Conflicts & Negotiation Handling in Project Management

Conflicts

Project Vision

In an ideal construction project, everyone has the same vision for the project as the client or project manager. Everyone should be working towards the same goal of making the client happy. This type of conflict arises when workers have different ideas for the overall construction project. People will always have their own opinions. Teams may think that they need extra materials while some argue that there are enough materials to finish the job. Out of the 5 types of conflict in project management, differences in project vision don’t happen too often, but they can still cause problems while on the construction site.

Lack of Communication

Out of the 5 types of conflict in project management, a lack of communication can be the costliest for people working in construction. By far, a lack of communication will do the most damage to a construction project. Giving wrong or unclear instructions can set a project back. As a project manager, you have to communicate with each worker what needs to be done, when it needs to be done, and how they should go about completing it. A project manager that fails to communicate in a clear way will set up the project for failure.

A lack of communication can delay a project by a lot of time and will increase costs as a result. Communicating with your workers is crucial. It gives the project manager the ability to oversee how the project is developing and also gives them insight on some of the problems happening onsite.

Conflict Disagreements

When there are conflicts on the construction site, people should work together to come up with possible solutions. Working together usually solves the initial conflict, but if there are differing opinions on the solution another conflict can be born. This conflict is the disagreement on what to do about the initial problem. Out of the 5 types of conflict in project management, conflict disagreements don’t happen too often, but when they do they can delay a project for a decent amount of time. It can also create bad blood between workers who get too emotionally involved. It’s crucial that you solve this conflict quickly for the sake of your project.

Poor Leadership

As a project manager, you need to have the ability to lead your workers towards a finished project. You need to be able to hand out instructions that are very clear and need to supervise the progress of the project to make sure everything is going smoothly. A great project manager can bring out the best in any employee and will complete a project either on time or ahead of schedule. These are the qualities of a great leader, but what type of conflict occurs when there’s poor leadership?

Poor leadership can happen when a construction manager is not performing at an optimal level and is slowing down the progress of the project. When there is poor leadership, problems such as time constraints, unclear instructions, and confusion about worker roles occur. These problems slow down the pace of the project and increase the overall costs. Compared to a lack of communication, poor leadership is just as bad, if not the worst conflict to have out of the 5 types of conflict in project management.

Group Differences

Construction is all about teamwork. You need to have workers that are knowledgeable enough to make their own judgments and are team-oriented for the sake of the project. Group differences, one of the 5 types of conflict in project management, can happen when two different groups of workers don’t work efficiently due to their differences. Workers that can’t be team players and get along with their fellow construction workers make construction work a lot harder than it needs to be.

Workers with group differences will slow down the flow of the construction project. Whether there are communication problems or a difference in personality, workers have to overcome their differences for the benefit of the project. Workers that get along, work as a team, and set aside their differences will always finish a construction project faster and more efficiently than those who don’t.

Negotiations

A project manager wears many hats during a project. One of two hats that the project manager always seems to wear is that of a negotiator. Negotiations can occur during any phase of the project and multiple times during each phase. Project managers can negotiate with the project team, customers, and stakeholders. Some project managers are very good at negotiating, while others are not quite as good. A good negotiator knows there are two main classifications of negotiations: competitive and collaborative.

A competitive negotiation is a type of negotiation that is like a winner-takes-all battle royal. One side tries to get all of the resources and not share. This is a dangerous type of negotiation as bridges can be burned and feelings hurt.

A collaborative negotiation is the opposite of a competitive negotiation. This type tries to make both parties winners, also known as win-win negotiations. Most project managers look to use collaborative negotiations, as it will build long term alliances and decrease the chance of conflict later.

Conflict Resolution

The second hat that a project manager always seems to wear is the conflict resolver. Conflict resolution, just like negotiations, can occur during any stage of the project and can occur between the project team, stakeholders, and customers. So, how does a project manager resolve conflict? Well the first thing he should do is:

Separate

The first item a project manager must do is separate the conflict down into issues and people. The project manager must always remember that people have feelings and can harbour hard feelings for a while. The project manager must remember people are people, and issues are, well, issues–that is a long-winded way of saying work is work. After separation, the project manager can confront the parties, withdraw from the conflict, or step in and provide a resolution.

Confront

On a project, the project manager (most of the time) is the final authority when it comes to conflict resolutions. The project manager confronts both parties and hears them out for a quick resolution. The project manager has the authority to make decisions in favour of one or the other party.

Withdraw from Conflict

This is where the project manager will withdraw from the conflict and let things work themselves out. Years of experience have taught veteran project managers this is not a good way to solve conflict.

Compromise

The project manager will negotiate a collaborative solution to the conflict. The project manager will try to find a happy medium to allow both parties to walk away feeling as though they won. This will help smooth things over with each side.

Concede

Some conflicts are not worth the time of both parties. When the project manager determines what the issue is, he can arrange for one party to have a win and the other party to walk away. This would be like competitive negotiations.

There are five general techniques for resolving conflict. Each technique has its place and use:

1) Withdraw/avoid. Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others.

2) Smooth/accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s position to the needs of others to maintain harmony and relationships.

3) Compromise/reconcile. Searching for solutions that bring some degree of satisfaction to all parties in to temporarily or partially resolve the conflict. This approach occasionally results in a lose-lose situation.

4) Force/direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually enforced through a power position to resolve an emergency. This approach often results to a win-lose situation.

5) Collaborate/problem solve. Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment. This approach can result in a win-win situation.

Indian Approach to Motivation

There are four methods:

1. Three Paths of Yoga. According to this, traditionally, four paths have been suggested to motivate.

(1) Cyan Yog: Path of knowledge of right or wrong and person is motivated through discussions, debate and contemplation.

(2) Bhakti Yog: Emotional path; he feels that devotion alone will satisfy his psychological needs.

(3) Karma Yog: Action orientation: Cause and effect relationship. He takes right step. Does his duty religiously. Gita teaches karma yog.

(4) Raj Yog: Mystic experiences: Internal psyche brings in a change.

According to the pshyce of an individual, any one or a mix of the above-mentioned methods can be adopted to motivate an individual.

2. LAW OF PURUSHARTHA: According to this tradition, a person is motivated to satisfy fourfold Purusharthas or missions of life. They are Dharma, Artha, Kama and Moksha. The word Purushartha is derived from two Sanskrit words ‘Purusha’ meaning person, and ‘Artha’ meaning aim or goal. Therefore, the term Purushartha means aim of life or missing of life.

(1) Dharma: It is the rightful duty of a person. An individual is guided by his inner instincts to follow his Dharma. Also, one has to follows one’s ‘Swadharma’ which is beneficial to him as well as to the society.

(2) Artha: It is the pursuit of material wealth. However, Artha is only a means to achieve the ends, viz., to get comforts of life. But it must be remembered that Artha hopas to be acquired through dharmic means only. The most important thing to remember is that one should not have any attachment with money.

(3) Kama: It means ‘desire’. According to this, one’s desires (needs) must be fulfilled. However, one must keep desires to a minimum level so as not to miss the ultimate aim of life, which is to realise the soul within oneself.

(4) Moksha: It means ‘liberation’. It implies self-realisation which is the ultimate aim of a human being. It is the ultimate experience of union of self with the superme self. By obtaining Artha, through Dharma, one fulfills one’s Kama – desires and finally attains Moksha.

3. THEORY OF RIN: According to this theory, man is born to repay the ‘Rin’ (Debts) of all his past lives. This motivates a person to act in such a manner so as to repay these debts. Right from the birth, one is indebted to the following:

(1) Deva Rin: Here, Deva means all the Pancha Bhutas viz., Agni Dev, Varun Dev (Air), Vasundhara (Earth), Akash Dev, and Jal Dev. All living beings should be indebted to these five cosmic forces for their existence. They should repay their debt by preserving them.

(2) Rishi Rin: Our Rishis have given us great scriptures which have enriched our lives. Therefore, it is our duty to live our lives according to these thoughts. So also, we must spread the knowledge given in the scriptures.

(3) Guru Rin: Our teachers have taught us so many things in life and made it wonderful. Hence, we should feel indebted to them and repay these debts by using this knowledge. Also, we must respect our teachers.

(4) Pitru Rin: Our parents and grandparents have brought us into this world and gave us the value system which gives us peace. Therefore, we are indebted to them. We should do our best to look after them.

(5) Matru Rin: The word ‘Matru’ has double meaning. The first one is mother, who rears a child in her womb and brings him/her in this world and sacrifices her life for her children. The second one is the mother earth which sustains the life of all the living beings without any expectation.

(6) Bandhav Rin: Man is a social animal. Therefore, besides having good mental and physical health, he must possess a good social health. For good social health, one must contribute towards society’s improvement and peace. According to Indian ethics, we believe in ‘VASUDEV KUTUMBKAM’ which means that entire world is our family and therefore we must take care and love every human being in this world.

(7) Nrip Rin: ‘NRIP’ means the King. In the present context, it means the government. In this sense, we must be indebted to the government and be a law-abiding citizen.

(8) Bhuta Rin: According to this concept, a man is indebted to all his ancesstors who have died. Indians worship their deceased forefathers. For this purpose they perform ‘SHRADDHA’ a ritual, every year, to remember their departed forefathers.

Also, Indians believe that an indebted man cannot go to heaven, after death. Therefore, every Indian would like to repay all his debts, before leaving this world.

4. Ancient Technique of Motivation: According to this technique, there are four methods of motivation, viz., SAAM (Association), DAAM (Reward), DAND (Punishment) and BHED (Difference).

(1) SAAM: Man is social animal and he would like to be a part of the group to which he belongs. Therefore, a person can be motivated by the values, beliefs, ideology and lifestyle habits of the social and official groups.

(2) DAAM: Man can be motivated by offering rewards. Rewards should be such so as to satisfy the unfulfilled needs of an individual. These can be in terms of money or recognition, or both.

(3) DAND: Sometimes fear of punishment or losing a thing, may motivate a person to do a job.

(4) BHED: This technique believes in the method of ‘DIVIDE AND RULE’. Groups are created in the society and competition is set between them. This competition motivates the individuals in the groups.

Difference between Virtual Organization and Traditional Organization

Virtual Teams

A virtual team is a group of people who work for a common purpose but in separate locations. The concept of the virtual team has been introduced with the enhancement of technology. In these teams, people perform jobs in a virtual work environment created and maintained through IT and software technologies. The virtual team concept is relatively new to project management areas and IT. Most of the processes are outsourced in a virtual work environment. Since virtual team solely rely on electronic communication media, they work in different time zones and a variety of cultural boundaries. More diversified team members may work in a virtual team.

Virtual team management includes the following:

  • Training: Team leader sets targets and develops the team member until he meets the standard level.
  • Assembling: Probation periods are the measurable indicator to be applied when commencing with remote teamwork organization.
  • Managing: Use of telecommunication technologies to manage ongoing projects and jobs of remote group members.
  • Controlling: Team leader establishes performance indicators to evaluate the performance of team members.

Traditional Teams

A traditional team, also known as an intact team, is a functional team in which experts work together and share a common path to achieve their team’s processes and goals. In some cases, traditional teams are an entire department. Leadership is undertaken by a senior-level manager. New recruitments to the team are based on their technical skills and competency. Traditional teams mostly engage in described routine jobs.

Organization Structure: Compared to the traditional teams, virtual teams support flatter organization structure with dim lines of authorities and hierarchies. This is required to survive in hypercompetitive market, deliver results faster and encourage creativity which are actually the primary objectives for forming a virtual team.

Selection of Team Members: In case of traditional teams, members are largely selected based on their functional skills. But performing in a virtual team environment is not easy for everyone. Lack of face-to-face interactions and social focus in a virtual setting might lead to isolation and loneliness. It calls for managing ambiguity, proactive networking, exceptional time management and work discipline, ability to learn new technologies, and the ability to collaborate across functional and cultural boundaries. So, in the selection of a virtual team member, there is a need to look into these core competencies in addition to the basic functional skills.

Accountability

In a team-based organization, team members are accountable to each other, and to the team as a whole. This mutual accountability means that the entire team is responsible for its collective actions. This is the opposite of accountability at an individual level inherent in traditional organizations.

Although there are times when teams could have collectively performed better, lack of effort and accountability are rarely intentional. According to a February 2020 Harvard Business Review article, a team’s underperformance is most likely due to limited resources, ambiguity regarding roles, a poor strategy and/or unrealistic goals.

Leadership Style: In virtual team setting, managers cannot physically control the day-to-day activities and monitor each team members’ activities, therefore they need to delegate little more as compared to traditional teams. The command-and-control leadership style of yester years is giving way to the more democratic and coaching style of today.

Relationship Building: When traditional team members meet in the workplace every day they tend to develop close social ties with each other. They strike rapport with each other when they interact face-to-face. In the virtual team the interactions are tend to be more task-focused. Further, lack of verbal cues and gestures in virtual setting does not allow any scope for personal touch in the communication.

Psychological Contract: The foundation of psychological contract is more fragile in the virtual environment. Smaller instances of misunderstanding or gaps in communication result in violation of the psychological contract which has negative effects on the team’s effectiveness. Virtual teams also experience difficulties in building trust, cohesion and commitment among its members.

Knowledge Exchange & Decision-taking: Many a times in traditional teams, information is being exchanged during informal discussions. But in case of virtual teams, members have a very limited or no informal access to the information. Hence there is a need for more frequent updates on project status and building a shared database to provide all the important information to the team. Considering the time zone differences in global virtual teams, it becomes difficult to schedule meetings. Thus, in case of virtual teams many a times delay occurs in fixing a problem or reaching a consensus, whereas in traditional teams a meeting can be called at any time of the day when all the members are present together in the office, resulting quick decisions and problem solving.

Global Staffing, Selection Criteria

Staffing for global operations is quite a complex affair. It involves activities on a global basis, including candidate selection, assignment terms and documentation, relocation processing and vendor management, immigration processing, cultural and language orientation and training, compensation administration and payroll processing, tax administration, career planning and development, and handling of spouse and dependent matters. In global staffing, companies need to choose from various types of global staff members and need to have specific approaches and strategies to global staffing. Global staff members are selected from among three different types: expatriates, host-country people and third-country nationals. Expatriate is a person who belongs to the country in which the organization is headquartered and not a citizen of the country in which the company operates. A host-country national is a citizen of the country in which the subsidiary company is located. A third-country national is a citizen of a country, but works in another country and employed by an organization headquartered in a third country.

Types of International Employees

International employees can be placed in three different classifications.

An expatriate is an employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organization is headquartered.

A host-country national is an employee working in a unit or plant who is a citizen of the country in which the unit or plant is located, but where the unit or plant is operated by an organization headquartered in another country.

A third-country national is a citizen of one country, working in a second country, and employed by an organization headquartered in a third country. Each of these individuals presents some unique HR management challenges. Because in a given situation each is a citizen of a different country, different tax laws and other factors apply. HR professionals have to be knowledgeable about the laws and customs of each country. They must establish appropriate payroll and record-keeping procedures, among other activities, to ensure compliance with varying regulations and requirements.

Selection Criteria of Global Staffing

Experts sometimes classify top executives’ values as ethnocentric, polycentric, or geocentric, and these values translate into corresponding corporate behaviors and policies. These values translate into three broad international staffing policies. The vital factors that affect Multinational enterprises (MNEs) staffing include strategy, organizational structure, and subsidiary specific factors such as its duration of operations, technology, production and marketing technologies, and host country characteristics such as level of economic and technology development, political stability, regulations and culture. Thus the philosophies of staffing abroad are ethnocentric, polycentric, regiocentric and geocentric.

Ethnocentric Staffing: In ethnocentric staffing, Parent Country Nationals (PCNs) are selected for key position regardless of location. Japanese, European, U.S and Korean firms utilise ethnocentric staffing. With an ethnocentric staffing policy, the firm fills key management jobs with parent country nationals. Reasons given for ethnocentric staffing policies include lack of qualified host-country senior-management talent, a desire to maintain a unified corporate culture and tighter control, and the desire to transfer the parent firm’s core competencies to a foreign subsidiary more expeditiously.

Polycentric Staffing: The polycentric staffing policy requires host-country nationals to be hired to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. Although home-country personnel fill top management positions, this is not always the case. For example, many US MNCs use home-country managers to get the operations started, and then hand it over to the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has local as its chiefs. Preference for home-country citizens for key positions does not fit into a pattern, unless government interventions dictate selection processes. In Brazil, for example, two-thirds of the employees in any foreign subsidiary traditionally had to be Brazilians. In additions, many countries exert real and subtle pressures to staff the upper management ranks with nationals. The polycentric approach to staffing has both merits as well as demerits. Hiring host country nationals eliminates language barriers, expensive training periods and cross-cultural adjustment problems of managers and their families. The disadvantages of the polycentric approach are equally strong. Local managers may have difficulty bridging the gap between the subsidiary and the parent company, because the experience and exposure they possess may not have prepared them to work as part of global enterprises. Language barriers, national loyalties, and a range of cultural differences may isolate the corporate headquarters staff from the various foreign subsidiaries. Finally, consideration of only home and host-country nationals may result in the exclusion of competent executives.

Regiocentric Staffing: With regiocentric approach, a firm’s recruitment for its international operation is done on a regional basis and the managers are selected on the basis of ‘the best in the region’ with international transfers that are restricted to regions. Regiocentric approach takes a somewhat larger operational view than that of polycentric approach as it covers a trade region like European Union and allowing managers to move between business units in various countries of the same region. In this staffing approach, a mix of Parent-country nationals, host-country nationals and third-country nationals can be used depending on the specific needs of the company. The regiocentric approach has recently become more popular as many multinational companies are choosing to organize in regional basis. One of the main advantages of this approach is that it reduces the need for costly duplication of support services. Most multinational companies regiocentric rather than truly international and majority of their sales and operations are concentrated on the region. When it comes to the corporate level, the regiocentric approach is may be limiting as ethnocentric approach as multinational companies are failing to understand the features of the regions outside of their home-region. The regional structure may also lead to the mergence of silo-mentalities as regional managers will be trying to hold and protect their top talent within the region rather than allowing them to develop outside their region.

Geocentric Staffing: This staffing philosophy seeks the best people for key jobs throughout the organization regardless of nationality. Seeking the best person for the job, irrespective of nationally is most consistent with the underline philosophy of a global corporation. Colgate-Palmolive is an example of a company that follows the geocentric approach. A geocentric policy is based on assumptions that, highly competent employees are available not only at headquarters, but also in the subsidiaries; international experience is a condition for success in top position; managers with high potential and ambition for promotion are always ready to be transferred from one country to another; competent and mobile managers have an open disposition and high adaptability to different conditions in their various assignments; and those not blessed initially with an open disposition and high adaptability can acquire these qualities as their experience abroad accumulates. The geocentric approach has merits and demerits. Among its advantages is the possibility of making the best use of its human resources and it enables the firm to build a cadre of international executives who feel at home working in a number of cultures. In addition, the multinational composition of the management team that results from geocentric staffing tends to reduce cultural myopia and to enhance local responsiveness. Thus, other things being equal, a geocentric policy seems to be the most attractive. Among the disadvantages, the restrictions imposed on staffing by host governments that a high number of their citizens are to be employed in subsidiaries, the increased training and relocation costs and a remuneration structure with standardized international base pay are the prominent.

Benchmarking Metrics Share, Profile, and Selectivity Index

Medium selectivity medium selectivity refers to the extent that a medium is directed towards the target Group. Medium selectivity can be represented by a selectivity index showing how well the target group is represented in the medium reach, relative to the universe:

Selectivity index = (% of the target group in total reach / % of the target group in the universe Selectivity index) * 100

Selectivity index < 100:

  • The target group is under-represented.
  • The vehicle is not selective on the target group.

Selectivity index = 100:

  • The target group is proportionally represented.

Selectivity index > 100:

  • The target group is over-represented.
  • The vehicle is selective on the target group.

Approaches of Organisational Effectiveness: Goal Approach, System Resource Approach, Strategic Constituency Approach, Internal Process Approach

Goal approach:

The goal approach refers to optimal profit by offering the best service that will lead to high productivity. The limitation of the goal approach is that it is a bit difficult to identify the real goal and not the ideal goal

System-resource approach:

The system resource approach puts its onus on the interdependency of processes that align the organization with its environment. It takes the form of input-output transactions and includes human, economic and physical resources. The limitation of this approach is that acquisition of resources from the environment becomes aligned with the goal of the organization and thus it becomes quite similar to the goal-oriented approach.

Strategic Constituency Approach:

The strategic constituency model assesses effectiveness by measuring the degree to which it satisfies those in the environment who can threaten the organization’s survival; i.e., its strategic constituencies or interest groups. Each constituency has a degree of power and pursues different goals.

Constituencies can include owners, management, employees, customers, suppliers, government, and customer groups. Here, it is key to identify the relevant strategic constituencies, identify their expectations, and the way to meet these expectations.

Internal Process Approach:

The internal process model looks not at the outcome but at what happens inside of the organization. This approach assesses effectiveness through the smooth functioning of organizational operations. This is achieved through information management, documentation, and continuous consolidation.

The best-known example is the lean process approach, focused on continuous improvement and efficiency. The drawback is that the focus is often more on efficiency than on effectiveness and that the focus is more on inward processes than on outward opportunities.

Functional approach:

The functional approach assumes that the organization has already identified its goals, and now the focus should be upon attainment of these goals and how to serve society. The limitation of this approach is that the organization has the autonomy to take independent action for attaining its goals and so why will it accept serving society as its ultimate goal.

Modern Intervention: Process Consultation, Third Party, Team Building, Transactional Analysis

Process Consultation

The technique of process consultation is an improvement over the method of sensitivity training or T-Group in the sense that both are based on the similar premise of improving organisational effectiveness through dealing with interpersonal problems but process consultation is more tasks oriented than sensitivity training.

In process consultation the consultant or expert provides the trainee feedback and tell him what is going around him as pointed out by E H Schein that the consultant, “Gives the client ‘insight’ into what is going on around him, within him, and between him and other people.”

Under this technique the consultant or expert provides necessary guidance or advice as to how the participant can solve his own problem. Here the consultant makes correct diagnosis of the problem and then guides the participants.

The consultant according to E H Schein, “Helping the client to perceive, understand and act upon process events which occur in the clients’ environment.” Process consultation technique is developed to find solutions to the important problems faced by the organisation such as decision making and problem solving, communication, functional role of group members, leadership qualities. Consultant is an expert outside the organisation.

E H Schein has suggested the following steps for consultant to follow in process consultation:

(i) Initiate contact:

This is where the client contacts the consultant with a problem that cannot be solved by normal organisation procedures or resources.

(ii) Define the Relationship:

In this step the consultant and the client enter into both a formal contract spelling out services, time, and frees and a psychological contract. The latter spells out the expectations and hoped for results of both the client and the consultant.

(iii) Select a Setting and a Method:

This step involves an understanding of where and how the consultant will do the job that needs to be done.

(iv) Gather Data and Make a Diagnosis:

Through a survey using questionnaires, observation and interviews, the consultant makes a preliminary diagnosis. This data gathering occurs simultaneously with the entire consultative process.

(v) Intervene:

Agenda setting, feedback, coaching, and/or structural interventions can be made in the process consultation approach.

(vi) Reduce Involvement and Terminate:

The consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement.” The organisation benefits from the process consultation to ease out interpersonal and intergroup problems. To use the technique of process consultation effectively the participants should take interest in it.

Third Party

Activities designed and conducted by a skilled consultant to manage interpersonal conflict in the process of organizational change.

Team Building

Team Building is another method of organisation development. This method is specifically designed to make improvement in the ability of employees and motivating them to work together. It is the organisation development technique which emphasizes on team building or forming work groups in order to improve organisational effectiveness.

These teams consist of employees of the same rank and a supervisor. This technique is an application of sensitivity training to the teams of different departments. The teams or work groups are pretty small consisting of 10 to 15 persons. They undergo group discussion under the supervision of an expert trainer usually a supervisor. The trainer only guides but does not participate in the group discussion.

This method of team building is used because people in general do not open up their mind and not honest to their fellows. As they does not mix up openly and fail to express their views to the peers and superiors. This technique helps them express their views and see how others interpret their views. It increases the sensitivity to others’ behaviour.

They become aware of group functioning. They get exposed to the creative thinking of others and socio-psychological behaviour at the workplace. They learn many aspects of interpersonal behaviour and interactions.

Transactional Analysis

Transactional analysis helps people to understand each other better. It is a useful tool for organisational development but it has diverse applications in training, counselling, interpersonal communication and making analysis of group dynamics. Nowadays, it is widely used as OD technique. It helps in developing more adult ego states among people of the organisation. It is also used in process consultation and team building.

Tools used in Organisational Diagnosis

Benchmarking: Using standard measurements in a service or industry for comparison to other organizations in order to gain perspective on organizational performance. For example, there are emerging standard benchmarks for universities, hospitals, etc. In and of itself, this is not an overall comprehensive process assured to improve performance, rather the results from benchmark comparisons can be used in more overall processes. Benchmarking is often perceived as a quality initiative.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization’s strategic goals.

Business Process Reengineering: Aims to increase performance by radically re-designing the organization’s structures and processes, including by starting over from the ground up.

Cultural Change: Cultural change is a form of organizational transformation, that is, radical and fundamental form of change. Cultural change involves changing the basic values, norms, beliefs, etc., among members of the organization.

Quality Management: Focuses on ensuring the highest quality of activities to produce the highest quality of products and services to customers and clients. That includes diagnosing errors in the activities as well as recommendations and actions to avoid those errors.

Knowledge Management: Focuses on collection and management of critical knowledge in an organization to increase its capacity for achieving results. Knowledge management often includes extensive use of computer technology. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced, critical knowledge is applied in the organization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. Includes ongoing tracking and feedback in process to reach objectives. MBO’s are often perceived as a form of planning.

Learning Organization: Focuses on enhancing organizations systems (including people) to increase an organization’s capacity for performance. Includes extensive use of principles of systems theory. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced ability to learn is applied in the organization.

Program Evaluation: Program evaluation is used for a wide variety of applications, e.g., to increase efficiencies of program processes and thereby cut costs, to assess if program goals were reached or not, to quality programs for accreditation, etc.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is increasingly used, particularly by nonprofit organizations, to assess the impact of their services and products on their target communities. The process includes identifying preferred outcomes to accomplish with a certain target market, associate indicators as measures for each of those outcomes and then carry out the measures to assess the extent of outcomes reached.

Strategic Planning: Organization-wide process to identify strategic direction, including vision, mission, values and overall goals. Direction is pursued by implementing associated action plans, including multi-level goals, objectives, time lines and responsibilities. Strategic planning is, of course, a form of planning.

Systems-Based Model to Diagnose For-Profit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Total Quality Management (TQM): Set of management practices throughout the organization to ensure the organization consistently meets or exceeds customer requirements. Strong focus on process measurement and controls as means of continuous improvement. TQM is a quality initiative.

Systems-Based Model to Diagnose Nonprofit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Organizational development is a long term effort, led and supported by top management, to improve an organisation’s visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of organization culture with special emphasis on the culture of intact work teams and other team configurations, utilizing the consultants, facilitator role and the theory and technology of applied behavioural science, including action research.

Some of the main technique, or interventions, coming under the OD umbrella are the following:

i) Role analysis

ii) TQM (Total Quality Management)

iii) Quality circles

iv) Assessment / development centers

v) Re-engineering

vi) Large-scale-systems change

vii) MBO (Management by Objectives)

viii) Team building

ix) T groups (also called encounter groups and sensitivity training)

x) Work re-design and job enrichment.

xi) Survey research and feedback

xii) Third party interventions

xiii) Quality of work life projects

xiv) Grid training

xv) Action research

Action research

Action research (Developed by Kurt Levin in 1947) is a core component of organisation development and an important tool of organisational analysis.

It is a process of systematically collecting research date relating to a specific goal, objective or need of the organisation, feeding the results back to the sources of the original data and planning further action based on discussion of the results obtained.

This may be regarded as an interactive process whereby the data is obtained, discussed and further refined before actions are jointly planned to meet the original objectives of the review. The key feature of action research is that it is a process that is continually being applied and re-tested until the desired results are obtained.

Organisation Structure Analysis There are a number of techniques that may be used to analyse the structure of organisations. The fundamental aim of the analysis is to determine whether:

  • The existing structure supports the mission and strategy.
  • The existing structure is appropriate to the needs of the organisation.
  • It provides the most logical and cost-effective grouping of functions.
  • The structure maximizes the people strengths in the organisation

Organisational Development Meaning, Features, Evolution, Components, Objectives, Benefit, Process

Organizational Development (OD) is a systematic approach to improving an organization’s effectiveness by enhancing its ability to adapt to changes, solve problems, and achieve its goals. OD involves planned interventions in the organization’s processes, culture, structure, and people, aiming for continuous improvement. It seeks to foster a healthy and productive work environment that can support the organization’s growth and ensure the alignment of its objectives with employee well-being and organizational success.

OD focuses on improving organizational effectiveness through interventions that involve employees at all levels. The core of OD lies in enhancing the organization’s capacity for continuous learning, collaboration, and adaptation to changes in the external and internal environment.

Features of Organizational Development:

  • Systemic Approach:

OD is a holistic, integrated approach to improving organizational processes. It considers the organization as a whole, recognizing that changes in one area can affect others. The aim is to create harmony among various departments, processes, and individuals for the overall success of the organization.

  • Focus on People:

The central theme of OD is the development of people. It aims to improve interpersonal relationships, leadership practices, and communication processes, enabling individuals to work together more effectively and align with organizational goals.

  • Planned Change:

OD interventions are deliberately designed and implemented to bring about changes. These changes are strategic and are aimed at enhancing the overall performance of the organization.

  • Participation and Involvement:

OD encourages active involvement of employees at all levels in the change process. Employees are seen as critical stakeholders who can contribute to problem-solving, decision-making, and implementing new strategies.

  • Collaboration and Teamwork:

OD promotes collaboration among employees, teams, and departments, recognizing the importance of teamwork in achieving organizational success. It fosters a collaborative environment that drives collective problem-solving and innovation.

  • Focus on Organizational Culture:

OD emphasizes aligning organizational culture with business goals. It aims to create a culture that values learning, trust, innovation, and adaptability, supporting both employee and organizational growth.

  • Continuous Improvement:

OD is not a one-time intervention but an ongoing process of improvement. Organizations engage in continuous feedback, assessment, and learning to ensure they stay adaptable and relevant in a dynamic environment.

Evolution of Organizational Development:

  • The Early Days (1940s-1950s):

OD emerged in the 1940s, largely influenced by the human relations movement and systems theory. The focus during this period was on improving human behavior in organizations, emphasizing employee satisfaction, motivation, and interpersonal relationships.

  • The 1960s-1970s – Focus on Action Research:

In the 1960s, OD became more structured with the introduction of Action Research as a key methodology. Action research involves collecting data on an organization’s current state, analyzing it, and then implementing changes to address the issues identified. During this phase, OD interventions became more systematic and involved higher participation from employees.

  • The 1980s-1990s – Organizational Culture and Empowerment:

In the 1980s and 1990s, OD practitioners began focusing more on organizational culture, leadership development, and creating systems that empowered employees. The emphasis was on creating adaptive organizations capable of thriving in changing business environments.

  • The 21st Century – Globalization and Technology:

The role of OD has expanded in recent decades to include the effects of globalization, technology, and the digital transformation. Organizations are now focusing on creating a culture of innovation, agility, and resilience to cope with fast-paced changes in the global market.

Components of Organizational Development:

  • Organizational Culture:

The set of shared beliefs, values, and norms that define how things are done in an organization. A healthy culture supports collaboration, accountability, and a commitment to achieving organizational goals.

  • Leadership Development:

Leadership is critical in OD. Developing leaders who can drive change, inspire teams, and effectively communicate organizational goals is essential. Leadership development ensures the organization has capable leaders who can guide others through transformation.

  • Team Development:

OD involves building strong, high-performing teams. This includes promoting collaboration, improving team dynamics, and ensuring teams are aligned with organizational objectives.

  • Communication Processes:

Effective communication is essential for the success of OD. Transparent and open communication allows for feedback, encourages participation, and ensures that everyone in the organization is aligned with the overall goals.

  • Training and Development:

Employees need the right skills and knowledge to perform their roles effectively. OD emphasizes continuous learning and professional development to ensure that employees are capable of adapting to changes and contributing to organizational success.

  • Change Management:

OD includes structured approaches to manage organizational change, ensuring that transitions are smooth and that employees embrace the change process. This involves using strategies to minimize resistance and facilitate the adoption of new behaviors, processes, or technologies.

  • Feedback and Evaluation:

OD emphasizes the importance of continuous feedback and evaluation of processes. Regular assessments of organizational performance and employee satisfaction help identify areas of improvement and measure the success of interventions.

Objectives of Organizational Development

  • Improving Organizational Effectiveness:

OD aims to enhance the performance and efficiency of the organization, ensuring that it meets its goals and objectives. It focuses on improving processes, decision-making, and overall productivity.

  • Increasing Employee Satisfaction and Engagement:

A key goal of OD is to create an environment where employees feel valued, engaged, and motivated. Improving job satisfaction and fostering a sense of belonging leads to higher retention and productivity.

  • Facilitating Change and Adaptation:

OD helps organizations respond to internal and external changes. By building a culture of adaptability, OD ensures that organizations can respond proactively to market shifts, technological advancements, and other challenges.

  • Enhancing Leadership and Management:

OD aims to develop strong leaders who can guide the organization through change, inspire employees, and align teams with organizational goals. Effective leadership is seen as essential for long-term success.

  • Fostering Innovation and Creativity:

OD encourages a culture of innovation by creating an environment where employees feel empowered to suggest new ideas, experiment with different approaches, and collaborate with others.

  • Building Teamwork and Collaboration:

OD focuses on improving teamwork and collaboration across departments, ensuring that all employees work together toward common goals. Team development is a key objective, as collaboration drives organizational success.

Benefits of Organizational Development:

  • Improved Organizational Performance:

OD leads to better alignment between organizational goals and individual performance, driving efficiency and productivity. Organizations that engage in OD interventions typically see improvements in their operations and bottom line.

  • Employee Motivation and Satisfaction:

By focusing on employee involvement, training, and development, OD boosts morale and job satisfaction. Employees feel more engaged and motivated when they see opportunities for growth and when their contributions are valued.

  • Better Adaptability to Change:

OD helps organizations become more flexible and resilient in the face of change. Employees learn to embrace new processes, technologies, and strategies, making the organization more adaptable to external pressures.

  • Stronger Organizational Culture:

OD interventions lead to a stronger and more positive organizational culture. By improving communication, trust, and collaboration, OD helps create an environment where employees can thrive.

  • Enhanced Leadership Capacity:

Through leadership development programs, OD ensures that the organization has strong leaders capable of guiding teams through change and driving performance. Effective leadership improves decision-making, employee relations, and organizational success.

Process of Organizational Development:

  • Diagnosis:

The first step in OD is diagnosing the current state of the organization. This involves collecting data through surveys, interviews, and assessments to understand the challenges and areas of improvement.

  • Action Planning:

Based on the diagnosis, a comprehensive action plan is developed. The plan outlines the goals, strategies, and interventions needed to address identified issues. It includes timelines, resource allocation, and metrics for success.

  • Intervention:

Interventions are implemented to address specific issues within the organization. These may include leadership development programs, team-building activities, communication training, or changes in organizational structure or processes.

  • Evaluation:

After the intervention, the effectiveness of the changes is evaluated. Feedback from employees, performance metrics, and organizational outcomes are assessed to determine whether the desired results have been achieved.

  • Sustainability:

OD is an ongoing process. The organization must ensure that the changes are sustained and that continuous improvement is incorporated into the culture. This involves regular assessments, feedback loops, and further training as necessary.

Diversity and Supervision

One important step in creating a workplace that values diversity is training for supervisors and managers, as well as training for all employees. The other benefit of diversity training is that it may help reduce claims of discrimination or harassment.

Despite the unfavorable consequences inherent in the provision of multicultural supervision, supervisors who demonstrate multicultural competence in supervision may be able to mitigate the negative effects of cultural differences on supervision processes and outcomes. In particular, supervisors who demonstrate interest in supervisee cultural background, maintain a positive attitude towards cultural differences, openly discuss cultural differences in supervision, and convey warmth and support are capable of building a strong supervisory relationship with supervisees of a different race, gender, or sexual orientation.

Strategies

Mentoring

Mentoring programs can be of great help in bringing on nontraditional workers within a company. These mentoring relationships should be promoted as a voluntary arrangement, in which the mentee can identify her own preferred mentor. Once the pairing is in place, suggest ways in which the mentor can develop the relationship, and be clear about the goals the company desires from the arrangement, such as the identification of particular talents.

Diversity Training

Both supervisors and employees benefit greatly from specific diversity training in a workplace setting. This training should ideally explain the company’s policy on diversity and its aims in diversifying its workforce. It should also make employees think about viewing workplace issues from a number of different points of view. The course should contain specific information about the different cultures represented in the workforce. It should also confront stereotypes that individual workers may hold and should promote respectful discussion of issues surrounding diversity.

Flexible Schedules

Nine-to-five hours don’t always work best for employees with children or other domestic responsibilities. Instituting flextime or other solutions, such as telecommuting and job sharing, can help those workers be as productive as possible by allowing them to manage their other responsibilities efficiently.

Conflict Resolution

Just as managers may need help in adapting to a diverse workforce, so other employees may have to be prepared to see their colleagues in a new light. This may take longer for some workers than for others. For those who have difficulties in adapting to diversity, make sure that you have explained your expectations as a manager clearly and, if conflicts do arise, have a clear framework for conflict resolution explicit in your employee handbook.

Disability Accommodation

Managers supervising a diverse workforce must be prepared to manage disability needs in a sensitive and appropriate manner. It’s hard to predict disability accommodations ahead of time, as they will vary with each employee situation. Instead of viewing a disability accommodation as a disruption to the workplace, view it as an opportunity to allow that worker to contribute his unique talents fully to the company.

Points:

  • It encourages a diversity of ideas and perspectives.
  • Diversity recognizes, values, and respects differences.
  • It helps the organization attract and retain high-quality employees.
  • It promotes fairness and allows everyone to contribute to goals and to share in success.
error: Content is protected !!