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A STUDY ON ORGANIZATION DEVELOPMENT IN ATLANTIC FABRICS IN

KARUR

CHAPTER I

INTRODUCTION

MEANING OF ORGANIZATION DEVELOPMENT:

Given the approaches to planned change: structure, technology and people change, a major
approach to people change is organization development (OD). Some organization development
programmers involve structural and technological changes also. It plans for a comprehensive
change where the organization moves to higher levels of performance with improved worker
satisfaction.

Organization development aims to improve the organizations self-renewal process so that


managers adopt a management style appropriate to the new and changing environmental
variables. It is an approach to introduce change in business organizations. Organization
Development is a planned and systematic attempt to change the organization, typically to a more
behavioral environment.

The need for OD arises because the organization itself needs to change. Changing people
through motivation and incentive programmes alone is not sufficient. OD helps organizations to
rapidly adjust to environmental changes. Not responding to change is not an option. It is
necessary for survival of the organization in the dynamic, competitive world.

It is a change effort that is planned, focused on an entire organization or a large sub-system,


managed from the top, aimed at enhancing organizational health and effectiveness, and based on
planned interventions made with the help of a change agent or third party who is well versed in
the behavioural sciences.

OD is response to change, a complex educational strategy intended to change the beliefs,


attitudes, and structures of organizations so that they can better adapt to new technologies,
markets and challenges. OD programmes equip people to accept change resulting from external
environmental forces like market, technology etc. It is a long-range programme aimed to change
behavioural attitude of people and performance of the total organization, thereby creating better
coordination between human beings and the organization.

FEATURES OF ORGANIZATION DEVELOPMENT

It aims to bring planned and systematic change in the organization.


It aims to change the whole organization or its major part; a functional area or a
department. Small changes in the inventory control system or sales strategies do not
require comprehensive organization development programmes.
The effort to change organizational set up is initiated at the top level though members at
other levels also participate in the change programme.
Organization development programmes aim to improve long-run performance of the
enterprise by raising their working to a higher level.
Organization development programmes are initiated by the top level managers but they
are developed with the help of change agents. Change agent is a person or a group of
persons who ensure that planned change is effectively implemented in the organization.
Change agents have knowledge of the organization development techniques which help
to introduce change. A change agent can be an internal consultant, employee or manager
of the company or external consultant or organization development specialist who helps
in introducing change in the organization.
It is a broad concept and aims to bring comprehensive change in the organization. It also
attempts to change the values, beliefs, attitudes, philosophies and culture of the
organization.
It is a dynamic concept. It recognises changes in the environmental variables and, thus,
need to change the organization structure to achieve its objectives.
It is a gradual movement from simple training programmes to make people learn new
ways of working to more sophisticated, complex and comprehensive methods of training
that make change have lasting impact on them. Comprehensive change programmes and
training programmes include collection of data, analysis of data, making and
implementing suitable change strategies.
It is a major departure from old to new, from undesirable to desirable and educates people
to accept new norms of behaviour.
ORGANIZATION DEVELOPMENT PROCESS CONSISTS OF THE FOLLOWING
STEPS:

(I) RECOGNITION OF THE PROBLEM:

It is the first step to initiate the organization development process where top managers or
departmental heads feel the need for change. Recognising some problem in the organization calls
for change. Problem is the end-result that requires application of OD. An outside consultant can
also be appointed to identify problems in the organization. The problem could be low sales, low
profits, poor employer-employee relations etc.

(II) DIAGNOSIS OF THE SITUATION:

After the need for change is felt, the change agent assesses the problem by diagnosing the
present situation. It enables the organization development practitioners to analyse the real
problem.

The problem can be diagnosed in the following ways:

The practitioners can interview people of the organization directly affected by the
problem situation.
Where organizational members do not want to disclose their identity in face-to-face
interviews, the practitioners use questionnaires where respondents answer the questions
in a common format.
The employees behaviour can simply be observed and this observation helps
organization development practitioners in diagnosing the situation.
Internal documents and reports also give information about problem area in the
organization.
The OD practitioner, thus, identifies the reasons for problems and collects relevant data
from the organization to diagnose the problem. The reasons for the problems should be
identified because reasons help in going to the root cause of problems.
If sales are low because of lack of publicity, advertising and sales promotion efforts can
help to solve this problem. All relevant data related to the cause of problem is collected
and analyzed to arrive at the optimum solution.
(III) IDENTIFICATION OF THE PROBLEM:

The problem having been diagnosed, the OD practitioners want all organizational
members to identify themselves with the problem. They make people realise that problem of the
organization is their problem. When people recognise the problem as their own, they actively
participate in initiating and implementing the change process to overcome the problem.

(IV) SELECTION AND OWNERSHIP OF SOLUTION:

Members should identify the problem as their own and also accept the solution or own
the solution. The OD practitioners should facilitate both ownership and solution to the problem
by organizational members so that change can be smoothly implemented. If managers feel that
employees do not own the selected solution to the problem, they should first make them accept
the solution and then implement it.

Ownership occurs when people openly recognise that a problem exists, when they
accept their contribution to the problem or the impact it has on them, or when they commit to the
need to identify the problem and to do something about it. Action plan is devised which
determines goal of the OD programme, the approach for attaining these goals and sequence for
implementing the approach.

(V) IMPLEMENTATION:

When all organizational members agree to the problem and solution to that problem (that
is, they own the problem and the solution), changes are implemented. The desired organization
structure, its parts and their relationships are determined. The OD practitioner changes the
organization and trains people in the light of proposed changes.

(VI) EVALUATION:

After the organization development, programme is implemented, it is regularly monitored


(since it involves long-term change process) to study its effectiveness. If changes do not produce
the desired results, the organization development practitioners make adjustments in the OD
programme. This may involve appraising the change programmes, change efforts, behavioural
patterns of members etc.
MERITS OF ORGANIZATION DEVELOPMENT:

An effectively implemented organization development programme has the following merits:

It improves morale of employees.


It improves organizational efficiency.
It reduces labour turnover and absenteeism.
It improves employer-employee relationships.
It improves relationships with outside parties.
It changes the internal environment of work and increases the trust, confidence, openness
and mutual support amongst people.
It increases individual and group satisfaction amongst people at all levels by increasing
their responsibility in planning and implementing the change process.
It provides opportunity to people to develop their potential to maximum.
It provides challenging environment in the organization where people can relate
themselves with the work, organization and the environment.
It promotes open communication in the organization. People communicate in all
directions vertical, horizontal and diagonal.

The following techniques are used by organization development practitioners to bring planned
change:

Diagnostic techniques
Interaction-facilitating techniques
Diagnostic Techniques:

These techniques are used by practitioners to diagnose the problem of the organizations:

1. SURVEY FEEDBACK:

In this method, a questionnaire is given to members to collect information about the


problem areas in the organization. Since names of employees remain anonymous, they give true
and fair picture of the areas where changes are required. After the data have been collected,
analyzed and interpreted, the results are drawn and presented to the concerned department where
they are discussed and change is initiated.
2. NOMINAL GROUP TECHNIQUE:

This technique of identifying the problem area and finding solution to problems is
applied when members do not want to verbally express their feelings. Group members list the
problem areas on a sheet of paper. The responses of members are consolidated in writing by the
group leader who presents the problems on the board. The members are again asked to identify
in writing, the problems in the order of priority.

The group leader again consolidates the list and arrives at consensus regarding the
problems to be solved in the order of priority. A similar exercise is repeated for finding solutions
to the problems. The problems are finally matched with the solutions and group members
interact with each other.

3. FORCE FIELD ANALYSIS:

It identifies the driving forces which promote change and restraining forces which
restrain change in the organization. With the strength of each force, change can be introduced if
driving forces are stronger than restraining forces. Attempts are made to reduce the restraining
forces or convert them into driving forces.

If all the tasks are managed by managers single-handedly without delegating to


subordinates, managers will be overburdened with work and, therefore, not able to achieve the
organizational goals. In such a situation, the organization development practitioner creates an
environment where superiors understand the need to delegate and subordinates express their
desire to be delegated. The problem and solution are, thus, formulated through force-field
analysis.

II. INTERACTION FACILITATING TECHNIQUES:

These techniques enable the group members to interact and discuss the problem areas and arrive
at a solution to effect the change.
1. TEAM BUILDING:

The organization development consultant encourages team members to trust and increase
their level of openness with each other. Members share information known to them. The
information may be related to better pay structure, better working conditions or better employer-
employee relationships. Disclosure of more and better information enables the OD practitioner to
make better decisions to implement the planned change.

Team building helps the work groups to identify problems related to their tasks and plan
changes that will improve effectiveness of the tasks. It changes the way work is done and
redirects organizational resources in a way that results in their optimum utilisation.

It improves inter-personal relationships in the organization as people openly


communicate with each other and develop mutual understanding leading to functional
excellence. The OD consultant also provides feedback to the team members to increase their
tasks roles and maintenance roles.

In task role, he makes the group members conform to organizational standards and as
maintenance role, he fulfills their social needs of interaction and influence. If formal leader
cannot fulfill these roles, the OD consultant supplements his functions and carries out both the
roles. This is because he has referent and expert power over group members. He, thus, has strong
influence over group activities to promote organizational efficiency far beyond the corrective
range of formal leaders.

2. PROCESS CONSULTATION:

In this technique, the OD consultant examines some organizational process; production


process or communication process, and develops ideas to improve that process. He involves
group members to participate in the process development and arrives at consensus regarding the
ways to solve problems related to that process.

Process consultation includes a set of activities on the part of a consultant which helps
the client to perceive, understand and act upon process events which occur in the client
environment. Managers, thus, seek the help of consultants in knowing the effectiveness of
various organizational processes like communication, decision-making etc. These processes are
diagnosed, problems are detected and remedies are suggested.

Without spending much time on studying the organization, thus, managers seek the help
of OD consultants in knowing what is wrong in the organization and where. The consultant
provides challenging alternative solutions to the client (managers). The client considers these
alternatives and implements the alternative he thinks best for the organization.

3. GRID ORGANIZATION DEVELOPMENT:

This organization development technique is based on Blake and Moutons Managerial


Grid, which identifies management styles based on managers concern for people and task.
(Different management styles are 1, 1; 9, 1; 5, 5; 1, 9 and 9, 9). The 9, 9 style characterised by
high concern for people and tasks is the ideal style. An effective organization development
programme aims at 9, 9 management style to solve the organizational problems.

Grid organization development technique follows the following six steps:

(A) TRAINING:

Key managers assess their management style, compare it with the ideal style and improve their
styles through training to develop the organization. They develop skills like communication,
group decision-making etc. to improve from the existing management style to the optimum style
(9, 9).

(B) TEAM DEVELOPMENT:

The improved management style is applied to organizational activities and attempts are made to
improve employer-employee relations and develop team spirit amongst organizational members.
Whatever managers have learnt in training programmes is applied in actual work situations so
that features of 9, 9 management style are achieved.
(C) INTER-GROUP DEVELOPMENT:

Different work groups cooperate and together solve the organizational problems. Groups deal
with the problems which promotes group problem- solving and understanding of organizational
procedures.

(D) ORGANIZATIONAL GOAL-SETTING:

Top managers frame new goals for the organization which can be achieved efficiently.

(E) GOAL ATTAINMENT:

Organizational members seek to achieve the goals framed by top managers in organizational
goal-setting.

(F) STABILIZATION:

After accomplishing the above steps, the organization development practitioner analyses the
whole situation, stabilizes the positive points of the planned change process and improves the
areas which are not yet fully developed. Areas which need improvement are identified so that
organization is equipped to face environmental challenges and exploit environmental
opportunities.

CONDITIONS FOR SUCCESSFUL ORGANIZATION DEVELOPMENT:

The organization development programmes are long-term programmes and lot of time, money
and materials are tied in these programmes. Many OD programmes have not been able to achieve
the ideal situation. They have not been able to make people accept the need for change. They
failed as long-term strategy because people with lower-order needs are not motivated to accept
change. There have also been cases of wrong implementation of the OD programmes.
Three factors are identified by Evans for failure of OD programmes:

Management consultant group cannot tailor the programmes to the needs of the
organization.
They cannot model appropriate personnel behaviour in the programme.
They cannot motivate the employees and develop their higher-order needs to participate
in the OD programme.

THE FOLLOWING CONDITIONS HELP TO MAKE THE OD PROGRAMME


EFFECTIVE:

(i) Recognition by Top or Other Managers that Organization has Problems:

Unless top managers realise that organization has some problem, change process cannot be
initiated. Support of top managers is necessary for other organizational members to accept the
need for change. If objectives of change are clear, right strategies can be framed to achieve the
objective.

Whether or not change is required can be known through extensive scanning of external
environmental variables and internal control system. Managers should recognise their strengths
and incorporate them in the organization development programme. This will enhance their
morale to implement the change process.

(ii) Clarity about Elements:

There should be clarity regarding elements of organization that need to be changed. These
elements could be structure, technology or people.

(iii) Plan the Change:

If change is planned, everyone will know when, how and by whom change will be introduced.
Change should be planned so that everyone accepts the change. Members of the organization
should be educated about why change is required.

They become aware of the need for change and become responsive to implement the change.
Managers should seek the support of human resource managers where changes are introduced in
employees behaviour, attitudes and development. The entire OD process should be managed
properly so that members have faith in these programmes.

(iv) Effective Leadership:

Effective leadership ensures that everyone participates in the change process. Managers promote
group dynamics so that organizational members think and work collectively towards the
proposed changes. Involvement of leaders is necessary so that all the work groups are actively
involved in implementation of the organization development programme.

(v) Use of Outside Organization Development Consultant:

A major change programme can be effectively implemented through an outside consultant who
has the skills and knowledge to solve the major problems.

(vi) Develop Internal Organization Development Resources:

If organizational resources are strengthened, internal change agents will cooperate with the
external organization development consultants in implementation of the change process.

(vii) Achieving Early Success with the Organization Development Effort:

If at early stages, the organization development programme does not achieve the desired results,
workers will not be motivated to implement the change process. Early success, therefore,
motivates them to implement the change process. However, since these are long-term
programmes, enough time should be allowed so that results of OD programme are achieved.

(viii) Congenial Organizational Climate:

Organizational climate is congenial where people freely communicate with each other and also
have faith in each other. Such a climate is conducive to effective OD programme. People
cooperate with each other in the hope that change will benefit them and the organization.
(ix) Measurement of Results:

Results should be measured by regularly obtaining data about the impact of change process on
organizational goals. This helps the OD practitioners to continue with the existing programme or
make changes in them.

OBJECTIVE OF THE STUDY

The study has been designed with the following objectives

To know awareness about the concept of organization Development


To know employees welfare strategies in this company of employees.
To give suggestions to improve the organization Development measures in the company.
Ensure continuous development of human Resources.
To maintain good relationship between the management and workers.
To find out various Organization developments in ATLANTIC FABRICS IN KARUR
Facilities provided at the Company.

SCOPE OF THE STUDY

The study "Employee job satisfaction measures provided by ATLANTIC FABRICS IN


KARUR has thrown light to the welfare measures of employee who marks in the
organization.
This study wills help the top management to improve their Organization Development
measures in favorable for employees ATLANTIC FABRICS IN KARUR
The Study covers the whole organization is taken into consideration and the survey is
conducted among the workers through the Questionnaire and also present study is
restricted to ATLANTIC FABRICS IN KARU and data is analyzed based on the
information provided by employees.
CONSTRAINTS AND LIMITATION OF THE STUDY:

As the study revolves around the reward system of the organization and in spite of
keeping serious and sincere efforts there are several limitations. There are as follows.
The information is collected by 100 employees only.
The investigation access to the staff was limited due to the shift system.
Information received from the respondents neither may not be accurate. So the received
information will not give a true and fair view of the actual position.
Due to time constraint, the research work has been undertaken within the stipulated time
of 3 weeks
Due to time limitation, sample size for the project study is limited to only 100
Employees.

CHAPTER III

RESEARCH METHODOLOGY

RESEARCH DESIGN

A Research design is simply the framework or plan for a study. The design may be a
specific presentation of the various steps in the process of Research. For this descriptive design
was used.

Descriptive research includes survey and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs, as it exists at present.
In this method the researcher has no control over the variables. He / She can only report what has
happened and what is happening.

The methodology adapted to collecting information from a sample size of 100


respondents by using simple random sampling technique, in order to analyze and interpret the
respondents opinions and views with respect to the entire study is based on both the primary
data and Secondary data.
PRIMARY DATA:

For collecting the primary data, the questionnaire method was employed. Each respondent was
given a questionnaire and they answered it and returned back in two weeks time.

Questionnaire: A Questionnaire has been prepared and distributed among the respondents
(employees) for both executives and non-executives.

Interview: Personal Interview and interaction with the respondents (employees).

Observation: by observing the working environment.

SECONDARY DATA

For secondary data the researcher depends on various company records, websites and
journals etc. The secondary data is that which have been already collected by someone or else
which have been passed through statistical data can be categorized into two broad categories
named published and unpublished statistics.

DATA SOURCES

Primary data was collected by the questionnaire based marked survey.


Secondary data was obtained from journals, magazines newspapers, books and
the internet.

RESEARCH INSTRUMENT

For doing the survey research, structured questionnaire with both open ended and close
end equations were used.

DATA ANALYSIS:

The mode of survey was personal interview with the respondents during the filling up of
the questionnaire.
SAMPLING TECHNIQUES:

The sampling used for this study was probability sampling. Since the study is only meant
for certain specific categories within the total population, a stratified random sample
was used. Three groups of categories have been taken into account viz. students
professionals and general public.

SAMPLE SIZE

A sample size of 100 respondents is used for the study.

TOOLS OF THE STUDY

Percentage analysis and chi-square are used for analyzing the data collected.

Percentages are obtained when ratios are multiplied by 50

No. of respondents

Percentage of respondents = ---------------------------- X 100

Total No.of respondents

CHI-SQUARE ANALYSIS:

Chi-square test = (O-E)2/E

Degrees of freedom = V = (r-1) (C-1)

Where O = Observed Frequency

E = Expected Frequency
R = Number of rows

C = Number of columns

Level of significance = 5%.

A STUDY ON ORGANIZATION DEVELOPMENT IN ATLANTIC FABRICS IN


KARUR

QUESTIONNAIRES

1. Name
2. Gender.
a) Male
b) Female
3. Marital status.
a) Married
b) Unmarried
4. Age.
a) Below 20 years
b) 21- 30 years
c) 31- 40 years
d) 41- 50 years
e) above 51 years
5. What is the highest level of education you have completed?
a) Below SSLC
b) Higher secondary
c) Graduate
d) post graduate
e) Profession
6. Occupation.
a) Agriculture
b) Government
c) Private
d) Business man
e) others
7. What is your average monthly salary range (in SRD)?
a) Below 10,000
b) 10001 -15000
c) 15001-20000
d) 20001-25000
e) Above 25001

8. Nature of family of respondents.


a) Join family
b) Nuclear family

9. No of family members.
a) Single
b) Two members
c) 5-6 members
d) Above 6 members

10. Current job category within the organization.

a) Operational (work floor)


b) Administrative personnel
c) Supervisor (middle management)
d) Manager (upper management)
11. Which range indicates the number of years you are employed within the
organization?
a) <1 Year
b) 1 5 years
c) 6 10 years
d) 11 15 years
e) >15 years

(1) (2) (3) (4) (5)


Strongly Agree Neither Disagree Strongly
S.NO agree Agree disagree
or
disagree

ORGANIZATION DEVELOPMENT

1. I would be very happy to


spend the rest of my career
with this organization.

2. I really feel as if these


organizational problems are
my own.
3. I do not feel emotionally
attached to this organization.

4. Right now staying with my


organization is a matter of
necessity as much as desire.
5. It would be very hard for me to
leave my organization right
now, even if I wanted to.

ORGANIZATIONAL CULTURE SUPPORTIVE CULTURE

6. Employee has easy access to


policies.

7. Supervisors use positive


feedback with employee
8. People in my work place unit
are friendly and helpful.

9. Management continuously
improves communication
between management and
staffs.
BUREAUCRATIC CULTURE

10. Organization management


provides personal leadership
for improve quality.
11. Department heads within our
organization accept
responsibility for quality.
12. Department head work to
encourage just in time
production.

13. Management strongly


encourages employee
involvement in the production
process.

INNOVATIVE CULTURE
14. Top priority in my
organization is quality
performance
15. We have availability of
internal communication
strategy for example outlook
SAP etc.
16. In my organization encourage
for innovation

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