a lot of literature exists on interpersonal communications and

relationship, not much is focussed on ‘Leader – Member’ relations, as to how
they evolve and how they ought to be sustained, for enhanced effectiveness of
the group and the individual. A large number of brilliant and upcoming careers
are adversely affected, as we fail to see the importance of this dimension of
sound working relations. Similarly the organisational climate of a large number
of organisation, is vitiated as the hierarchy fails to understand and manage
sound working relations within the organisation. The underlying theme is that in a
‘Leader – Member’ relationship situation the onus to make it work ought to rest
on the shoulders of both, with perhaps, a greater share to be shouldered by the
member.

Evolution of Working Relationship

3. Working relations between a ‘Leader and a Member’ develop in an

evolutionary manner. The process of building a working relationship can be
thought of as the evolutionary development of an unwritten interpersonal
contract, a tacit but agreed upon set of mutual expectations concerning
performance, roles, trust and influence. This interpersonal contract develops
 142 CDM/GM/12

and grows for better or worse as two individuals work together. The notion of
such a contract is not new. It is the interpersonal equivalent of a psychological
contract described by many behavioural scientists as the unspoken agreement
that emerges between two parties about what each should contribute to the
relationships and what each should get out of it.

4. The development of the variables of expectations, trust and influence

takes place through a process of learning, exploration, testing and sometimes
negotiations. This process occurs in four sequential stages and the manner in
which these stages are worked through has a bearing on the quality and
effectiveness of the relationship. These stages do not have any discrete
beginnings or endings. Though they occur in sequence, they are not of a fixed
or predictable duration. Quite often the participant members do not even realize
that a move forward or backward has taken place. These four stages are
described in succeeding paragraphs.

5. Stage 1 : Working Around or Impression Formation

(a) This is the initial stage and of brief periodicity in which both the
parties mutually size each other and lay the ground rules for how the
relationship will proceed. Much of the activity revolves on getting
acquainted with each other in which each gives out information about
himself, his job, his intentions, perception and expectations.

(b) There is a great deal of curiosity to learn about the other person, as
to how good he is, what are his concerns, motives, strengths and
weaknesses. Is he reliable, trust- worthy, straight forward etc?

(c) The working around or impression forming stage is a time when

each person is able to signal quite early in the relationship, important
expectations of a general nature. Expectations are exchanged both tacitly
and openly but only at a relatively general level.

(d) Though this stage does not last long, it is a very important stage as
it sets the ground rules of how the inter-personal contract and
relationships will subsequently develop. Normally this stage is coloured
by first impressions which may subsequently get superseded or cancelled
in the relationship as each person’s knowledge of the other improves.

6. Stage II : Searching Beyond Impressions

(a) This stage is of longer duration during which each person learns
more about the other in the process of working together. It is during this
stage that the general and tentative expectations of Stage I become more
specific and concrete. Differences in expectations begin to emerge as a
consequence of simply working together and getting to know each other.

(b) This period is characterised by rapid learning about each other and
by confirmation or rejection of initial impressions of Stage I.
 143 CDM/GM/12

(c) Stage II is also characterised by attempts to search out each

other’s impartial assumptions and expectations which are frequently
communicated by the affected parties tacitly or explicitly in formal or
informal conversations.

(d) It is also a period during which both parties begin to assert their
identities and personal styles, i.e. who they are and what they value.
Trust or mistrust begins to develop during this period as each individual
makes assessments of the others judgements, integrity, motives,
competence and consistency of actions.

(e) Personal influence also continues to develop during this period but
some what tentatively. Judgements about influence are made on the
basis of how much the other person has to offer and how credible he is.
(f) Potential problem of this stage is that at times mutual exploration is
not carried out thoroughly but in a cursory or superficial manner as a
result of which expectations are not clarified or made concrete and bases
for trust and influence do not develop. In several relationships, problems
that occur in later stages can always be traced back to this stage because
expectations had not been sufficiently explored or articulated.

7. Stage III : Validation

(a) It evolves naturally from the mutual exploration stage and there is
no distinct delineation between the two stages of exploration and
validation. During this stage each party tests his own emerging
expectations of what he and the other wants in the relationship. Testing
takes place tacitly and overtly and as a result several core aspects of the
relationship became stabilized and well defined within the context of the
job and what each should expect of the other.

(b) This stage can also be called the “Working Through” stage. In this
stage attempts are made to resolve important differences in expectations
of both parties by mutual agreements.

(c) The bases and limits of trust and influence are tested and defined
during this stage. In effective relationships questions about credibility,
areas of competence, motives, openness or consistency are tested and
defined through observation of the others behaviour, selective attention or
direct confrontation. Questions of autonomy and control are also tested
with each person making tacit (sometimes unconsciously) attempts to
define the limits of his and the others influence in the relationship. Where
mutually agreeable definitions of expectations, trust, competence or
influence cannot be attained, one or both parties may take steps to
terminate the relationship.

(d) The greatest problem in this stage arises when issues raised are
worked through superficially. If sufficient testing of expectations does not
occur or if mutual expectations are not clearly defined, the interpersonal
 144 CDM/GM/12

contract tha t results, is vague and unclear about important aspects of

how the parties concerned should work together.

8. Stage IV : Stabilisation

(a) This is the last stage in the relationship formation process, which
evolves naturally as a sequel to testing, defining and accommodating in
the preceding stage. Aspects of relationship such as trust, influence and
expectations undergo little if any further change. Friendship between
superior, and subordinate continues to grow during this period, but in a
natural evolutionary fashion.

(b) Sometimes negative feelings may develop in one of the parties due
to conflict over a decision or an over sight or slight or any other reason.
Usually the affected parties take necessary steps to repair the damage.

(c) However, unless some major event or change occurs that

destabilises the relationship it continues in a relatively even fashion.
Normally destabilisation is caused due to:-

(i) Major changes in the environmental situation that requires

one or both parties to reallocate their priorities or change their
objective, or changes in the needs or aspirations of one or both
parties occur eg a subordinate or a peer becoming the boss.

(ii) When one party’s actions violate the others trust. The more
serious the breach of trust the further regressive is the
relationship.

(d) The dilemma in this stage is how to ensure that the stabilised
interpersonal contract remains intact and appropriate given the changes
that subsequently occur in the task, the organisation’s environment or
individual aspirations and needs. Thus the issue at hand is to ensure
that the relationship continues to be adaptive and satisfying and that the
interpersonal contract does not become obsolete as the needs of either
the situation or of the people change.

Types of Working Relationships

9. In every organisation there are three types of working relationships that

evolve and need to be nurtured. These are:-
(a) Relationship with members.

(b) Relationship with leaders.

(c) Relationship with peers.

10. How these relationships develop has already been discussed. How they
should be nurtured will be discussed in subsequent paragraphs.
 145 CDM/GM/12

Relationship with Members

11. General Most people instinctively prefer good bosses but are not so
concerned with good subordinates as good subordinates may sometimes, be
considered a threat. Large number of leaders do not realise that their own
success depends on largely the quality and calibre of their members and how
they are to be handled. Some of the dimensions needing our attention are
discussed in the following paragraphs.

12. Types of Members. Behavioural scientists have developed a grid

model to assess human resources of an organisation based on important
aspects of human performance and human potential. Here ‘job performance’
refers to actual achievements of the individual compared with the objective of
the job and ‘potential’ refers to the innate abilities of the individual. This two
by two grid gives four types of members as shown in the Fig.

WORK STARS
HORSES

Performance
DEAD PROBLEM
WOOD CHILDREN

Potential
Types Of Members

(a) Stars. These are peak performers with high potential. They form
approximately 15 to 20% of the work force and contribute to 80% of the
output. They confirm the Paretoes Law.

(b) Work Horses. These are the people who have reached their peak
performance and potential in their present job and have limited potential
for growth. They are however hardworking and masters of their present
jobs. Normally in an organisation three fourths of the population of the
work force belongs to this category.

(c) Deadwood. Members under this category are incompetent,

inefficient and wholly unsuitable for the job. They also have a low
potential for growth.

(d) Problem Children. These are the people who are not working
upto their full capacity and potential. These are the people who direct
 146 CDM/GM/12

their energies towards mischief and harmful actions or wasteful use of

their talents.

13. Guidelines for Relating Handling of Members.

(a) Stars.
(i) Do not consider stars as threats but as opportunities to
groom them for higher positions.

(ii) Stars know their worth and are generally sensitive, so do not
turn stars into problem children by ignoring them or by publicly
ridiculing them.

(iii) Give them your time and full attention, after all they produce
major part of the results.

(iv) Keep the stars motivated.

(b) Work Horses. Such members have low potential but are high
performers at jobs. They don’t look at the clock, they look at the work and
are mostly inner directed or self motivated. They are not motivated by
traditional incentives such as money, power, ambition or success. They
want rewarding and fulfilling jobs. They work because they enjoy working.
The best way to manage them is to keep on giving them more and more
work.

(c) Deadwood. Such members must be given an opportunity to

perform based upon his aptitude. In cases where the member is not able
to perform, he should then be given the sack or handshake.

(d) Problem Children. The leader could behave like a Pygmalion, the
sculptor who created the master piece which came to life. A leader
through understanding, sympathy, guidance and empathy can create
talent out of non talent, intelligence out of non intelligence, good workers
out of not so good workers. Problem children can be converted into stars
by giving them challenging assignments and taking interest in them.

Relationship with Leaders

14. As per Peter F Drucker “If there is one problem most of us talk about,
grumble about, but do nothing about, it’s the Boss.” In our own organisations
too, the ‘Old Man’ is grumbled about the most during the gossip hours amongst
the peers. All this happens as most of the members find relating to the leaders
a difficult task due to the hierarchical differences. Very few even try, but those
who relate to their leaders well, not only never grumble, but also make it a point
never to let him down too. They respect their superior’s authority and the fact
that he has probably made it there because of his capability and hard work.

15. It is a fallacy to believe that one’s capability, performance, potential and

hard work alone will lead one to higher ranks. These factors will certainly help
 147 CDM/GM/12

but only if the same are taken cognizance of by the superior. Many a career of
proficient people have been marred because of poor ‘Leader – Member’
relationships, as it is generally the member who suffers more in a conflicting
‘Leader – Member’ relationship.

16. Guidelines For Relating to Handling of Leaders. Certain guidelines

that should be kept in mind while relating to the leaders are as follows:-
(a) Recognize that the boss is a human being.

(b) Make sure you understand your leader his context and his goals
and objectives and how you can contribute to help your superior achieve
the same.

(c) Respond to the leader’s preferred style e.g. if he is a reader type,

submit things in writing and then brief him and if he is a listener type then
brief him before submitting it in writing.

(d) Keep him informed.

(e) Do your home work before dealing with the superior.

(f) Selectively use his time and resources.

(g) Do not underrate him.

(h) Do not try to reform him, but look inwards and reform yourself.

(j) Be honest with yourself and the superior.

Conclusion.

18. Managing professional relations in an organisation is an art that can be

mastered only with a sincerity of purpose. The aim of managing sound relations
is to enhance the effectiveness of an individual in an organisation, as well as
enhance the career prospects of the individual. In the defence services we have
no choice in selecting our superiors, subordinate or peers, as we are posted to
an organisation, and unlike the corporate sector we cannot change our
organisations at will. Therefore it becomes imperative on our part to learn to live
happily in any type of organisation and establish sound working relationships
that not only give us job satisfaction, enhance our careers but above all give us
an opportunity to establish for us everlasting bondage of friendships.

Bibliography

1. How to Mange your Boss and Survive the System’ by Derek Rowntree,
Sphere Books Ltd, London W 85tZ-1989.
2. How to Win your Boss’s Love, Approval and Job,’ by Auren Uris and John
J Tarrant, Van Nostrand Reinhold Company, New York – 1973.
 148 CDM/GM/12

3. Super Boss by David Freemantle, Wild Wood House Limited England –

1987.
4. Managing Your Boss, Managing your Peers and Managing Your
Subordinates,-series of three articles by Dr PN Singh in ‘The Best of Ascent’
published for the proprietors of Benet Coleman & Co Ltd by Dr Ram S Tarneja of
the Times of India Press, Bombay.
5. Article by Air Cmde MD Lalvani, AVSM, VSM. ‘Organisational Theory,
Design and Change’, by Gareth R Jones, Fouth Edition, Pearson Education,
2004, ISBN 81-297-0412-9
6. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et
al, McGraw Hill, New York, 2005, ISBN 0-07-111131-X

Questions

1. Highlight the stages of evolution of working relationships.

2. Identify the characteristics of a good and bad leader.
3. What are the different types of members and how would you as a leader
handle them?
4. Differences of opinion with leader are natural and the same need to be
expressed in the interest of the organization. How should we do the same
without offending him?

*****
 149 CDM/GM/13

COLLEGE OF DEFENCE MANAGEMENT

EFFECTIVE COUNSELLING

Enabling Objectives

• Understand the OD processes of Sensitivity Training, Process Consultation,

and Counselling.
• Analyse in detail, the counseling process.
• Understand the skills required for counseling.
Learning Objectives

• Appreciate the importance of counseling in Subordinate Development.

• Identify the situations demanding counseling.

Introduction

1. At sometime or the other we, inadvertently or with full knowledge have either
counselled some one or have been counselled ourselves. Though not structured, it
has been in the Defence Forces for a long time. Our perception of counselling,
however, is coloured by the environments we have grown up in eg the word
counselling generally carries a negative connotation in the defence services. This
dichotomy is due to the difference between the popular understanding of the term
and its technical and professional meaning.

2. Though counselling is as old as human civilization it is only in the last century

that counselling has emerged as an American product. No documented evidence
exists as to suggest the beginning of the practice of counselling. However, the first
chronicled evidence of counselling can be traced to later part of the 19th century
when far reaching innovations in the field of psychology took place. Though it is of
comparatively recent origin, in our country too we have a large number of
counselling institutes, albeit at a nascent stage, be it for higher studies or for
matrimonial problems or for physical or mental disorders.

Counseling, Sensitivity Training and Process Consultation

3. The personalities of individuals differ and these differences lead individuals to

interpret and react to other people and events in a variety of ways. Even though
personality cannot be changed significantly in the short run, people can be helped to
 150 CDM/GM/13

understand that their own perceptions of a situation are not necessarily the correct or
the only possible ones. People can also be helped to understand that they should
learn to tolerate differences in perception and to embrace and accept human
diversity. Counseling and sensitivity training are techniques that organisations can
use to help individuals to understand the nature of their own and other people’s
personalities to use that knowledge to improve their interactions with others. The
highly motivated, driven boss, for example, must learn that his or her subordinates
are not disloyal, lazy, or afflicted with personality problems because they are content
to go home at 5 o’clock and want unchallenging job assignments. Instead, they
have their own set of work values, and they value their leisure time. Traditionally
one of OD’s main efforts has been to improve the quality of the work life of
organisational members and increase their well-being and satisfaction with the
organisation.

4. Organisational members who are perceived by their superiors or peers to

have certain problems in appreciating the viewpoints of other or in dealing with cetin
types of organisational members are counseled by trained professionals such as
psychologists. Through counseling they learn how to more effectively manage their
interactions with other people in the organisation.

5. Sensitivity training is an intense type of counseling. Organisational

members who are perceived as having problems in dealing with others meet in a
group with a trained facilitator to learn more about how they and the other group
members view the world. Group members are encouraged to be forthright about
how they view themselves and other group members, and through discussion they
learn the degree to which others perceive them in similar or different ways. Through
examining the source of differences in perception, members of the group may reach
a better understanding of the way others perceive them and may learn how to deal
more sensitively with others.

6. Participation in sensitivity training is a very intense experience because a

person’s innermost thoughts and feelings are brought to light and dissected in public.
This process makes many people very uncomfortable, so certain ethical issues may
be raised by an organisation’s decision to send “difficult” members for sensitivity
training in the hope that they will learn more about themselves.

7. Is a manager too directive, too demanding, or too suspicious of subordinates?

Does a manager deliberately deprive subordinates of information in order to keep
them dependent? Process consultation provides answers to such questions.
Process consultation bears a resemblance to both counseling and sensitivity
training. A trained process consultant, or facilitator, works closely with a manager on
the job to help the manager improve his or her interaction with other group members.
The outside consultant acts as a sounding board so that the manager can gain a
better idea about what is going on in the group setting and can discover the
interpersonal dynamics that are determining the quality of work relationships within
the group.
 151 CDM/GM/13

8. Process consultation, sensitivity training, and counseling are just three of the
many OD techniques that have been developed to help individuals learn to change
their attitudes and behaviour so that they can function effectively both as individuals
and as organizational members. It is common for many large organisations to
provide their higher level managers with a yearly budget to be spent on individual
development efforts such as these, or on more conventional knowledge-gaining
events such as executive education programs. We shall now study the various
nuances of Counselling.

Definitions of Counselling

9. There are various definitions of counselling. Some of them are enumerated

below:-

(a) Blocher (1966) explains it as “helping an individual become aware of

himself and the ways in which he is reacting to the behavioural influences of
his environment. It further helps him to establish some personal meaning for
this behaviour and to develop and clarify a set of goals and values for future
behaviour.”

(b) According to Gustad (1953) “Counselling is a learning oriented process

carried on in a simple one to one social environment in which the counsellor,
professionally competent in relevant psychological skills and knowledge,
seeks to assist the client, by methods appropriate to the latter’s needs, within
the content of the total personnel programme clearly perceived, realistically
defined goals to the end that the client may become happier and more
productive member of society.”

(c) As per S Narayan Rao “Counselling is concerned with bringing about a

voluntary change in the client. To this end the counsellor provides facilities to
help achieve the desired change or make the suitable choice. The client alone
is responsible for the decisions or the choices he makes, though the
counsellor may assist in this process by his warmth and understanding
relationship.”

10. The last definition is most appropriate to our context from which it clearly
emerges that counselling is a process which invites bringing about changes over a
period of time leading to a set goal of making an individual a more effective part of
society or organisation. These changes come about through a counsellor and
counsellee relationship that is not casual, matter of fact and business like but that
which is characterised by warmth, responsiveness and understanding. It is
concerned with aiding normal people achieve better adjustment skills which manifest
themselves in increased maturity, independence and responsibility.

What Counselling is Not

 152 CDM/GM/13

11. There are a few misconceptions about counselling, and hence there is a need
to clarify what counselling is not, as shown below:-

(a) Identification of faults and prescription of remedial measures

(b) Giving advice, suggestions and sermons.

(c) Influencing counsellees with own values, attitudes and beliefs.

(d) Interviewing.

(e) Giving information.

(f) Psychiatric treatment.

Situations Demanding Counselling

12. Counselling aims at helping the counsellee to understand himself so that he is

able to work towards realizing his potential and be an effective part of the society or
the organisation he is associated with. Military leaders will experience several
occasions when their subordinates, due to organisational work, domestic or social
pressures may encounter difficulties of adjustments and hence may show signs of
deviation from normal acceptable behaviour. Occasionally needs of the organisation
may also necessitate counselling of subordinates. Situations, when counselling may
need to be provided, arising out of personal or organisational reasons could be
summarised as under:-

(a) Personal. For an individual who is:-

(i ) In financial debt, has taken to too much of drinking or has

become apathetic to his job.

(ii) Having discordant and strained relation with his wife or any
other member of his family.

(iii) Falling out with his group and perceives that he is suffering a
kind of social boycott.

(iv) Not showing any interest in the job or becomes increasingly

critical of the organisation, may be as a fall out of the above.

(v) Whose self concept is low and personality needs to be

developed.

(b) Organisational. For the purposes of:-

 153 CDM/GM/13

(i) Finding out career ambitions and plans of the personnel.

(ii) Determining the training and development needs of the

subordinates based on his talent and potential.

(iii) Explaining to a subordinate the constraints and compulsions of

the organisation.

13. The above is only suggestive. There could be several other situations when
counselling by a superior may be required.

Counselling Process

14. The aim of counselling process is to bring about a personality change in the
counsellee in the desired direction. The counselling process is by and large same for
all problems and for all individuals. For vocational and educational counselling the
major emphasis is on collecting factual information and helping the counsellee in
understanding this information in a proper perspective. In counselling of personal
problems this information and planning in logical terms does not play a central role.
The steps of counselling of personal problems are as follows:-

(a) Realising that there is a complaint, problem or a symptom that needs to

be resolved.

(c) Rapport building or establishing a sound counsellee-counsellor

relationship.

(d) Listening to feelings, concerns and the problems.

(e) Exploring feelings, emotions and personal resources.

(f) Help in problem identification.

(g) Diagnosis of the problem and generating several possible causes.

(h) Developing insight into remedial action plan.

(j) Help in decision making process. (Without offering solutions, but only
enabling the counsellee to make decisions for himself).

(k) Supporting the implementation of the action plan.

 154 CDM/GM/13

15. Essential Ingredients of Counselling. The success of counselling depends

upon how the counselling is conducted. Some of the essential ingredients of
counselling are as follows:-

(a) Physical Setting. The venue where counselling is rendered must be

free from external disturbances. The best place is a neutral, quiet private
office or room where one can have two chairs away from the desk, with
perhaps a low table in front so that one can sit at forty five degree angle to the
other person rather than facing each other with a desk in between.

(b) Privacy. The essence of counselling and good counsellor –

counsellee relationship depends upon not only on physical privacy but also on
psychological privacy. The counsellee should be assured that whatever
transpires between the counsellor and the counsellee is totally confidential
between the two of them. Only under such an environment the counsellee will
be mentally at ease to open his heart out to the counsellor.

(c) Value Orientation. A counsellor must never endeavour to force his

value system on the counsellee, for this is an unethical practice. However,
when there are value conflicts, the counsellor should help to resolve them by
clarifying the issue, overcoming the confusion of the counsellee.

(d) Acceptance. The counselling relationship is also a kind of social

relationship in which the counsellor and counsellee may approach each other
with different degrees of acceptance. An ideal counselling relationship is one
in which acceptance does not involve normative or judgemental attitudes, but
is deeply concerned with resolving the problem of the person concerned. This
acceptance is revealed by words, gestures, and a feeling of being
unconditionally liked, respected and understood. In this sense acceptance is
the essence of counselling.

(e) Understanding. In a counselling situation, understanding has two

connotations. First refers to the counsellee’s ability to understand himself, his
situation and environment. Second refers to the counsellor’s ability to
understand the counsellee’s problem, position, feelings emotions and his
thought process.

Counselling Skills

16. Rapport, empathy and attentiveness are the key essential skills a counseller
must possess. Lack of these skills will otherwise inhibit the counselling process.
These key essential skills are discussed below:-

(a) Rapport. Counselling is a helping relationship that is established

through sound rapport between the counsellee and counsellor. Rapport is a
 155 CDM/GM/13

warm, friendly and understanding condition that can be achieved through

deep interest, responsiveness and sensitive emotional involvement. Rapport
cannot be forced and cannot be one sided. Taking the counsellee’s needs,
moods and conflicts into consideration the counsellor establishes rapport. For
the establishment of good rapport, there is a need for counsellor to possess
skills and ability such as humanness and versatility.

(b) Empathy. Empathy means `feeling into’ and has a significant role in
the counselling situation. Empathy is “the ability to feel and describe the
thoughts and feelings of others”. It is “the imaginative transposing of oneself
into the thinking, feeling and acting of another and so structuring the world as
he does”. Empathy is not imitation nor is it sympathy, for sympathy is to feel
`with’ while empathy is to feel `into’. Sympathy arouses compassion which
has no place in the scientific process of counselling. Empathy is in fact the
core skill of the counselling situation process. It is a term loaded with special
behavioural implication. It means getting inside the other person’s shoes and
looking at the world through his frame of reference, getting a feel of his world
and the problem, evaluating the situation from that view point and then
communicating with him at his level, in a manner that one has the full grasp of
the problem. An important aspect of empathy is that while the counsellor gets
a feel of the counsellee’s problem and the related pain but he does not get
swayed by it. After feeling it, he is also capable of weaning himself away from
the pain and look at the problem dispassionately in an objective and
pragmatic manner. He himself, must not psychologically or emotionally get
involved with the pain or problem being experienced by the counsellee.

(c) Attentiveness. This is perhaps the most important skill of the

counsellor. To understand the essence of the problem of the counselee, a
counsellor has to be completely (heart and soul) attentive to the messages
conveyed by a counsellee verbally or through non verbal means. Essential
ingredients of attentiveness are listening, and observing. In counselling,
listening means more than what is commonly understood. Listening here
implies listening with interest and understanding. A good counsellor makes a
counsellee talk more and more while he listens patiently. It is human nature to
reveal oneself completely to an attentive and real listener The counsellee will
be no exception and this may even work better. The counsellor on his part
sustains, extends and deepens his knowledge of counsellee by patient
hearing and observing. This also helps him establish rapport and gain insight
into the psychological world of the counsellee.

Conclusion

17. Counselling is one of the most misunderstood terms in the services. It is not
an advice giving or sermonizing interview but is ‘a formalised interaction in an
informal environment’ with a purpose to help a person to help himself in solving his
problem.
 156 CDM/GM/13

18. Counselling is the moral responsibility of a superior. The skills of counselling

can easily be acquired provided a superior is interested in his subordinate and is
knowledgeable about the essentials of counselling process. This can be refined
through practice and experience.

19. It should be remembered that effective counselling does not believe in making
people despondent and dependent; it believes in making them confident and self
reliant.

Bibliography

1. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et al,

McGraw Hill, New York, 2005, ISBN 0-07-111131-X

2. Group Counselling by Ohlsen MM, Holt, New York – 1970.

3. How to Counsel People at work by Humphries, J Jaico, Mumbai.

4. Perfect Counselling by Eggert M. Random House, London-1996.

5. The Barefoot counseller by Currie: F.J., Asian Trading Corp., Bangalore –

1978.

6. The managers guide to counseling at work, by Reddy M; University Press,

Hyderabad-1999.

7. Theory and Practice of Group Counselling; by Corey G; Wadsworth, USA 5th

Edition – 1981.

8. Counselling and Supporting; by Cowie H; Sharp S; SAGE, London, New

Delhi – 1998.

9. Counselling Psychology, by Patri VR., Author Press, Delhi – 2001.

10. Encyclopedia of guidance and counseling; by Lakshmi KS; Mittal publications,

New Delhi – 2003.

11. The Counselling Process, by Patterson LE; Wadsworth, Australia – 1999.

 157 CDM/GM/13

Questions

1. Explain briefly the processes of Sensitivity Training and Process Consultation.

2. What do you understand by Counselling? What is its importance in

subordinate development?

3. What are the personal and organizational situations that demand counseling.

4. What are the stages of Counselling? Describe the “Feeling” stage.

5. Write short notes on the following skills for counselling:-

(a) Attending.

(b) Empathy.

(c) Listening.

(d) Feedback.

(e) Withdrawn Counsellee.

 158 CDM/GM/13

MENTORING

“Role of a leader is to convert potential into relaity”. A Caterpillar into Butterfly.

Introduction

1. The words mentoring and counseling are being used very commonly in
the defence forces but in our own way. Counseling is resorted to as when an
individual is to be warned for his misdemeanors and if a remark is required to be
endorsed in his ACR. However, the same words are very often practised in the
corporate world to improve an individual. Mentoring is art wherein one is able to
transform life of needy person. A person is free to select his mentor for his
personal and organizational growth. A mentor should not be his boss or superior
who writes his report. A mentor becomes life long philosopher and guide to that
person and he is able to fall back on him in times of crisis. Counseling is part of
mentoring and is one of the methods of mentoring. It is process of assisting a
person to realize his strengths and weaknesses and select best alternative to
grow him.

2. Preview. The subject is covered under following heads:-

(a) Part I : Mentoring.

(b) Part II : Counseling.

(c) Part III : Building Relationship.

MENTORING

3. Mentoring is a process of guidance where technical skills, behaviour,

attitude and abilities are analyzed in career planning and reaching the highest
potential of an individual. The process of mentoring can be formal or informal
mentoring. The mentoring in the Western philosophy is based on selection of
the best and rejecting the rest which leads to high rate of frustration in the
rejected persons. On the other hand, Eastern philosophy is based on finding
the strengths in an individual and then placing him for the best suited job. In the
Indian context we have set of persons available in the organization and we got
to make the best out of them. Here lies the true test of leadership and
management. The Western and Far Eastern social philosophy explains how the
two differed. Peter Drucker considered the Indian Civil Services selection
process as the best but unfortunately over the years it has gradually got
converted into US Meritology system. He analyzed that Indian dichotomy of
cultural affinity to the East and our documentation and syllabi of the West has to
be over come by good mentoring of each individual for optimum output.
 159 CDM/GM/13

4. Fundamental Principles of Mentoring. The fundamentals of mentoring

are based on finding the strengths of the mentee and thereafter develop him in
his area of strength. Whenever and wherever persons are developed on their
strengths, they reach the top level. If you force a Smeller ant to become a
Dragger ant and drag as strongly as the Dragger, she will become just an
average dragger and in the bargain she will lose her expertise as Smeller ant.
Same principle is applicable to human beings. Mentoring is based two basic
principles:-

(a) Know Yourself.

(b) Know others.

5. Knowing oneself and others is to find out the strengths and weaknesses
of an individual and his environment. Once a mentor is able to find these two
basics, he can assist the mentee to grow to his ideal self or to his potential.

6. What is Mentoring? It is different for different people.

(a) Mentoring – guidance where technical skills, behaviour, attitude,

abilities are analysed to help in career planning and reaching potential.

(b) Mentor is a friend who guides, clears, doubts, provides alternative

solutions and approaches.

7. Origin of the Word – Mentor Greek king Odysseus – went to fight -

“Trojan War”. He entrusted his household and son to trusted assistant “Mentor”.
Mentor served as a teacher and overseer to the son Telemachus.

8. Mentoring has following essentials:-

(a) Mentors are special people who through their deeds and work, help
us to move towards fulfilling our potential.

(b) Mentors are helpers. Their styles may range from that of a
persistent encourager who helps us build our self-confidence, to that of a
stern taskmaster who teaches us to appreciate excellence in
performance. Whatever their style, they care about us and what we are
trying to do.

(c) Mentors role is to develop the person for responsibilities they may
assume in their life time.

(d) Mentoring does not mean only developing persons for career but
can touch every facet of our lives.

9. Mentoring can be defined as: ‘A significant long-term, beneficial effect on

the life or style of another person, generally as a result of personal one-on-one
contact.
 160 CDM/GM/13

10. A mentor is one who offers knowledge, insight, perspective or wisdom

that is especially useful to the other person.
(a) Wise loyal advisor.
(b) Handing down wisdom.
(c) Broadens horizon.

11. Mentoring is seen as a process whereby mentor and mentee work

together to discover and develop mentee’s latent abilities.

12. Mentor is a friend, philosopher, guide.

Mentor
Coaches Teaches
Counsellor Facilitates Learning
Visionary Shows the way
Non Judgemental Friend Emphatic Listener
No Authority Evokes Respect
Trust Worthy Builds trust through showing
respect, emphaty and being
genuine

13. A Mentor can be corelated or is similar to following other forms of

leaders:-
• Guru
• King Maker
MENTOR
• Leader
• Manager

14. Mentoring is a fundamental form of human development where one

person invests time, energy and personal know-how in assisting growth &
activities of another person.

15. Mentor never uses authority never forces results. Mentoring, therefore is
applicable in following cases:-
(a) Career counseling.
(b) Company culture introduction.
(c) Distress management.
(d) Help at difficult times.
 161 CDM/GM/13

16. Types of Mentoring

High
Look for Long term
alternate Meaningful
mentor Relationship
1 2
Mentee’s
Needs 3 4
One off One time
Spontaneous Specific area

Low High
Low

Mentor Resources

17. Formal Vs. Informal

Formal Informal

Authority Admiration

Order Mentee seeks mentor often

Selection allocation Many times life long /LT

Specific skill/area More friend philosopher guide

Fixed duration One or both may not be aware of

it happening.
Expectation clear
Expectation may not be there
Pressure on mentor
No Pressure
 162 CDM/GM/13

Highly structured short term Highly structured long

M term
The relationship is formally
E
established for an introductory Often used for “succession
N
or short period, often to meet planning”, this relationship
T
specific organisation objectives. involves grooming someone
E
For ex. A new employee may to take over a departing
E’
be person’s job or function or
S
to master a craft.
N
E
E Informal short term Informal long term
D
S This type of off-the-cuff “Friendship mentoring”
mentoring ranges from one- consists of being available
shot or spontaneous or as- as needed.
needed counselling. There
may be no ongoing relationship

Virtually no structure Long Term Even for Life

Length of Intervention

18. Various Methods of Mentoring.

Mentor Mentees
One - One
One - Many
Many - One
Intra company
Inter company
Manager using mentoring techniques

19. Styles of Mentoring.

Classroom - fixed time - home work
On site guru’s - no lecturing
Persistent encourager
Stern task master
 163 CDM/GM/13

31. When will Mentoring Succeed!! Mentoring succeeds when there is

mutual thrust between Mentor and Mentee.

(a) Culture. Openness, Trust, Lack of inhibition to express

ignorance.

(b) Systems. Mentor knows his role, Mentee is clear about

expectation, Mentee is aware of his responsibilities, Mentors are trained,
Objectives are clear.

(c) Process. Learner friendly, Initiative from both sides, Authority

vs. Respect, Compliance vs. Freedom.

(d) WIPRO. Some divisions Some locations, Personal

development-mentoring, A set of people trained in mentoring, List
published. Juniors are asked to choose a mentor Goal Setting, efficiency,
maturity.

(e) They have used mentoring technique in Appraisal – Recognise

competency – discover interest areas, try to help in short comings – how
to improve – action plan.

32. Leadership in Mentoring.

(a) Leaders need to act such that others come to believe that their
success was due to their own effort and not that of the leader”.

(b) “There are two kinds of people. Those who do the work and those
who take the credit. Be in the first group. There is less competition”.

CONCLUSION

33. Mentoring and Counseling are the means by which an individual is helped
to achieve his potential. We as leaders in armed forces have the moral
obligation to grow the next generation. A combination of mentoring and
counseling will help us achieve the objectives. These would help us on both
professional and personal fronts to grow ourselves, our organisations and our
families.

“A leader is best when people barely know he exists; not so

good when people obey and acclaim him; worse when people
despise him.”
 164 CDM/GM/13

What Mentors do?

Following is a list of things that mentors do. As appropriate for each one, check
“others have done this for me” or “I have done this for others”.

(or both)
Sl. Mentors Others have I have done
No. done this for me this for others
1. Set high expectations or Performance

2. Other challenging ideas

3. Help build self confidence

4. Encourage professional behavior

5. Offer friendship

6. Confront negative behavior and attitudes

7. Listen to personal

8. Teach by example

9. Provide growth

10. Offer quotable quotes

11. Explain how org works

12. Coach their mentees

13. Standby their mentees in critical

14. Encourage winning behavior

15. Trigger self awareness

16. Inspire mentees

17. Share critical

18. Offer encouragement

19. Assist in mentee’s career

 165 CDM/GM/14

COLLEGE OF DEFENCE MANAGEMENT

ORGANISATION CLIMATE

Enabling Objectives

• To understand concept Organisation Climate/ Culture.

• Understand the various dimensions and determinants of organisation climate
and the relationship between them.

Learning Objectives

• Appreciate the relationship between managerial values and ethos and Org
climate.
• Understand the meaning of ‘Socialisation’.

Introduction

1. Most organisations have some characteristics which are common with

any other organisation. At the same time, each organisation has its unique set of
characteristics and properties. The psychological structure of an organisation
and their sub-units is usually referred to as Organisation Culture or Climate.
Most studies which have tried to measure an organization’s “culture” have
operationalised it in terms of “Organisation Climate.”

2. Some definitions of Organisation Climate are given below:-

“Organisation Climate is a set of characteristics that describe an

organisation and that (a) distinguishes one organisation from other
organisations; (b) are relatively enduring over time and (c) influence the
behaviour of other people in the organisation.”1

“Organisation Climate is a relatively enduring quality of the internal

environment that is experienced by the members, influences their
behaviour, and can be described in terms of values of a particular set of
2
characteristics of the organisation.”

“Organisation culture is a relatively uniform perception held of the

organisation, it has common characteristics, it is descriptive, it can
distinguish one organisation from another and it integrates individuals,
groups and organisation system variables. “3
 166 CDM/GM/14

3. If you closely examine these definitions, you will not only be able to
identify the commonalties but also be able to see that the abstract concept of
culture and operational concept of climate basically refer to the perceived
personality of organisation in very much the same sense as individuals have
personalities. Just as any culture has some do’s and don’ts in the form of totems
and taboos which dictate how each member should behave with a fellow
member or an outsider, similarly each organisation has a culture that influences
the behaviour of employees towards clients, competitors, colleagues, superiors,
subordinates and strangers.

4. It should be noted that Organisation Culture or Organisation Climate is

the perceived aspects of an organisation’s internal environment by an individual
of that organization. However, within the same organisation there may be
different organisation climates. This might happen because people with different
length of experience or at different levels of organisation’s hierarchy, may
perceive internal environment of an organisation differently. Personal
characteristics such as Values, Needs, Attitudes and Expectations determine
the manner in which an individual is likely to perceive the various aspects of the
internal working environment of the organisation.

Dimensions of Organisation Climate

5. In the last two decades, extensive studies have been conducted which
have helped us identify some of the key factors that influence Organisation
Climate. Some of these common dimensions are:-

(a) Individual Autonomy. This refers to the individual’s freedom to

exercise his or her responsibility. In other words, individual autonomy is
the degree to which employees are free to manage themselves, to have
considerable decision making power; and not be continually accountable
to higher management.

(b) Position Structure. This refers to the extent of direct supervision

formalisation and centralisation in an organisation. In other words,
position structure is the degree to which objectives of the jobs and
methods for accomplishing it are established and communicated to the
individual by supervisors.

(c) Reward Orientation This refers to the degree to which an

organisation rewards individuals for hard work or achievements. An
organisation which orients people to perform better and rewards them for
doing so, will have an organisational climate characterised by high reward
orientation.

(d) Consideration, warmth and Support. This refers to the extent of

stimulation and support received by an individual from other organisation
members. In other words, if there is a sense of team spirit among the
members of an organisation, the Organisation Climate is likely to be
perceived as considerate, warm and supportive.
 167 CDM/GM/14

(e) Conflict. This refers to the extent of conflict present between

individuals and the willingness to be honest and open about interpersonal
differences.

(f) Progressiveness and Development. This aspect refers to the

degree to which organisation conditions faster the development of the
employees, allow scope for growth and application of new ideas and
methods.

(g) Risk Taking. The degree to which an individual feels free to try
out new ideas and otherwise take risks without fear of reprisal, ridicule or
other form of punishment, indicate the risk-taking dimension of
Organisation Climate. This dimension is akin to “cautious” versus
“venturesome” quality of an organisation.

(h) Control. This dimension refers to the degree to which control

over the behaviour of organisation members is formalised. In a highly
bureaucratic organisation, control systems are well defined. In a low-
control organisation, most of the controls are self-regulated, i.e.
individuals monitor their own behaviour.

6. These eight dimensions account for most of the research findings, but
they do not account for all that we intuitively feel to be present in the “Climate” or
“Culture” of an organization. For example you may perceive an organization
culture to be “paternalistic,” or a climate to be “impersonal.” Though the
dimension of “consideration, warmth and support,” may cover both these
different qualities, yet the “richness” that you find in these two qualities is not
fully reflected in that dimension. However, the identification of these eight
dimensions (which are not absolutely independent of each other) does help in
mapping and measuring Organisation Climate.

Determinants of Organisation Climate

7. It is useful to distinguish between determinants and dimensions of

Organisation Climate. Determinants are to causes, while dimensions are the
components of Organisation Climate. You may say, determinants are those that
influence whereas dimensions are those that are influenced.

8. Although Organisation Climate refers to the perceived internal

environment of an organisation, the nature of organisation climate is determined
by a variety of internal and external factors. One of the basic premises of
organisation behaviour is that outside environmental forces influence events
within organisations. The internal determinants of organisation climate are :-

(a) Economic Conditions. Several dimensions of Organisational

Climate are influenced by an organisation’s position on the economic
cycle. The economic condition of any organisation influences whether it
should be “tight” or “loose.” Therefore, dimensions of Organisation
 168 CDM/GM/14

Climate like “Risk Taking,” “Control” “Progressiveness and

Development” are directly influenced by economic conditions.

(b) Leadership Style. The leadership style prevailing in an

organisation has a profound influence in determining various dimensions
of Organisation Climate. The influence is so pervasive that you may often
wonder whether Organisation Climate is a product of the philosophy and
practices of prominent persons in an organisation.

(c) Organisational Policies. Specific organisational policies can

influence a specific dimension of organisation climate to quite an extent.
For example, if the organisational policy states that “lay offs” will be used
only as a last resort to cope with business downturn, then it would, in
general, foster an internal environment which is supportive and
humanistic.

(d) Managerial Values. The values held by leaders and followers

have a strong influence on organisation climate because values lead to
actions and shape decisions. Values add to perceptions of the
organisation as impersonal, paternalistic, formal, informal, hostile or
friendly.

(e) Organisation Structure. The design or structure of an

organisation affects the perception of its internal environment. For
example, a bureaucratic structure has an organisation climate much
different from a Participative Organisation. Rensis Likert has classified
organisations into four major groups or systems, depending on the way
basic organisational processes of Leadership, Motivation,
Communication, Decision-Making, Goal Setting and control are
conducted. There are:-

(i) System 1 - Exploitative Authoritative

(ii) System 2 - Benevolent Authoritative.

(iii) System 3 - Consultative.

(iv) System 4 - Participative.

(f) Characteristics of Members. Personal characteristics of

members of an organisation also affect the climate prevailing in the
organisation. For example, an organisation with well educated, ambitious
and younger employees is likely to have a different organisation climate
than an organisation with less educated, and less upwardly mobile, older
employees. The former might inculcate a climate of competitiveness, risk-
taking, frankness of opinion etc.

(g) Organisational Size. In a small sized organisation it is much

easier to foster a climate for creativity and innovation or to establish a
 169 CDM/GM/14

participative kind of management with greater stress on horizontal

distribution of responsibilities. On the other hand, in a large organisation it
is easier to have a more authoritative kind of management with stress on
vertical distribution of responsibilities.

9. The list is not exhaustive, but these are the basic internal factors
determining the internal environment of an organisation.

10. Societal forces, which are external, also help shape organisation climate
and are referred to as external determinants. To understand societal influences
in Organisation Climate, let us consider an example in relation to the changing
profile of existing and future employees. First, educational level of employees of
all categories is rising. Second, societal values towards recreational and leisure
activities are becoming stronger. The effect of the first change is in the
expectations of employees. People want more satisfying and fulfilling work which
should match their qualifications and abilities. The impact of the second change
is that the passion for non-work is increasing: people feel less passionate about
job performance. So while the change is pushing towards professionalism, the
other change is pulling towards leisure-orientation.

11. Organisational Climate, therefore, is determined by a variety of internal

and external factors where internal factors are specific to the organisation, while
external factors refer to a number of societal forces.

Managerial Values and Ethos

12. Managerial ethos is concerned with the character and values of leaders
as a professional group. It refers to the habitual character and values of
individuals, groups, races etc. Contemporary leaders hold some specific values
which affect work. Some of these are:

(a) Autonomy.

(b) Equity.

(c) Security.

(d) Opportunity.

13. Autonomy. Enlightened leaders believe that most people prefer to feel
free and to do things as they like within the constraints imposed by the group.
These leaders tend to allow enough latitude to individuals employees as long as
the use of this freedom does not violate basic norms of the organisation.

14. Equity. This refers to justice in rewarding performance. A person must

get a reward proportionate to his input.

15. Security. This refers to both economic and emotional security.

Keeping a person on his toes by making him feel insecure is slowly but steadily
 170 CDM/GM/14

getting discredited as a management philosophy. Even the societies which have

practiced “hire and fire” policy are unmistakably shifting towards providing
security of job.

16. Opportunity. Providing enough career advancement opportunities to

employees is yet another contemporary managerial value. Individuals must be
given opportunities to grow within, or outside an organisation in case there are
not enough vacancies for everyone.

17. Besides these four values which affect a leader’s work, the leader may
have a strong “Work Value”. Work value refers to the worth a person ascribes to
the opportunity of work. A person with a strong “Work Value” is going to identify
the worth or value of work in more than one way. He may view work as an
opportunity to accept challenges, serve others, earn money, enjoy prestige and
status, be creative or be independent etc.

Managerial Ethos : It’s Characteristics

18. Apart from these values, the managerial ethos of high order requires
certain other characteristics as well. These are:-

(a) Action Goal Orientation. Persons with high sense of adequacy

have clear goals about their future and are directed by these goals. They
usually do not think their goals in status terms (i.e. what they would like to
be). For example, when a junior manager thinks that he would like to be
the “Chief of Marketing”, he is status - goal oriented; but when he thinks
that he would like to direct and influence the marketing policies of the
company, he is action goal oriented.

(b) Pro-active. Proactive people do things on their own without

having to be told by any one. Such initiative taking behaviour leads to a
high level of activity and experimentation. As contrasted to these, people
who are reactive or conformists spend most of their time in doing things
others expect them to do. Reactive people are “other-directed”, whereas
proactive ones are “inner-directed”. A superior managerial ethos requires
more of pro-action, then reaction

(c) Internal Resources. Leaders with a high sense of adequacy are

aware of their internal strength and are guided by these strengths. They
are aware of their weaknesses but this awareness does not deter them
from acting positively or to look for opportunities for continuous self-
improvement. They are open to feedback and ready to learn from
experience

(d) Problem - Solving Attitude. A superior ethos requires that

leaders view themselves as problem solvers, rather than problem
avoiders. These leaders have a positive orientation to problem situation
and do not want to run away from problems. They tend to approach
 171 CDM/GM/14

problem situation with optimism because they have internal locus of

control, i.e., a strong belief that they can change the environment through
their own efforts.

Modern Research Findings

18. There is a growing body of knowledge about cultural diversity and its
effect on organization culture, organization policies and management practices.
Researchers have identified five key values that describe national culture and
influence organizational customs. These are context orientation, power distance,
uncertainty avoidance, achievement orientation and individualism. These are
further explained in the table at Appendix A.

How Culture and Ethos are Maintained

19. Every organisation has its own unique traditions and customs. Seldom
are these traditions and customs explicitly spelt out, yet, over a period of time,
organisations do develop long standing unwritten rules, regulations and rituals to
commemorate special moments, standards for social etiquette, taboos about
what is not to be done or spoken, jargon or special code language understood
only by insiders. These, with a whole lot of other features taken together, are
generally viewed as the “culture” of an organisation. Often there is a uniform
perception held about these features of an organisation. Sometimes these
“images” are fairly stable, passing from one generation to another without
undergoing much of a change. How does this happen?

20. The process through which people are indoctrinated to accept the
tradition and maintain the homogeneity of ethos and behaviours is termed as
“socialisation” It is a process of adaptation by which “new” members come to
understand the basic values, norms and customs for becoming “accepted”
members of an organisation. Though the most intense period of socialisation is
at a “fresher” stage of entry into an organisation, the process continues
throughout one’s entire career in an organisation. This is done to ensure
traditions and to maintain uniformity. The people who do not learn to adjust to
the culture of an organisation, become targets of attack and are often rejected
by the organisation.

21. Socialisation has three stages:-

(a) Pre-arrival.

(b) Encounter.

(c) Metamorphosis.

22. Pre-arrival. This stage tries to ensure that prospective members arrive at
an organisation with certain set of values, attitudes and expectations. This is
usually taken care of at the selection stage itself. Selectors try to choose the
“right type” of people, who they feel, will be able to “fit” the requirements of an
 172 CDM/GM/14

organisation. Thus an organisation, even before allowing an outsider to “join”,

makes an attempt to ensure a proper match which contribute toward the
creation of a uniform culture within an organisation. The views of the founding
fathers of an organisation, as well as the ethos of the present top leadership
influences- consciously or inadvertently the selection of the parameters of this
“proper match”.

23. Encounter. After gaining entry into the organisation a new member
faces an encounter stage. There is always a possibility of difference between his
expectations of an organisation and its culture. If the expected image and
organisation culture and climate match, then encounter stage passes off
smoothly, leading to confirmation of the image. If the imbalance between the two
is acute, the person has usually two choices open. First, he undergoes further
“socialisation” which detaches him from his previous expectations, replaces
these with another set of expectations and this helps him get adjusted to the
prevailing system. Second, he drops out due to disillusionment. In both the
cases, the final result is the same: the status quo of traditions and customs are
maintained.

24. Metamorphosis People who had discovered an anomaly between their

expectations and culture, but decided not to drop out, enter into a
metamorphosis stage. They must sort out their problems and go through
changes - hence this is called metamorphosis. When this metamorphosis is
complete, the members develop a uniform perception of Organisation Culture
and Climate, and feel “comfortable” with the organisation and job. Successful
metamorphosis results in the member’s productivity being as per organization’s
“norm”, commitment and lowered propensity to leave the organisation. All these
are indications of “typical” or “normative” behaviour.

25. For some people, the metamorphosis stage may remain incomplete or
unsuccessful. These people, as yet, have not been able to “accept” the
organization culture or climate, and thereby remain “non-conformist”. This
phenomenon is likely to result in typical behaviour. Sometimes they continue to
“fight” the system, with zeal and enthusiasm. A large number are likely to
alienate themselves to soothe their feelings of disappointment
 173 CDM/GM/14

Figure 1
Socialisation Process and Impact on Org Climate

Prearrival

Encounter

Metamorphosis

When Complete When Incomplete

Normative Behaviour to Maintain A typical Behaviour to change

Org Culture and Climate Org Culture and Climate or
withdraw.
* Performance as per group norms * Very low or very high
performance.
* Commitment as per group demands *Very low or high commitment.

*Tendency to remain in the Org. *Tendency to leave org.

Conclusion

26. There are some determinants in the form of Internal and External factors
which influence various dimensions of an organisation’s internal environment.
These dimensions are perceived as Organisation Climate i.e characteristics of
climate and culture of an organization. Both Managerial Ethos and Socialisatiojn
Process help maintain Organisation Culture and Climate.
 174 CDM/GM/14

Fig II : A Model Showing Relationship Between Ethos and Org Climate

MANAGERIAL
ETHOS

* Autonomy
* Equity
DETERMINANTS DIMENSIONS
* Security
* Opportunity
Internal Factors * Individual
* Action Goal
* Economic * Autonomy
Orientation
Condition * Position
Infl- * Proaction
* Leadership Style structure
ue- * Internal
* Organisational nces * Reward
Resources
Policies Orientation
* Problem-solving
* Organisational *Consideration
Attitudes
Structure Warmth and
* Characteristics of Suport
Maint-
Managers * Conflict
Perce- ains
* Organisational Progressive-
Size ness and ived
Development
External Factors * Risk Taking OC
* Social Change * Control as Characteristics of
* Industrial Levels Organisational
etc. Culture & Climate

Maint
-ains

SOCIALISATION

* Prearrival
* Encounter
* Metamorphosis
 175 CDM/GM/14

Bibliography

1. ‘Essentials of Organisation Development and Change’ by Thomas G

Cummings and Christopher G Worley, South Western College Publishing, Ohio,
2001, ISBN 0-324-02399-5
2. Forehand, GA & Gilmer, BVH, 1964. Environment variations in studies
of organizational behaviour, Psychological Bulletin, December.

3. Rao T.V. and Chattopadhyay, SN 1974. A study of the perception of

organisation climate by the employees of small industries. Indian Journel of
Industrial Relations, 10(I),

4. Robbins, SP. 1985. Organizational Behaviour Cases, Concepts and

controversies, Prentice Hall of India, New Delhi.

5. Schneider. B.1975 . Organizational Climate : An Essay, Personnel

Psychology,28.

6. Sharma, Balder R 1986. Organisational Climate and Employer-Employee

elations in India, International Management Institute, New Delhi.

7. Tagiuri R. 1968. The concept of Organizational Climate, Organizational

Climate, Division of Research, Graduate School of Business Administration,
Harvard University, Boston.

Questions

1. What do you understand by organization climate? Explain the factors

affecting Organisation climate?

2. Explain the determinants and dimensions of Organisation Climate.

3. What are the characteristics of managerial values and ethos?

4. Briefly explain the process of socialization.

5. List ten indicators of org climate in an organization.

 176 CDM/GM/14

Appendix A
(Refers to Para 18 )

CULTURAL VALUES AND ORGANISATION CUSTOMS

Value Definition Organisation Representative

Customs when countries
value is at one
extreme
Context The extent to Ceremony and High: Asian and
which words carry routines are Latin American
the meaning of a common. Countries
message; how Structure is less Low:
time is viewed. formal. Fewer Scandinavian
written policies countries, United
exist. People are States
often late for
appointments.
Power Distance The extent to Decision making High: Latin
which members of is autocratic. American and
a society accept Superiors East European
that power is consider Countries
distributed subordinates as Low:
unequally in an part of a different Scandinavian
organisation class. countries.
Subordinates are
closely
supervised.
Employees are
not likely to
disagree.
Powerful people
are entitled to
privileges.
Uncertainty The extent to Experts have High: Asian
Avoidance which members of status, authority. Countries
an organization Clear roles are Low: European
tolerate the preferred. Conflict Countries
unfamiliar and is undesirable.
unpredictable Change is
resisted.
Conservative
practices are
preferred.
 177 CDM/GM/14

The extent to Achievement is High: Asian and

Achievement which members of reflected in wealth Latin American
orientation an organization and recognition. Countries, South
value Decisiveness is Africa.
assertiveness and valued. Larger Low:
the acquisition of and faster are Scandinavian
material goods. better. Gender countries.
roles are clearly
differentiated.
Individualism The extent to Personal initiative High: United
which people is encouraged. States
believe they Time is valuable Low: Latin
should be to individuals. American and
responsible for Competitiveness East European
themselves and is accepted. Countries.
their immediate Autonomy is
families. highly valued.
 178 CDM/GM/15

COLLEGE OF DEFENCE MANAGEMENT

NEGOTIATIONS

Enabling Objectives

• Understand the purpose of negotiations.

• Develop an understanding of the process of negotiations.

Learning Objectives

• Identify the elements of negotiations.

• Identify the styles of negotiating.

• Relate negotiations in the context of defence purchases.

Introduction

1. ‘Negotiating’ is a term used a great deal nowadays, in newspapers, on

television and on radio. It often seems to imply that only large companies or
whole countries are involved, not individuals. However, we all frequently have to
negotiate, even though we may not actually realize it. It is a field of knowledge
and endeavour that focuses on gaining the favour of people from whom we want
things. It is the use of information and power to affect behaviour. If you think
about this broad definition, you will realise that you do, in fact, negotiate all the
time both on your job and in your personal life.

2. In fact, all human interactions are characterized by some sort of

negotiation between or among people, trying to give to and take from one
another. This process of exchange is continual and often goes unnoticed.
Negotiating may be thought of as a process of bargaining to reach a mutually
acceptable agreement.

3. Good negotiating skills are essential to the smooth running of your

business. You need to be able to negotiate with many different types of people
in many different business situations – whether you are negotiating a loan from
your bank manager or expected behaviour from your family or the next pay rise
with a union or staff representative. The skills, once learned, will stand you in
good stead.

4. It may help your negotiations if you understand the attributes of a good

negotiator. Being good doesn’t necessarily mean that you always come out on
top in a negotiation – it means that you reach a conclusion that is satisfactory for
your business. This might mean proceeding with a specific course of action or it
may mean not proceeding because the terms are unacceptable.
 179 CDM/GM/15

5. Much has been said about so-called ‘hard’ negotiation – negotiating

aggressively and getting your own way at all costs. The danger here is that you
might win this time around, but at a potentially high cost. The other party may
refuse ever to deal with you again; can you afford to destroy relationships in this
manner? It is arguably always better to look for a fair and mutually beneficial
outcome; that way the door is left open for you to do business again in the future.
You build, rather than break, relationships.

Making Choices

6. Negotiation is largely about choice. What do you choose to offer or to

concede, and what do you choose to accept or reject. Often the basis of a
choice will be to solve a problem; you have reached an impasse in your
negotiations and need to identify the best way forward. The word ‘problem’ is
used deliberately here, because even if you are looking at an interesting
opportunity for your company, your problem will be how to exploit that
opportunity. On the other hand, you may really have a problem – your proposal
was perceived to be insulting; your team has walked out so you cannot fulfill the
order within the negotiated deadline; a key member of staff has just resigned; or,
a competitor has started undercutting your prices. It should be remembered that
in some instances, the best way forward will be quite simply to shake hands and
walk away. There is nothing to be gained by striking a deal at all costs; it has to
be mutually beneficial.

7. During the course of the negotiating process, you will face decisions to be
taken or problems to be solved. Whilst you can anticipate problems during the
preparation stage and formulate a strategy for dealing with them should they
arise, you will inevitably have to think on your feet during the negotiation itself. If
you are to come up with a solution, you must first be able to define the problem
accurately. Once you are able to do this, you can begin to set objectives for the
rest of the decision making process. Often these will be quite straightforward,
but try not to be too constrained by what you’ve always done before.

Thinking Creatively

8. In many cases the most logical course of action is not the best, and by
taking a more creative approach to a situation we can often come up with
something much better.

9. A manufacturer of aeroplane tyres held a creative thinking session in

order to generate ways of boosting business. The question they were
considering was how to encourage more airlines to use their tyres. One of the
people present suggested that they should give the tyres away – that way every
airline would use them! Strange as it may seem, that was the approach adopted,
resulting in the tyre company winning a considerable amount of business from its
competitors. In time, the competitors followed suit.

10. Thinking laterally, the solution that was generated was that instead of
selling aeroplane tyres in the usual way, which represented quite a substantial
cash outlay for the customer, they would give them the tyres and then charge
them every time a plane took off and landed. This had benefits for both parties;
 180 CDM/GM/15

the cost of tyres was spread over a longer period of time for the airline, and the
tyre manufacturer had a guaranteed and regular income. By thinking creatively,
they found a different way to look at things. Rather than meeting with an airline
that constantly tried to negotiate down the price of tyres, they took along a whole
new approach to the negotiating process.

Networking

11. Regard networking as an essential part of the process of marketing your

business – and, by implication, a helpful precursor to any negotiating
requirement. Being in a position, for example, to bring in additional support or
expertise may well help in ensuring a successful outcome. Networking is simply
the active cultivation of useful contacts and the use of those contacts, when
appropriate, to help in achieving required objectives. In most cases, those
objectives are locating information and finding new customers.

12. Whilst networking is not a prerequisite for successful negotiation, having a

wide range of contacts often means that you can call on people for advice or
assistance before undertaking a difficult negotiation.

13. Networking is something that a lot of people do without ever thinking

about it, but if it is carried out as a deliberate activity it is much easier to control
the results. Whilst chance encounters should never be ignored, it is not a good
idea to rely solely upon chance as a way of building a comprehensive network of
business contacts.

14. Finally, remember that networking is about communication and that

communication is a two-way process. As well as using your network to gain
information. Use it to pass on any helpful little snippets that might come your
way. People will appreciate your efforts and be more kindly disposed towards
you if you have shown consideration to them.

Elements of Negotiations

15. In every negotiation in the world (from a diplomatic geopolitical negotiation

to the purchase of a home), three crucial elements are always present :-

(a) Power. The other side always seems to have more power
and authority than you think you have.

(b) Time. The other side doesn’t seem to be under the same kind of
organisational pressure, time constraints, and restrictive deadlines you
feel you’re under.

(c) Information. The other side seems to know more about you and
your needs than you know about them and their needs.

16. Power is the capacity or ability to get things done, to exercise control over
people, events situations, oneself. As such, it isn’t good or bad. It is not moral
or immoral. It is not ethical or unethical. It’s neutral. Power should never be a
goal in and of itself. It should be transport to a destination – your objectives –
 181 CDM/GM/15

that are important to you. Always get the commitment of others in any
undertaking. Involvement begets commitment, commitment begets power.

Power of Expertise

17. Establish your background and credentials early in the confrontation. If

you do, your statements may not even be challenged. In other words, cash in on
the fact that in complicated negotiations, participants often lack specialised
knowledge of certain aspects of the matter being discussed. Prepare yourself
ahead of time. In general the only kind of expertise required for most negotiating
is the ability to ask intelligent questions and know whether you are getting
accurate responses.

18. When you are confronted by “The Expert” on the other side of the desk or
table, don’t be over-impressed. Keep in mind that if they didn’t need you or what
you have to offer, they wouldn’t be there. Train yourself to occasionally say, “I
don’t understand. You lost me three minutes ago”, or “Can you explain that in
layman’s language?” Polite persistence and the asking of questions combined
will often change the attitude and behaviour of the so-called expert.

The Power of the Knowledge of “Needs”

19. In all negotiations, there are two things being bargained for :-

(a) The specific issues and demands, which are stated openly.

(b) The real needs of the other side, which are rarely verbalized.

20. Everyone’s needs are different. TATAs don’t need your cash, but a small
proprietor often does. If you can establish a reasonable guess about what
someone’s needs are, you can predict, with remarkable certainty, what will
happen in any interaction. Behind every apparently ruthless or uncaring
organisation or institution, there are ordinary people desperately striving to meet
their unique needs. To successfully interact with any individual in any setup, all
you have to do is to determine his or her needs, then fulfill them.

The Power of Investment

21. The importance of getting the other person to invest time, money, or
energy in a situation is a well acknowledged factor. It’s the key factor in making
an ultimatum work. It forms the basis of the ‘nibble’. If you want to become
competitive later, or give an ultimatum, you can do that after the other side has
made an investment.

22. There’s a direct ratio between the extent of an investment and the
willingness to compromise. Why was it so hard for the United States to pull out
of the Vietnam War? Because by the time they tried to extricate themselves,
they had already sacrificed forty-five thousand American lives in that endeavor.
A similar situation has cropped up in Iraq in the aftermath of the Gulf War. It is
obvious that it is extremely difficult to walk away from such a heavy human
investment.
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The Power of Rewarding or Punishing

23. Since all people are unique what’s perceived as threatening by one is
considered harmless by another. What someone perceives as a reward,
someone else regards as no big deal. Rewards and coercion, positive and
negative strokes come in as many forms as there are individual perceptions and
needs. If I’m aware of your perceptions and needs, and if I know you think I
have power over you, I can control your behaviour :-

(a) No one will ever negotiate with you in any significant way unless
they are convinced that you can and might help them – or can and might
hurt them.

(b) In an adversarial relationship, if you think I might help you or hurt

you, I should never defuse your perception of my power unless I get
something in return, such as a concession on your part, or a repositioning
on your part that truly benefits me or our relationship.

The Power of Identification

24. You will maximise your negotiating ability if you get others to identify with
you. Why do you prefer one store to another in the same shopping centre? Why
do you take your car to the same service station time after time? Why do you
have your bank account at one bank and not another? It is not just because of
quality convenience, price, or cost factors, what tips the scale one way or the
other is your degree of identification with the people you come in contact with or
are exposed to.

25. How do you get others to identify with you? If you act as a professional
and reasonable person in dealing with people you can gain their cooperation,
loyalty, and respect. Don’t pull rank or overplay your authority. Rather, try to
convey understanding and empathy. Approach each person on a human level
with the hope that you can help them solve their problem.

26. In defence services, when we speak of leadership and charisma we are

often talking about individuals who conduct themselves in such a respected
fashion that they inspire emulation. Those who follow a leader, sometimes at
great sacrifice, so identify with that person that they feel that his or her triumphs
are their own. The power of identification exists in all interpersonal relationships
including Command, business transactions and politics.

The Power of Morality

27. If you lay morality on people in an unqualified way, it may often work. And
if you throw yourself on their mercy without defence or pretense, there’s chance
they may succumb. Because they can relate to you and are hesitant to take
advantage of someone who is truly defenseless. However, most people you
come into contact with share your background. So if someone close to you, your
spouse, your boss, or a subordinate, for instance, is putting you down, letting
you down, taking a cheap shot, exercising malicious thoughts, or not doing what
 183 CDM/GM/15

he or she promised, ask the party if it was fair and right. Not surprisingly, that
question shakes up even the worldliest self-seeking and jaded individual.

28. It’s easy to lock yourself in or to get locked in by others, because one
aspect of the power of precedent is based on a “Don’t make waves”, “you can’t
argue with success”, and the “We’ve always done it this way” outlook. This
aspect stems from applying pressure to do things the way they’re currently being
done or to do things the way they were done before. Current and past customs,
policies, and practices are considered sacred. They are presented as the only
way to do things; “Change” is a dirty word. In other words, if people at point A do
something and people at point B learn about it, it affects the way people at point
B act. Information spread fast, we’re all tuned to the same TV Station. So if you
are trying to control a situation and you don’t want what happens at A to
influence what happens to B, be prepared to show people at B why their set up
differs from the A set-up. While avoiding being “taken-in” by the power of
precedent, use this power to your advantage. To justify what you are doing or
asking for, always refer to other situations similar to the one you are currently in,
where you or the others did so-and-so, and the result you wanted occurred.

The Power of Persuasive Capacity

29. If you want to persuade me to believe something, do something, or buy

something, you must rely on three factors :-

(a) I have to understand what you are saying. It’s imperative that you
put your reasons into analogies that relate to my experiences, my
particular imprinting.

(b) Your evidence must be so overwhelming that I can’t dispute it.

(c) My belief in your readiness to meeting my existing needs and

desires.

The Power of Attitude

30. When you negotiate for someone else, you’re more relaxed. You are
more objective. You don’t care as much, because you regard the situation as
fun or as a game, which it is. Develop the attitude of caring, but not caring all
that much.

31. If you develop this healthy, somewhat amused, “It’s a game” attitude
towards all your negotiation encounters, both on and off the job, three benefits
will follow :-

(a) You will have considerably more energy, because you’ll always
have energy to do the things you enjoy doing.

(b) You’ll be under reduced stress.

(c) You will get better results, because your attitude will convey your
feeling of power and mastery of your life.
 184 CDM/GM/15

Time

32. This reality, that all the action occurs at the eleventh hour, holds true in
every single negotiation. Therefore, in any negotiation, expect most significant
concession behaviour and any settlement action to occur close to the deadline.
That being the case, if I know your deadline and you don’t know mine, who has
the advantage? I will; because as we near the point that you perceive as the
deadline, your stress level will increase, and you will make concessions.
Deadlines, your own and other people’s are more flexible than you realise. Your
boss, the government, a customer, or a family member may have something to
do with it, but primarily your deadline is of your own making. Always ask
yourself, “How great is the risk I’m taking by going beyond the deadline?”

Information

33. During the actual negotiations event, it is often common strategy for one
or both sides to conceal their true interests, needs, and priorities. Their rationale
is that information is power, particularly in situations where you cannot trust the
other side fully. Of course, it would give you a big advantage, if you could learn
what the other side really wants, their limits, and their deadline. Your chances of
getting this information from an experienced negotiator during the event in an
adversary transaction are remote. In fact, you ask questions even when you
think you know the answers, because by doing so you test the credibility of the
other side.

34. You can gather information from the following :-

(a) Those who work with or have worked for the other party in the past.

(b) Those who have negotiated with the other party in the past.

(c) Competitors of the other party.

Stages in negotiation

35. There are five essential stages in the negotiating process.

•Argue •Close
Prepare •Signal •Propose Bargain •Agree
•Package
Prepare

36. Define your objectives. These must be specific, achievable and

measurable. In other words, you must have a clear idea of what you want from
the other party, you must be realistic and you must be able to assess how well
you have done. Write them down. Objectives should also be put into order of
priority. One way to do this is to classify them as ‘must achieve’, ‘intend to
 185 CDM/GM/15

achieve’ and ‘like to achieve’. For example, you have bought a photocopier for
your office. It breaks down after a week and you have to contact the supplier.
What are your objectives?

(a) Must achieve - the use of a photocopier that works.

(b) Intend to achieve - get the photocopier repaired.

(c) Like to achieve - get a replacement photocopier.

37. Research. Gather as much information as possible about the subject to

be negotiated. The person with the most information usually does better in
negotiations.

Discuss

38. This is the process of exploring each party’s needs, starting with tentative
opening offers. These need to be realistic; otherwise there will be little scope for
a satisfactory conclusion. If both parties are cooperative, progress can be made.
If one side is competitive, problems may arise. Analyse the other party’s
reaction to what you say.

39. Use an opening statement covering the main issues at stake for each
party. Allow the discussion to develop naturally. Make it clear that at this stage
you just wish to talk, not negotiate as yet. Establish a relationship with the other
person. Ask questions to find out more about their needs and to keep things
moving. The more you find out about one another’s needs, the greater the
possibility that you will find a mutually acceptable solution.

Propose

40. This is the stage where you are giving and receiving proposals and
suggestion. Remember to trade things, not just to concede to them. Look for
the opportunity to trade things which are cheap for you to give, but valuable to
the other party, in return for things which are valuable to you.

Bargain

41. After discussing each other’s requirements and exchanging information,

the bargaining can start. Generally speaking, you receive more if you start off
asking for more, or will concede less if you start off offering less. If conflict arises
at this point, indicate that your opening position is not necessarily what you will
finally accept. Agreement is reached when both parties find an acceptable point
somewhere between the starting positions. In any negotiation, you quickly need
to discover whether there is any likelihood that you might be able to reach a
satisfactory agreement.

42. When your offer is made, state it clearly. If you use words like
‘approximately’ or ‘about’, it gives an experienced negotiator clues about the
quality of your information and the level of your preparation, and he can
challenge you on a number of issues and change your offer dramatically. When
the other party’s offer has been made, the next step is to find out exactly what it
 186 CDM/GM/15

includes. Ask for clarification. You will have prepared a list of your requirements
in the preparation stage, so ensure that these are met.

Agreement

43. When agreement is in sight, listen for verbal indications such as ‘maybe’
or ‘perhaps.’ Look for non-verbal signs, for example papers being tidied away. It
is time to summarise what has been discussed and agreed. Do not start
bargaining again.

44. Offer a summary of what has been agreed, this will give a chance to
confirm any decisions. As soon as possible after the negotiation, send a letter
documenting the agreement. Having the agreement in writing is better than a
handshake on the deal.

Approaches to Negotiation

45. Styles of negotiating need to vary according to the circumstances and the
people involved. Most negotiations will be a mixture of the collaborative and
competitive approaches. It is generally more productive to steer the proceedings
towards collaboration rather than competition.

Negotiating roles

46. Before we look at these approaches in more detail, let’s look at the roles
that you might take on in a negotiation. It is possible to identify five, each of
which has particular strengths.

47. The Factual Negotiator.

(a) Knows all the facts related to the negotiation.

(b) Asks factual questions.

(c) Covers all bases to ensure that no facts are left out.

(d) Provides information.

(e) Factual negotiators tend to leave aside emotional issues such as

‘face’ – a person’s desire for a positive identity. (People like to feel and
look good and will react in a hostile manner to attacks that make them
feel or look bad.). They can get most involved in details about the
negotiation.

48. The Relational Negotiator.

(a) Establishes relationships with the other party.

(b) Is sensitive to the other party’s emotional issues.

(c) Builds trust.

 187 CDM/GM/15

(d) Perceives the position of the other party.

(e) Relational negotiators can lose sight of the reasons for negotiation
and the objectives, in their anxiety to build relationships. They can also
give away information without realizing it. Their sensitivity can make them
become emotional and lose perspective.

49. The Intuitive Negotiator.

(a) Comes up with unexpected solutions or ways of approach.

(b) Sorts the wheat from the chaff – the key issues from the irrelevant
detail.

(c) Visualises the implications of a proposal.

(d) Accurately guesses the progress of negotiation.

(e) Sees the ‘big picture’.

(f) Intuitive negotiators can be dangerous because of their wildness

and lack of discipline.

50. The Logical Negotiator.

(a) Sets the rules of the negotiation.

(b) Develops an agenda.

(c) Argues in a logical rather than emotional way.

(d) Adapts their position to meet changing situations.

(e) The logical negotiator can sometimes see the process of

negotiation as being more important that the content or outcome.

51. The Lead Negotiator. Finally, all these approaches or roles need to be
coordinated by the lead negotiator, who is responsible for all of the above roles
and who makes the final decision about strategy, etc.

Styles of Negotiating

52. The styles of negotiators can cover a broad range along a continuum
between those who are competitive (I win, you lose) and those who are
collaborative. We shall concentrate on following two styles:-

(a) Winning at All Costs (Competitive Style).

(b) Negotiating for Mutual Satisfaction (Collaborative Style).

 188 CDM/GM/15

Winning At All Costs (Competitive Style)

53. Winning at All Costs e.g., negotiators try to get what they want at the
expense of the other side. Even if you never use this strategy, you should have
the ability to recognize it; otherwise you may be victimized by it.

54. Six steps in their negotiations are :-

(a) Extreme Initial Positions. They always start with tough demands
or ridiculous offers that affect the other side’s expectation level.

(b) Limited Authority. The negotiators themselves have little or no

authority to make any concessions.

(c) Emotional Tactics. They get red faced, raise their voices, and act
exasperated, horrified that they are being taken advantage of.
Occasionally they will stalk out of meetings in a huff.

(d) Adversary Concessions Viewed as Weakness. Should you give

in and concede them something, they are unlikely to reciprocate.

(e) Stingy In Their Concessions. They delay making any concessions

and when they finally do, it reflects only a minuscule change in their
position.

(f) Ignore Deadline. They tend to be patient and act as though time
is of no significance to them.

Negotiating for Mutual Satisfaction (Collaborative Style)

55. Negotiating for Mutual Satisfaction depends more on the “Win-Win

Technique”. The emphasis shifts from the effort to defeat an opponent to the
effort to defeat a problem and achieve a mutually accepted outcome. In a
collaborative Win-Win negotiation we are trying to produce an outcome that
provides acceptable gain to all parties. Conflict is regarded as a natural part of
the human condition. If conflict is viewed as a problem to be solved, creative
solutions can be found that enhance the positions of both sides, and the parties
may even be brought closer together.

56. Accomplishing mutual satisfaction using the collaborative Win-Win style

involves emphasis on three important activities:-

(a) Building Trust. In a trusting relationship, each party has a firm

belief in the honesty and reliability of the other. It is mutual dependence,
a potential alliance to deal with inevitable disagreement. This mutual trust
is the mainspring of collaborative Win-Win negotiations.

(b) Gaining Commitment. No individual is an isolated entity.

Everyone that you deal with is being reinforced by those around them.
Never see anyone as an isolated unit. See those whom you wish to
persuade in context, as a central core around which others move. Get the
 189 CDM/GM/15

support of those others and you will influence the position and movement
of the core.

(c) Managing Opposition. In negotiations, you have to encounter

opposition. If you have no opponents, it may be that you’re still seated.
In essence, you’re not negotiating to get the result you want. Provided
that you are doing nothing, you’ll soon get opponents. Your boss, peers,
subordinates, friends, family and others will oppose you because of your
inaction. You may even end up negotiating with yourself, as you try to
manage your disappointment.

Negotiations in Defence Purchases

57. Defence departments i.e. Army, Navy and Air Force and DGS&D rate the
sanctity of tenders as very important. For very high value items like Tanks,
Ships and Aircraft etc, negotiations are held at Govt level, in which reps of
Service headquarters, Ministry of Defence, Ministry of Finance and Ministry of
Law act as members. Issues like Quantity Discount, penalty and Billing aspects
are negotiated, whereas Quality, Packing and Service aspects are generally
discussed by Service Headquarters and are not again discussed during
negotiations.

58. In other cases, negotiations are conducted by the full tender committee.
Different tender committees operate for different limits of financial powers, say
up to 5 lakhs and then from 5 lakhs to 50 lakhs. A finance member is always
associated with the committee. The committee may draft additional experts to
help them if necessary. For small value tenders (i.e. generally less than Rupees
50,000/-) negotiations will be conducted by the purchase officer competent to
make the purchase.

59. Where competition is restricted and there are at the most not more than
three firms producing the stores in demand, abinitio negotiations with the
industry are held, rather than calling for tenders and then trying to negotiate.
Such negotiations are held with a single firm if the product is a proprietary item
or with all the firms producing the product. At the end of negotiations the
participating firms are required to fill in the tender form confirming the agreement
reached. No abinitio negotiations are held on grounds of urgency.

60. In other cases, where competition is not lacking, negotiations are held :-

(a) When all tenders are considered to be unreasonably high in value

and it is felt that re-tendering would not secure better advantage.

(b) Where the lowest tender is technically unacceptable or is rejected

because of unsatisfactory credentials, capacity or unworkable rates and
the next higher offer to be considered, in accordance with the established
procedure are unreasonably high and re-tendering, it is felt, would not
bring better results.

(c) Where in case of proprietary items, the price quoted is considered

to be unreasonably high.
 190 CDM/GM/15

61. The decision to invite fresh tenders or to negotiate is to be taken by

competent people in authority, based on the value of purchase. Technical
scrutiny of tenders should precede the decision to negotiate. Tenderers whose
tenders are technically unsuitable need not be called for negotiations. All firms
whose offers are technically suitable, including those whose offers have been
delayed or are classified as “late”, must be invited. A firm who has not submitted
an offer need not be called. Before negotiations are commenced, the
negotiating team should collect from the participating firms :-

(a) Letter of authority empowering their reps to act on their behalf.

(b) Declaration forms stating that in case the negotiations fail the
original offer submitted by them will hold good. This is essential because
of the legal view that once negotiations commence, the tender lapses.
62. Negotiations are held simultaneously with all participants and not
individually with different firms at different times. This will avoid the possibility of
the understanding reached with the earlier firms leaking out and placing him at a
disadvantage. If information does leak out, though it should not, the firm who
has been called last has a distinct advantage. At the end of the negotiations, the
firm reps are required to give revised bids on prescribed forms. Those who
cannot physically participate are allowed to send revised bid by post or by hand
delivery. Only one round of negotiations is allowed. If after negotiations, the
revised offers too are considered high, there will be no fresh negotiations,
instead tenders will be invited. If tenders are not re-invited, purchase will be
finalized on the basis of original tenders or revised bids after negotiations.

Bibliography

1. ‘Management: People, Performance, Change’, by Luis R Gomez-Mejia, et

al, McGraw Hill, New York, 2005.

2. Negotiate to Succeed, Julie Lewthwaite, Thorogood Ltd, London, 2003.

3. How to be a better Negotiator, John Mattock and Jons Ehrenborg, Kogan

Page, 1996.

4. Successful Negotiations, Peter Fleming, Barrons,1997.

5. ‘You Can Negotiate Anything’ by Herb Cohen, 1983

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Consolidation Exercise

Q1. What is the purpose of negotiations?

Q2. What are the crucial elements of negotiations?

Q3. With reference to negotiations, write short notes on :-

(a) Power of expertise.

(b) Power of knowledge of needs.

(c) Power of Identification.

(d) Power of precedence.

Q4. Write short notes on importance of Time and Information in negotiations.

Q5. Write short notes on styles of negotiating.

 192 CDM/GM/16

COLLEGE OF DEFENCE MANAGEMENT

MANAGEMENT OF TIME

Enabling Objectives

• To appreciate the value of time as a resource.

• To be able to diagnose the real problems behind the ‘symptoms’ of
shortage of time

Learning Objectives

• To learn the techniques of time management for personal and

organisational effectiveness.

Introduction

1. Time is a resource that is highly inelastic yet very regular in its

supply. It is a resource that can be put to many divergent uses.

2. A Commander's effectiveness depends to a large extent on the way

he manages his time. Observations indicate that most commanders find
this problem area difficult to tackle, resulting in worries and tensions. 'Too
little time' is the general complaint of these commanders. Since they have
now all that they will ever have and have had all along, a critical study of
time management becomes important and urgent, in the interest of the
commanders and the organisation.

Some Studies

3. A number of studies have been conducted in this field. One of the

methods adopted is to ask individuals to estimate how they distribute their
time among their usual jobs. Another is to ask them to keep an actual
record over a period of time of how they really spend their time. Still
another is to have their time-management recorded by an observer.
Combination of any of these is also used.

4. Sune Carlson, a Swedish professor studied nine Managing

Directors of Swedish firms for four weeks each. He was struck by the fact
that managing directors had little idea of how they really spent their time
but were rarely alone except for very short periods which permitted little
time for any sustained thinking.1
 193 CDM/GM/16

5. Another study was that of Tom Burne, whose subjects were seventy
six British top managers who kept a diary for three to five weeks. He
found that the faster the pace of change, the more time the managers
spent talking together and also that managers spent more time among
peers than with their immediate subordinates.2

6. This study also revealed that “there was a general tendency to

overestimate the time taken by the main divisions of management such as
production and accounts, and to under-estimate the time taken by
personal matters and discussions on general policy". This conclusion
about the general unreliability of estimates is borne out by other studies as
well.

7. Rosemary Stewart's research was aimed mainly at discovering

similarities and differences in the way in which managers in various fields
spend their time - "the differences between jobs rather than between
individuals". A subsidiary aim was to study the ways in which managers
may use their time inefficiently. She found that the problem of ‘lack of
time’ stared many managers in the face. "They think of this as a fact of
life", she says, "but most have never tried to find out whether it is like the
current level of company taxation, a fact in their business environment that
they must accept, or whether it is like the standard of housekeeping in
their department, a fact they should be able to change". It is apparently -
the latter.

Problem

8. The problem of lack of time is often a symptom rather than

problem in itself. Therefore, measures aimed directly at it may not
produce enduring or significant benefits. The real problems are often lack
of clear objective and practicable plans, insufficient or improper
delegation, ineffective communication, poor decision making and
inefficient work habits. These again could probably be taken as symptoms
of deeper malaise of attitudes, motivations and value systems. It is
worthwhile, therefore, to analyse the position and get to the root of the
problem for a lasting solution.

Time Log

9. The basis for analysis has to be factual data of the way one actually
uses time. A simple method is for one to record oneself what he did in the
previous 15 minutes or the completion of a job. The Log could look as
follows:-
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Date TIME LOG

Time Activity Interruption Analysis

engaged in
0900
0915
0930
1945
1700

10. At the end of the day or the week, an analysis could be made of the
effective use of time, the extent to which they contributed to the
achievement of the objectives, the extent to which the time spent agreed
with the utility of the activity, the extent to which the use was leisurely, the
extent to which one did jobs which should have been delegated and one's
other time-wasters.

Time Wasters

11. Some time wasters that are commonly encountered along with
possible causes and solutions are given in Appendix A.

Do’s and Don'ts

12. Some Do’s and Don'ts of time management are listed in Appendix
B. and C.

Conclusion

13. It may be observed from the Appendices that a basic change of

attitude towards work and acquiring a proper sense of perspective is
required for proper time management. But the effort is worth making. For
"time is the scarcest resource and unless it is managed, nothing else can
be managed".
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Bibliography

1. Stephen R Covey , ‘Seven Habits of Highly Effective People’ New

York Publishers, 1997.
2. R. Ale Mackenzie, 'The Time Trap', New York, Amacom, A
Division'of American, Management Association, 1972.

2. Cari Heyel, 'Organising your Job in Management Bombay, D.B.

Taraporevala Sons & Co., Pvt Ltd., 1970.

3. Ross A. Webber, 'Time and Management', New York, Van

Nostrand Reinhold Company, 1972.

4. BO Casten Cariberg, 'Facing the Executive Challenge'. London, Sir

Isaac Pitman &, Sons, Ltd., 1967.

5. Rosemary Stewart, ‘Managers and their Jobs', London, Pan Books

Ltd., 1967.

6. British Institute of Management, 'Management Checklists, Effective

Use of Executive Time', London, BIM, 11968.

7. Alan Lakein, “How to find more time’, in Readers’ Digest, June

1975.

8. Sune Carlson, ‘Executive Behaviour, : A Study of the work load and

working Methods of Managing Directors’, Stockholm, 1951.

9. T. Burns, ‘Management in Action’, Operational Research Quarterly,

June 1957.
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Questions

1. ‘Management of Time’ is a symptom and not a problem’. Explain.

2. Write short notes on:-

(a) Time Log
(b) Time Wasters
(c) Do’s And Don’ts of Time Management.
3. What are the major problems related to time management?
4. List the personal, managerial and organisational time wasters.
5. Explain the following time thieves:-
(a) Telephone conversation.
(b) Meetings.
(c) Procrastination.
(d) Lack of delegation.

4. List the steps towards better time management.

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Appendix A
(Refers to Para 11)

HOW TO SPRING THE TIME TRAP*

Below are listed the time wasters I have most commonly

encountered in eight years of consulting on time management with senior
executives in a dozen countries. To assist the reader in analysing his
own time wasters, possible causes and solutions are suggested to each.
These are not intended to be exhaustive but merely to serve as a
guideline for further diagnosis. Causes and solutions tend to be
personal, while the time wasters themselves are universal in nature.

Time Waster Possible Causes Solutions

Lack of planning Failure to see the Recognise that planning takes
benefit. time, but saves time in the end.

Action orientation Emphasize results, not Activity.

Success without it Recognise that success is often in

spite of, not because of methods.

Lack of Priorities Lack of goals and Write down goals and objectives.
objectives Discuss priorities with subordinates.

Over commitment Broad interests Say No.

Confusion in Put first things first.

priorities

Failure to set Develop a personal philosophy of

Priorities time. Relate priorities to a schedule
of events.

Management by Lack of planning Apply the same solutions as for lack

crisis of planning.
Unrealistic time Allow more time.
estimates Allow for interruptions.
Extracted from R Alec Mackenzie 'The Time Trap', New York Amacom, 1972, pp) 173-176.
 198 CDM/GM/16

Time Waster Possible Causes Solutions

Problems orientation Be opportunity oriented.

Reluctance of subordinates Encourage fast transmission of info

to break bad news as essential for timely corrective action.

Haste Impatience Take time to get it right.

Save the time of doing it over.

Responding to the urgent Distinguish between the Urgent and the

Important.

Lack of planning ahead Take time to plan. It repays itself many

times over.

Attempting too much in Attempt less. Delegate more.

too little time.

Paper work and Knowledge explosion Read selectively. Learn speed reading.
reading

Computerises Manage computer data by exception.

Failure to screen Remember the Pareto principle.

Delegate reading to subordinates

Routine and Lack of priorities Set and concentrate on goals.

trivia Delegate non essentials.

Over surveillance Delegate; look to results, not details or

of subordinates Methods.

Refusal to delegate; Recognize that without delegation, it is

feeling of greater security impossible to get anything done through
in dealing with others.
operating detail.

Visitors Enjoyment of Do it elsewhere. Meet visitors outside.

socialising Suggest lunch if necessary. Hold
Stand-Up conferences.
Inability to say no Screen. Say no, be unavailable. Modify the
Open door policy.
 199 CDM/GM/16

Telephone Lack of self- Screen and group calls. Be brief.

discipline

Desire to be Stay uninvolved with all but essentials

informed and involved. Manage by exception
Meeting Fear of responsibility Make decisions without meetings,
for decisions

Indecision Make decisions even when some

facts are missing.

Over communication Discourage unnecessary meetings

Convene only those needed.

Poor leadership Use agendas. Stick to the subject.

Prepare concise minutes as soon as
possible.

Indecision Lack of confidence Improve fact-finding and validating

in the facts procedures

Insistence on all the Accept risks as inevitable. Decide

facts-paralysis of without all facts.
analysis

Fear of the conse- Delegate the right to be wrong

quences of a mistake Use mistakes as a learning process.

Lack of a rational Get facts, set goals, investigate

decision making process alternatives and negative
consequences, make the decision,
and implement it.

Lack of delegation Fear of subordinates Train. Allow mistakes.

inadequacy Replace if necessary.

Fear of subordinates Delegate fully, Give credit. Ensure

competence corporate growth to maintain
challenge.

Work overload on Balance the workload.

subordinates Staff up. Reorder priorities.
 200 CDM/GM/16

Appendix B
(Refers to Para 12)

DOs OF TIME MANAGEMENT

1. Draw out clear KRAs, time bound objectives and detailed plans for your
job.

2. Plan your day ahead. List out the most important things to be done the
next day in order of importance. Have one sheet for A & B tasks and another for
C tasks.

3. Do delegate matters which you do not have to decide yourself. Insist on

exercise of delegated authority.

4. Be predictable. Know your staff and let your staff know your mind.

5. Record occasionally for some stretch of time how you spend your time and
analyse critically your time management.

6. Do accept that whatever our superior wants is urgent and important (till you
are able to convince him that it is not really so). But as a superior, decide
priorities with reference to organisational needs.

7. Do set aside fixed hours in a day when your staff can meet you or you will
call them, other than in an emergency.

8. Do set aside some time a week for innovative thinking and long range
planning regarding your area of responsibility, so as to anticipate problems and
heighten your contribution to the organisation.

9. Set aside some time preferably towards the end of the day for administrivial.

10. Insist on completed staff work.

11. Finish the task you have taken up before getting to another.

12. Develop the habit of single-handling i.e., making a decision or disposing of a

paper at the first opportunity itself.
 201 CDM/GM/16

Appendix C
(Para 12 refers)

DON’Ts OF TIME MANAGEMENT

1. Don’t succumb of the temptation to attend to the easiest tasks (the trivial
many) - in preference to the difficult cases (the vital few).

2. Don’t be lost on urgent tasks ignoring important tasks.

3. Don’t spend time on subjects or with people solely because you like them.

4. Don’t use more time than the importance of the job merits. Don’t refine
more than the matter or occasion demands.

5. Don’t get into the habit of leisurely way of working of extending the time
available, of saying ‘There is always tonight’.

6. Don’t procrastinate.

7. Don’t allocate time for jobs too hopefully and unrealistically.

8. Don’t be erratic and ad-hoc in your decisions.

9. Don’t make a practice of crisis management.

10. Don’t be totally managed by your subordinates.

11. Don’t be your subordinates’ problem:-

(a) Don’t keep them waiting to see you.

(b) Don’t keep them in your office unnecessarily.

(c) Don’t interrupt their work unnecessarily.

(d) Don’t decide on issues delegated to them.

(e) Don’t let them pass the issue back to you.

12. Don’t decide on issues delegated to them.

 202 CDM/GM/17

COLLEGE OF DEFENCE MANAGEMENT

APPRAISAL

Enabling Objectives

• Understand the concept of appraisal system.

• Recognise the importance of effectively appraising subordinates.

Learning Objectives

• Understand the purposes of appraisal system.

• Understand the various techniques used for appraisal.
• Analyse the Structure & Design of an ideal appraisal system.
• Get an overview of the appraisal system followed by the three services
and MOD in respect of the civilian officers.
General

1. To appraise means ‘to estimate the worth of'’. Appraisal systems help an
organisation to evaluate the performance of its personnel and channelise their
potential for greater organisational effectiveness. Appraisal is a critical and
sensitive activity and is of vital concern to all of us for it hold, the key to our
present employment and future growth within the organisation. Therefore, the
appraisal system must be objective and fair, and need to effectively address the
developmental needs of an individual. When appraising a subordinate, a
superior has to assume the role of a judge to meet the organisational
requirements, and the role of a coach to motivate and develop his/her
subordinates. One way to integrate organisational demands and individual needs
is through career management, which is an important aspect of performance
appraisal. As a result of the environmental changes, the educational and
expertise levels of the subordinates are rising, accompanied by higher
aspirations and desire for greater say in their career progression. Thus, there is a
need for greater focus on the individual needs.

2. Appraisal may be defined as :

“An ongoing evaluation of the quality, quantity, styles and determinants of

the present performance and behaviour, and the growth potential of a
subordinate, with a view to providing control information to the organisation,
leading to an action programme, and an enabling feedback to the individual,
aimed at his performance improvement, personal growth and satisfaction.”

Historical Background

3. The history of formal appraisal systems can be traced back to as early as

the third century when the emperors of the Wei dynasty (221-265 A.D.)
appointed an "Imperial Rater" to evaluate the performance of official family
 203 CDM/GM/17

members. The spread of formal appraisal systems started in the western world
in the later part of nineteenth century in military and government organisations.
This became necessary, probably, because of the large number of people
employed in these organisations and the need for uniformity of standards and
documentation. In civil industry the formal appraisal system, then called the
'Merit Rating' started after First World War, developed under the influence of the
work of Frederick Taylor. The system involved breaking down job requirements
into assumed component factors such as diligence, loyalty, honesty etc and
assigning point values to each factor. Supervisors were required to rate each
worker on a 4 to 6 point rating scale. This was the start of the trait rating system
of appraisal. It was in 1930's and 1940's, under the influence of the Human
Relations School that certain human relations oriented attributes were added to
the rating scale. It was also at this time that the practice of communicating the
supervisor's evaluation to the workers started. The use of performance appraisal
system for industry and business started only after the World War II.

4. A systematic Officer Efficiency Report System (OER) was introduced in

U.S. Army in 1890. The OER Form No 67, an outgrowth of research conducted
during World 1 was inaugurated in 1922 and marked the first use of rating
scales. In our Armed Forces, the formal Appraisal System started much before
independence and though it has been existing for long, yet doubts are expressed
on its validity, objectivity, usefulness and above all on its fairness. One of the
most stringent cries of the contemporary world is the cry for justice and equity,
which is perhaps a direct manifestation of the democratic revolution taking place
in our society. The issue becomes critical in organisations like Armed Forces,
where pyramid type of structure limits the avenues of promotion, but expects not
only utmost hard work but also the supreme sacrifice of life at the time of need.
The demand for justice and equity for their efforts is thus a just and natural
demand on the part of its members.

Purpose of Appraisal

5. The approach to looking at appraisal has undergone a sea change in the

past couple of decades. The table below shows the shift from the traditional
narrow view of appraisal to the modern all encompassing view.

Aspects of
Traditional Approach Modern Approach
Appraisal
Organisational, legal,
Purpose Developmental, integrative
fragmented
Appraisee, peers, superiors
Appraiser Superiors only
and others
Role of Appraisee Passive, recipient Active participant
Subjective, Concerned
Measurement Objective and subjective
with Validity
Periodic, fixed, Dynamic, timely, employee
Timing
administratively driven or work driven
6. The main purpose of performance appraisal is evaluation of performance,
and performance appraisal systems are being used for variety of purposes,
summarised as under:-
 204 CDM/GM/17

(a) Assess the present level of efficiency and effectiveness of

individuals.

(b) Determine his future employability and decisions on promotion,

placements, and transfers.

(c) Identification of potential.

(d) Training and development needs for improvement of performance.

(e) To promote individual's growth and development through

motivation.

(f) Provide a record of the organisation's manpower assets in terms of

both the current and future needs.

Concept of Appraisal

7. All appraisal systems aim to eliminate subjectivity and bring about

objectivity in appraising. While appraising we are standing on judgement on
issues, of which, some are visible and some are not visible. Those not visible
include appraisee’s self concept, knowledge, skill, attitude and motivation. But
these manifest in behaviour and performance which is visible, can be quantified,
measured and results seen. Therefore, judgement on the demonstrated
performance of the appraisee is likely to be more objective.

8. By observing an individual’s behaviour, performance and results achieved,

the appraiser predicts his potential, which again is in the not visible realm and
prone to subjectivity. The aspect is shown in Fig below. Therefore, to ensure
greater objectivity in the appraisal system, the focus is on the demonstrated
performance of the appraisee during the period of assessment. However, the
fact remains that in all appraisal systems certain amount of subjectivity is
inherent.

NOT VISIBLE NOT VISIBLE

VISIBLE

Self
(I ntr insic) R
E
K nowledge/ Per for mance S
Behavi our Potential
Skill U
L
Attitude/ T
M otivation
Concept of Appraisal
 205 CDM/GM/17

Criteria for an Effective Appraisal System

9. The criteria for an effective appraisal system should encompass following :-

(a) Appraisal should have specific and clear aims. The aims should be
clear not only to the organisation but also to the appraiser and appraisee.
The unique behavioural criteria and performance requirements of the
organisation must be fully reflected in the appraisal criteria.

(b) The basic thrust of the appraisal system should be “Developmental”

rather than “Judgmental”. It should lead to problem solving rather than to
faultfinding.

(c) The appraisal system should ensure maximum objectivity and have
inbuilt mechanisms to offset/minimise subjectivity.

(d) The appraisal system must provide a valid, just and equitable basis of
comparison by suitable processing of the data.

(e) It should provide for growth of the individual, increased motivation,

improvement in his performance and thus lead to growth of the
organisation.

(f) It should be easy to understand and implement.

Methods of Appraisal

10. Different appraisal systems, which are being used by various

organisations, are as under and discussed in the succeeding paragraphs :-

(a) Free form essay

(b) Subordinate comparison system
(c) Rating Scales
(d) Forced choice method
(e) Critical incidence technique
(f) MBO approach
(g) BARS
(h) Assessment Centres
(j) Hybrid System

Free Form Essay

11. In this method, the appraiser writes a brief essay describing the more
significant features of the personality and work of the appraisee as a total
person.

12. The expression of the appraiser matters a lot in preparing this type of
appraisal. Also, it is not easy to work out inter-subordinate comparison on the
 206 CDM/GM/17

basis of this method of appraisal, particularly in organisations where a large

number of persons are working on similar jobs like in the Armed Forces.

Subordinate Comparison System

13. In this method the performances of the subordinates are compared with
each other. There are three principle variations of this system as given below:-

(a) Rank-Order Method. In this method the appraiser simply arranges

all his subordinates in a rank order and the rank position of each
subordinate represents his appraisal rating. Some times, the subordinates
are ranked on several traits related to their jobs. In such a case, average of
the rank positions obtained by a subordinate on different traits, gives his
appraisal rating. This method was used by the US Army to control inflation
on reporting but was later modified, as it proved ineffective.

(b) Paired Comparison System. This method is applicable in an

organisation where the number of personnel is small and where they are to
be rated on an overall ability to do their present job. But if it were to be
applied for appraising a large number of personnel to be rated on a number
of traits, then it would involve a lot of clerical work. For example, the
appraisal of 10 officers on 12 traits will involve as many as, 7,140 pairings,
a task too much even for the most earnest appraiser.

(c) Forced Distribution Method. This method has been devised to

obviate the crowding of performance of the higher grades. It follows the
statistical law of normal probability curve, and stipulates the percentages of
subordinates who would be assigned different gradings. The following
distribution has been recommended:-
(i) Inferior - 10%
(ii) Below Average - 20%
(iii) Average - 40%
(iv) Above Average - 20%
(v) Exceptional - 10%

This method of appraisal has been found satisfactory for organisations

where a large number of persons are employed on the same or similar
jobs. But the method is not considered adequate to meet the requirements
of jobs, which have their own uniqueness. This method is used in the
French Army along with the rank order method described at Para 9 (a)
above. This method was also tried out in the Indian Army along with the
rating scale method in 1983-84 but was found ineffective and was
discontinued.

Rating Scales

14. Following this system, the performance of an individual is checked on

each of a number of traits, or characteristics. There are two primary variations in
the rating scales. In one, known as the Graphic Rating Scale, a horizontal line
represents the range of the trait, and a check made by appraiser anywhere on
 207 CDM/GM/17

the line represents the degree of trait in the individual being rated. The other
type, known as the Multiple Step Rating Scale, divides the traits into five or
seven graduated 'degrees' represented by discrete boxes, and to represent the
performance of an employee on the trait, the appraiser places his check in one
of the boxes.

15. The rating scale checking is one of the most popular system of appraisal
in use. The US Army Officer Evaluation Report, the US Navy Report on Fitness
of Officers, and the Annual Confidential Report (ACR) of the Indian Armed
Forces officers are based on this system. The major merit of this system is that
the scale checkings can be converted into scores which, in turn, can help in
statistical manipulation of data. However, the main problem with these scales is
that it is difficult to define the characteristics in terms that will have a common
and consistent meaning for all concerned.

Forced Choice Method

16. Forced choice method refers to a technique in which the appraiser is

presented with a set of alternative phrases and is forced to choose and tick mark
one of the alternatives while rating an individual. The appraiser is to check from
each block a statement, which to his mind, represents the closest approximation
to the description of the appraisee's performance or behaviour. This system is
only a variant of the Graphic Rating Scale.

Critical Incident Technique

17. In this technique, first of all, a list of incidents, which are of critical
importance to the success or failure of a job, is prepared. The incidents are then
translated into behavioural statements that have meaning in terms of
effectiveness or ineffectiveness of an individual. The statements are grouped
under various heads like Physical Attributes, Mental Attributes, Work Habits and
Attitudes. Later the Initiating Officer (immediate superior) maintains recording of
'critical incidents' i.e., notable instances of the appraisee’s performance or
behaviour, favourable/positive or unfavourable/negative, throughout the year, for
the purposes of annual appraisal. These records of critical incidents however,
are only useful as supporting data and not for the performance appraisal as
such.

18. In reality, it is difficult to make an effective use of Critical Incident

Technique for the appraisal of subordinates. Firstly, it is not possible to
accumulate enough incidents to cover all aspects of a subordinate’s job.
Secondly, it is not easy to keep a record of critical incidents handled by a
subordinate, check their validity in retrospect and predesign behavioural
statements on their basis. Thirdly, such a record itself is likely to be despised
and termed as 'black book' by those being appraised.

MBO Approach

19. The behavioural scientists consider the methods of appraisal discussed

above, highly subjective and advocate the use of MBO approach for appraisal.
 208 CDM/GM/17

This approach postulates that instead of trying to appraise what a person is, we
should put on record what he has done, i.e. appraisal should be done for
assessing the performance of the individual rather than for giving an assessment
of his personality. This method involves following steps :-

(a) The job should be studied to determine its Key Result Areas
(KRAs).

(b) Targets to be achieved by the individual over a period of time

should then be set.

(c) At the time of his appraisal, his performance in the KRAs should be
evaluated.

20. Those in favour of this approach argue that such an approach to appraisal
will be beneficial both for the development of the individual as well as the
organisation. It is objective and fair, since both the appraiser as well as the
appraisee know where they stand, resulting in improved superior subordinate
relationship. Those against it, point out that MBO approach concentrates only
on the end result and not on the means towards achievement of the same. The
emphasis on the individuals behaviour which is the most important aspect in
inter personal relationship is lacking. Also this approach may be good for
assessing performance but may not be suitable for assessing potential, training
and developmental needs. In the context of military environment it may not be
practical because it is difficult to set quantifiable goals. Also because of the
frequent transfers of the appraisee as well the appraiser, it may be difficult to
implement such a method.

BARS

21. BARS stand for Behaviourally Anchored Rating Scales. This method
attempts to combine trait rating with the specificity needed for fair and useful
performance appraisal. Instead of rating attitude, the BARS method uses
careful job analysis to determine what behaviours are actually required in a
certain job. These required behaviour patterns become ‘anchors’ for a rating
scale. For example, a trait rating scale might have a category called
‘Interpersonal Relations’ and give an appraiser a scale of 1 to 5 on which to
rate an individual’s performance in this category. A BARS format may have
following behaviour patterns listed for this category :-

5 4 3 2 1
Always has a cordial relation with (Various degrees of Does not get along
superiors, peers and subordinates. behaviour). well with others

22. This, obviously, gives more specific information but also requires much
more effort and work to develop. Though the process is complex, yet it can
produce a rating form that is based on relevant and specific measures of
performance.
 209 CDM/GM/17

Appraisal Through Assessment Centres Including Psychological Test.

23. The system of appraisals through Assessment Centres is relatively new.

However, it is fast becoming popular abroad, especially for selection for higher
level jobs. It is also being used in India in certain organisations, after some
modifications. In this method of appraisal the candidates are made to interact
within a group as well as with the raters for a period of two to three days. Simple
problem solving, seminars and inter play related sociometry, over informal get
together are observed by senior executives and specialists like psychologists. A
merit list is then prepared. The system though scientific, is expensive and
suitable perhaps at the final stage of selection, rather than appraisal. As part of
a hybrid system, it could be useful.

Hybrid System

24. Each of the systems described above is more useful for some of the
purposes of performance appraisal, than others. In an attempt to develop a
system that will satisfy all needs, some organisations have looked for ways to
measure both outcome and behaviour, such as MBO and rating systems like
BARS. These combinations, sometimes called Hybrid Systems, try to take the
strength of one system and avoid the weaknesses of other. It is, therefore,
evident that a combination of two or three methods would be a better approach,
especially when an organisation wants to use appraisal system for multipurpose.

25. Ideal Appraisal System. A model of an ideal appraisal system

encompassing both the ‘Judgmental’ and ‘Developmental’ needs is as shown in
Fig 2 on the next page.

Important Issues Involved in Appraisal Practices

26. Apart from the major issues in appraisal practices, like the objectives of
the appraisal and the methods of appraisal, discussed so far, other relevant
issues that generally come up are discussed in succeeding paragraphs.

27. Who Should Appraise? The normal practice in most of the organisations
is that the appraisals are to be made by the immediate superior and reviewed by
the next superior. The next superior is often required to state his reasons for
disagreement, if any, with the immediate superior. It is generally believed that
the two level evaluations provide checks and greater objectivity. In some cases,
like superior, the next superior is often required to state his reasons for
disagreement. In Steel Authority of India Ltd, the reporting officer and the
reviewing officer both do the rating, independently. This, it is believed, will bring
in greater objectivity and fairness. But it may not be feasible in organisations
where the personnel do not come in frequent contact with next superior officer.
 210 CDM/GM/17

Generate
data for Org
Job
to decide on
Structure

Man
power
Recruit-
planning
ment and
Selection

AR
Course Repor t Career
Resettle-
Planning
ment
Appraisal
Placements
System
Right man for
Counselling right j ob
Feedback Develop

Reward Spot indivi-

and duals with
Potential Career
incen- Planning
tives

Training

Promo-
tions

Generate
Confidence

Ideal Appraisal System

Fig 2
 211 CDM/GM/17

28. Self-Appraisal. In certain organisations individuals are asked to evaluate

their own performance. At the same time, his superior evaluates him. Later, the
two compare their evaluations and discuss the differences, if any. This system
of appraisal forces individuals to know the details of his job and makes him take
interest in it. It also provides him an opportunity for airing his grievances. As per
TV Rao, self-appraisal has an important role to play in in individual’s
development. Development is self-directed, and the individual is not likely to
learn and develop himself unless he is interested in his own learning and
development and makes a conscious effort to develop. To that end this practice
can be helpful.

29. Appraisal by Peers/Subordinates. Many specialists have recommended

that an individual be rated not only by his superiors but also by his peers and
subordinates. They are of the view that some employees find favour with their
superiors not on the basis of their job performance, but by soft pedalling and
running errands for them. The peer and subordinates rating will countermand
such influence they maintain.

30. Periodicity. The frequency of appraisal in Indian organisations is

generally once a year. However, there are a few organisations, particularly in
private sector that carry out performance appraisal twice a year. In Armed
Forces all over the world performance appraisal is annual except in West
German Army where reports are only required at two years intervals. From the
point of development of subordinates and career planning, a shorter duration
between two appraisals, certainly not more than a year, is necessary. In
organisations where MBO is practised, six monthly appraisals are more useful to
allow for mid course correction/counselling.

31. Open Vs Closed System. Viewed from ‘Judgmental’ angle, a closed

system of appraisal is preferable, where as, when viewed from the
‘Developmental’ angle an open system of appraisal is more appropriate.
Different organisations follow different methods in this regard, depending on their
organisational culture and ethos. Generally most of the public sector and
government organisations follow closed system, whereas the private companies
follow open or partially open system. In some organisations only adverse
remarks are communicated, and in others the performance appraisal portion is
shown to the appraisees, but assessment regarding his potential is kept secret.
The communication of complete report or adverse remarks has brought in many
problems.

Conclusion

32. Appraisal broadly has two purposes; Judgmental – to meet the

requirements of the organisation, and Developmental – to meet the needs of the
individual. In some areas these two purposes are in conflict, which gives rise to
 212 CDM/GM/17

the controversy as to what extent the appraisal system should be open or closed.
A lot of modifications have taken place over the years, but generally the Armed
Forces continue to follow a fairly closed system of appraisal, with substantial tilt
towards meeting the organisational requirements.

33. Keeping in view the present demand of transparency in the environment,

and higher aspirations of the subordinates, there is no denying that appraisal
system will have to become more open, with greater focus on the needs of the
individual. Catering to the growth and developmental needs of the subordinates
and making them feel a part of the system, will help in meeting the challenges of
the future effectively.

Bibliography

1. ‘Essentials of Organisation Development and Change’ by Thomas g

Cummings and Christopher G Worley, South Western College Publishing, Ohio,
2001, ISBN 0-324-02399-5

2. Basu Mihir K., Performance Appraisal in India, Centre for Organisation

Development, Hyderabad. 1985.

3. Bharadwaj SBL, Appraisal Models and Principles, Research Project on

Managerial Report II, ASCI Hyderabad, 1971.

4. Gelgolor, William C, Performance Appraisal and the MBO Process,

McGraw Hill Book Company, 1978.

5. Kellog, Marlon S. What to Do About Performance Appraisal, AMA, 1965.

6. Larsen & Toubro Limited, Performance Appraisal Manual - 1982.

7. Rao T. Venkateswara and Pareek Udai, Performance Appraisal and

Review, Learning Systems War 1978.

8. Singh P Maggu A and Warrier SK, Performance Appraisal Systems A

Critical Analysis, ASCI, Hyderabad, 1986.

9. Indira Gandhi National Open University, School of Management Studies,

MS 2, Motivation, Job Design and Appraisal, 1988.
 213 CDM/GM/17

Questions

1. What are the differences between the traditional and modern approaches
to appraisal ?
2. What is the purpose of an appraisal system?

3. Describe the concept of performance appraisal?

4. What are the criteria of a good appraisal system?

5. Discuss the strengths and weaknesses of the appraisal systems followed

in the three services.

*****
 214 CDM/GM/18

COLLEGE OF DEFENCE MANAGEMENT

SYSTEMS APPROACH TO TRAINING

Enabling Objectives

• Understand the concept of a systematic approach to training.

• Develop an understanding of the processes of a systems approach to

training.

Learning Objectives

• Identify the steps involved in the systems approach to training.

• Be able to differentiate between education, training and development.

Introduction

1. There are several traditional systematic approaches to training such as

Instructional System Design (ISD), Performance-Based Training (PBT) and
Criterion Referenced Instruction (CRI). Simply stated, this process provides a
means for sound decision making to determine the who, what, when, where,
why, and how of training. The concept of a system approach to training is based
on obtaining an overall view of the training process. It is characterized by an
orderly process for gathering and analyzing collective and individual
performance requirements, and by the ability to respond to identified training
needs. The application of a systems approach to training insures that training
programs and the required support materials are continually developed in an
effective and efficient manner to match the variety of needs in an ever rapidly
changing environment.

2. It has some common elements:-

(a) Competency Based (Job Related). The learners are required

to master a Skill, Knowledge, or Attitude (SKA). The training focuses on
the job by having the learners achieve the criteria or standards necessary
for proper task performance.

(b) Sequential. Lessons are logically and sequentially integrated.

(c) Tracked. A tracking system is established that allows changes

and updates to the training materials to be performed efficiently.

(d ) Evaluated. Evaluation and corrective action allows continuous

improvement and maintenance of training information that reflects current status
and conditions.
 215 CDM/GM/18

Systems and Processes

3. A system is defined as a set of concepts or parts that must work together

to perform a particular function. An organization is a system or a collection of
systems. Every job in an organization is used by a system to produce a product
or service. The product or service is the means by which a organization supports
itself.

4. There are four inputs necessary in every system to produce a product or

service:-

(a) People. The workers making up a group and linked by a

common activity.

(b) Material. The raw products which go into the system.

(c) Technology. The technique for achieving a practical purpose or

goal.

(d) Time. The measured period during which an action or process

begins and ends.

5. This process could have been a haphazard creation, which generally

waste time and money, a planned action, or a combination of both. A Systems
Approach to Training is a planned creation of a training program. It is a
development program that uses step-by-step processes to solve problems.

6. A large company may have several systems, which are generally broken
down into departments or groups, while a small company may only have one
system. All of these systems have three basic functions.

(a) Input. Something must be going into the system, otherwise, it is a

mysterious sphere where products or services mystically radiate from it.
The basic inputs of a system are material, people, technology, and time.
Training is mostly concerned where people and technology meet.

(b) Process. Some type of work must be accomplished in the system.

This work is the technology performed that changes the material input
into the systems output. Look for the means to help workers master and
apply the unique technology governing their tasks.

(c) Output. A desired service or product must be produced. If there is

no output, then it is a black hole where things go in, but nothing emerges.
The goal in training is to allow the workers to use the available technology
efficiently and effectively to produce the desired product or service.

Processes

7. A process is a planned series of actions that advances a material or

procedure from one stage of completion to the next within a system. A system
 216 CDM/GM/18

generally has several processes in it. Like a system, it also has an input and an
output.

8. Being able to break an organization into systems and process will help in
training development. By identify a process within a system, you will be able to
concentrate on a small chunk of a very large piece. For example, when you are
analyzing a job, you break it into duties, tasks, and steps to make your task
more manageable.

Training Defined

9. Training is defined as learning that is provided in order to improve

performance on the present job.

10. Notice that the last part of the definition states that training is provided for
the present job. This includes training new personnel to perform their job,
introducing a new technology, or bringing an employee up to standards.

11. Earlier it was stated that there are four inputs to a system ie. people,
material, technology, and time. Training is mainly concerned with the meeting of
two of these inputs namely, people and technology. That is, having people learn
to master a given technology.

Training, Development, and Education

12. As discussed earlier, training is the acquisition of technology which

permits employees to perform their present job to standards. It improves human
performance on the job the employee is presently doing or is being hired to do.
Also, it is given when new technology in introduced into the workplace.

13. Education is training people to do a different job. It is often given to

people who have been identified as being promotable, being considered for a
new job either lateral or upwards, or to increase their potential. Unlike training,
which can be fully evaluated immediately upon the learners returning to work,
education can only be completely evaluated when the learners move on to their
future jobs or tasks. We can test them on what they learned while in training, but
we cannot be fully satisfied with the evaluation until we see how well they
perform their new jobs.

14. Development is training people to acquire new horizons, technologies, or

viewpoints. It enables leaders to guide their organizations onto new expectations
by being proactive rather than reactive. It enables workers to create better
products, faster services, and more competitive organizations. It is learning for
growth of the individual, but not related to a specific present or future job. Unlike
training and education, which can be completely evaluated, development cannot
always be fully evaluated. This does not mean that we should abandon
development programs, as helping people to grow and develop is what keeps an
organization in the cutting edge of competitive environments. Development can
be considered the forefront of what many now call the Learning Organization.
 217 CDM/GM/18

15. Development involves changes in an organism that are systematic,

organized, and successive and are thought to serve an adaptive function.
Training could be compared this metaphor - if I miss one meal in a day, then I
will not be able to work as effectively due to a lack of nutrition. While
development would be compared to this metaphor - if I do not eat, then I will
starve to death. The survival of the organization requires development
throughout the ranks in order to survive, while training makes the organization
more effective and efficient in its day-to-day operations. Using a systems
approach to design training, education, and development programs ensure that
an organization gets the most from its resources.

The Training System

16. When some people see or hear the word system, they think of mega-
methodologies that require several bookcases and intense training to use. A
System Approach to Training is not that difficult or complicated. The Instructional
System Development (ISD) Model was designed to solve training problems.
Figure on the next page shows the ISD model. It was first established by the
Department of Defense, USA, but can now be found in almost any type of
organization around the world. It grew out of the "systems analysis" concepts
that became popular after World War II. It is probably the most extensively used
instructional design model in use today.

17. ISD is concerned with the identification of training requirements based on

the analysis of job performance requirements data obtained from experts in the
job to be performed. Training objectives are formulated as a result of the job
analysis process and tests are developed to be used to assess the learner's
progress toward meeting the training objectives. ISD or SAT also attempts to
bring structure to the instructional design process when determining the optimal
instructional strategies, instructional sequencing, and instructional delivery
media for the types of training objectives involved.

18. Although there are minor differences, most development systems follow
an approach similar to this :-

(a) Analyze the system in order to completely understand it, and then
describe the goals you wish to achieve in order to correct any
shortcomings or faults within the system.

(b) Design a method or model to achieve your goals.

(c) Develop the model into a product (in training, this product is called
courseware).

(d) Implement the courseware.

(e) Evaluate the courseware and audit-trail throughout the four phases
and in the field to ensure it is heading in the right direction and achieving
the desired results.
 218 CDM/GM/18

The Systems Approach Model

19. The flowchart model used in Figure given below, shows the five phases
with their basic steps listed below them.

20. The five phases are ongoing activities that continue throughout the life of
a training program. After building a training program, the other phases do not
end once the training program is implemented. The five phases are continually
repeated on a regular basis to see if further improvements can be made.

ANALYSE

IMPLEMENT EVALUATE DESIGN

DEVELOP

Flowchart: ISD Model of Training

21. Analyze.

(a) Analyze system (department, job, etc.) to gain a complete

understanding of it.

(b) Compile a task inventory of all tasks associated with each job (if
needed).

(c) Select tasks that need to be trained (needs analysis).

(d) Build performance measures for the tasks to be trained.

(e) Choose instructional setting for the tasks to be trained, e.g.

classroom, on-the-job, self study, etc.

(f) Estimate what is going to cost to train the tasks.

 219 CDM/GM/18

22. Design.

(a) Develop the learning objectives for each task, to include both
terminal and enabling objectives.

(b) Identify and list the learning steps required to perform the task.

(c) Develop the performance tests to show mastery of the tasks to be

trained, e.g. written, hands on, etc.

(d) List the entry behaviors that the learner must demonstrate prior to
training.

(e) Sequence and structure the learning objectives, e.g. easy tasks
first.

23. Develop.

(a) List activities that will help the students learn the task.

(b) Select the delivery method such as tapes, handouts, etc.

(c) Review existing material so that you do not reinvent the wheel.

(d) Develop the instructional courseware.

(e) Synthesize the courseware into a viable training program.

(f) Validate the instruction to ensure it accomplishes all goals and

objectives.

24. Implement

(a) Create a management plan for conducting the training.

(b) Conduct the training.

25. Evaluate.

(a) Review and evaluate each phase (analyze, design, develop,

implement) to ensure it is accomplishing what it is supposed to.

(b) Perform external evaluations, e.g. observe that the tasks that were
trained can actually be performed by the learner on the job.

(c) Revise training system to make it better.

Making The System Effective

26. One important point must be made. The SAT model is a system to aid in
the design and development of a training program. It is a valuable toolbox that
provides a proven method of building a viable training program. But, the people
in the organization must control the training system, the system should not
 220 CDM/GM/18

control the people. Immediate problems often arise that require rapid solutions.
Don't get hung up in the system model by refusing to bypass a step, switch
steps, modify a step, or include steps of your own. Managers and supervisors
often need quick and ingenious solutions, not another bureaucracy. In other
words, the training department's motto should be: "We provide training
solutions!" Not, "We follow the SAT model."

27. The steps in each phase should not be thought of as concrete in nature.
That is, one step does not have to be completed before the next one is started.
For example, some training designers will have to complete part of the work in
the design phase before they can complete the estimate step in the analysis
phase. In the development phase, the first three steps, list learner activity, select
delivery system, and review existing material, might be combined into one step
by many developers. Every training project will develop its own rhythm. The
developers must find the natural flow of the steps required to produce a
successful training program. Although the SAT process is a formal one, in that
the five phases should be performed as shown in the flowchart, it requires both
art and science in its implementation.

28. Also, in many instances, steps may be bypassed. For example, if a

manager comes with a training problem, the task identification steps will be
skipped since you know which task needs trained. The less you know about a
subject or the more technical the material is, then the closer you need to follow
the model.

29. At work, the potter sits before a lump of clay on the wheel. Her mind is on
the clay, but she is also aware of sitting between her past experiences and her
future prospects. She knows exactly what has and has not worked for her in the
past. She has an intimate knowledge of her work, her capabilities, and her
markets. As a craftsman, she senses rather than analyzes these things; her
knowledge is ‘tacit.’ All these things are working in her mind as her hands are
working the clay. The product that emerges on the wheel is likely to be in the
tradition of her past work, but she may break away and embark on a new
direction. Even so, the past is no less present, projecting itself into the future. -
Henry Mintzberg, "Crafting Strategy", Harvard Business Review, July-August
1987.

30. The five phases - analysis, design, development, implementation, and

evaluation should be under one management team to ensure that a symmetrical
program is constructed.

31. The design must be an empirical one. This requires observation,

measurement of behavior, careful evaluation of feedback, and a strong
motivation to make design changes when needed.

32. The process of implementation, testing, feedback, evaluation, and

change must be repeated throughout the training system's life to improve upon
it. Do NOT fall into the old adage, "If it ain't broke, don't fix it." Make it better
before your competitors do! Records must be maintained. The audit trail should
contain the data gathered in the analysis, the reasons for developing a piece of
courseware, and documents that explain why certain decisions were made. This
 221 CDM/GM/18

information could prove invaluable in the future when changes are needed or
when a similar program must be built.

The Three Learning Factors

33. There are three factors that must happen for a successful learning
experience to take place:-

(a) Knowledge. The trainer must know the subject matter. She also
provides the leadership, models behavior, and adapts to learning
preferences.

(b) Environment. The trainer must have the tools to transfer the
subject matter to the learners, i.e. computers and software for computer
classes, adequate classroom space, courseware such as lesson plans
and training aids, etc. The trainer must fuse these training tools with the
learning preferences of the learners.

(c). Involvement Skills. The trainer must know the learners. Easy
enough, you say: “I have a student roster that lists their names,
departments for which they work, and I always ask them to give a short
introduction about themselves at the beginning of the class." But, do you
really know your learners? What are their real goals for being in the
classroom? What are their learning styles? What tools do they need to
help them succeed? What are some of the affective-tools that will help
you to help your learners succeed in the learning environment you have
been charged with? You must also coach the learners to become self-
directed, intrinsically motivated, goal oriented, and open to learning.

Feedback

34. Carl Rogers listed five main categories of feedback. They are listed in the
order in which they occur most frequently in daily conversations (notice that we
make judgments more often than we try to understand):

(a) Evaluative: Makes a judgment about the worth, goodness, or

appropriateness of the other person's statement.

(b) Interpretive: Paraphrasing - attempt to explain what the other

persons statement mean.

(c) Supportive: Attempt to assist or bolster the other communicator

Probing: Attempt to gain additional information, continue the discussion,
or clarify a point.

(d) Understanding: Attempt to discover completely what the other

communicator means by her statements.
 222 CDM/GM/18

Counseling

35. Counseling has a powerful, long-term impact on the learners and the
effectiveness of the organization. There are two type of counseling - directive
and nondirective. In directive counseling, the counselor identifies the problem
and tells the counselee what to do about it. Nondirective counseling means the
counselee identifies the problem and determines the solution with the help of the
counselor. The counselor has to determine which of the two, or some
appropriate combination, to give for each situation.

Positive Reinforcement

36. Throughout a program of instruction there needs to be continuous or

intermittent reinforcements. These reinforcements are what cause the operates
(responses) to be learned by the learner. Reinforcers can be either rewards
(positive) or punishment (negative). However, negative reinforcers have the
greatest effect when they are discontinued. Reinforcers do not always have to
be verbal. For example, head nods, a form of gestures, communicate positive
reinforcement to learners and indicate that you are listening.

Revise System

37. Once a training deficiency has been noted, the ISD process is repeated
to correct the deficiency. This does not mean that the entire training program is
rebuilt -- just the portions that had deficiencies or will be affected by the
changes.

Bibliography

1. Brown, Frederick G (1971). Measurement and Evaluation. Itasca, Illinois:

F.E. Peacock. Return http://www.nwlink.com/~donclark/hrd/sat6.html

2. Gilbert, T. (1998). A Leisurely Look at Worthy Performance. The 1998

ASTD Training and Performance Yearbook. Woods, J. & Gortada, J. (editors).
New York McGraw-Hill.
 223 CDM/GM/18

3. Kirkpatrick, Donald, (1994). Evaluating Training Programs. San

Francisco, CA: Berrett-Koehler Publishers,
Inc.http://www.nwlink.com/~donclark/hrd/people.html> member.) Return
http://www.nwlink.com/~donclark/hrd/sat6.html

4. Markus, H. & Ruvulo, A. (1990). "Possible selves. Personalized

representations of goals." Goal Concepts in Psychology. Pervin, L. (Editor).
Hillsdale, NJ: Lawrence Erlbaum. Pp. 211-241.

Questions

Q1. What are the different phases of the systems approach of training?
Elaborate on any two.

Q2. How can a system be made more effective ?

Q3. What are the four levels of training evaluation ?

Q4. Differentiate between training and development.

 224 CDM/GM/19

PERFORMANCE MANAGEMENT

Early Days
1. The first recorded use of the term ‘Performance Management’ is in Beer and
Ruh. Their thesis was that performance is best developed through practical
challenges and experiences on the job, with guidance and feedback from superiors.
They described the Performance Management system at Corning Glass Works, the
aim of which was to help managers give feedback in a helpful and constructive way
and to aid in the creation of a developmental plan. The features of this system which
the authors said distinguished it from other appraisal schemes, were as follows:-
(a) Emphasis on both development and evaluation.
(b) Use of a profile defining the individual’s strengths and development
needs.
(c) Integration of the results achieved with the means by which they have
been achieved.
(d) Separation of Development Review from Salary Review.
2. Although this was not necessarily a model performance management
process, it did contain a number of characteristics still regarded as good practice.
3. The concept of Performance Management then lay fallow for some years, but
began to emerge in the USA in the mid 1980s as a new approach to managing
performance. However, one of the first books exclusively devoted to performance
management was not published until 1987. He described what had become the
accepted approach to performance management as follows :-
“Performance management is communication; a manager and an employee
arrive together at an understanding of what work is to be accomplished, how it
will be accomplished, how work is progressing toward desired results, and
finally after effort is expended to accomplish the work, whether the
performance has achieved the agreed upon plan. The process recycles when
the manager and employee begin planning what work is to be accomplished
for the next performance period. Performance management is an umbrella
term that includes performance planning, performance review, and
performance appraisal. Major work plans and appraisals are generally made
annually. Performance review occurs whenever a manager and an employee
confirm, adjust or correct their understanding of work performance during
routine work contacts.”
4. In the UK, the first published reference to Performance Management was
made at a meeting of the Institute of Personnel Management (IPM) Compensation
Forum in 1987 by Don Beattle, the Personnel Director, ICL, who described how it
was used, as an essential contribution to a massive and urgent change programme
in the organization and had become a part of the fabric of the business.
5. By 1990 Performance Management had entered the vocabulary of HRM in the
UK as well as in the USA. Fowler defines what has become the accepted concept of
performance management thus: “Management has always been about getting things
 225 CDM/GM/19

done, and good managers are concerned to get the right things done well. That in
essence is Performance Management – the organization of work to achieve the best
possible results. From this simple viewpoint, performance management is not a
system or technique, it is the totality of the day-to-day activities of all managers.”

Performance Management Established

6. Full recognition of the existence of Performance Management was provided
by the research project conducted by the Institute of Personnel Management. The
following definition of Performance Management was produced as a result :-
“A strategy which relates to every activity of the organization set in the context
of its human resources policies, culture, style and communication systems.
The nature of the strategy depends on the organizational context and can
vary from organization to organization.”
7. It was suggested that what was described as a Performance Management
system (PMS) complied with the text book definition when the following
characteristics were met by the organization :-
(a) It communicates a vision of its objectives to all its employees.
(b) It sets departmental and individual performance targets that are related
to wider objectives.
(c) It conducts a formal review of progress towards these targets.
(d) It uses the review process to identify training, development and reward
outcomes.
(e) It evaluates the whole process in order to improve effectiveness.
8. In addition, Performance Management organizations :-
(a) Express performance targets in terms of measurable outputs,
accountabilities and training/learning targets.
(b) Use formal appraisal procedures as ways of communicating
performance requirements that are set on a regular basis.
(c) Link performance requirements to pay, especially for senior managers.
9. In the organizations with Performance Management systems, 85% had
performance pay and 76% rated performance. The emphasis was on objective–
setting and review which, as the authors of the reported noted, ‘leaves something of
a void when it comes to identifying development needs on a longer term basis…
there is a danger with results-oriented schemes in focusing excessively on what is to
be achieved and ignoring the how. It was noted that some organizations were
moving in the direction of Competency Analysis, but not very systematically.
10. Two of the researchers (Bevan and Thompson) commented on the
emergence of Performance Management systems as integrated processes that
mesh various HRM activities with the business objectives of the organization. They
identified two broad thrusts towards integration :-
 226 CDM/GM/19

(a) Reward-driven integration, which emphasizes the role of performance

pay in changing organizational behavioural and tends to undervalue the part
played by other human resource development (HRD) activities. This appeared
to be the dominant mode of integration.
(b) Development driven integration which stresses the importance of HRD.
Although performance pay may operate in these organizations, it is perceived
to be complementary to HRD activities rather than dominating them.
11. Some of the interesting conclusions emerging from this research were that :-
(a) No evidence was found that improved performance in the private
sector is associated with the presence of formal Performance Management
Programmes.
(b) An overwhelming body of psychological research exists which makes
clear that as a way of enhancing individual performance, the setting of
performance targets is inevitably a successful strategy.
(c) The process of forming judgements and evaluation of individual
performance is an almost continuous one. Most often it is a subconscious
process, relying on subjective judgements based on incomplete evidence and
spiced with an element of bias.
(d) The focus has been on the splendid sounding notion of the
performance orientated culture and of improving the bottom line, and/or the
delivery of services. Whilst this is well and good, the achievement of such
ends has to be in concert with the aims and the development needs of
individuals.

Performance Management – The New Flavour

12. Performance Management arrived in the late 1980s partly as a reaction to the
negative aspects of merit-rating and Management by Objectives referred to earlier.
Of course, it at first incorporated many of the elements of earlier approaches, for
example, Rating, Objective-Setting and review, a performance pay and a tendency
towards Trait Assessment. Conceptually, however performance management is
significantly different from previous approaches, although in practice the term has
often simply replaced ‘Performance Appraisal’, just as HRM’ has frequently been
substituted for ‘Personnel Management’, without any discernible change in approach
- lots of distinctions, not many differences.
13. Performance Management may often be no more than new wine in old
bottles, or, to mix metaphors, a flavour of the month. But it exists, and research
demonstrates that interest is growing.
14. The market economy and entrepreneurial culture of the 1980s focused
attention on gaining competitive advantage and getting added value from the better
use of resources. Performance orientation became important, especially in the face
of global competition and recession. The rise of HRM also contributed to the
emergence of Performance Management. The aims of HRM are to :-
 227 CDM/GM/19

(a) Adopt a strategic approach – one in which HR strategies are integrated

with business strategies.
(b) Treat people as assets to be invested in to further the interests of the
organization.
(c) Obtain higher levels of contribution from people by HRD and reward
management.
(d) Gain the commitment of employees to the objectives and values of the
organization.
(e) Develop a strong corporate culture expressed in mission and value
statements and reinforced by communication
15. Advocates of Performance Management believe that it is a practical approach
to the achievement of each of these aims. The use of Performance Management in
the best practice companies is not because it is a better technique than Performance
Appraisal, but because it can form one of a number of integrated approaches to the
management of performance. The appeal of Performance Management in its fully
realized form is that it is holistic; it pervades every aspect of running the business
and helps to give purpose and meaning to those involved in achieving organization
success.

Performance Management Defined

16. Performance Management is a fairly imprecise term, and performance
management processes (or systems, as some people persist in calling them)
manifest themselves in many different forms. There is no one right way of managing
performance : the approach must depend on the context of the organization – its
culture, structure, technology – the views of stakeholders and the type of people
involved. But it is still possible, and desirable, to define in very broad terms what
performance management is about and to discuss generally the concerns and scope
of fully realized processes of managing performance.
17. Performance management is a strategic and integrated approach to delivering
sustained success to organizations by improving the performance of the people who
work in them and by developing the capabilities of teams and individual contributors.
Performance management is:-
(a) Strategic in the sense that it is concerned with the broader issues
facing the business if it is to function effectively in its environment, and with
the general direction in which it intends to go to achieve longer-term goals.
(b) Integrated in four senses:-
(i) Vertical integration – linking or aligning business, team and
individual objectives.
(ii) Functional integration – linking functional strategies in different
parts of the business.
(iii) Human resource (HR) integration – linking different aspects of
human resource management (HRM), especially organizational
 228 CDM/GM/19

development and human resource development and reward, to achieve

a coherent approach to the management and development of people.
(iv) The integration of individual needs with those of the
organization, as far as this is possible.
(c) Concerned with performance improvement in order to achieve
organizational, team and individual effectiveness. Organisations, as stated by
Lawson (1995), have ‘to get the right things done successfully’. Performance
is not only about what is achieved but also about how it is achieved.
Management is involved in direction, measurement and control. But these are
not the exclusive concerns of managers; teams and individuals jointly
participate as stake holders.
(d) Concerned with development, which is perhaps the most important
function of Performance Management. Performance improvement is not
achievable unless there are effective processes of continuous development.
This addresses the core competences of the organization and the capabilities
of individuals and teams. Performance Management should really be called
‘Performance and Development Management’.
18. An alternative but complementary definition is provided by Fletcher :-
“ The real concept of Performance Management is associated with an
approach to creating a shared vision of the purpose and aims of the
organization, helping each employee understand and recognize their part in
contributing to them, and in so doing, manage and enhance the performance
of both individuals and the organizations.”

Concerns of Performance Management

19. Leadership Factors - the quality of encouragement, guidance and support
provided by managers and team leaders.
20. Team Factors - the quality of support provided by colleagues.
21. Systems Factors - the system of work and facilities provided by the
organization.
22. Contextual (situational) Factors – internal and external environmental
pressures and changes.
23. Cardy and Dobbins (1994) point out that traditional approaches to
performance appraisal attribute variations in performance to personal factors, when
they could be caused in part or entirely by situational or systems factors. Deming
made the same point even more forcibly. Performance reviews must therefore
consider not only what individuals have done but also the circumstances in which
they have had to perform. And, importantly, this analysis should extend to the
performance of the manager as a leader.
 229 CDM/GM/19

Processes for Managing Performance

24. It has been well said by Mohrman and Mohrman that managing performance
is ‘running the business’. It is not a set of techniques, and it is certainly not all about
‘performance management systems’, (although ‘performance management process
can play an important part). Kermally believes that performance management
should support corporate strategy formulation and monitor value drivers, i.e., those
elements that really make the business profitable.
25. If an all-embracing or holistic approach to the management of performance is
adopted, the following aspects of what makes organizations, teams and individuals
perform well must be considered:-
(a) The context of the organization.
(b) Culture.
(c) Functionality
(d) Job design (for individuals)
(e) Team work.
(f) Organisational developments.
(g) Purpose and value statements.
(h) Strategic management.
(j) Human resource management.

Organisational Context
26. Organisations can be regarded as open systems that are continually
dependent upon and influenced by their environment. As Katz and Kahn wrote,
‘Systems theory is basically concerned with problems of relationship, of structure
and of interdependence. The emphasis is on transactions across boundaries –
between the system and the environment, and between the different parts of the
system. The socio-technical model of organization the technical or task aspects are
interrelated with the human aspects. Managing performance is about managing
within this context. So far as possible it is concerned with managing the context, or
at least influencing it.
27. The external global and national environment – business, economics, politics
and society – it is constantly changing and indeed may be turbulent, even chaotic. It
imposes changes on the performance requirements of the organization, including the
need for continuous improvement to maintain competitive edge. The social and
technical systems in the internal environment are therefore also in a constant state of
change, so performance management processes must help to shape this change, as
well as respond to it.
28. Contingency theory suggests that the internal structure of an organization and
its systems are a direct function of its environment. The action theory contingency
model as developed by Silverman and as illustrated in Figure traces the factors
linking organizational performance to critical environment pressures. Contingency
theory states that whatever is done with an organization must fit its circumstances.
 230 CDM/GM/19

That is why no performance management system can safely be transformed from

one organisation to another. Best Fit is therefore more crucial than Best Practice.

Managerial Plans and

actions

External and
Internal Organisational
environment performance

Organisational
Structure

29. Research has established the best practice organizations were those that
emphasized the contextual issues. BP Exploration (BPX) for example, identified
these as :-
(a) The business BPX does.
(b) The way BPX does business.
(c) The shape BPX is in.
30. These issues are changing rapidly, the processes for managing performance
are expected to facilitate such changes and assist adaptation to them.

Culture
31. Culture can be described as the glue that holds organizations together and
performance management, both in philosophy and design, is inevitably influenced by
the prevailing organizational culture. This may be embedded in deeply held beliefs,
reflecting what has worked in the past and composed of responses that have been
accepted because they have met with success. Culture will dominate the internal
environment of the organization, which will also be influenced by structure, size,
working practices, the employee-relations climate and the type of people employed.
Culture dictates both the behaviour and the attitudes of individuals.
32. The components of organizational culture are values, norms and
management style:-
(a) Values are expresses as beliefs in what is good for the organization
and what sort of behaviour is desirable. Values are reflected in how people
interact, customer care, innovation, social responsibility and how employees
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are developed. They influence both the focus of performance management

(for example on customer care, quality or innovation) and how performance
management is carried out (for example, the things that are measured).
(b) Norms are unwritten rules that define expectations of behaviour, such
as how managers treat individuals and how individuals relate to their
managers. Norms govern how performance management operates.
(c) Management style described the way in which managers behave and
how they exercise power and authority. A command-and-control style of
management is likely to produce a task-oriented style of performance
management, whereas a non-directive participative style of management is
more likely to support a partnership approach to performance management
with an emphasis on involvement empowerment and ownership.
33. It is possible to change this culture, and therefore the consequences for
performance management, and organizational development philosophy provides
useful lessons. Bandura (1986) states that people make conscious choices about
their behaviour. These choices are influenced by information from the environment,
and are based upon the things that are important to them, the views they have about
their own abilities to behave in certain ways and the consequences they think will
result from whatever behaviour they decide to engage in. The implication is that
performance management processes can be a powerful tool in helping to achieve
change by providing for the joint identification by the manager and the individual of
the targeted behaviour required and the skills required to reach the target.

Functionality
16. How organizations function is a contextual factor that directly affects the
design and operation of performance management processes. There are three
issues that affect performance management :-
(a) The organization may operate globally or, for example, across Europe.
It may be controlled rigidly from headquarters not only as regard the results it
has to achieve, but also how those results are achieved. This centralization
can extend to HR processes, including performance management. At the
other extreme, the centre will be concerned only with business plans and
achievements, and will leave the local plant to develop its own HR and other
practices. Between these two extremes, the centre may provide guidelines on
practices such as performance management, for example insisting that it is
carried out in accordance with certain general principles, but will leave local
management to decide how to apply the principles in their own environment.
(b) Organisations within one country may devolve authority to a greater or
lesser degree to business units, subsidiaries or divisions. Again there may be
total central control, total freedom, or freedom to act within certain
parameters.
(c) Organisational structures impinge on performance because, in a
sense, they are the framework for getting things done. The traditional view of
an organization as being highly structured with extended hierarchies and
clearly defined lines of command and control is no longer valid in the new
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situations that organizations are finding themselves in. Such structures can
inhibit rather than enhance performance if, as is usually the case today, the
emphasis is on flexibility, teamwork and rapid response.
17. Pascale (1990) believes that the new organizational paradigm functions by
moving :-
(a) From the image of organizations as machines, with the emphasis on
concrete strategy, structure and systems to the idea of organizations as
organisms, with the emphasis on the ‘soft’ dimensions – style, staff and
shared values.
(b) From a hierarchical model, with step by step problem-solving, to a
network model, with parallel nodes of intelligence that surround problems until
they are eliminated.
(c) From the status-driven view that managers think and workers do as
they are told, to a view of managers as ‘facilitators’ with workers empowered
to initiate improvements and change.
(d) From an emphasis on ‘vertical tasks’ within functional units to an
emphasis on ‘horizontal tasks’ and collaboration across units.
(e) From a focus on ‘content’ and the prescribed use of specific tools and
techniques to a focus on ‘process’ and a holistic synthesis of techniques.
(f) From a military model to a commitment model.
18. This list not only described the basis upon which new organizations are being
structured to meet contextual challenges but is also a useful guide to the
organizational factors that should be taken into account when developing
performance-management processes.

Job Design
19. Job design for individual contributors can be defined as the specification of
the contents, methods and relationships of jobs in order to satisfy technological and
organizational requirements as well as the social and personal requirements of the
jobholder.
20. Job design’s aims, all directly affecting performance are:-
(a) To specify job context, role expectations and relationships.
(b) To satisfy the requirements of the organizations for productivity,
operational efficiency and quality of product or service.
(c) To satisfy the needs of the individual for interest, challenge and
accomplishment.
21. These aims are interrelated, and effective job design can go some way
towards integrating organizational and individual needs. It is certainly a means of
providing intrinsic motivation and given the right levels of competence and an
appropriate context, a basis for improving performance.
22. A job will maximize interest and challenge and will therefore motivate, if it has
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the following characteristics:-

(a) It is complete piece of work, in the sense that the worker can identify a
series of tasks or activities that culminate in a recognizable end-product.
(b) It affords the individual as much variety, decision-making responsibility
and control as possible in carrying out the work.
(c) It provides direct feedback through the work itself on how well
employees are doing their jobs.
23. These characteristics were advocated by the job enrichment movement of the
1960s. In more recent years, the concept of empowerment has been developed as
a vehicle for enhancing performance. Empowerment is the process of giving people
more scope or power to exercise control over and take responsibility for their work.
In 1990s jargon, its aim is to give people more space. Empowerment has been
termed the elixir of the 1990s and ideally the philosophy of performance
management embraces this concept.

Team work
24. Flatter and process-based organizations emerged as the most favoured
structures in the 1990s through processes of de-layering and business process re-
engineering. One of the most important developments emerging from these
initiatives was the perceived need for better teamwork arising from the use of
multifunctional, multidiscipline teams and other forms of organization. This move
was accelerated by the introduction of new technology such as CIM (Computer-
Integrated Manufacturing) and the emphasis on providing customer focus through
teams in financial and service industries, often self-managed.
25. It seems logical therefore that more attention should be given to performance
management for teams as well as individuals. But one of the more remarkable
findings from our research was the almost neglect of this aspect of managing for
performance.

Organisational Development
26. Organisational Development is concerned with the planning and
implementation of programmes (interventions) designed to improve the effectiveness
with which an organization functions and manages change.
27. Organisational development approaches have a strong humanistic foundation.
The basic philosophy was defined by Bennis (1960) as follows:-
(a) A new concept of people, based on increased knowledge of their
complex and shifting needs, which replaces an over simplified, push button
notion of people.
(b) A new concept of power, based on collaboration and reason, which
replaces a model of power based on coercion and threats.
(c) A new concept of organization values, based on humanistic-democratic
ideas, which replaces the mechanistic value system of bureaucracy.
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28. This philosophy of organizational development (OD) has been dismissed by

many hard-headed commentators as idealistic. But some of the messages it
contains have been absorbed into the philosophy of performance management and
should not be ignored. At least the OD practitioners of the 1970s saw the
organization as an entity, and based their approaches on a coherent view of how the
various processes should be developed and managed. This provides impetus to the
concept of Performance Management as a holistic and integrating process.

Purpose and Value Statements

29. High-level performance that meets the needs of all stake holders is more
likely to be achieved if it is purposeful and in accordance with an agreed set of core
values. A statement of purpose defines overall what the organization is setting out to
do. It is therefore more outcome-oriented than a typical mission statement and can
provide a lead in formulating statements of functional team and individual role
purposes. Purpose-statements define what is to be achieved, whereas value-
statements define the behaviour expected in attaining the purpose. They both cover
such the individual.

Strategic Management
30. Strategic management has been defined by Pearce and Robinson as :-
“The set of decisions and actions resulting in the formulation and
implementation of strategies designed to achieve the objectives of an
organization.”
31. The purpose of strategic management has been expressed by Rosabeth
Moss Kanter who states that strategic plans elicit the present actions for the future
and become action vehicles – integrating and institutionalizing mechanisms for
change.
32. A frequently expressed aim of performance management is to integrate
individual or team objectives with those of the organization – often described as a
cascading process, which implies that it is entirely top down. This concept is
challenged by the philosophy of empowerment which suggests that employees
should contribute to the formulation of the objectives that directly affect them.
33. Michael Porter suggests that strategy is about choice that is not just about
winning the race, but about choosing the right race to win. He states that companies
are collections of discrete activities in which competitive advantage resides. The aim
of strategy is to achieve maintain and extend best practice by :-
(a) Employing the most up-to-date equipment inputs, information
technology and management techniques.
(b) Eliminating waste, defects and delays.
(c) Stimulating continuous organizational improvement.
(d) Operating closer to the productivity frontier.
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34. Strategic management sets the scene for the management of performance,
and Porter believes that the general manager as strategist :-
(a) Defines and communicates the company’s unique position.
(b) Decides which industry changes and customer needs to respond to.
(c) Guides people in making choices that arise in their individual activities
and in day-to-day decisions.
35. He has also expressed the view (Porter 1985) that :-
(a) Performance management can only be effective where the
organisation has a clear corporate strategy and has identified the elements of
its overall performance which it believes are necessary to achieve competitive
advantage.
(b) Another way of putting this is that organizations have to establish what
their critical success factors are. These constitute the areas of corporate
performance – the drivers – vital for the achievement of the organizations
goals. Thus they provide the agenda for deciding what aspects of
performance should be focused on by the organizations, its managers, its
teams and its individual contributors.
36. Another perspective on strategy is provided by Prahalad and Hamel. They
suggest that the performance of top executives should be judged on their ability to
identify, cultivate and exploit the core competences of their organizations – the
things that they do well that make growth possible. Core competences are bundles
of skills and technology that enable a company to provide benefit to customers and
constitute the collective learning in an organization. The core-competence company
organizes itself around skills and capabilities and is concerned with acquiring,
possessing and making operational the capabilities of its people. Core competences
are the wellspring of new business developed. They should constitute the focus for
strategy at the corporate level… only if the company is conceived of as a hierarchy
of core competencies, core products, and market focused business units will it be fit
to fight.
37. The significance of the core competence concept for managing performance
is that, if the core competences can be defined in terms of this is what the
organisation is good at doing but needs to do even better, then they can provide the
basis for the management of performance. This can be undertaken within the
framework provided by the core competences that indicate the areas of competency
that have to be developed at unit, team and individual level.

Human Resource Management

38. All Human Resource Management (HRM) activities are, or should be,
business driven and focused on improving performance by acquiring and developing
a competent, well motivated and committed workforce. Formal performance
management processes are simply part of what should be an integrated and
coherent approach to the management of performance.
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As David Guest points out :- “while performance management is potentially useful in

directing attention to performance… it risks becoming too bureaucratic, it risks being
misused. Too many appraisal schemes are narrow and individualistic in focus.”
39. Guest suggests that the following are high-performance HRM practices :-
(a) Harmonized terms and conditions for all staff.
(b) Use of psychological tests in selecting all staff.
(c) Formal system of communicating values to staff.
(d) Deliberate development of a learning organization.
(e) Design of jobs to make full use of skills and abilities.
(f) Staff being responsible for their own quality.
(g) Regular use of attitude surveys.
(h) Staff being informed about company performance and prospects.
(i) Internal promotion if at all possible.
(j) A policy of job security.
(k) A merit element in the pay of staff.
40. Guest suggests that the HRM route to high performance should be built on
the requirements for commitment, quality and flexibility. Fit is important – that is,
with the business strategy, and cross the various aspects of HRM strategy.

Implications for Performance Management

41. Managing for performance is about managing the business effectively within
its context. As Mohrman and Mohrman emphasise, it is necessary to tie all aspects
of Management Performance to business Objectives and to regard the organization
as a nest of performing units. The focus should be on running the business.
Performance management should be treated as part of the normal process of
management and its process should fit the way work is done.
42. The importance of regarding Performance Management as no more, or no
less, than one aspect among others of an integrated approach to managing for
performance cannot be overestimated. The context within which the organization
functions its purpose values and business strategy, its core competences, its culture
and its management style all provide the basis upon which process for managing the
performance of individuals and teams are developed and implemented. Simply put,
performance management is a holistic process that pervades every aspects of
running the business.
43. Performance Appraisal on the other hand has been a top-down system run by
the personnel department and isolated from what the business does and what
people do in it. That is why performance appraisal got a bad name.
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44. A summary of the most recent developments in the history of performance

management is as follows :-

MANAGEMENT BY PERFORMANCE PERFORMANCE

OBJECTIVES APPRAISAL MANAGEMENT

Packaged system Usually tailor made Tailor made

Applied to managers Applied to all staff Applied to all staff

Emphasis on individual Individual objectives may Emphasis on integrating

objectives be included corporate, team and
individual objectives

Emphasis on quantified Some qualitative Competence requirements

performance measures performance indicators often included as well as
may also be included quantified measures

Annual appraisal Annual appraisal Continuous review with

one or more formal
reviews

Top-down system, with Top-down system, with Joint process, ratings less
ratings ratings common

May not be a direct link to Often linked to pay May not be a direct link to
pay pay

Monolithic system Monolithic system Flexible process

Complex paper work Complex paper work Documentation often

minimized

Owned by line managers Owned by personnel Owned by line

and personnel department department management
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The Performance – Management Sequence

45. The sequence of process carried out in this cycle and the likely outcome are
illustrated in Figure. The activities carried out at each stage are described below:-

Corporate mission and

strategic goals

Business and depart-

mental plans and goals

Competence Performance and

Requirement development agreement Performance
standards

Competence Performance and Performance

Evidence development plan Measurement

Action – work and

development

Continuous monitoring
and feedback

Financial Rating Formal review, feedback

reward and joint assessment

The Performance Management Sequence

Corporate Mission and Strategic Goals

46. These provide the starting point of the performance management process.
The aim is to ensure that each of the activities in the sequence is aligned to those
goals and contribute to their achievement.
 239 CDM/GM/19

Business and Departmental Plans and Goals

47. These flow directly from the corporate goals but some iteration may take
place so that departmental views about what can be achieved are taken into account
before the business goals are finalized.

Performance and Development Agreement

48. The performance and development agreement, sometimes called the
performance contract is the agreement on objectives and accountabilities reached by
individuals with their managers. The agreement is usually reached at a formal
review meeting and recorded during or after the meeting on a performance review
form. The processes of discussion and agreement are easier if both parties (the
manager and the individual) prepare for the meeting by reviewing progress against
agreed work or learning objectives, considering what plans need to be made to
improve performance or develop competences and skills thinking about future
objectives, and examining any areas where the manager could provide more support
through help, guidance coaching or the provision of additional resources or facilities.
Many organisations ask both managers and individuals to complete a pre-review
meeting questionnaire which will provide an agenda for the review. A performance
agreement defines the work to be done, the results to be attained, the performance
standards to be achieved and the competence levels required.
49. For individuals the work to be done is agreed in terms of key result areas or
principal accountabilities or sometimes in the case of relatively routine jobs, by
reference to main tasks or duties. In many dynamic roles, existing accountabilities
may have to be reassessed and new ones agreed as part of a review and revised
agreement. In some cases, it may simply be necessary to confirm existing
arrangements. The individual agreement should be based on an open, two-way and
unambiguous discussion. This covers the areas listed below :-
(a) What the person is doing now.
(b) What the person might have to do in the future because of changing
requirements.
(c) How the work should be done (competence or process requirements)
(d) What the expected output and outcomes of the work (performance
requirements and standards) are.
(e) What knowledge skills and ability are required to do the work (input
requirements).
(f) Any core values the individual would be expected to uphold – these
may refer to such areas as quality, teamwork, customer service, responsibility
to the community and care for environmental issues. The purpose of the
discussion would be to define expectations on how the person’s behaviour
should support these values. The core values may be expressed in a list of
competencies.
(g) What support the person requires – from the manager, from co-
workers, from resources or information.
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50. As Antonioni (1994) emphasizes, it is essential that agreement is concluded

on process goals (how the work is done) as well as output goals (what has to be
achieved). The most important need ‘centres on information regarding key external
and internal customers’ needs and expectations. Each internal customer has
performance requirements that must be made explicit.
51. The discussion on individual or team goals in the light of how they fit in with
these internal customer expectations may lead to reconsideration of departmental
goals, and even of corporate goals – especially if people are being asked to do more
than they can reasonably be expected to accomplish.
52. Basically the same process can be followed for teams i.e., agreeing what
work should be done, how it should be done, what should be achieved, and what
team skills are required.

The Performance and Development Plan

53. The performance and development planning part of the performance
management sequence is primarily a joint exploration of what individuals need to do
and know to improve their performance and develop their skills and competencies,
and how their managers can provide the support and guidance they need.
54. The performance aspect of the plan obtains agreement on what has to be
done to achieve objectives, raise standards and improve performance. It also
establishes priorities – the key aspects of the job to which attention have to be given.
Agreement is also reached at this stage on the basis upon which performance will be
measured and the evidence that will be used to establish levels of competence. It is
important that these measures and evidence requirements should be identified and
fully agreed now, because they will be used jointly by managers and individuals and
collectively by teams to monitor progress and demonstrate achievements.
55. For individuals this stage includes the preparation and agreement of a
personal development plan (PDP). This provides an action plan for individuals with
the support of their managers and the organization. It may include formal training
but more importantly, it will incorporate a wider set of development activities such as
self managed learning coaching project work, job enlargement and enrichment an
element of self assessment by the individual. If multi source assessment is practiced
in the organization, this will be used to discuss development needs.

Action-work, Development and Support

56. Performance management helps people to get into action so that they achieve
planned and agreed results. It is a work and people related activity, and focuses on
what has to be done, how it is done and what is achieved. But it is equally
concerned with development people-helping them to learn-and providing them with
the support they need to do well, now and in the future.
57. The emphasis should be on managing performance throughout the year. This
will involve continuous monitoring and feedback and formal reviews as described
below.
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58. Support should also be provided on a continuing basis through coaching and
counseling, and by providing the facilities and resources necessary to meet
expectations. Performance management requires ongoing and unsolicited support
in order to be effective; an informal call or casual conversation just to check that all is
going well, which many busy managers tend to overlook in their efforts to satisfy
formal organizational requirements.

Continuous Monitoring and Feedback

59. One of the most important concepts of performance management is that it is a
continuous process of managing and developing performance standards which
reflects normal good practices of direction setting monitoring and measuring
performance, providing feedback and taking action accordingly. Performance
management should not be imposed on managers as something ‘special’ that they
have to do. Neither should it be imposed on individuals and teams as something
‘special’ that is done to them. Performance management does no more than provide
a framework within which managers, individuals and teams work together to gain a
better understanding of what is to be done, how it is to be done, what has been
achieved, and what has to be done to do even better in the future.
60. These sentiments could be dismissed as no more than managerialist rhetoric.
And indeed they are managerialist in the sense that they promote the notion of
continuous improvement to support the achievement of the purposes of the
organization, and therefore of its management. But organizations are there to
achieve a purpose, and it can be argued that if performance management helps
them to do so, then to describe it pejoratively as managerialist is to miss the point.
Of course, this argument is only valid if management appreciates that performance
management should respect the needs of all stakeholders. Individual needs for job
satisfaction, growth, security, recognition and reward have to be understood and
reconciled with the needs of the organization. And the continuous process of
managing performance throughout the year can be carried out in a way that respects
different needs as well as recognizing mutual interests.
61. It is also important to develop performance management on the basis of open
honest positive two-way communication between supervisors and employees
throughout the period. From the viewpoint of performance, this means instant
feedback to individuals and teams on the things they have done well or not so well.
If people can be provided with the information they need to monitor their own
performance, so much the better. If it is not available readily, they can be
encouraged to seek it. The aim is to provide intrinsic motivation by giving people
autonomy and the means to control their work.
62. Interim informal reviews can be held as required monthly, quarterly etc. They
can be used to provide more structured feedback and importantly to revise
objectives and plans in response to changing circumstances.
63. Progress in implementing the personal development plan can also be
monitored during the year.
***