Page 173 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes  To legitimatize and encourage the collaborative management of team inter team, and
organisation cultures. This broad intervention goal is largely the essence of OD.
We think that these items largely describe the underlying implications for top management and
that the OD consultant needs to be clear about them from the beginning an to help the top
management group be clear about them as the process unfolds.

Self Assessment

State whether the following statements are true or false:

4. To think about the performance of units by descending order of systems and subsystems
is a way of viewing depth of intervention.
5. The client may see OD as means of increasing both the client’s and the subordinates
effectiveness.
6. A good deal of the interaction in early contacts between client and consultant is implicitly
related to developing a relationship of mutual trust.
7. The top team inevitably is a powerful determinant of organisational culture and largely
the essence of OD.



Case Study Western Utilities Company

estern Utilities Company, a privately owned utility company, has been faced
with an expansion of its facilities resulting in financial inefficiencies. Bhuvan
WLal, President, has requested a review of all operating standards. He requested
that Pankaj Sethi and Suman Diwan set out a broad outline of MBO performance standards
that would identify key standards with which to control performance. Three years ago,
Western Utilities, under the direction of a management consulting firm, implemented a
system of management by objectives (MBO) for the purpose of evaluating department
managers, sales engineers, and consumer service employees.

The advantage of such a system of controls is that top management can very rapidly scan
a printout and detect any trouble spots in the department. Pankaj and Suman attempted to
set the standards as if the personnel were working at a normal pace. After review, they
raised the performance level on several items. Their justification was that if a standard can
be achieved without a challenge, it is probably too low. The President had specifically
asked for goals that were not easily attainable. There was a certain amount of negative
reaction, but in the end the departments agreed.
The Situation
During the past year, however, a significant degree of dissatisfaction has emerged. In the
first year, participation was encouraged and rewards were obtained. The employees set
their goals high and productivity increased.
Now, however, problems are being reported in the evaluation of performance, many
managers claiming that the standards set by Suman are too high or unfair. Bhuvan Lal
said: “Yes, we have had a few operating problems, but no system is perfect.” Suman noted
that the consumer department had exceeded their monthly labour cost standards, so she
called Ajay Mehra and “red-lined” his performance report. Ajay hit the roof. He called
Contd...

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