UNIT I

CHANGE MANAGEMENT:
Society today is characterized by ongoing quick change. Given the speed at
which business moves the market, many enterprises are out of breath and struggle to
simply keep up. This means that today, successful business is based on the
management capacity to oversee and adapt to fast forward change. Meanwhile, there
has been a new tool for the business operation called ‘Change Management.’
Definition of Change Management:
Change Management is a systematic activity to prepare an organization for
and implement ongoing environmental changes in a business operation. So to speak,
Change Management is about innovative strategies and speedy activities to deal with
variable and sudden changes. In addition, the current definition of Change
Management can contain individual change management models to address the people
side of change.
Generally, change management can address the large part of a business
operation from planning to controlling; i.e. organization and governance structure,
product development, customer satisfaction etc. Successful Change Management not
only improves the governance structure which needs to be changed, but also raises
productivity up to the maximum level by modifying and complementing the existing
organization system. Through these processes, the customer satisfaction can be done
with a good image and benefit of a business enterprise.
When you introduce a change to the organization, you are ultimately going to
be impacting one or more of the following four parts of how the organization
operates:
• Processes
• Systems
• Organization structure
• Job roles
TYPES OF CHANGE:
There are various areas within the organisational domain where changes can
bebrought about for operational enhancement of the organisation as well as
desirablebehaviour of members. The various types of changes that can have
considerable impacton the organisational culture are:

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a) Strategic Change:
This is a change in the very mission of the organisation. A single mission
mayhave to be changed to multiple missions. For example, when British Airways
acquired amajor part of U.S. Air, the culture of the entire organization had to be
modified toaccommodate various aspects of American organisational culture into the
Britishorganisational culture.
b) Structural Change:
Decentralized operations and participative management style have seen
morerecent trends in the organisational structure. Since these structural changes shift
theauthority and responsibility to generally lower level management, it has a major
impact on an organization’s social climate and members have to be prepared to
develop a teamspirit as well as acquire skills to make on-the-spot decisions at points
of operations.
c) Process-oriented Change:
These changes relate to technological developments, information
processing,automation and use of robotics in the manufacturing operations. This
means replacing orretraining personnel, heavy capital equipment investment and
operational changes. Thiswould affect the organisational culture and hence changes in
the behaviour patterns ofmembers.
d) People-oriented Change:
Even though, any organisational change affects people in some form, it
isimportant that the behaviour and attitudes of the members be predictable and
inaccordance with the expectations of the organization and be consistent with the
missionand policies of the enterprise. These changes are directed towards
performanceimprovement, group cohesion, dedication and loyalty to the organization
as well asdeveloping a sense of self-actualization among the members. These can be
developed bycloser interaction with employees and by special behavioral training and
modificationsessions.

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RESISTANCE TO CHANGE:
Resistance to change is understood to be a natural phenomenon. But not
allchange is resisted. In fact, if we look at any organisation closely we would probably
findthat more changes are accepted than resisted. Accepting the fact that people have
anatural instinct to adapt to their environment is the first step towards
effectivemanagement of change. It has the advantage of placing people in a more
positive light,but also suggests that resistance to change is unnatural behaviour. If
managers accept this principle, then they can precede to analyses the situation to find
the (unnatural) cause ofresistance. Failure to understand this characteristic of
resistance can cause many managers to attempt to run through changes rather than try
to understand the sources ofthe resistance.
Sources of resistance to change may be rational or emotional. Rational
resistanceoccurs when people do not have the proper knowledge or information to
evaluate thechange. Providing information (in the form of data, facts, or other types of
concreteinformation) reduces the resistance. Emotional resistance involves the
psychologicalproblems of fear, anxiety, suspicion, insecurity, and the like. These
feelings are evokedbecause of people’s perception of how the change will affect them.
Causes for resistance to change:
Misunderstanding about the need for change/when the reason for the change is
unclear:
If staff does not understand the need for change you can expect resistance.
Especially from those who strongly believe the current way of doing things works
well…and has done for twenty years!
Fear of the unknown:
One of the most common reasons for resistance is fear of the unknown. People
will only take active steps toward the unknown if they genuinely believe – and
perhaps more importantly, feel – that the risks of standing still are greater than those
of moving forward in a new direction
Lack of competence:
This is a fear people will seldom admit. But sometimes, change in
organizations necessitates changes in skills, and some people will feel that they won’t
be able to make the transition very well

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Connected to the old way:
If you ask people in an organization to do things in a new way, as rational as
that new way may seem to you, you will be setting yourself up against all that hard
wiring, all those emotional connections to those who taught your audience the old
way – and that’s not trivial
Low trust:
When people don’t believe that they, or the company, can competently
manage the change there is likely to be resistance
Temporary fad:
When people belief that the change initiative is a temporary fad
Not being consulted:
If people are allowed to be part of the change there is less resistance. People
like to know what’s going on, especially if their jobs may be affected. Informed
employees tend to have higher levels of job satisfaction than uninformed employees
Poor communication:
It’s self evident isn’t it? When it comes to change management there’s no such
thing as too much communication
Changes to routines:
When we talk about comfort zones we’re really referring to routines. We love
them. They make us secure. So there’s bound to be resistance whenever change
requires us to do things differently
Exhaustion/Saturation:
Don’t mistake compliance for acceptance. People who are overwhelmed by
continuous change resign themselves to it and go along with the flow. You have them
in body, but you do not have their hearts. Motivation is low
Change in the status quo:
Resistance can also stem from perceptions of the change that people hold. For
example, people who feel they’ll be worse off at the end of the change are unlikely to
give it their full support. Similarly, if people believe the change favours another
group/department/person there may be (unspoken) anger and resentment
Benefits and rewards:
When the benefits and rewards for making the change are not seen as adequate
for the trouble involved

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Lack of tact or poor timing:
Sometimes it is not what a leader does, but it is how s/he does it that creates
resistance to change! Undue resistance can occur because changes are introduced in
an insensitive manner or at an awkward time. For any significant organizational
change effort to be effective, organizational leadership must prepare a comprehensive
change strategy to address these barriers.
Loss of status or job security in the organization:
It is not our nature to make changes that we view as harmful to our current
situation. In an organizational setting, this means employees, peers, and managers will
resist administrative and technological changes that result in their role being
eliminated or reduced. From their perspective, your change is harmful to their place in
the organization! Forcing the change has its place. This approach alone is ineffective
however. Managers who overuse this approach will harm their effectiveness over the
long term. Without a thoughtful change strategy to address this area, leaders will
trigger strong resistance and organizational turnover.
10 Strategies You Can Use to Overcome Resistance to Change:
Change is such a constant in today’s organizations that to mention it is like
telling an old and not‐very welcome joke at a dinner party. Nevertheless, sometimes
in a change effort, the organization makes you the story‐teller. How then can you
bring out that old saw in fresh and effective ways? How can you help your workplace
accept an impending and unavoidable change? Here are some proven strategies that
can make you more successful at overcoming resistance to change.
1. Address Personal Concerns First
2. Link the Change to Other Issues People Care About
3. Tap into People’s Desire to Avoid Loss
4. Tailor Information to People’s Expectations
5. Group Your Audience Homogeneously
6. Take Advantage of People’s Bias—Buy Now, Pay Later!
7. Make the Change Local & Concrete
8. Appeal to the Whole Brain
9. Beware of Overloading People
10. Know the Pros and Cons of Your Change

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CHANGE AS TRANSFORMATION
It is a term referring collectively to such activities as reengineering,
redesigning and redefining business systems. Organization Transformation can occur
in response to or in anticipation major changes in the organization’s environment or
technology.

Characteristics of Transformational Change

1. Change is triggered by environmental and internal disruption.
 Transformational change occurs in response to atleast kinds of
disruption:-

1. Industry discontinuities

2. Product lifecycle shifts

3. Internal company dynamics

2. Change is systemic and revolutionary.

 Transformational change involves reshaping the organization’s
culture and design element.
 These changes can be characterized as systemic and
revolutionary cause nature of the organization is altered fundamentally.
3. Change demands a new organizing paradigm.
 Organizations undertaking transformational change are, by
definition, involved in 2nd-order or gamma types of change.
 Gamma change involves discontinuous shifts in mental or
organizational frameworks.
4. Change is driven by senior executives and line management.

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  They are responsible for the strategic direction and operation
of the organization and actively lead the transformation.
 The critical role of executive’s leadership in transformational
change is clearly emerging.
5. Continuous learning and change.
 Transformational change requires considerable innovation and
learning.
 Organizational members must learn how to enact the new
behaviors required implementing new strategy direction.

There are 3 key roles of executive leadership of such change

1. Envisioning
2. Energizing
3. Enabling

CHANGE AS GROWTH

Financial Growth Profitability, sales turnover

Resources
Performance

New products
Strategic Growth Strategic alliances

Asset accumulation Direction

v
Structural Growth Organisational Growth
Net assets Use of assets Number of people

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Typology of Business Growth - Birch (1988)
• Mice
– Small, vulnerable, hardworking, little market influence power, quick to
change direction if needed, very few aspire to grow, maintain their profitability
• Elephants
– Large, command respect, cannot change direction quickly, can
influence the market place and conditions, likely to be contracting in size
• Gazelles
– Growth oriented with above average profitability, seek growth rather
than control, ultimately become large employers, agile, “at least 20% growth a
year for 4 years”
CHANGE AS TURNAROUND
There is plenty of trouble in today’s economy. We are experiencing the worst
downturn since the great depression. Few industries have been spared the agony
of hardship. Turnaround opportunities abound for those who have the
knowledge and fortitude to go through the process. The rewards can be plentiful,
and the failures catastrophic.
The process of turning around a troubled entity is complex. This is made more
difficult and compounded by the multiple constituencies involved, all of whom
have different agendas. Lenders want a return of their invested capital,
preferably with interest. Creditors want their money in exchange for goods and
services. Original investors want and hope for recovery of their capital. While
distressed investors want to buy in at 20 cents on the dollar, then turn a profit;
some by trading the credit, others by turning the business positive then selling.
Owners want to avoid guarantees and recoup some of their equity. Employees
want their jobs and benefits. Directors want to avoid risk and litigation. Other
stakeholders want their interests protected. These desires can often be at odds
with other parties and hamper the effort.

There are many causes that contribute to business failure. According to a study
conducted by the Association of Insolvency and Restructuring Advisors only 9%
of failures are due to influences beyond management’s control and to sheer bad
luck. The remaining 91% of failures are related to influences that management

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could control, and 52 % are internally generated problems that management
didn’t control.

Businesses fail because of mismanagement. Sometimes it is denial, sometimes

negligence, but it always results in loss. Mismanagement is most often seen in
more than one of multiple areas:

• o Autocratic Management, Overextension

• o Ineffective, Non-existent Communications
• o High Turnover Neglect of Human Resources
• o Inefficient Compensation & Incentive Programs
• o Company Goals Not Achieved or Understood
• o Deteriorating Business, No New Customers
• o Inadequate Analysis of Markets & Strategies
• o Lack of Timely, Accurate Financial Information
• o History of Failed Expansion Plans
• o Uncontrolled or Mismanaged Growth

To be successful in this arena you need clear-thinking to quickly assess

opportunities to determine what is wrong, develop strategies that no one has
tried before, and implement plans to restructure the company. The problems are
rarely what management indicates they are, but instead are two or three
underlying systemic ills that can often be fixed. You can’t focus on the symptoms,
but must find the real causes. Management has allowed these problems to exist
and bring the company down to its depressed state; therefore they are not
equipped to manage the turnaround.
Turnaround specialists are often an excellent choice when these circumstances
are present. They bring a new set of eyes, trained in managing and advising in
troubled situations. These experts are either practitioners or consultants.
Turnaround practitioners take management and decision-making control as the
chief executive officer or chief restructuring officer. Turnaround consultants on
the other hand advise management, perhaps the same management that failed
before.

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 The key is to build enterprises that future buyers want to invest in.
Investors/buyers look for:

o Businesses that create value.

o High probability of future cash flows.
o Market-oriented management team. Focus on producing revenue.
o Ability to sell and compete; develop, produce, and distribute
products; thrive and grow. Track record or demonstrated changes
in the right direction.
o Fair entry valuation.
o Exit options. Realize high ROI at the time of their resale.

There is a process of recovery and investment. It is based upon the fundamental

premise that there is a lack of management when companies are in trouble. You
must conduct fact-finding to assess the situation, and then prepare a plan to fix
the problems. You must implement the planned courses of action by funding the
process and building a team to carry it out. Then monitor the progress and make
changes where necessary.

Stages in the Turnaround Process

There are five stages in the turnaround process: Management Change,

Situation Analysis, Emergency Action, Business Restructuring, and Return to
Normality. We will look at these individually to understand what should
transpire at each stage by each function within the company; see Turnaround
Process Phases and Actions Chart. The timing is important to coordinate what is
happening between functions. Stages can overlap, and some tasks may impact
more than one stage.

The process is designed to first stabilize the situation, which is done by

addressing management issues, assessing the situation, and implementing
emergency actions. The restructuring process begins with preparations during
the emergency action phase. The positioning for growth starts with restructuring
and grows when normalcy stage is reached.

Management Change Stage

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 It is very important to select a CEO who can successfully lead the
turnaround. This individual must have a proven track record and the ability to
assemble a management team that can implement the strategies to turn the
company around. This individual most often comes from outside the company
and brings a special set of skills to deal with crisis and change. Their job will be to
stabilize the situation, implement plans to transform the company, then hire their
replacement.

It is essential to eliminate obstructionists who may hamper the process.

This could require replacing some or all of top management depending on the
deal. This will undoubtedly mean also replacing some of the board members who
did not keep a watchful eye.

Management must address the issues related to major stakeholder groups

(executives, function managers, employees, lenders, vendors, customers, others).
There must be change in the focus of how the company will operate to
accomplish a turnaround. Most companies have a lack-of-sales problem, which
necessitates a change to jump-start sales and drive revenue. There must be
information that all can rely on for decision making. Production management
must support and make what the market wants to purchase, at competitive price.
You must nurture critical human capital resources that are left within the
company, while at the same time holding them accountable for results.
• Changing management is synonymous with changing the philosophy of
how we will run the place to achieve results. Communication with all
stakeholders is paramount through all stages of the process. Set goals that
achieve stakeholder objectives, then apply incentive-based management to
motivate the proper results. Tie everyone to the same broad set of goals
and accent how functions can compliment the performance of related
departments.

Situation Analysis Stage

The objective is to determine the severity of the situation and if it can be

turned around. Answer questions like is the business viable? Can it survive?

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Should it be saved? Are there sufficient cash resources to fuel the turnaround?
This analysis should culminate in formulating a preliminary action plan stating
what is wrong, how to fix them, key strategies to turn the entity in a positive
direction, and a cash flow forecast (at least 13 weeks) to understand cash usage.

Identify effective turnaround strategies. Operational strategies include

increasing revenue, reducing costs, selling and redeploying assets, and
competitive repositioning. Strategic initiatives include adopting sound corporate
and business strategies and tactics, setting specific goals and objectives that align
with the ultimate goals of the stakeholders. Too often, goals are misaligned with
the ultimate direction and cause confusion, wasted time, false-starts, and send
employees in the wrong direction. Understand that many of the good employees
have already left the company, you will have to work with the second string in
the essence of time and build as you go.

Document key issues so that all will understand what you are trying to
accomplish, and all will pull in the same direction. Identify what product and
business segments are most profitable, particularly at the gross margin level, and
eliminate weak and nonperformers. Make certain that all functional areas (sales,
production) are working to support the goals of their counterparts. Selling work
with flexible delivery times can fill valleys in production cycles, which reduce
costs per unit. Producing only what sales can sell to meet customer demand will
increase sales and gross margin.

Turnaround strategies are often impacted by local government policy

considerations and regulations. In the United States the WARN Act requires 60
day notice of massive lay-offs, which certainly impacts cash flow. In many
countries in Europe and Far East there are stringent rules (local country driven)
governing the payment of wages after lay-offs, dealing with the local authorities
regarding the process, and even prioritizing which workers can be laid off when
in fact others may be more qualified. When government policy favors labor and
employment is not “at will” there will be complications to the process.

Emergency Action Stage

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 Centralize the cash management function to ensure control. If you stop
the cash bleed, you enable the entity to survive. Time is your enemy. Protect asset
value by demonstrating that the business is viable and in transition.

Review the balance sheet for internal sources of cash such as collecting
accounts receivable, and renegotiating payments against accounts payable. Sell
unprofitable business units, real estate, unutilized assets. Secure asset-based
loans if needed. Restructure debt to balance the amount of interest payments
with the level the company can afford.

Rightsizing the company is much more than employee layoffs. Correct

underpricing of products, prune product lines to only those profitable and that
meet demand, and weed out weak and problem customers. Sometimes there is to
much overhead applied to support a customer who isn’t paying their fair share of
that service. Emphasize selling more product at profitable rates. Reward those
that change the situation, sanction or release those that don’t.

Business Restructuring Stage

Your objective is to create profitability through remaining operations.

Stress product line pricing and profitability. Restructure the business for
increased profitability and return on assets and investments. At this stage your
focus should change from cash flow crisis to profitability. Fix the capital structure
and renegotiate the long and short term debt.

Ensure that reporting systems put in place are operationalized to show

profitability at each revenue center, cost center, profit center, cash center,
incentive center. Unless employees can see it they can’t manage it.

Incentive-based management will drive employees to get involved

smartly, and manage to the goals all ascribe to. Create teams of employees to
identify and rework inefficiencies and promote profitability.

There are only two ways to increase sales. Sell existing product to new
customers. Sell new products to existing customers. Do both if you want growth.

Return to Normal Stage

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 Your objective is to institutionalize the changes in corporate culture to
emphasize profitability, ROI, and return on assets employed. Seek opportunities
for profitable growth. Build on competitive strengths. Improve customer service
and relationships. Build continuous management and employee training and
development programs to raise the caliper of your human capital.

This could be a time to restructure long term financing at more reasonable

rates now that the company is stable and on a path to growth.
The odds of a successful turnaround are increased dramatically if a Turnaround
Process Phases and Actions Plan is implemented and followed. This plan can
certainly be adapted to unique situations when required. Turn one around.

VALUE BASED CHANGE MANAGEMENT

Definition

Value Based Management is the management approach that ensures corporations are
run consistently on value (normally: maximizing shareholder value). Managing for
Value (governance, change management, organizational culture, communication,
leadership), and. Measuring Value (valuation).

Another way to explain why value based management is important is to realize that
your organization is operating in 4 markets.

 The market for its products and services.

 The market for corporate management and control.
 The capital markets.
 The employee and the mangers market.

Recent years have seen a plethora of new management approaches for improving
organizational performance: total quality management, flat organizations, empowerment,
continuous improvement, reengineering, kaizen, team building, and so on. Many have
succeeded—but quite a few have failed. Often the cause of failure was performance targets
that were unclear or not properly aligned with the ultimate goal of creating value. Value-
based management (VBM) tackles this problem head on. It provides a precise and
unambiguous metric—value—upon which an entire organization can be built.

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The thinking behind VBM is simple. The value of a company is determined by its
discounted future cash flows. Value is created only when companies invest capital at
returns that exceed the cost of that capital. VBM extends these concepts by focusing on
how companies use them to make both major strategic and everyday operating decisions.
Properly executed, it is an approach to management that aligns a company's overall
aspirations, analytical techniques, and management processes to focus management
decision making on the key drivers of value.

Principles

VBM is very different from 1960s-style planning systems. It is not a staff-driven exercise.
It focuses on better decision making at all levels in an organization. It recognizes that top-
down command-and-control structures cannot work well, especially in large multi-
business corporations. Instead, it calls on managers to use value-based performance
metrics for making better decisions. It entails managing the balance sheet as well as the
income statement, and balancing long- and short-term perspectives.

Benefits of value based management

 VBM can maximize value creation consistently.

 VBM increases corporate transparency.
 VBM sets clear management priorities.
 VBM encourages value-creating investments.
 VBM prevents takeovers.

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  VBM improvers the allocation of resources.
 VBM prevents under valuation of stock.
 VBM improves internal communication on strategy.

Limitations of VBM

 VBM is all embracing, often requiring culture change.

 The perfect VBM has not yet to be invented. No matter which one you choose,
there will always be drawbacks.
 VBM requires strong and explicit CEO and executive board support.
 Value creation may sound simpler than corporate strategy, but it isn’t actually
more or less the same.

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 UNIT II
CHANGE AGENTS:
A change agent is a person from inside or outside the organization that helps
an organization transforms itself by focusing on such matters as organization
effectiveness, improvement and development.
The change agent may be in the form of a consultant who helps the client find
solutions to the organisational problems. It could also be in the form a trainer who
trains the client to achieve a set of skills that could be used in bringing about the
change for optimum outcomes. This change agent must have certain characteristics
which would identify it to be more effective than others. According to Shaskin and
Morris, the effective change agent is, “an extrovert, has considerable interpersonal
skills, is creative and takes risks, and is good in organizing activities”.
Every member of a change team becomes a change agent, so if you can choose
the team to deliver change in your organisation, you should think carefully about
whom to include. From our experience of working with change teams, Inspired
Partners has found successful change agents have the following characteristics and
skills:
• Credibility – with key sponsors and team members
• Awareness – of the organization’s culture and the needs of the team
• Enthusiasm – for the project and the business overall
• Reliability – to do the job they say they will
• Flexibility – to do the job when and where needed
• Good Communication Skills – able to use clear language and actively listen to
others
• ‘Can Do’ Attitude – with a desire to overcome resistance

Role of Change Agents:

1. The Detective
2. The Advocate
3. The Counselor
4. The Facilitator
5. The Mediator
6. The Expert
7. The Law
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Characteristics of Successful Change Agents:
The way the change agent manages the process of change is indicated by
certain factors and characteristics which have been identified by Havelock and
Shaskin. The first letters of these factors together spell “Help scores”. These are
Homophily:
It is the degree of closeness and similarity between the change agent and the
client. The closer the relationship, the easier and more successful is the change. It is
similar to listening to our close friend whom we trust and whose advice we seriously
take.
Empathy:
It involves understanding of feelings and emotions and thoughts. This sincere
understanding leads to improved communications between the client and the change
agent which is very helpful in bringing about the desired change.
Linkage:
It refers to the degree of collaboration between the change agent and the
client. The tighter the linkage, the more likely is the success.
Proximity:
The change agent and the client should have easy access to each other. The
closer the proximity the better is the relationship between the two and easier to
develop the collaborative linkage.
Structuring:
This factor involves proper and clear planning of all activities that are related
to change. If these activities are planned in clear cut step-by-step sequential factors,
then the implementation would be easier.
Capacity:
This factor refers to the organization’s capacity to provide the resources that
are needed for successful organisational development effort and implementation.
These resources must be adequate and available when needed.
Openness:
Openness refers to the conceptual environment which is conducive to the
development of respect and understanding for each other’s ideas, needs and feelings.
The degree of openness between the change agent and the client would considerably
affect the outcome of the programme.

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Reward:
All members expect that the change will bring potential benefits. These
rewards should be both in the short run as well as in the long run. The greater the
potential for rewards, the more determined the effort would be in making the required
change.
Energy:
Energy refers to the amount of effort put into the change process. This effort
involves both the physical and psychological energy. The client’s energy must be well
spent and channeled precisely into the change programme itself. The energy of the
change agent should not be spread over too many clients, for in that case, each of the
clients individually may not receive the needed energy.
Synergy:
Synergy simply means that the whole is more than the sum of its parts. This
means that the previous nine factors involving a variety of people, resources, energies
and activities together result in synergy, if they support success mutually as well as
individually; they are as favorable to the programme as possible.
These ten factors whose initials spell “Help scores”, describe the personal
characteristics of successful change agents who have profound influence on the
organisational development programmes and processes of change.

SYSTEM

A system is a set of interacting or interdependent component parts forming a complex

or intricate whole. Every system is delineated by its spatial and temporal boundaries,
surrounded and influenced by its environment, described by its structure and purpose
and expressed in its functioning.

Alternatively, and usually in the context of complex social systems, the term is used
to describe the set of rules that govern structure or behaviour.

SYSTEM CONCEPTS
Environment and boundaries
Systems theory views the world as a complex system of interconnected parts. One
scopes a system by defining its boundary; this means choosing which entities are
inside the system and which are outside—part of the environment. One can make
simplified representations (models) of the system in order to understand it and to

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predict or impact its future behavior. These models may define the structure
and behavior of the system.
Natural and human-made systems
There are natural and human-made (designed) systems. Natural systems may not have
an apparent objective but their behavior can be interpreted as purposeful by an
observer. Human-made systems are made to satisfy an identified and stated need with
purposes that are achieved by the delivery of wanted outputs. Their parts must be
related; they must be "designed to work as a coherent entity" – otherwise they would
be two or more distinct systems.

Theoretical framework
An open system exchanges matter and energy with its surroundings. Most systems are
open systems; like a car, a coffeemaker, or a computer. A closed system exchanges
energy, but not matter, with its environment; like Earth or the project Biosphere 2 or
3. An isolated system exchanges neither matter nor energy with its environment. A
theoretical example of such system is the Universe.
Process and transformation process
An open system can also be viewed as a bounded transformation process, that is,
a black box that is a process or collection of processes that transforms inputs into
outputs. Inputs are consumed; outputs are produced. The concept of input and output
here is very broad. For example, an output of a passenger ship is the movement of
people from departure to destination.
System model
A system comprises multiple views. Man-made systems may have such views
as concept, analysis, design, implementation, deployment, structure, behavior, input

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data, and output data views. A system model is required to describe and represent all
these multiple views.
Systems architecture
Systems architecture, using one single integrated model for the description of multiple
views such as concept, analysis, design, implementation, deployment, structure,
behavior, structure-behavior coalescence, input data, and output data views, is a kind
of system model.

Sub-system

A subsystem is a set of elements, which is a system itself, and a component of a larger

system.

A subsystem description is a system object that contains information defining the

characteristics of an operating environment controlled by the system.

A REVIEW OF BASIC DATA FLOW DIAGRAMMING TECHNIQUES

Definition:

Data Flow Diagramming is a means of representing a system at any level of detail

with a graphic network of symbols showing data flows, data stores, data processes,
and data sources/destinations.

Purpose/Objective:

The purpose of data flow diagrams is to provide a semantic bridge between users and
systems developers. The diagrams are:

 graphical, eliminating thousands of words;

 logical representations, modeling what a system does, rather than physical
models showing how it does it;
 hierarchical, showing systems at any level of detail; and
 jargon less, allowing user understanding and reviewing.

The goal of data flow diagramming is to have a commonly understood model of a

system. The diagrams are the basis of structured systems analysis. Data flow diagrams
are supported by other techniques of structured systems analysis such as data structure

21
diagrams, data dictionaries, and procedure-representing techniques such as decision
tables, decision trees, and structured English.

Data flow diagrams have the objective of avoiding the cost of:

 user/developer misunderstanding of a system, resulting in a need to redo

systems or in not using the system.
 having to start documentation from scratch when the physical system changes
since the logical system, what gets done, often remains the same when
technology changes.
 systems inefficiencies because a system gets "computerized" before it gets
"systematized".
 being unable to evaluate system project boundaries or degree of automation,
resulting in a project of inappropriate scope.

Description:

Data Flow Diagrams are composed of the four basic symbols shown below.

The External Entity symbol represents sources of data to the system or destinations of
data from the system.

The Data Flow symbol represents movement of data.

The Data Store symbol represents data that is not moving (delayed data at rest).

The Process symbol represents an activity that transforms or manipulates the data
(combines, reorders, converts, etc.).

Any system can be represented at any level of detail by these four symbols.

Input-output diagram

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A graphical representation of all the factors that make up a process is known as input-
output diagram. It includes all the materials and information required for the process,
details of the process itself, and descriptions of all products and by-products.

Process flow diagram

A process flow diagram (PFD) is a diagram commonly used in chemical
and process engineering to indicate the general flow of plant processes and
equipment. The PFD displays the relationship between major equipment of a plant
facility and does not show minor details such as piping details and designations.

23
Activity diagram
Activity diagram is another important diagram in UML to describe dynamic aspects
of the system. Activity diagram is basically a flow chart to represent the flow from
one activity to another activity. The activity can be described as an operation of the
system. So the control flow is drawn from one operation to another.

Sequence diagram
A Sequence diagram is an interaction diagram that shows how objects operate with
one another and in what order. It is a construct of a message sequence chart.
A sequence diagram shows object interactions arranged in time sequence.

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OVERVIEW OF SYSTEM DIAGRAMMING AND MAPPING

SYSTEM DIAGRAMMING

A system diagram is a visualization of a system as a flow-chart-like diagram.

A system is marked by a box. The box marks the boundary of the system and
completely contains it. The boundary need not be physically distinct. We place a label
in the box identifying the system.

Diagrams are richer than plain text

As the saying goes, a picture is worth a thousand words. A good diagram can capture
a huge amount of information in a very small space. This makes diagrams
a dense way to represent information.

Diagrams can also represent non-linear information, such as the multi-dimensional

relationships between systems. Text is linear, which prevents it from representing
non-linear information efficiently.

Therefore, diagrams are a richer form of information capture than simple text.

Since systems transform their inputs into their outputs, we use labelled arrows to
represent specific interactions between systems:

25
 mass transfers are noted with thick arrows;
 energy transfers are noted with thin arrows; and
 information transfers are noted with thin, dashed arrows.
Inputs are arrows coming from outside the system, and either:

1. ending at the system's boundary if no subsystems have been established yet; or

2. passing through the subsystems and eventually exiting the system, if subsystems
have been established.

This is an example of a very simple system diagram. It shows the very beginning of a
system design for an elevator. We have marked the elevator system as a labelled box,
and indicated the principal inputs and outputs as different types of arrows.

Each box, or node, marks a subsystem. Generally, all boxes look the same, and
contain the name of the subsystem.

 There is one large central node to denote the overall system being designed.
 Nodes within the system will represent subsystems only.
Inputs and outputs: Every system has inputs and outputs by definition.

 Inputs to the system will be shown as nodes on the left side and outside the
system.
 Outputs from the system will be shown as nodes on the right side and outside the
system.

Interactions and links: An interaction is shown as a transfer of mass, energy, or

information between system elements.

 System interactions will be shown with links (arrows) connecting nodes together.
 Every link between subsystems shall have a short descriptive label.

26
 Links between system inputs and subsystems, and between system outputs and
subsystems, do not need to have labels (but they may be added for clarity).
 One link can have one root and many heads. The split in the arrow is important, so
placement of the split inside or outside the system matters.
Three arrow types: By convention:

 thick arrows represent flows of mass,

 thin arrows represent flows of energy, and
 dashed arrows represent flows of information.

Connectivity matters: Every subsystem must:

 connect to at least one other subsystem, or

 process a system input to a system output.
 Also remember:
 Make sure you account for all significant waste outputs of your system.
 Everything that goes in must come out somehow.
 Only system inputs & outputs can come from / go to the environment.
 Use different arrows to mark substantively different inputs or outputs,
even if they are of the same type.
Interface specifications: Each arrow (interaction) represents an interface between
system elements. Be as specific as possible on the nature of that interface, without
deciding how the interface will be implemented – unless you can justify your design
decisions.

SYSTEM MAPPING

Definition

The system map is a visual description of the service technical organization: the
different actors involved their mutual links and the flows of materials, energy,
information and money through the system.

System mapping, the process of creating visual tools that describe a system, is a
critical step in systems change that brings together stakeholders from across

27
 organizations and sectors to develop a common understanding of a given
system. Breaking down the mapping process into 3 stages—preparation, facilitation,
and revision—this guide provides detailed instructions, helpful hints, and visual
examples for practitioners to follow as they create one type of system map called an
actor map.

1. Actor maps identify individuals and organizations that are key players in a certain
space and shows how they are connected.

2. Due to the complexity of systems, no 2 actor maps will be exactly alike. This guide
helps practitioners create an actor mapping process customized to the specific context
of their evaluation or initiative.

3. Creating a comprehensive actor map requires both explicit data from evaluations and
studies, and implicit knowledge from the participants. Making sure you have the right
actors at the table, as well as a variety of supporting data, will lead to a more useful
map.

INFLUENCE CHARTS

Influence diagrams are closely related to decision trees and often used in conjunction
with them. An influence diagram displays a summary of the information contained in
a decision tree. It involves four variable types for notation: a decision (a rectangle),
chance (an oval), objective (a hexagon), and function (a rounded rectangle). Influence
diagrams also use solid lines to denote influence. Their appearance is very similar to
a flowchart.

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Symbols Used in an Influence Diagram
An influence diagram involves 4 variable types for notation: a decision (a rectangle),
chance (an oval), objective (a hexagon), and function (a rounded rectangle).

29
 Typical Uses of Influence Diagrams
If a decision tree is very complex and needs to either be explained to someone or
presented, an Influence Diagram is very helpful as it will give an higher level
explanation of what was discovered using the decision tree.

How to Create an Influence Diagram

There are many different ways to create an influence diagram. They can be created
using pen and paper, white boarded, or, more efficiently created by diagramming
software.
Here are some best practices in creating an influence diagram:

 Start your tree. Draw a rectangle near the top-left corner of the page. This will
be the first 'node' or shape. In this rectangle write the first question or a criterion
that leads to a decision.
 Add to the process. Referencing the decision tree, add more shapes to the page
as needed, labeling each. A series of decisions, functions, and chances should
lead to an objective.
 Add connectors. Use a combination of straight or angled lines between all
related boxes with arrowheads indicating the flow of influence. Each box
should be connected to at least one line.
FISH BONE DIAGRAM

A fishbone diagram, also called a cause and effect diagram or Ishikawa diagram, is
a visualization tool for categorizing the potential causes of a problem in order to
identify its root causes.

When to Use a Fishbone Diagram

 When identifying possible causes for a problem.

 Especially when a team’s thinking tends to fall into ruts.

Fishbone Diagram Procedure

Materials needed: flipchart or whiteboard, marking pens.

1. Agree on a problem statement (effect). Write it at the center right of the flipchart or
whiteboard. Draw a box around it and draw a horizontal arrow running to it.
2. Brainstorm the major categories of causes of the problem. If this is difficult use
generic headings:
o Methods

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o Machines (equipment)
o People (manpower)
o Materials
o Measurement
o Environment
3. Write the categories of causes as branches from the main arrow.
4. Brainstorm all the possible causes of the problem. Ask: “Why does this happen?” As each idea
is given, the facilitator writes it as a branch from the appropriate category. Causes can be
written in several places if they relate to several categories.
5. Again ask “why does this happen?” about each cause. Write sub–causes branching off the
causes. Continue to ask “Why?” and generate deeper levels of causes. Layers of branches
indicate causal relationships.
6. When the group runs out of ideas, focus attention to places on the chart where ideas are few.

Fishbone Diagram Example

This fishbone diagram was drawn by a manufacturing team to try to understand the
source of periodic iron contamination. The team used the six generic headings to
prompt ideas. Layers of branches show thorough thinking about the causes of the
problem.

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MULTIPLE CAUSE DIAGRAMS-A MULTI-DISCIPLINARY
APPROACH

Multiple cause diagrams are used to explore why changes or events happen in
systems. They do not predict behaviour, but may give insights into the multiple causes
of system behaviour and how to make undesirable behaviour less likely.

The elements of multiple cause diagrams are phrases, and arrows between them.

The rules for drawing multiple cause diagrams are:

 phrases may be things but as the diagram develops it is preferable to use
variables associated with them, e.g. ‘poor teaching material’ might become
‘35% of teaching material is substandard’;
 arrows do not necessarily mean causes, but can be read as ‘contributes to’,
‘leads to’, ‘enables’, or similar terms;
 the diagram may be entirely sequential, or it may contain loops.

The guidelines for using multiple cause diagrams include:

 begin at the factor or event to be explained and work backwards;
 the arrows should be labelled;
 it is not necessary to put blobs around phrases;
 ensure that each causal link is clear, inserting any necessary intermediate
variables or factors as necessary;

32
  these diagrams do not distinguish necessary and sufficient causes – if this is
required the diagram will need annotating to show this;
 it is not necessary to draw a system boundary, but drawing the diagram may
guide ideas about where the boundary lies;
 although these diagrams are similar to influence diagrams, they are different
because they can be read sequentially rather than being a snapshot
representation and they do not begin with the structure of the system

SYSTEMS MODEL OF CHANGE:

Organisation-wide Change: Meeting the challenge posed by the organisation

change often means not doing things piecemeal. To be successful, change usually
must be organisation-wide.
The Systems Model of Change describes the organisation as six interacting
variables that could serve as the focus of planned change: people, culture, task,
technology, design, and strategy. The people variable applies to individuals working
for the organisation, including their individual differences- personalities, attitudes,
perceptions, attributions, needs and motives. The culturevariable reflects the shared
beliefs, values, expectations, and norms of organisational members. The task variable
involves the nature of work itself— whether jobs are simple or complex, novel or
repetitive, standardized or unique. The technology variable encompasses the problem
solving methods and techniques used and the application of knowledge to various
organisational processes. It includes such things as the use of information technology,
robots, and other automation, manufacturing process tools and techniques. The design
variable is the formal organisational structure and its system of communication,
control, authority, and responsibility. Finally, the strategy variable comprises the
organization’s planning process and includes decisions about how the organisation
chooses to compete. It typically consists of activities undertaken to identify
organisational goals and prepare specific plans to acquire, allocate, and use resources
in order to accomplish those.
For example, a change in the organisation strategic plan might dictate a
change in organisation design to an adaptive or network form. This change, in turn,
could result in the reassignment of people. At the same time, the redesign may also
lead to a change in the technology used by the organisation, which affects the
attitudes and behaviours of the employees involved, and so on. All these changes
would occur within a particular organisation culture, which might either support or

33
resist them. Moreover, the change itself may either modify or reinforce the prevailing
culture. An advantage of the systems approach to organisational change is that it helps
employees and managers understand and think through such interrelationship. The
system approach reminds management that it cannot change part of the organisation,
without, in some sense changing the whole.
Intervention strategy
The "intervention strategy" refers to the approaches the program will use to
address specific market barriers in order to increase adoption of targeted energy
efficiency improvements. The table below provides examples of common barriers to
energy efficiency improvement and strategies that programs use to overcome those
barriers.

34
 One way of conceptualizing the program's intervention strategy is to develop a
logic model. A logic model is a simple process flow diagram that program managers
can use to organize relevant information about how the program will work to increase
energy efficiency. The U.S. Department of Energy's Office of Energy Efficiency and
Renewable Energy (EERE) has developed a web reference that explains how logic
models can be used to develop program strategy and tell a compelling story to internal
and external stakeholders.

The key elements of a logic model are:

 Resources: Funding, staffing, and other inputs

 Activities: Key elements of program delivery (distributing incentives,
conducting trainings, etc.)
 Outputs: Benchmarks against which program performance can be
measured (number of participants, number of trainings conducted, etc.)
 Outcomes: Short-term and long-term goals

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 Unit3:
TOTAL PROJECT MANAGEMENT MODEL:
Project management is the application of knowledge, skills, tools and
techniques to project activities to meet project requirements. Project management is
accomplished through the application and integration of the project management
processes of initiating, planning, executing, monitoring and controlling, and closing.
The six phases of project management:
The model that is discussed here forms the basis for all methods of project
management .Later chapters go into more depth regarding a model that is particularly
appropriate for IT-related projects.
Dividing a project into phases makes it possible to lead it in the best possible
direction. Through this organisation into phases, the total work load of a project is
divided into smaller components, thus making it easier to monitor. The following
paragraphs describe a phasing model that has been useful in practice. It includes six
phases:
1.Initiation phase
2. Definition phase
3.Design phase
4.Development phase
5.Implementation phase
6.Follow-up phase
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Initiation phase:
The initiation phase is the beginning of the project. In this phase, the idea for
the project is explored and elaborated. The goal of this phase is to examine the
feasibility of the project. In addition, decisions are made concerning who is to carry
out the project, which party (or parties) will be involved and whether the project has
an adequate base of support among those who are involved.
In this phase, the current or prospective project leader writes a proposal, which
contains a description of the above-mentioned matters. Examples of this type of
project proposal include business plans and grant applications. The prospective
sponsors of the project evaluate the proposal and, upon approval, provide the
necessary financing. The project officially begins at the time of approval. Questions to
be answered in the initiation phase include the following:
•Why this project?
•Is it feasible?
•Who are possible partners in this project?
•What should the results be?
•What are the boundaries of this project (what is outside the scope of the
project)?
Definition phase:
After the project plan (which was developed in the initiation phase) has been
approved, the project enters the second phase: the definition phase. In this phase, the
requirements that are associated with a project result are specified as clearly as
possible. This involves identifying the expectations that all of the involved parties
have with regard to the project result. How many files are to be archived? Should the
metadata conform to the Data Documentation Initiative format, or will the Dublin
Core (DC) format suffice? May files be deposited in their original format, or will only
those that conform to the ‘Preferred Standards’ be accepted? Must the depositor of a
dataset ensure that it has been processed adequately in the archive, or is this the
responsibility of the archivist? Which guarantees will be made on the results of the
project? The list of questions goes on and on.
Design phase:
The list of requirements that is developed in the definition phase can be used
to make design choices. In the design phase, one or more designs are developed, with
which the project result can apparently be achieved. Depending on the subject of the
37
project, the products of the design phase can include dioramas, sketches, flow charts,
site trees,HTML screen designs, prototypes, photo impressions and UML schemas.
The project supervisors use these designs to choose the definitive design that will be
produced in the project. This is followed by the development phase. As in the
definition phase, once the design has been chosen, it cannot be changed in a later
stage of the project.
Development phase:
During the development phase, everything that will be needed to implement
the project is arranged. Potential suppliers or subcontractors are brought in, a schedule
is made, materials and tools are ordered, and instructions are given to the personnel
and so forth. The development phase is complete when implementation is ready to
start. All matters must be clear for the parties that will carry out the implementation.
In some projects, particularly smaller ones, a formal development phase is probably
not necessary. The important point is that it must be clear what must be done in the
implementation phase, by whom and when.
Implementation phase:
The project takes shape during the implementation phase. This phase
involvesthe construction of the actual project result. Programmers are occupied with
encoding, designers are involved in developing graphic material, contractors are
building, the actual reorganization takes place. It is during this phase that the project
becomesvisible to outsiders, to whom it may appear that the project has just begun.
Follow-up phase:
Although it is extremely important, the follow-up phase is often neglected.
During this phase, everything is arranged that is necessary to bring the project to a
successful completion. Examples of activities in the follow-up phase include writing
handbooks, providing instruction and training for users, setting up a help desk,
maintaining the result, evaluating the project itself, writing the project report, holding
a party to celebrate the result that has been achieved, transferring to the directors and
dismantling the project team. The central question in the follow-up phase concerns
when and where the project ends. Project leaders often joke among themselves that
the first ninety percent of a project proceeds quickly and that the final ten per cent can
take years. The boundaries of the project should be considered in the beginning of a
project, so that the project can be closed in the follow-up phase, once it has reached
these boundaries.
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Managing a project:
Adopting the six phases creates clarity in a project, thereby making it easier
toadminister. What exactly does managing a project entail?First, projectleaders and
project teams are involved with the following components:
1. Team
A project team is comprised of a group of people who will realise the project
result. The group is often comprised of people who have variousbackgrounds,each of
whom contributes knowledge and skills.
2. Goal
A product result (or goal) is desired. After a project has been completed,
something has been realized. A new piece of software has been written, a re-
organisation has been carried out or a bridge has been built. The project goal is
sometimes vague or less firmly established. In many projects, it is necessary to adapt
the goal as the project proceeds.
3. Limited resources
The amount of time and money that is available for completing a project is
always limited. No project is completely free of time pressure.
4. Uncertainty (risk)
One characteristic feature of projects is that their success is never guaranteed
beforehand. Even if the desired goal is already being reached, it is uncertain whether
it will be achieved within the available budget or within the proposed time. It is not
unusual for a project to take three times as long and to cost twice as much as
originally estimated. It is also not unusual for only thirty per cent of the original
project team members to be working on the project upon its completion. Although
project managers must attend to many matters, they actually direct projects along only
five parameters:
•Time
•Money
•Quality

39
 •Organisation
•Information
These five parameters, which are often known as the ‘control factors’, are
described further below. The control factors appear in project plans, progress
monitoring and project reporting.

THE RELEVANCE OF LEARNING ORGANIZATION

Many consultants and organizations have recognized the commercial

significance of organizational learning – and the notion of the ‘learning organization’
has been a central orienting point in this. Writers have sought to identify templates, or
ideal forms, ‘which real organizations could attempt to emulate’. In this sense the
learning organization is an ideal, ‘towards which organizations have to evolve in
order to be able to respond to the various pressures [they face] (Finger and Brand
1999: 136). It is characterized by recognition that ‘individual and collective learning
are key’ .
Two important things result from this. First, while there has been a lot of talk
about learning organizations it is very difficult to identify real-life examples. This
might be because the vision is ‘too ideal’ or because it isn’t relevant to the
requirements and dynamics of organizations. Second, the focus on creating a template
and upon the need to present it in a form that is commercially attractive to the
consultants and writers has led to a significant under-powering of the theoretical
framework for the learning organization. Here there is a distinct contrast with the
study of organizational learning.
The learning society and the knowledge economy:
The emergence of the idea of the ‘learning organization’ is wrapped up with
notions such as ‘the learning society’. Perhaps the defining contribution here was
made by Donald Schon. He provided a theoretical framework linking the experience
of living in a situation of an increasing change with the need for learning.
The loss of the stable state means that our society and all of its institutions are
in continuous processes of transformation. We cannot expect new stable states that
will endure for our own lifetimes.
We must learn to understand, guide, influence and manage these
transformations. We must make the capacity for undertaking them integral to
40
ourselves and to our institutions. We must, in other words, become adept at learning.
We must become able not only to transform our institutions, in response to changing
situations and requirements; we must invent and develop institutions which are
‘learning systems’, that is to say, systems capable of bringing about their own
continuing transformation.
One of Schon’s great innovations was to explore the extent to which
companies, social movements and governments were learning systems – and how
those systems could be enhanced. He suggests that the movement toward learning
systems is, of necessity, ‘a groping and inductive process for which there is no
adequate theoretical basis’ .The business firm, Donald Schon argued, was a striking
example of a learning system. He charted how firms moved from being organized
around products toward integration around ‘business systems’. He made the case that
many companies no longer have a stable base in the technologies of particular
products or the systems build around them. Crucially Donald Schon then went on with
Chris Argyris to develop a number of important concepts with regard to
organizational learning. Of particular importance for later developments was their
interest in feedback and single- and double-loop learning.
Subsequently, we have seen very significant changes in the nature and
organization of production and services. Companies, organizations and governments
have to operate in a global environment that has altered its character in significant
ways.
Productivity and competitiveness are, by and large, a function of knowledge
generation and information processing: firms and territories are organized in networks
of production, management and distribution; the core economic activities are global –
that is they have the capacity to work as a unit in real time, or chosen time, on a
planetary scale.
A failure to attend to the learning of groups and individuals in the organization
spells disaster in this context. As Leadbeater has argued, companies need to invest not
just in new machinery to make production more efficient, but in the flow of know-
how that will sustain their business. Organizations need to be good at knowledge
generation, appropriation and exploitation.
THE LEARNING ORGANIZATION:
It was in this context that Peter Senge (1990) began to explore ‘The art and
practice of the learning organization’. Over 750,000 copies of The Fifth Discipline
41
(1990) were sold in the decade following its publication – and it is probably this book
that has been the most significant factor in popularising the notion of the learning
organization. However, as Sandra Kerka remarked in 1995 ‘there is not a consensus
on the definition of a learning organization’. Indeed, little has changed since. Garvin
(2000: 9) recently observed that a clear definition of the learning organization has
proved to be elusive.
Definition of a learning organization:
Learning organizations are organizations where people continually expand
their capacity to create the results they truly desire, where new and expansive patterns
of thinking are nurtured, where collective aspiration is set free, and where people are
continually learning to see the whole together.
`The Learning Company is a vision of what might be possible. It is not
brought about simply by training individuals; it can only happen as a result of learning
at the whole organization level. Learning Company is an organization that facilitates
the learning of all its members and continuously transforms itself.
Learning organizations are characterized by total employee involvement in a
process of collaboratively conducted, collectively accountable change directed
towards shared values or principles.
We can see much that is shared in these definitions – and some contrasts. To
start with the last first: some writers such as Pedler appear to approach learning
organizations as something that are initiated and developed by senior management –
they involve a top-down, managerial imposed, vision. This can be contrasted with
more ‘bottom-up’ or democratic approaches such as that hinted at by Watkins and
Marsick. Some writers have looked to the learning company, but most have proceeded
on the assumption that any type of organization can be a learning organization. A
further crucial distinction has been reproduced from the use of theories from
organizational learning. This is the distinction made between technical and social
variants. The technical variant has looked to interventions based on measure such as
the ‘learning curve’ (in which historical data on production costs is plotted against the
cumulative output of a particular product) .There is a tendency in such approaches to
focus on outcomes rather than the processes of learning. The social view of the
learning organization looks to interaction and process – and it is this orientation that
has come to dominate the popular literature.

42
 According to Sandra Kerka most conceptualizations of the learning
organizations seem to work on the assumption that ‘learning is valuable, continuous,
and most effective when shared and that every experience is an opportunity to learn’.
The following characteristics appear in some form in the more popular conceptions.
Learning organizations:
 Provide continuous learning opportunities.
 Use learning to reach their goals.
 Link individual performance with organizational performance.
 Foster inquiry and dialogue, making it safe for people to share
openly and take risks.
 Embrace creative tension as a source of energy and renewal.
 Are continuously aware of and interact with their environment.
As Kerka goes onto comment, the five disciplines that Peter Senge goes on to
identify (personal mastery, mental models, shared vision, team learning and
systems thinking) are the keys to achieving this sort of organization. Here,
rather than focus too strongly on the five disciplines (these can be followed up
in our review of Senge and the learning organization) we want to comment
briefly on his use of systemic thinking and his interest in ‘dialogue’ (and the
virtues it exhibits). These two elements in many respects mark out his
contribution.

Systems theory and the learning organization:

Systemic thinking is the conceptual cornerstone of Peter Senge’s approach. It
is the discipline that integrates the others, fusing them into a coherent body of theory
and practice (1990: 12). Systems theory’s ability to comprehend and address the
whole and to examine the interrelationship between the parts provides, for Peter
Senge, both the incentive and the means to integrate the disciplines. Three things need
noting here. First, systems theory looks to connections and to the whole. In this
respect it allows people to look beyond the immediate context and to appreciate the
impact of their actions upon others and vice versa. To this extent it holds the
possibility of achieving a more holistic understanding. Second, while the building
blocks of systems theory are relatively simple, they can build into a rather more
sophisticated model than are current in many organizations. Senge argues that one of

43
the key problems with much that is written about, and done in the name of
management, is that rather simplistic frameworks are applied to what are complex
systems. When we add these two points together it is possible to move beyond a focus
on the parts, to begin to see the whole, and to appreciate organization as a dynamic
process. Thus, the argument runs, a better appreciation of systems will lead to more
appropriate action. Third, systemic thinking, according to Senge, allows us to realize
the significance of feedback mechanisms in organizations. He concludes:
The systems viewpoint is generally oriented toward the long-term view. That’s
why delays and feedback loops are so important. In the short term, you can often
ignore them; they’re inconsequential. They only come back to haunt you in the long
term. (Senge1990: 92)While other writers may lay stress on systems theory, in
Senge’s hands it sharpens the model – and does provide some integration of the
‘disciplines’ he identifies.

Dialogue and the learning organization:

Peter Senge also places an emphasis on dialogue in organizations – especially
with regard to the discipline of team learning. Dialogue or conversation as Gadamer
has argued that it is processes of two people understand each other. As such it is
inherently risky and involves questioning our beliefs and assumptions.
Thus it is a characteristic of every true conversation that each opens himself to
the other person, truly accepts his point of view as worthy of consideration and gets
inside the other to such an extent that he understands not a particular individual, but
what he says. The thing that has to be grasped is the objective rightness or otherwise
of his opinion, so that they can agree with each other on a subject.
The concern is not to ‘win the argument’, but to advance understanding and
human well being. Agreement cannot be imposed, but rests on common conviction.
As a social relationship it entails certain virtues and emotions.
It is easy to see why proponents of the learning organization would place a
strong emphasis upon dialogue. As Peter Senge has argued, for example, team
learning entails the capacity of members of a team to suspend assumptions and enter
into a genuine “thinking together”. Dialogue is also necessary to other disciplines e.g.
building a shared vision and developing mental models. However, there are
significant risks in dialogue to the organization. One factor in the appeal of Senge’s
view of dialogue (which was based upon the work of David Bohmand associates) was
44
the promise that it could increase and enrich corporate activity. It could do this, in
part, through the exploration and questioning of ‘inherent, predetermined purposes
and goals’. There is a clear parallel here with Argyris and Schön’s work on double-
loop learning, but interestingly one of Bohm’s associates has subsequently suggested
that their view was too optimistic: ‘dialogue is very subversive’.

Unit4:
ORGANIZATION DEVELOPMENT:
Different people have defined OD differently. According to Koonzet. al, “OD
is a systematic integrated and planned approach to improve the effectiveness of the
enterprise. It is designed to solve problems that adversely affect the operational
efficiency at all levels”.

Burke’ has defined OD as “a planned process of change in an organisation’s

culture through the utilization of behavioural science technology, research and
theory”.

In the opinion of French and Bell “OD is a systematic approach to

organisational improvement, that applies behavioural science theory and research in
order to increase individual and organisational well-being and effectiveness”.

Now, OD can be defined as a long-term, more encompassing change approach

meant to improve individual as well as organisational well-being in a changed
situation”.

Characteristics of organization development

45
 1. Focus on culture and process: Organization development on
culture and process of proper and organization on following suitable and
positive culture level and process success organization development program
depend.
2. Collaboration: Organization development encourages heartfelt
collaboration between managers and employees and members managing
culture and processes.
3. Accomplishment of tasks: Various kinds of teams and groups
play important roles for accomplishment of organization development
activities. Thus targets can also be achieved.
4. Human and social sides: Organization development focuses
on both human and social sides. By doing so, it intervenes in the technological
and structural sides also.
5. Participation: Participation and involvement of managers and
players can make the organization development process a success. It helps to
exchange views and ideal related to organization development.
6. System change: Organization development focuses on total
system change. Because every change is inevitable for the success of any
development program.
7. Facilitation: There are three parties to organization
development process. They are facilitators, collaborators and co-learners in the
client system. Cooperation of all these parties can help the organization to
develop.
8. Over arching goals: An overarching goal of the organization
is to make the client system able to solve its problems. It is done by teaching
the skills and knowledge on continuous learning through self analytical
methods.
9. Action research model: Organization development activities
are undertaken following the conclusions and recommendations of action
research members related to client system.
10. Developmental view: Organization development takes a
developmental view for the betterment of both process and organization.
Another practice in organization development programs is to create win-win
solutions.
46
 The above points mainly characterize the organization development. This does
not mean that there may not be other characteristics of organization development.

READINESS FOR CHANGE

It is widely accepted that many change programmes fail and that more
effective change management would enhance organisational effectiveness. Much is
made of the best way to manage change, including a large body of work that argues
that there is no point in undertaking change unless the organisation is actually ready
and able to adopt the change. This contributes to the argument that in cases of
complex change, not only does there need to be readiness in terms of the change
itself, but that there also needs to be readiness in terms of the capacity of the
organisation to work in partnership, both within and across organisations. Building
upon research into the effective development of joined-up working in the public
sector 2 undertaken within the Australian Public Service (APS), this outlines the
development of a new diagnostic tool that will enable organisations to gauge their
preparedness for complex change.

Method
Based upon the change literature and the gaps identified we have developed a
change diagnostic tool that can work to capture both the macro and the micro level.
The objective was to create a survey instrument which can be administered either
prior to a change, or during if there are concerns, to determine whether, first, the
organisation and its members are ready for a change and, second, if not which areas
need to be addressed to overcome the problems. The diagnostic tool has been
developed in two stages.
Stage 1:
Developing Macro Level indicators an original qualitative study was
undertaken which sought reasons for success or failure of complex government
change initiatives, in particular the adoption of joined-up, inter organisational ways of
working. The work conducted in five agencies: the Australian Government
Information Management Office, Australian Public Service Commission, the
Department of Agriculture, Fisheries and Forestry, Department of Families, Housing,
Community Services and Indigenous Affairs, Department of Health and Ageing and
the Department of the Prime Minister and Cabinet, led to the 5 development of a force
47
field approach using barriers and enablers of joined-up approaches at the macro level
identified within the cases.
Stage 2:
Developing the instrument the next stage in the tool development was to
clarify the definitions of each term for changes in general so that, where possible,
extant survey instruments could be found to provide already validated questions for
both the macro and the micro levels of the diagnostic.
PLANNING OD STRATEGY
Strategic Programme 1 – People Management
Key to maintaining, enhancing and developing this reputation will be the
ability of the University to attract, recruit, develop and retain high performing staff.
Critical to Ulster’s position as a centre of academic and research excellence will be
the ability to attract high performing academic and research staff in an increasingly
competitive UK and International market. This is likely to require more flexible
recruitment and reward practice. The use of targeted „discretionary‟ payments that are
consistent with equal pay requirements may be necessary. And of course a
commitment to equality and diversity is integral to the University’s recruitment
objectives and, more broadly, widening the recruitment pool for academic and
research posts and becoming an „employer of choice‟ in all staff groups will help
improve Ulster’s ability to compete and attract the best and most diverse field of
candidates whilst enabling it to meet its commitments under equality legislation. Also
in line with the enabling goal articulated in the new Corporate Plan the University will
continue with its plan to evolve a Positive Working Environment (PWE) for all staff
so that individually and in teams the workforce will engage with the goals, ambitions
and strategic plans for the University and to achieve all of these for the University.
Through staff engagement initiatives and surveys Ulster will be able to harness the
expertise, innovation and commitment of all of its staff and will enable the University
to provide a supportive, inclusive, resilient and financially sustainable working and
learning environment and physical infrastructure in which change is managed and
embraced and structures and job roles provide challenging and satisfying outputs for
all staff.
Key to the success of all of this of course will be ability of the University to
make strong, agile decisions and therefore accurate, timely and relevant information
for managers and leaders will be important as will the need for workforce planning in
48
terms of talent management/succession planning for managerial/leadership positions
as well as the management of knowledge sharing and addressing „single points of
failure‟ in faculties and departments.
Key Objectives – Strategic Programme 1 – People Management
1) To develop clear standards for job roles linked to Generic Role Profiles which are
sufficiently flexible, allowing autonomy and responsibility for job holders.
2) To continue to attract high performing academic and research staff by developing
flexible approaches to recruitment.
3) To seek to balance the range of demands on academic and research staff
(rebalancing workloads) so that they can focus on their core role in research and
teaching activities which are key to Ulster’s academic mission.
4) To become an employer of choice in the local and national labour markets.
5) To develop electronic ‘on-boarding’ systems to facilitate staff induction processes
and to have probationary processes those are timely and engage staffs from the outset
including mentoring arrangements.
6) Business Information tools are used to develop a suite of Workforce Planning
Information sets for managers to assess the performance of their function and to plan
for succession and change as appropriate.
7) To develop talent management/succession management systems to retain high
performing staff with potential to succeed in key academic/leadership roles in the
University.
8) To identify the need for change in the University, to articulate the process for
change, to communicate the change to staff and trade unions and to implement change
consistently in the University.
9) To implement the University’s Restructuring/Redeployment/Redundancy processes
to achieve agreed efficiency targets
10) To facilitate staff creation/innovation/suggestions for improvement and
enhancement in processes/systems in the University and which can be recognised and
rewarded where efficiency, cost/waste reduction is achieved.
11) To provide a safe, healthy and b for staff well being.

Strategic Programme 2 – Leading and Developing People

In this strategic Programme the University will work towards transformational
leadership at all levels, developing mechanisms to enable academic staff and leaders
49
to focus on key priorities, and developing systems for appropriate career and
professional development for staff. Underpinning the latter is the development of
effective Performance and Development Review processes for all staff to support the
University’s goals and to facilitate staff development. Specific staff development for
the professionalization of key groups of support staff (e.g. PACSS) will be included.
Effective leadership at senior levels facilitates the delivery of academic/managerial
plans at all levels and inspires and motivates staff by giving clear direction and
support. Similarly middle and first-line leaders are crucial to the motivation and
performance of staff across the University and to the delivery of the new Corporate
Plan. Leaders in all of these positions need timely and effective development and
support if they are to deliver services within the requirements of the Corporate Plan
and to lead change at a time of considerable major developments within the
University (GBD, NWDP etc) with diminishing financial and human resources.
Particular importance will be attached to supporting and developing Leaders who are
responsible for reviewing staffing needs in light of the University’s plans/budgetary
constraints and facilitating transition to new staffing profiles where required. Also
dealing fairly and effectively with restructuring, redeployment, redundancy, and
underperformance and capability issues will be a development priority for all leaders
and all of these will require hands-on support from central departments. Within this
Strategic Programme emphasis will also be placed on developing and equipping
administrative staff to provide excellent professional support for the University’s
mission. Also the development of excellent teaching and research staff will be a
priority to ensure that the University retains and enhances its position as a centre of
excellence for teaching and excellence in selective areas of research.
Key Objectives – Strategic Programme 2 – Leading and Developing People
1) To recruit and select future Leaders for their leadership and management capability
and congruence with Ulster’s core values.
2) To enhance the effectiveness of leadership in the University and to provide
development opportunities for those who aspire to leadership roles and for those
identified through talent management processes with the potential to succeed in
leadership roles both in academia and management.
3) To develop and enhance Research and Teaching capability for academic and
research staff
4) To develop and manage Contract Research Staff more effectively.
50
5) To develop more effective Performance Development and Review processes for all
staff which supports the University’s needs and at the same time facilitates staff
development through improved systems that are consistent with Ulster’s values.
6) To develop transformational leaders at all levels with a specific emphasis on
middle and first-line managers, manifesting competent and confident managers.
7) To establish a University framework ensuring equal access to training and
development tailored to the needs of different groups of staff.
Strategic Programme 3 – Valuing People – Engagements, Recognition, Reward
and Respect
This Strategic Programme seeks to build on the University’s engagement
exercise in 2008/09 on the Positive Working Environment (PWE) survey. A key
priority will be the development and implementation of further staff surveys and a
specific model which seeks to engage staff through an integrated
marketing/communication approach for staff initiatives in the University. This
Strategic Programme will also focus on the need to build on developments in recent
years in the University to recognize and reward high performing academic and
research staff e.g. Professoriate Progression Process (Teaching and Learning and
Research and Innovation), Teaching and Reward Fellowships. Reward is not narrowly
defined as pay rather attention will be given to new initiatives based on career
progression, development opportunities and recognition and reward in line with the
existing Employee Recognition Scheme. Equality and Diversity principles will be
integrated through the monitoring and evaluation of general and specific initiatives
and through targeted staff development which promotes career progression amongst
under-represented groups.
Key Objectives – Strategic Programme 3 – Valuing People – Engagements,
Recognition, Reward and Respect
1) To ensure the retention of high performing academic and research staff.
2) To retain key staff in acute areas where necessary and objectively justifiable via the
use of discretionary payments which are cost effective and consistent with equal pay
requirements?
3) Keep under review excellence awards for staff and revise as appropriate
4) To strengthen and promote teaching excellence recognition through the
University’s promotion processes for academic staff.
5) To reward exceptional performance amongst University support staff.
51
6) To provide realistic terms and conditions of employment which encourage existing
staff and prospective applicants to view Ulster as their employer of choice?
7) To ensure that various categories of staff receive salaries commensurate with the
roles they are required to perform.
8) To build on the PWE 2009 exercise through staff engagement surveys/initiatives
and the development of an integrated marketing/ communication model for such
initiatives.

ORGANISATION DEVELOPMENT INTERVENTIONS

Organisation Development (OD) Intervention techniques are the methods created by

OD professionals and others. Single organization or consultant cannot use all the
interventions. They use these interventions depending upon the need or requirement.
The most important interventions are,
1. Survey Feedback
2. Process Consultation
3. Sensitivity Training
4. The Managerial Grid
5. Goal Setting and Planning
6. Team Building and Management by Objectives
7. Job Enrichment, Changes in Organizational Structure and Participative
Management and Quality Circles, ISO, TQM

Survey Feedback: the intervention provides data and information to the managers.
Information on attitudes of employees about wage level, and structure, hours of work,
working conditions and relations are collected and the results are supplied to the top
executive teams. They analyze the data, find out the problem, evaluate the results and
develop the means to correct the problems identified. The team is formed with the
employees at all levels in the organization hierarchy i.e, from the rank and file to the
top-level.

Process Consultation: the process consultant meets the members of the department
and work teams observes their interaction, problem identification skills, solving
procedures, coaches and counsels individuals & groups
52
Goal Setting and Planning: each division in an organization sets the goals or
formulates the plans for profitability. These goals are sent to the top management
which in turn sends them back to the divisions after modification.

Managerial Grid: this identifies a range of management behavior based on the

different ways that how production/service oriented and employee oriented states
interact with each other. Managerial grid is also called as instrumental laboratory
training as it is a structured version of laboratory training. It consists of individual and
group exercises with a view to developing awareness of individual managerial style
interpersonal competence and group effectiveness. Thus grid training is related to the
leadership styles. The managerial grid focuses on the observations of behaviour in
exercises specifically related to work. Participants in this training are encouraged and
helped to appraise their own.

Management by Objectives (MBO) is a successful philosophy of management. It

replaces the traditional philosophy of “management by domination”. MBO led to a
systematic goal setting and planning. Peter Drucker the eminent management guru in
1959 has first propagated the philosophy since then it has become a movement.mbo is
a process by which managers at different levels and their subordinates work together
in identifying goals and establishing objectives consistent with organizational goals.

Team Building is an application of various techniques of sensitivity training to the

actual work groups in various departments. These work groups consist of peers and a
supervisor.

Sensitivity Training is called a laboratory as it is conducted by creating an

experimental laboratory situation in which employees are brought together. The team
building technique and training is designed to improve the ability of the employees to
work together as teams.

Job Enrichment is currently practiced all over the world. It is based on the
assumption in order to motivate workers; job itself must provide opportunities for
achievement, recognition, responsibility, advancement and growth. The basic idea is
53
to restore to jobs the elements of interest that were taken away. In a job enrichment
program the worker decides how the job is performed, planned and controlled and
makes more decisions concerning the entire process.

COLLECTIVE BARGAINING

Collective bargaining is a process of negotiation between employees and a

group of employers aimed at agreements to regulate working salaries. The interests of
the employees are commonly presented by representatives of a trade union to which
the employees belong.

Strategies

The most important thing that you can do when faced with upcoming
concession bargaining is to be prepared. Each member of the bargaining team should
have a thorough understanding of the current collective bargaining agreement, and if
possible, the changes that have been made in the recent past. The team should review
grievances that have been filed since the last agreement and have information on
health care costs, as well as data to support whatever changes the employer may be
requesting from the union. It is very likely that health care will be an important part
of bargaining, and its complex nature requires a thorough understanding and
preparation for bargaining.

Know the Bargaining Unit

It is helpful to have a good sense of what is important to the bargaining unit.

Is the union comprised mainly of older workers nearing retirement? Is the union
comprised of younger members whose focus is more on salary issues? This basic
information will help the team prepare its proposals and can help target proposals that
are more likely to be accepted by the union.

Have the Data to Support Your Positions

54
 All of the preparation does no good without the proper data to support your
positions. Have copies of past bargaining agreements, copies of financial documents,
and any other source of information needed to support your positions.

PRODUCTIVITY BARGAINING

A form of collective bargaining leading to a productivity agreement in which

management offers a pay raise in exchange for alterations to employee working
practices designed to increase productivity
Productivity bargaining has been described as "an agreement in which
advantages of one kind or another, such as higher wages or increased leisure, are
given to workers in return for agreement on their part to accept changes in working
practices or in methods or in organization of work which will lead to more efficient
working. The changes in the interests of efficiency are seen as an integral part of the
bargaining and as necessary contribution to meeting the cost of advantages
conceded”.
The prime purpose of productivity bargaining is to raise labour productivity
and lower unit labour costs, and this is achieved by the exchange of alternations in
working practices for increased leisure, higher remuneration for labour, more
comprehensive fringe benefits, and general increase in the status of manual
employees. Moreover, it is an exercise in problem solving and creating new gains,
rather than just power bargaining over shares.
Productivity bargaining is a complex process. It involves lengthy, detailed
negotiations about the implementation of a variety of management techniques such as
work study and job evaluation. The content of negotiations is more or less
comprehensive in the sense that it includes not only bargaining over earnings but
bargaining over other related matters such as reductions in hours, introduction or
extension of shift working, manning of machines, demarcation lines, the introduction
of new payment system, and re-allocation of job control. In addition, the coverage of
productivity bargaining is more or less comprehensive in that generally speaking it
will apply to all employees in an enterprise. Productivity bargaining generally occurs
at the level of the enterprise or company.
13 OPTIONS TO IMPROVE YOUR WORK RELATIONSHIPS

55
 We might like to think that if we just do a good job, and have technical
proficiency in our field of expertise, it is enough to be recognized and rewarded.
Unfortunately, many of us have learned that knowing how to communicate well –
with bosses, co workers, clients, and customers – is the real key to success. The
people who can get their voices heard and influence others to their way of thinking
are often the ones who are able to advance their careers more easily. In any event,
everyone can benefit from improving their interpersonal skills and behaviours.

1. Learn to wait – 72 hours or more. If you tend to be an impulsive person and

respond right away when you observe behaviour you don’t like, try sitting with your
upset for three days before you address it. Yes, that’s three full days. If at the end of
that time you still want to address it, you will be calm and likely more balanced in
your approach.

2. Don’t assume they know what you mean. We assume too much in
communication. In fact, in certain industries we love our jargon, but we don’t always
agree on what the jargon means! Ask “why?” to get at what’s underneath their
comments. Don’t guess – ask.

3. Be cautiously open. This one may depend on your culture – learn what is
acceptable and what is not before you reveal too much. But in order to build
relationships, it is give and take. Give others the opportunity to understand who you
really are. Longer term, this is how you create trust, loyalty, and respect, and feels
more comfortable in your “work skin.”

4. Give up on fixing others. The adage “When you point one finger at another
person, four more is pointing at you” is very true. You may be great at seeing others’
flaws and missteps, and you may be tempted to offer unsolicited advice. Resist the
urge. Instead, focus on yourself and let them make their own mistakes.

5. Define success. It’s typical to set goals in our business, career, or work
relationships. But what we forget to do is to define what success looks like. Take the
time to paint the picture of what you want. What kind of culture? What kind of

56
relationships? What do you want to be known for in your workplace? Be clear about
where you are going.

6. Practice being the Interested Observer. One of the best ways to improve your
workplace relationships is by watching others’ reactions to things you and others say.
Think of it as stepping out of the theatre. We all tend to fall into rote responses. Step
back to watch what’s going on. You’ll observe “helpful” people, “I feel sorry for
myself” people, and “giving” people, to name a few types. Be sure to watch your own
approaches and reactions. Do you also react as a “type” instead as an objective
listener?

7. Let them finish. An easy way to improve all your interactions is to simply let the
other person finish her thought completely. This means not interrupting, adding
commentary, or giving feedback until she is completely through talking or asking. Try
to refrain from thinking about what you will say next, too.

8. Learn the art of focus. When another person is talking, focus completely on what
he is saying and how he is saying it. Don’t let your mind wander to your own
judgments or assessments. Use your energy to really listen and seek understanding.
The best listeners are usually considered to be really good communicators overall.

9. Connect the dots in your presentations. Whether you’re selling a product or

making a pitch for a new initiative in your company, show co workers, clients, and
customers how what you’re saying can benefit them. Remember everyone’s favourite
radio station – WIIFM, What’s In It For Me? Don’t make them work to find why they
should care; make it clear.

10. Leave labels off. Think about the process that goes on inside our heads. We look
out at reality, we filter it, and then we label it. We don’t like staff members who are
“like that.” We see someone’s walk and make a judgment about who they are. We
watch someone in a meeting and judge their contribution. Stop labelling. Turn your
opinions into factual observations wherever you can.

57
11. Watch your triggers. Who sets you off? Perhaps it’s the co worker who dumps
his work and problems in your lap, which puts you in the martyr/rescuer role. Reflect
on why this “trigger” keeps popping up, and what role you’re playing in perpetuating
the pattern.

12. Don’t unload. Do you unload your problems, ideas, or experiences on someone
else without really looking for an interaction? Next time, be clear about what you
want from the other person. Advice?Direction?A shoulder to cry on? Don’t vent
without a clearly identified goal.

13. Change something. Truth be told, when it comes to interpersonal skills and
dealing with others, we could all stand to try something new in our approach from
time to time. In the coming year, see if you can identify the communication patterns
that cause the most problems in your career and workplace relationships. Make a
conscious effort to look at them, work on them, and try a new approach.

CHALLENGES OF GLOBALIZATION

Globalization poses four major challenges that will have to be addressed by

governments, civil society, and other policy actors.

 One is to ensure that the benefits of globalization extend to all

countries. That will certainly not happen automatically.

 The second is to deal with the fear that globalization leads to

instability, which is particularly marked in the developing world.

 The third challenge is to address the very real fear in the industrial
world that increased global competition will lead inexorably to a race to the
bottom in wages, labor rights, employment practices, and the environment.

 And finally, globalization and all of the complicated problems related

to it must not be used as excuses to avoid searching for new ways to cooperate in
the overall interest of countries and people.

58
SOCIAL SECURITY IN INDIA
India has always had a Joint Family system that took care of the social
security needs of all the members provided it had access/ownership of material
assets like land. In keeping with its cultural traditions, family members and
relatives have always discharged a sense of shared responsibility towards one
another. To the extent that the family has resources to draw upon, this is often the
best relief for the special needs and care required by the aged and those in poor
health.
However with increasing migration, urbanization and demographic
changes there has been a decrease in large family units. This is where the formal
system of social security gains importance. However, information and awareness
are the vital factors in widening the coverage of Social Security schemes.
In the Indian context, Social Security is a comprehensive approach
designed to prevent deprivation, assure the individual of a basic minimum income
for himself and his dependents and to protect the individual from any
uncertainties. The State bears the primary responsibility for developing
appropriate system for providing protection and assistance to its workforce. Social
Security is increasingly viewed as an integral part of the development process. It
helps to create a more positive attitude to the challenge of globalization and the
consequent structural and technological changes.
Social Security Coverage in India:
Most social security systems in developed countries are linked to wage
employment. In India our situation is entirely different from that obtaining in
developed countries. The key differences are:
i) We do not have an existing universal social security system
ii) We do not face the problem of exit rate from the workplace being
higher than the replacement rate. Rather on the contrary lack of employment
opportunities is the key concern,
iii) 90% of the workforce is in the informal sector which is largely
unrecorded and the system of pay roll deduction is difficult to apply.
Even today 1/8th of the world’s older people live in India. The
overwhelming majority of these depend on transfers from their children.
Addressing social security concerns with particular reference to retirement income
59
 for workers within the coverage gap has been exercising policy makers across the
world. In India the coverage gap i.e. workers who do not have access to any
formal scheme for old-age income provisioning constitute about 90% of the
estimated workforce of 400 million people. Hence the global debate and
evaluation of options for closing the coverage gap is of special significance to
India. The gradual breakdown of the family system has only underscored the
urgency to evolve an appropriate policy that would help current participants in the
labour force to build up a minimum retirement income for themselves.

Synopsis of Social Security Laws:

The principal social security laws enacted in India are the following:
(i) The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and
establishments with 10 or more employees and provides for comprehensive medical
care to the employees and their families as well as cash benefits during sickness and
maternity, and monthly payments in case of death or disablement.
(ii) The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF
& MP Act) which applies to specific scheduled factories and establishments
employing 20 or more employees and ensures terminal benefits to provident fund,
superannuation pension, and family pension in case of death during service. Separate
laws exist for similar benefits for the workers in the coal mines and tea plantations.
(iii) The Workmen’s Compensation Act, 1923 (WC Act), which requires payment
of compensation to the workman or his family in cases of employment related injuries
resulting in death or disability.
(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks
wages during maternity as well as paid leave in certain other related contingencies.
(v) The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages
for each year of service to employees who have worked for five years or more in
establishments having a minimum of 10 workers.
Separate Provident fund legislation exists for workers employed in Coal
Mines, Seamen and for Tea Plantation workers in Assam.

60
 Unit5:
DIFFERENCE BETWEEN TEAMS AND GROUPS:
Groups Teams
 Members work independently  Members work interdependently
and worktowards both personal
and team goals
 Members are not involved in the  Members feel a sense of
planning oftheir group's ownership towardstheir role
objectives (no buy-in, inward because they
focus) committedthemselves to goals
they helped create.
 Members are given their tasks  Members collaborate together and
use theirtalent and experience to
achieve goals
 Members are very cautious about  Open communication. Diverse
what they say Open perspectivesare welcome.

61
 communication. Diverse
perspectivesand are afraid to ask
questions. They may notfully
understand what is taking place in
theirgroup
 Members may have a lot to  Members are encouraged to offer
contribute but maynot contribute their skillsand knowledge, and in
ideas due to lack of turn each member willcontribute
personalreward or negative to team success. Individualsuccess
relationship with othermembers. ensured by team success.
 Members are bothered by  Members see conflict as a part of
differing opinions creativeproblem solving.
ordisagreements because they Everybody wants to
consider it athreat. No process for resolveproblems constructively.
conflict resolution.

TYPES OF TEAMS:

Teams have become standard in the business world. Naturally, academic

institutions have implemented team-based projects to help prepare students for the
workplace. 90 percent of corporate leaders feel today’s problems are so complex they
require teams to provide effective solutions. These leaders believe collaboration can
fuel creative thinking and problem solving critical to positive business outcomes.

The truth is, there are many different types of teams. Some teams are
permanent while others are temporary. Some are part of the corporate hierarchy while
others are adjunct. One thing you can be sure of is, your career will involve working
with teams. Let’s take look at the most common types of teams in the workplace.

62
1. Department teams: Departmental teams have been around for quite some time. As
a department team, individuals relate to specialty or focus he or she has mastered,
with everyone working toward achieving goals outlined in the company’s mission
statement. Some examples include developer teams at a tech start up or the sales team
at a marketing agency.Departmental teams are permanent and typically work on
ongoing projects or goals.

2. Problem-solving teams: These types of teams are usually temporary and focus on
solving a specific issue. For example, after the 2008 financial crisis, several
organizational task force teams and governmental committees were created to come
up with solutions to help the country climb out of a steep recession. Once guidelines
were set in place and plans were formed, the task forces and committees were
disbanded.

3. Virtual teams: A virtual team can be any type of team that communicates digitally
rather than in person. Easier communication tools allow managers to build teams
based on strengths and weaknesses rather than geography.It’s important for students
to master virtual skills early on in their academic career, as conference calls and
WebEx presentations have become ubiquitous in the workplace.

4. Cross-functional teams: In most business settings, permanent team members are

going to collaborate with other departments to tackle certain events for the company –
such a new product launch. In these situations communication between internal
departments is crucial in order to address the project goals.

5. Self-managed teams: These types of teams are the most empowered, as they have
to power to make decisions. Each team member brings a certain skill set to the table
to make informed decisions, complete assignments or deliver services for customers.
Companies that implement self-managed teams say their employees tend to feel more
ownership of the project.

6. Permanent teams- These teams perform on a permanent basis and are not
dissolved once the task is accomplished. Let us understand the concept with an
example.

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 Mike, Peter, Joe and Ana had a strong inclination towards branding as well as
promotions and hence were a part of the branding team with a leading organization.
They were primarily responsible for promoting their brand and designing marketing
strategies to generate maximum revenue for their organization. They worked
extremely hard and always managed to achieve their targets well in advance, but their
team was always in place and never dissolved. Their organization never asked them to
leave or ever dissolved their team. Such teams are called permanent teams.

Work or no work, the human resources team, operation team, administration

team always function effectively throughout the year and hence are permanent teams.

7. Temporary teams - Unlike permanent teams, temporary teams lose their

importance, once the task is accomplished. Such teams are usually formed for a
shorter duration either to assist the permanent team or work when the members of the
permanent team are busy in some other project.

When organizations have excess of work, they generally form temporary

teams which work in association with the members of the permanent team for the
accomplishment of the task within the stipulated time.

8. Task Force - Such teams are formed for a special purpose of working on any
specific project or finding a solution to a very critical problem.

The government generally appoints special teams to investigate critical issues

like bomb blasts, terrorist attacks and so on. The task force explores all the possible
reasons which led to a severe problem and tries to resolve it within a given deadline.

9. Committee - Committees are generally formed to work on a particular assignment

either permanently or on a temporary basis. Individuals with common interests, more
or less from the same background, attitude comes together on a common platform to
form a committee and work on any matter.

To organize any cultural event, organizations generally make committees to

raise funds, invite celebrities and all the major tasks involved to successfully organize
any event. The committee members work together, design strategies to successfully
accomplish the task.

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 In educational institutes, various committees are formed where students with a
common interest join hands to organize cultural events and various other activities
required for the all round development of students.

Samuel was working with a leading advertising firm with two members
reporting to him. Samuel always believed in his team members and worked together
with his team and no doubts his team always did wonders and was way ahead of
others.

10. Self Managed Teams - Self Managed Teams consist of individuals who work
together again for a common purpose but without the supervision of any leader. Here
as the name suggests every individual is accountable for his individual performance.
The team members of self managed teams must respect each other and should never
lose focus on their target. No leader is appointed and the team members have to take
their own responsibility. Individuals take the initiative on their own and are their own
guides and mentors.
11. Cross Functional Team - Let us understand this with the help of an example.

Maria and Andy both were part of the branding team. They got an assignment
from their superiors to be completed within two days. Unfortunately Andy met with
an accident and was advised complete bed rest. To avoid delays, Peter from the
operations team was shifted to the marketing team to assist Maria for the time being
and form a team. Such teams are called cross functional teams. Ideally the employees
should be more or less on the same level to avoid ego hassles. Individuals from
different areas come and work together for a common objective to form a cross
functional team. In such teams, people from different areas, interests and likings join
hands to come out with a unique idea to successfully complete a task.

VIRTUAL TEAMS:

Virtual teams consist of individuals who are separated by distances and

connected through computer. Here individuals communicate with each other online
through internet. Sam at Los Angeles can form a team with Mandy at Mexico and
Sara at Denver all working for a common objective but the communication is totally
digital through internet. Such teams are helpful when employees need to connect with

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each other and are located at different places. Individuals supporting any community
in social networking sites such as Facebook or Orkut also form a virtual team as all
the members are from different locations but support a common community. They all
have a common objective -to support and promote their community.

Characteristics of virtual teams:

A virtual teamis defined as "a group of people working together across time
and space, using electronic communication technology."

Trust:

Trust is the foundation of any successful relationship and it’s even more
important when building relationships virtually. Without the benefit of regular face to
face contact (or any face to face contact), virtual teams have to be much more
intentional about focusing on building trust. There are four core elements of trust:
competence, integrity, care, and dependability. Virtual team members can build trust
by demonstrating competence in their responsibilities, integrity in their actions, care
by developing personal relationships with colleagues, and dependability by following
through on commitments.

Attentiveness:

It’s easy to “check out” or fly under the radar when working on a virtual
team. Without the benefit of face to face communication, virtual team members have
to work extra hard at being attentive through their verbal and electronic interactions.
Leaders of virtual teams have to be diligent about encouraging participation, dealing
with conflict, and appropriately rewarding and recognizing team members.

Communication:

Body language adds tremendous context to communication with some studies

suggesting it comprises more than 55% of the message transmitted…and virtual teams
miss out on that (unless you regularly use webcams which I highly recommend).
Virtual team members have to work diligently on their tone of communications

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(written and verbal) and learn to be more perceptive of the emotional content of the
message being communicated.

Executive Support:

Their study found that virtual teams do well when executives support the
development of social relationships at work (thereby building trust among colleagues)
and demonstrate collaboration. The ways in which executives build and support social
relationships in their organizations are as varied as the organizations themselves, but
Gratton and Erickson found that the most successful executives employ "signature"
practices that are memorable, hard to replicate and particularly well-suited to their
organizations.

Effective HR Practices:

The study also found that two particular HR practices improved team
performance: training in skills to build collaborative behavior and informal
community building. In instances when collaboration was strong, they found that the
HR team had made a significant investment in one or both of those practices, often in
ways that reflected their organizations' cultures and business strategies.

Collaborative behaviours include demonstrating appreciation of others,

engaging in purposeful conversations, creatively and productively resolving conflicts,
and program management. Informal community building activities include feedback,
mentoring and coaching because these practices help virtual workers feel connected to
the organization. HR should also ensure that succession planning and promotions are
tracked to make sure virtual team members are receiving recognition and credit
(Leonard, 2011).

WELL-STRUCTURED TEAMS:

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 Selecting the right people to serve on virtual teams is critical to a team's
success. T.H. Ong, Vice President, Americas and Asian Pacific for Global
Integrations, Inc., notes that the best virtual workers are those who thrive in
interdependent work relationships and who are self-reliant and self-motivated. Good
virtual team members tend to like or tolerate ambiguity, and are independent thinkers
who are willing to take initiative. Most importantly, Ong notes, good virtual workers
have strong communication skills (Leonard, 2011).

Strong Team Leaders:

For virtual teams to succeed, strong leadership is a must, and while the skills
and abilities needed for managers of conventional teams are similar to those needed
for leaders of virtual teams, there are a few key differences. Virtual teams don't have
the benefit of frequent face-to-face interaction, and consequently, experience
difficulty building trust and rapport among team members. To help foster trust and
rapport, virtual team leaders must focus on relationship building, demonstrate
excellent communication skills (including the ability to provide frequent feedback),
and have emotional intelligence. Because decision- making can be a challenge,
particularly early in a virtual team's partnership, virtual team leaders must also have a
track record of producing results and a focus on process (Lockwood, 2010).

TEAM BUILDING LIFE CYCLE:

Psychologist Bruce Tuckman first came up with the memorable phrase

"forming, storming, norming, and performing" in his 1965 article, "Developmental
Sequence in Small Groups." He used it to describe the path that most teams follow on
their way to high performance. Later, he added a fifth stage, "adjourning" (which is
sometimes known as "mourning").

Let's look at each stage in more detail.

Forming:

In this stage, most team members are positive and polite. Some are anxious, as
they haven't fully understood what work the team will do. Others are simply excited
about the task ahead.

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 As leader, you play a dominant role at this stage, because team members' roles
and responsibilities aren't clear.

This stage can last for some time, as people start to work together, and as they
make an effort to get to know their new colleagues.

Storming:

Next, the team moves into the storming phase, where people start to push
against the boundaries established in the forming stage. This is the stage where many
teams fail.

Storming often starts where there is a conflict between team members' natural
working styles. People may work in different ways for all sorts of reasons but, if
differing working styles cause unforeseen problems, they may become frustrated.

Storming can also happen in other situations. For example, team members
may challenge your authority, or jockey for position as their roles are clarified. Or, if
you haven't defined clearly how the team will work, people may feel overwhelmed by
their workload, or they could be uncomfortable with the approach you're using.

Some may question the worth of the team's goal, and they may resist taking on
tasks.

Team members who stick with the task at hand may experience stress,
particularly as they don't have the support of established processes, or strong
relationships with their colleagues.

Norming:

Gradually, the team moves into the norming stage. This is when people start to
resolve their differences, appreciate colleagues' strengths, and respect your authority
as a leader.

Now that your team members know one another better, they may socialize
together, and they are able to ask one another for help and provide constructive

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feedback. People develop a stronger commitment to the team goal, and you start to
see good progress towards it.

There is often a prolonged overlap between storming and norming, because, as

new tasks come up, the team may lapse back into behavior from the storming stage.

Performing:

The team reaches the performing stage, when hard work leads, without
friction, to the achievement of the team's goal. The structures and processes that you
have set up support this well.

As leader, you can delegate much of your work, and you can concentrate on
developing team members.

It feels easy to be part of the team at this stage, and people who join or leave
won't disrupt performance.

Adjourning:

Many teams will reach this stage eventually. For example, project teams exist
for only a fixed period, and even permanent teams may be disbanded through
organizational restructuring.

Team members who like routine, or who have developed close working
relationships with colleagues, may find this stage difficult, particularly if their future
now looks uncertain.

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TEAM BUILDING SKILLS:

Some of the skills that support effective teams: -

 Understanding team processes

 Forming, storming, norming and performing
 Communication
 Goal setting
 Developing a team identity
 Developing shared vision, mission and values
 Understanding team roles
 Discovering and interpreting personal profiles
 Setting well formed outcomes
 Negotiation
 Decision making
 Giving and receiving feedback

Outcomes should include well formed teams with shared goals and values,
congruent with those of both individual members and the organisation, and
individuals with new transferable skills.

BUILDING TEAM RELATIONSHIPS:

Bringing Out the Best in a Team:

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 Each individual in a team has talents and abilities that can contribute to a solid
work relationship which is needed to be productive in the job. As a team, members
have to identify who excel in technical expertise, who are keen in problem-solving
and decision-making, and who are adept in active listening, giving good feedback,
and conflict resolution. Identifying these skills helps a team perform effectively. This
is otherwise known as team synergy through a coordinated effort of performing these
abilities. Diversities even in skills and talents are common. But sharing these skills for
the benefit of the team can build a solid work relationship among the individuals.

For a relationship to become healthy, learn to appreciate each other’s talents.

Being recognized by fellow colleagues for the effort contributed for the team is
heartwarming and rewarding.

Being Dependent on Each Other:

Being a mutually evolving process, a relationship requires team members to be

dependent on each other. Every individual should develop a level of trust for each
other in order to be reliable for each other. Some of us just cannot find it easy to
entrust a work with another team member or cannot seem to trust what a member can
contribute.

In order to build trust, the team can hold trust-building talks during meetings
every now and then. Self-disclosure is a good strategy for establishing trust with each
other. Learning how to open and share a little about you to your teammates will give
them a chance to know you as a person. Inject humour and some fun to be
comfortable with each other.

Once you start to trust each other as an important member of the team, you
will also become easily dependent on each other. With this, a budding relationship is
established.

Relationship-Building even Outside of Work:

Relationships in a team are best maintained when the connection is not just
limited to work and work assignments or projects. While collaborating and teamwork

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in the work setting strengthens relationships, bonds become even better when team
members get along well with each other outside of work.

Team members can also become good friends. This is no big deal as long as
you know how to keep your personal life from your professional aspect.

Most teams find time to socialize after office hours especially when the
members feel drained out and stressed out from work pressure. Other teams schedule
team socialization or team building activities to bond with each other.

Dining out together, setting an out-of-town activity, or simply chatting over

coffee will do. This is a perfect time to get to know your fellow team member even
better and how they are outside of work.

Establishing friendships outside of work helps create more solid and long-
lasting relationships. These good quality relationships make each team member more
effective in accomplishing tasks as compared to those who do not spend time to
socialize outside of work.

Furthermore, the level of trust and dependency with each other is deepened
because each member already knows who they are working with in their respective
teams.

Clarity around Decision-Making:

The previous discussion may have already covered some decisions. You may
want to document those in this step. Then identify all the decisions that affect the
team over the course of a typical quarter. Group stickies that seem similar, so you can
see classes of decisions. Some examples of categories shared by many groups are
hiring, training, tools, and technical decisions.

Coherence in Values and Actions:

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 In some organizations, it feels like there’s one set of rules for managers and
another for non-managers. This condition fractures relationships and erodes trust.
Simple Rules (1) are a tool to bring coherence, and reduce the feeling that there’s one
set of rule for “us” and one from “them.” Unlike working agreements, which usually
address protocols for how to work together in a specific context, Simple Rules guide
behavior in many situations across departments and levels in an organization.

Encourage listening and brainstorming. As supervisor, your first priority in

creating consensus is to stimulate debate. Remember that employees are often afraid
to disagree with one another and that this fear can lead your team to make mediocre
decisions. When you encourage debate you inspire creativity and that's how you'll
spur your team on to better results.

Establish the parameters of consensus-building sessions. Be sensitive to the

frustration that can mount when the team is not achieving consensus. At the outset of
your meeting, establish time limits, and work with the team to achieve consensus
within those parameters. Watch out for false consensus; if an agreement is struck too
quickly, be careful to probe individual team members to discover their real feelings
about the proposed solution.

EMPOWERED TEAMS:

Empowered teams are self-sufficient groups of people working together with

specific goals. They have the corporate authority, experience, responsibility and skills
to enact their own decisions for the organization. The highest level of management
stabilizes the team's direction, which drives the empowerment process by connecting
it to the organization's business needs and metrics. Management focuses on
developing employees and supporting the organizational goals. The employees are
committed to and responsible for organizational goals. Many times, employees find
their job descriptions redefined and broadened, usually adding some tasks formerly
performed by others. The object is to maximize the use of everyone's talents.

Empowered teams can fall in these three categories:

Project Teams:

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 These cross-functional teams work on a project for a given time period. A
project example would be a new product development team. This type of team
comprised of employees from engineering, finance, management, manufacturing and
marketing--is typically selected by an engineering manager.

Total Customer Satisfaction Teams:

These teams address customer and business issues. They work from the
premise that creativity, intelligence and perspective exist in all employees, not just
among managers. Not only can employees do more than their daily assignments, they
also can improve on all the organization's products and processes.

Once a problem is identified, team members are selected--usually by the

person who has determined the problem--based on their level of experience and skill.
This can include many functions, and involve customers and suppliers. The team
members aren't necessarily together in one location. Global teams can be formed to
focus on solving problems and then disband upon institutionalizing the solution.

Work Unit Teams:

These teams work together on a day-to-day basis. They focus on the primary
output of their work unit.

HIGH PERFORMANCE TEAMS:

High-performance teams (HPTs) are a concept within organization

development referring to teams, organizations, or virtual groups that are highly
focused on their goals and that achieve superior business results.

10 Rules for High-Performing Teams:

 Define and Create Interdependencies.

 Establish Goals

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  Determine How Teams Will Make Decisions
 Provide Clear and Constant Feedback.
 Keep Team Membership Stable.
 Allow Team Members to Challenge the Status Quo
 Learn How to Identify and Attract TalentUse Team-Based
Reward SystemsCreate a Learning Environment.
 Focus on the Collective Mission.

GROUP THINK AS DECISION MAKING PROCESS:

Groupthink is a phenomenon that occurs when the desire for group consensus
overrides people's common sense desire to present alternatives, critique a position, or
express an unpopular opinion. Here, the desire for group cohesion effectively drives
out good decision-making and problem solving.Irving L. Janis coined the term
"Groupthink," and published his research in the 1972 book, "Groupthink."

Symptoms of Groupthink:

Rationalization:
This is when team members convince themselves that despite evidence to the
contrary, the decision or alternative being presented is the best one.
"Those other people don't agree with us because they haven't researched the problem
as extensively as we have."

PeerPressure:
When a team member expresses an opposing opinion or questions the rationale behind
a decision, the rest of the team members work together to pressure or penalize that
person.
"Well if you really feel that we're making a mistake you can always leave the
team."

Complacency:
After a few successes, the group begins to feel like any decision they make is the right
one because there is no disagreement from any source.
"Our track record speaks for itself. We are unstoppable!"

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Moral-HighGround:
Each member of the group views him or herself as moral: The combination of moral
minds is therefore thought not to be likely to make a poor or immoral decision. When
morality is used as a basis for decision-making, the pressure to conform is even
greater because no individual wants to be perceived as immoral.
"We all know what is right and wrong, and this is definitely right."

Stereotyping:
As the group becomes more uniform in their views, they begin to see outsiders as
possessing a different and inferior set of morals and characteristics from themselves.
These perceived negative characteristics are then used to discredit the opposition.

Censorship:
Members censor their opinions in order to conform.
"If everyone else agrees then my thoughts to the contrary must be
wrong."Information that is gathered is censored so that it also conforms to, or
supports the chosen decision or alternative.
"Don't listen to that non-sense; they don't have a clue about what is really going
on."

Illusion of unanimity:

Because no one speaks out, everyone in the group feels the group's decision is
unanimous. This is what feeds the Groupthink and causes it to spiral out of control.
"I see we all agree so it's decided then."

ROLE OF CHANGE CONSULTANT:

Role of external consultant:

 Credibility through brand status and previous experience

 Broad business perspective - bringing new ideas
 Limited organisation-specific knowledge,possibly at content
level only – “Not made here”

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  Perceived as objective
 Special
 Low investment in final success
 Meets client’s agenda
 Needs time to understand the people – maymisinterpret actions
and interpersonal dynamics
 “on the clock” – timed, expensive, rare and rationed

Role of internal consultant:

 Credibility through history of interactionswithin the business

 Deep organisational perspective
 Understands its culture, language and deepersymbolic actions
 Perceived as an organisational ‘agent’
 The same
 High investment in final success
 Meets corporate agenda – which may not beclient’s
 Knows the people, but may have preconceptions
 Free, accessible, and available

EFFECTIVE TEAM DECISION-MAKING PROCESS:

Teams are particularly effective in problem solving as they are comprised of
people with complementary skills.These complementary skills allow team members to
examine issues from various angles, as well as see the implications of their decisions
from a variety of perspectives.In this section we will look at a process that can help
teams solve problems and make ‘good’ decisions. In essence, teams make decisions
using problem solving techniques. Thus, the process largely rests on the selection of a
course of action following the evaluation of two or more alternatives. To effectively
navigate this path, the following step-by-step approach1can be used.
1.Recognize the problem:
Teams must see and recognize that a problem exists and that a decision needs
to be made to move forward. While on its face this step appears elementary, many
teams do not always recognize that there is an issue that needs to be addressed due to
issues such as group think.
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2.Define the problem:
In this stage, teams must map out the issue at hand. During this step, teams
should:
State how, when, and where members became aware of the problem Explore
different ways of viewing the problem – different ways of viewing the problem can
lead to an improved understanding of the ‘core’ problem Challenge any assumptions
that are made about the problem to ensure that the team fully sees the ‘real’ issue at
hand.

3.Gather information:
Once the problem has been defined, teams need to gather information relevant
to the problem. Why do teams need to perform this step?
Two reasons:
(1) To verify that the problem was defined correctly in step 2; and
(2) To develop alternative solutions to the problem at hand.

4. Develop Alternative Solutions:

While it can be easy for teams to ‘jump on’ and accept the first solution, teams
that are effective in problem solving take the time to explore several potential
solutions to the problem. Some ways to generate alternatives include:
Brainstorming:
During this process teams are encouraged to come up with as many ways as
possible to solve the problem at hand. While brainstorming can help generate creative
solutions to problems, a few guidelines are needed to help it work most effectively.
No criticism of any ideas during the brainstorming phase;
All ideas, no matter how silly, get recorded;
Get past the sillies -sometimes very creative, and viable, solutions come
after people have made what appear to be ‘silly’ suggestions.

5. Select the best alternative:

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 Once all the alternatives are in, the team needs to determine the alternative that
best addresses the problem at hand.For this element to be effective, you need to
consider both rational and human elements.

6. Implement the best alternative:

Once the alternative has been chosen, the team needs to implement its
decision.This requires effective planning as well as communicating the decision to all
the stakeholders that may be impacted by this decision.

7.Evaluate the outcome:

Remember that teams and team building is a learning process.It is critical that
the team examine whether the proposed plans of action were achieved in an effective
way and resulted in positive outcomes.

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