HRM – TRANSACTIONAL ANALYSIS

BASIC CONCEPT

WHAT IS ORAGANIZATIONAL DEVELOPMENT?

Organizational development is a planned effort initiated by process specialists to help an

organization develop its diagnostic skills, coping capability, linkage strategies, and a culture of
mutuality (Udai Pareek 2014).
Planned effort- Organizational development is a planned effort and, therefore , requires a
great deal of thinking and planning on the part of the OD expert .
Initiated by process specialists - knowledge and skills of applied behavioral sciences are used in
OD. It is therefore , best initiated by an expert who has both knowledge of the applied
behavioral science , and the skill of applying this knowledge in an organizational situation .
Diagnostic skills – The emphasis in OD is on planning change based on data. Data is collected
over a period of time about several aspects of the organization and its problems as part of this
effort . OD tries to develop the organization’s capacity to diagnose its problems. The emphasis
is not only on developing these skills in the organization , so that it can diagnose its own
problems in the course of its regular functioning .
Coping capability – The main thrust in OD is on the organization’s problem solving abilities . The
organization is thus, helped to develop its ability to confront its ability to confront and cope
with problems it faces.
Linkage strategies – OD emphasis the building of links between individual goals and
organizational goals , between individuals who work in the various roles , and between various
groups that function in the organization . Problems in the organization can be resolved only
through collaborative effort . \
Culture of mutuality – OD is based on certain values that are important for development of
organizations as open and proactive systems . OD fosters a set of specific values : trust ,
authenticity , proactivity , autonomy , collaboration and experimentation (OCTAPACE).

CHARACTERITICS OF ORGANIZATIONAL DEVELOPMENT

1. Problem-Solving
It helps find effective solutions to the problems that hamper the steadfast growth of the
organization. Prolonging this process results in stagnation.
This characteristic of OD is very important as it is essential to brainstorm techniques to
resolve technical as well as other hurdles.

Participation
It involves active participation of all the organizational members in order to make the
OD process successful. The members range from the minority staff, to the mid-level
managers, to the top shots. Everybody needs to cooperate and participate in the
developmental process.
Task Accomplishment
As the firm looks forward to developing internal stability, various procedures are
undertaken and tasks are distributed. Every member needs to accomplish effectively,
whatever task is delegated to him. Only then can the targets be achieved for the firm.

Corporate Culture
OD needs to focus on the workforce as well as the culture of the workplace.The success
of OD is dependent on a positive corporate culture.This can be achieved by enforcing
various methods.

Human Values
A very important characteristic of OD is that it focuses on human as well as social
values.This involves treating everyone with fairness, eliminating favoritism and biased
behavior, focusing on everyone's needs, believing in a positive outcome and
encouraging the others towards the same as well, etc.

Collaboration
This involves collaboration among the staff.It includes methods to help the members
collaborate with each other without conflicts.This is an essential feature that eliminates
differences of opinion and helps everyone see the brighter future.

Change Management
A total system change is a requisite of OD.Without change, the process will not
function.The change must be positive and this is an inevitable step towards the firm's
success.

Taking Action

Taking proper action at the proper time is what is important.Once the diagnosis is done,
effective techniques must be formulated to deal with the existing problems. Newer
procedures must also be clarified - taking action is vital to OD.
Cooperation
Similar to collaboration, cooperation helps members compromise and adjust to different
situations.It helps them understand what to prioritize.It also helps them understand each
other better, leading to progress.
Goals and Development
All the goals intent on developing the organization must be planned and laid out.These
goals and their subsequent achievement help develop the organization.

DIFFERENCE BETWEEN ORGANIZATIONAL CHANGE AND ORGANIZATIONAL DEVELOPMENT

NEED FOR ORGANIZATIONAL CHANGE

1. Changes in environment necessitate organizational change.

Change in environment may result due to:
 Economic and market changes
 Technological changes
 Legal/political changes
 Resource availability changes-money, materials and human resources, market
changes. 2. Changes in managerial level-human resources – This is also
necessitate a organizational changes due to:
 Retirements of managers at different levels due to age bar or service bar as per
the prevailing rules and regulation or, terms and condition of the job.
 Promotion of junior level managers to higher level.
 Demotion/transfer/long leave (more than one year) or on training/study leave.
 Dismissal or lay off from the job of the managers.
 Resignation or turnover of managers from company service.
Whenever post of the manager (s) of any level remains vacant, a replacement is to
be made. But each manager has got his/her own management style, philosophy,
management approach, value and attitude. So, situation arises to bring necessary
changes in organization to suit the replacements.
3. Deficiency in present organization:
Due to the short-comings, defects, duplication of work, resource, time and efforts or
deficiencies in the organizational structure, working procedure, management process;
there may result lack of cooperation, increasing conflict, decreasing productivity,
increasing cost and scrap losses, barriers in communication process. All these hinder
attainment of target/goals of the department/ group/ organization. As such,
adjustments, modifications or alteration are to be carried out in organization.

4. Check the growth of inflexibility:

 Each organization desires to advance, grow and develop. Hence the organization should
achieve flexibility to meet the growth and development needs. Leaders/managers
constantly work for making the organization dynamic and flexible to achieve growth and
development. So whenever experiences or foresees inflexibility, organizational changes
are to be carried out. Changes under such circumstances benefit the organization as a
whole. Because of above causes, organizational changes can take place in all, some or
any of the following internal changes:
 Employee goal changes
 Work/job technology changes
 Organizational structure changes
 Organizational climate changes Organizational goal changes.

MODEL OF CHANGE DEVELOPMENT

UNFREEZING MOVEMENT REFREEZING

• Ensure that • execute the • ensures

employees intended that the
are ready change changes
for change become
permanent

LEWIN’S THREE – STEP MODEL

Kurt Lewin argued that successful change in organizations should follow three steps :
unfreezing the status quo , movement to a desired end state , and refreezing the new change
to make it permanent .
His main conclusion was that successful change is achieved through a three-step
process; unfreezing, changing and freezing.
Unfreezing- “ready to change”

When a structure has been in place for a while, habits and routine have naturally settled
in. The organization as a whole is going in the right direction, but – as shown on the
illustration – people or processes may have strayed off course. For example, tasks that
are not relevant or useful anymore are still being performed by force of habit, without
anyone questioning their legitimacy. Similarly, people might have learned to do things
one way, without considering other, more efficient methods. Unfreezing means getting
people to gain perspective on their day-to-day activities, unlearn their bad habits, and
open up to new ways of reaching their objectives. Basically, the current practices and
processes have to be reassessed in order for the wheels of change to be set in motion.

Movement - “implementation”
Once team members have opened up their minds, change can start. The change process
can be a very dynamic one and, if it is to be effective, it will probably take some time
and involve a transition period. In order to gain efficiency, people will have to take on
new tasks and responsibilities, which entails a learning curve that will at first slow the
organization down. A change process has to be viewed as an investment, both in terms
of time and the allocation of resources: after the new organization and processes have
been rolled out, a certain chaos might ensue, but that is the price to pay in order to
attain enhanced effectiveness within the structure

Freezing - “making it stick”

The author defines the final ‘freezing’ stage to be the most crucial in the overall process,
as often a change will only last a small amount of time before switching back to its
original state. For that reason, it is essential that the change is properly reinforced and
sustained. This may incur more costs and prolong the change process even further, but
it is important that the resources that went into initiating the change are not wasted. It is
common that a major change initiative takes place and individuals change the way they
work, only to slip back into old habits as the push for the change is relaxed.

A common criticism of this model is that resources and time for this stage are often
limited as its importance is underestimated. Therefore, it is common that this stage
doesn’t take place in reality. It is also said this ‘freezing’ after the change takes place
runs the risk of the organisation being inflexible when the next change is needed, which
in fast-evolving modern business environments can be very soon after.

The status quo is an equilibrium state. To move from equilibrium – to overcome the pressures
of both individual resistance and group conformity – unfreezing must happen in one of the
three ways
First - The driving forces, which direct behavior away from the staus quo , can be increased .
Second - The restraining forces , which hinder movement away from equilibrium , can be
decreased .
A third alternative is to combine the first two approaches .

KOTTER’S EIGHT – STEP PLAN FOR IMPLEMENTING CHANGE

Kotter (1995) summed up what he perceived as the essential 8 step process for
successful organisational transformation.
Step One: Create Urgency

The idea of a change being necessary for the success of the organization can be very
powerful. If you can create an environment where individuals are aware of an existing
problem and can see a possible solution it is likely support for the change will rise.
Generating conversation about what is happening and what direction the organization
could go in will help to achieve this. One way to kick-start this is to create a forum where
issues and potential solutions are raised and discussed. This step is all about
preparation and Kotter estimates that roughly 75% of a company’s management needs
to be behind a change for it to be successful. This emphasises his point that it is
important to prepare well before jumping into the change process. This step creates the
'need' for change, rather than just a 'want' for change. The difference is very important
when it comes to the likely support and eventual success of the change.

Step Two: Form a Powerful Coalition

It will be very hard to lead the whole change process on your own, and therefore it is
important to build a coalition to help you direct others. The coalition you build should be
made up of a range of skills, a range of experience and people who come from different
areas of the business, to maximise its effectiveness. The coalition can help you to
spread messages throughout the organisation, delegate tasks and ensure there is
support for the change organisation-wide. Team members that collaborate, complement
each other and can drive each other to work harder will make your life easier and the
change more likely to be successful.

Step Three: Create a Vision for Change

A change initiative is likely to be very complicated and can often be hard to understand,
in particular for employees at the lower end of the hierarchy. For this reason, creating a
vision that is easy to understand and encapsulates the overall aim is a useful way of
generating support from the whole organisation. While this vision should be simple and
understandable, it also needs to be inspirational to have maximum effect.

Step Four: Communicate the Vision

Creating the vision is not enough to generate support for it, it then needs to be
communicated throughout the organisation. This is an excellent opportunity to utilise the
coalition you have built up, as between them they are likely to have networks in every
area of the business. It is important to continuously communicate this message as it is
likely that competing messages are also being spread.

Step Five: Remove Obstacles

The first four steps are essential in building the strength of your change initiative, but it
is also important to look for what is likely to reduce its chances for success. Whether its
individuals, traditions, legislations or physical obstacles, it is likely there will be a few
barriers blocking your change’s path. Identify these as early as possible and rely on
available resources to break them down, without disrupting any other areas of the
business.

Step Six: Create Short-Term Wins

Change processes often take a while to reap any rewards and this can cause support to
fall if individuals think their effort has been wasted. For this reason, it is important to
demonstrate the advantages of the new process by creating some short-term wins.
Shorter term targets are also useful tools for motivation and direction. Using these wins
to justify investment and effort can help to re-motivate staff to continue backing the
change.

Step Seven: Build on the Change

Many change processes fail as complacency creeps in towards the end and project are
not finished properly. Therefore, Kotter argues it is important to sustain and cement the
change for long after it has been accomplished. Keep setting goals and analysing what
could be done better for continued improvement.

Step Eight: Anchor the Changes in Corporate Culture

Simply changing the habits and processes of employees is not always enough to instil a
culture change across the organisation. The changes should become part of the core of
your organisation to have a lasting effect. Keeping senior stakeholders on board,
encouraging new employees to adopt the changes and celebrating individuals who
adopt the change will all help to promote the change to the core of your organisation.
ACTION RESEARCH

DIAGNOSIS

ANALYSIS

ACTION FEEDBACK
RESEARCH

ACTION

EVALUATION

Action research is a change process based on the systematic collection of data and selection of
a change action based on what the analyzed data indicate . Its value is in providing a scientific
methodology for managing planned change . Action research consists of five steps : diagnosis ,
analysis, feedback , action , and evaluation .
The change agent often an outside consultant in action research ,diagnosis , begins by
gathering information about problems , concerns and needed changes from members of the
organization . In action research , the change agent asks questions , reviews records , and
interview employees and listens to their concerns .
Diagnosis is followed by analysis . The change agents synthesizes this information into primary
concerns, problem areas and possible actions .
Action research requires people who will participate in any change program to help identify the
problem and determine the solution .
So the third step – feedback requires sharing with employees what has been found from the
first and second steps . The employees with the help of the change agent , develop action plans
for bringing about any needed change .
Now the action part of research is set in motion . The employee and the change agent carry out
specific actions they have identified to correct the problem .
The final step , consistent with the specific underpinnings off action research , is evaluation of
the action plan’s effectiveness , using the initial data gathered as a benchmark .
Action research provides specific benefits . First, it’s problem focused . The change agent
objectively looks for problems , and the type of problem determines the type of change action .
Second, because action research engages employees so thoroughly in the process, it reduces
resistance to change .

HOW TO BRING CHANGE ?

There are some OD techniques or intervention for bringing about a change .
A) INDIVIDUAL LEVEL STRATEGY
1. The Johari window model is used to enhance the individual’s perception on
others. This model is based on two ideas- trust can be acquired by revealing
information about you to others and learning yourselves from their feedbacks.
Each person is represented by the Johari model through four quadrants or
windowpane. Each four windowpanes signifies personal information, feelings,
motivation and whether that information is known or unknown to oneself or
others in four viewpoints.
A Johari window is a psychological tool created by Joseph Luft and Harry Ingham in
1955. It’s a simple and useful tool for understanding and training:
 self-awareness
 personal development
 improving communications
 interpersonal relationships
 group dynamics
 team development; and
 inter group relationships

The method of conveying and accepting feedback is interpreted in this model. A

Johari is represented as a common window with four panes. Two of these panes
represent self and the other two represent the part unknown to self but to others.
The information transfers from one pane to the other as the result of mutual trust
which can be achieved through socializing and the feedback got from other members
of the group.
1. Open/self-area or arena – Here the information about the person his
attitudes, behaviour, emotions, feelings, skills and views will be known by the
person as well as by others. This is mainly the area where all the communications
occur and the larger the arena becomes the more effectual and dynamic the
relationship will be. ‘Feedback solicitation’ is a process which occurs by
understanding and listening to the feedback from another person. Through this
way the open area can be increased horizontally decreasing the blind spot. The
size of the arena can also be increased downwards and thus by reducing the
hidden and unknown areas through revealing one’s feelings to other person.
2. Blind self or blind spot – Information about yourselves that others know in
a group but you will be unaware of it. Others may interpret yourselves differently
than you expect. The blind spot is reduced for an efficient communication
through seeking feedback from others.
3. Hidden area or façade – Information that is known to you but will be kept
unknown from others. This can be any personal information which you feel
reluctant to reveal. This includes feelings, past experiences, fears, secrets etc. we
keep some of our feelings and information as private as it affects the relationships
and thus the hidden area must be reduced by moving the information to the open
areas.
4. Unknown area – The Information which are unaware to yourselves as well
as others. This includes the information, feelings, capabilities, talents etc. This
can be due to traumatic past experiences or events which can be unknown for a
lifetime. The person will be unaware till he discovers his hidden qualities and
capabilities or through observation of others. Open communication is also an
effective way to decrease the unknown area and thus to communicate effectively.
Example - Linda got a job in an organization. Her co-workers knew a little about
her and in this context the unknown and hidden areas will be larger and the open
area will be small. As the others don’t know much about her the blind spot also
will be smaller and the model.
Need for Johari Window

Johari window is one of the most useful tools for the organisations to become successful
and succeed over its competitors. To learn about its other advantages, read below:

 Self-Awareness: It acts as a self-analysis tool, thus making oneself aware of his

strengths, weaknesses, opportunities and threats by considering the views of
others too.
 Cordial Relationships: It helps to improve the interpersonal relations since
everyone gets to know each other in a better way and each focus on self-
improvement.
 Improves Communication: Johari window paves the way for open interaction
and develops understanding among the managers and the subordinates.
 Team Development: Building a strong team is difficult if the team members are
not familiar with each other. This model enhances the interpersonal relationship
among the team members by making each familiar with the others in the team.
 Personal Development: It provides scope for betterment since the blind area
reveals those unknown facts which are known to others but may have been ignored
by the individual himself. These facts are sometimes related to the individual’s
attitude, habits, behaviour which needs to be mended.
 Group Dynamics: The Johari window encourages open conversations and
feedback within a group. This enhances the group performance and develops a
mutual understanding among the group members by eliminating the problem
areas and misunderstandings.

Application of Johari Window in Business

Johari window serves as an essential tool to analyse the employees’ potential, work on
organizational relations and improve team performance. The other people associated
with the business also contributes to the organisational improvement and development.
These are the financial institutions, shareholders, customers, suppliers, etc. Taking into
consideration the known and unknown facts by the company and the customers, Johari
window provides us with the four quadrants.

The various ways of modifying the business relations using this model:

 Feedback to Reduce Blind Area: Taking constant feedbacks from the

customers and knowing about the competitive products the consumers may prefer,
makes the company aware of customer satisfaction level, product performance,
consumer loyalty, level of competition, etc.
 Being updated with the market trend and response diminishes the blind spot of
the organisation and increases the arena, as shown in the diagram above.
 Move Out of Comfort Zone to Decrease Unknown Area: Innovation leads
to learning and learning contributes to growth and development. Therefore the
organisation must explore new possibilities or diversify into new products or
means of production through proper research and development, to increase
 market share and profitability. Exploring the untapped opportunities and
developing new ideas can maximize the open area by diminishing the unknown
area and shrinking the blind spot as well as the facade.
 Disclosure to Reduce Hidden Area: At times, there are some strengths or
positive traits of the product or the organisation which is not much promoted.
These may not be known to the customers creating a hidden area for the
organisation. Therefore, the organisation must reveal their strengths like the
premium quality of raw materials used, the better shelf life of products, etc. to
develop customer’s trust and loyalty.

B) CAREER PLANNING
Every employee has a desire to grow and scale new heights in his
workplace continuously. If there are enough opportunities, he can
pursue his career goals and exploit his potential fully. He feels highly
motivated when the organization shows him a clear path as to how he
can meet his personal ambitions while trying to realize corporate
goals.
Unfortunately, as pointed out by John Leach, organizations do not pay
adequate attention to this aspect in actual practice for a variety of
reasons. The demands of employees are not matched with
organizational needs; no effort is made to show how the employees
can grow within certain limits, what happens to an employee five years
down the line if he does well, whether the organization is trying to
offer mere jobs or long-lasting careers, etc. When recognition does not
come in time for meritorious performance and a certain amount of
confusion prevails in the minds of employees whether they are ‘in’ with
a chance to grow or not, they look for greener pastures outside. Key
executives leave in frustration and the organization suffers badly when
turnover figures rise. Any recruitment effort made in panic to fill the
vacancies is not going to be effective. So, the absence of a career plan
is going to make a big difference to both the employees and the
organization. Employees do not get right breaks at a right time; their
morale will be low and they are always on their toes trying to find
escape routes.
Organizations are not going to benefit from high employee turnover.
New employees
mean additional selection and training costs. Bridging the gaps
through short-term replacements is not going to pay in terms of
productivity. Organizations, therefore, try to put their career plans in
place and educate employees about the opportunities that exist
internally for talented people. Without such a progressive outlook,
organizations cannot prosper.

C) EMPOWERMENT
Empowerment has been described as a means to enable employees to make decisions (Bowen
and Lawler, 1992) and as a personal phenomenon where individuals take responsibility for their
own actions (Pastor, 1996). empowerment arising from external and internal challenges for
organizations. External challenges have resulted as a result of higher levels of competition,
changes in the composition of the workforce, and higher expectations from customers. Internal
challenges relate to employee retention, motivation, and development. According to Beach
(1996), empowerment remains with the individual and cannot be imposed from above.
Organizations wishing to instill a culture of empowerment must find a way of establishing
systems and processes that do not restrict employees. By concentrating on what behaviour is
considered optimal for the employees and what they do well, management can adapt, develop
and change the organizational structure to produce the sought after behaviour: employees
dedicated to learning, growing, and developing; employees who are self-managed; leadership
not only existing at the top; a high level of trust between management and employees as well
as among employees; employee participation in decision making; a high level of vertical and
horizontal communication; and employees able to deal with conflict management and
resolution effectively and efficiently.
An empowered organizational culture relies on the involvement of everyone, including both
management and employees, to bring about its success. Simmons (1995) illustrates the
overlapping or disappearance of boundaries between formal and informal leadership to that of
an inclusive organization where there are “leaders of leaders”. Empowerment may take the
form of socalled empowered subcultures of low and mid-level managers cut off from the top
echelons of an organization (Logan et al., 1996). The commitment and participation of top
management, the strategy and policy makers of an organization, are necessary for a truly
comprehensive culture of empowerment to exist. Empowering employees does not mean
disempowering managers but rather permits time and energy to be used more efficiently and
productively by all players.
A five-point empowerment strategy is described by Nixon (1994) in order to develop an
organization where people can work as individuals and also in teams towards common
goals.

 The strategy consists of establishing a vision;

 prioritizing and acting only where most impact is possible;
 developing strong relationships with colleagues;
 expanding networks;
 using internal and external support groups.
2. GROUP LEVEL

A) Sensitivity training
In this technique or intervention members are brought together in a free and open
environment in which participants discussed themselves and their interactive processes ,
loosely direct
ed by a professional behavioral scientist who created the opportunity to express ideas, beliefs ,
and attitudes without taking any leadership role . The group was process oriented , which
means individuals learned through observing and participating rather than being instructed .
B) Survey feedback
One tool for assessing attituded held by organizational members , identifying discrepancies
among member perceptions , and solving these differences is the survey feedback approach .
Everyone in an organization can participate in survey feedback , but of key importance is the
organizational “family” – the manager of any given unit and the employees who directly report
to him / her . All usually complete a questionnaire about their perceptions and attitudes on a
range of topics , including decision making practices ; communication effectiveness ;
coordination among units ; satisfaction with the organization , job , peers and immediate
supervisor .
Data from this questionnaire are tabulated with data pertaining to an individual’s specific family
and to the entire organization and then distributed to employees . These data become the
springboard for identifying problems and clarifying issues that may be creating difficulties for
people . Particular attention is given to encouraging discussion and ensuring it focuses on issues
and ideas and not on attacking people .
The survey feedback approach can be helpful to keep decision makers informed about the
attitudes of employees toward the organization .

C) Process consultation
Mangers often sense their unit’s performance can be improved but are unable to identify what
to improve and how . The purpose of process consultation (PC) is for an outside consultant to
assist a client , usually a manager , “ to perceive , understand , and act upon process events”
with which the manager must deal. These events might include workforce , informal
relationships among unit members, and formal communication channels . Process consultation
is task directed and consultants are there to “give the client ‘ insight’ into what is going around
him . They guide / coach the client to solve his/her problems after jointly diagnosing what
needs improvement .

 Team building
Team building uses high interaction group activities to increase trust and openness
among team members ,improve coordinative efforts ,and increase team performance .
Emphasizing on intragroup level , meaning organizational families as well as
committees , project teams ,self managed teams and task groups . team building
typically includes goal setting ,development of interpersonal relations among team
members ,rule analysis to clarify each member’s role and responsibilities , End theme
process analysis . It may include or exclude certain activities ,depending on the purpose
of development effort and the specific problems with which the team is confronted .
 However , Building uses high interaction among members to increase trust and
openness .

 Intergroup development
A major area of concern in OD is dysfunctional conflict among groups . Intergroup
development seeks to change Groups attitudes ,stereo types and perceptions about
each other . Training sessions closely resemble diversity training ,except rather than
focusing on demographic differences ,their focus on differences among occupations
,Department ,or division within an organization . Among Several approaches for
improving intergroup relations ,a popular one emphasizes on problem solving . Each
group meets in dependently to list its perceptions of itself and of other groups and how
it believes the other group perceives it .The group's share their lists discuss their
similarities and differences and look for the causes of disparities .
Once they have identified the causes of the difficulty ,the groups moves to the
integration phase - developing solutions to improve relations between them . sub
groups can be formed of members from each of the conflict in groups to conduct further
diagnosis and form alternative solutions .

D) Appreciative inquiry
Most OD Approaches are problems centered . They identify a problem or set of problems ,then
look for a solution . Appreciative inquiry Instead accentuates the positive . Rather then looking
for problems to fix it ,it seeks to identify the unique qualities and special strengths of an
organization ,which members can build on to improve performance . AI focuses on an
organization’s success rather than its problems . The AI process consists of 4 steps - discovery
,dreaming ,design and destiny - open played out in a large -group meeting over 2 to 3 days’
time. And overseen by earth trained change agent .
Discovery set out to identify what People think are the organization’s strength . Employees
recount times different the organization worked best or when did specifically felt most satisfied
with their jobs .
In dreaming, Employees use information from the discovery phase to speculate on possible
futures ,such as what the organization will be like in 5 years .
In design, participants find a common vision of how the organization will look in the future and
agree on its unique qualities .
For the 4th step ,participants seek to redefine the organization’s destiny or how to fulfill their
dream, and they typically right action plans and developing the implementation strategies .

E) DOWNSIZING
Downsizing involves a set of activities, undertaken on the part of the management of an
organization and designed to improve organizational efficiency, productivity, and/or
competitiveness.
 Downsizing is essentially ‘the planned eliminations of positions or jobs.’
Downsizing constitutes a reactive and defensive or proactive and anticipatory strategy
implemented by management that inevitably makes a significant impact upon a
company’s size, costs, and work processes, as well as a firm’s shape and culture.
Downsizing implies planned contraction of labor resources by an organization.

Positive consequences of downsizing

1. Lowering of overhead costs

2. Reduction in bureaucracy
3. Faster organizational response time and decision-making
4. Smoother communication and increase in transparency
5. Increase in entrepreneurship
6. Increased productivity in tolerant employees

Negative consequences of downsizing

1. Downsizing can send negative signals to capital markets and stakeholders

2. Downsizing produces a crisis mentality focused on immediate needs at the
expense of long-term needs
3. Downsizing generates a lack of innovation with less tolerance for risk and failure
associated with creative activity
4. Downsizing leads to greater politicization of the organization environment as
special interest groups organize and become vocal
5. Downsizing leads to decreased morale and decreased productivity
6. Downsizing leads to increased number of conflicts and a loss of trust
7. Downsizing leads to increased levels of individualism and disconnectedness
hindering teamwork
8. Downsizing leads to lack of leadership and an increased level of resistance to
change leading to a protectionist stance

Downsizing is a complex affair that can hardly be encompassed comprehensively in a

short article or even in a single book, rather it needs a library, and a great mass of
research literature does exist on downsizing. However, balancing all factors that bear
upon any organization with respect to downsizing, it remains a reactive strategy of last
resort and a proactive strategy that is continual in smart organizations.

F) Business process RE- engineering

Business Process Reengineering implementation often leads to fundamental changes within an
organization's structure and management process.
Business Process Reengineering has allowed many failing and even successful organizations to
re-invent themselves to achieve performance improvements and position themselves in a
better place in their markets. BPR involves reinventing processes by abolishing the old ones and
finding imaginative ways of accomplishing work while designing completely and radically new
processes. Consequently, BPR has arisen as a solution for companies to improve their
performances by assuring a higher quality product at lower cost, larger added value and faster
response time. BPR has a strategic value in managing organizational change, as it includes new
vision or strategy: a need to build operational capabilities, need to reevaluate strategic options,
enter new market or redefine products/services and reflects the company’s overall strategy .
BPR derives its existence from different disciplines, and four major areas can be identified as
being subjected to change in BPR-organization, technology, strategy, and people-where a
process view is used as common framework for considering these dimensions. It is strategically
important because it gives a new direction and hope for the organization’s future, it is driven
from top: it requires conceptual skills, strategic thinking and constant commitment from top
level managers during all stages; from planning to implementation stages. The support, energy
and drive of top management must also be sustained over a long period to ensure things done
on time, effectively and efficiently. BPR will have short and long-term implications for an
organization. Any process that is to be reengineered will not only have an impact on the
function that has direct control over that process, but also other functions that will necessarily
support the reengineered process. These two characteristics point to a strategic change for the
organization . Lastly, some management experts defend reengineering as a necessary strategy
for achieving higher levels of efficiency and effectiveness in knowledge work that has long been
achieved in manufacturing .

HOW IS TRANSACTIONAL ANAYSIS LINKED TO ORGANIZATIONAL DEVLOPMENT AND CHANGE

?
This therapeutic approach originates from psychology and psychoanalysis, but with
useful implications for organizational development. Organizations use transactional
analysis for training and developing employees. According to its founder, Dr. Eric
Berne, transactional analysis gives participants more autonomy, or control over their
own destiny, including the elements of spontaneity, intimacy and awareness.

EGO STATES
Eric Berne, defined, ego state as, a system of feelings accompanied by related set of behaviour
patterns. An ego state is a way of experiencing the world. It is an entire system of thoughts,
feelings, and behaviours from which we interact with one another (and even with ourselves in
our internal conversations). Our thinking, feeling and behaviour when we are in each ego state
is consistent. Though ego state can change depends on different situations.
● Parent Ego State
The Parent ego state is a collection of memories that have been recorded in early years.
Parental and social expectations are logged into the brain as the person perceives them. The
messages are sometimes verbal, sometimes experiential and sometimes only assumed. Eric
Berne used the word “tapes” for messages and believed that the “tapes” recorded in early
childhood were the most influential. What were recorded are society’s expectations and
obligations that are must, should and ought. The parent ego state is filled with judgements,
values and attitudes. Basically, the parent ego, refers to the behavior and attitude of an
emotionally significant individual who acted with quite a maturity when he was a child. He
possesses the parental traits of being overprotective, dogmatic, distant, indispensable and
upright and behaves very judiciously at any time.
There are two types of parent ego states:
The Nurturing Parent– This Parent type is caring and concerned and may often appear as a
mother-figure (though men can play it too). They seek to keep the child contented, offering a
safe haven and unconditional love to calm the Child's troubles.
The Controlling (or Critical) Parent – This Parent type tries to make the Child do as the Parent
wants them to do, perhaps transferring values or beliefs or helping the Child to understand and
live in society. They may also have negative intent, using the Child as a scapegoat.
● Adult Ego state
The Adult ego state is the 'grown up' rational person who talks reasonably and assertively,
neither trying to control nor reacting aggressively towards others. The Adult is comfortable with
him/herself and is, for many people, an ideal self. The Adult ego state deals with the here and
now reality. It is the processing centre and important because it is the only ego state that is not
connected to the past. The Adult ego state is able to deal with current things in ways that are
not unhealthily influenced by our past. The Adult is able to see people as they are, rather than
what we project onto them. The Adult asks for information, rather than staying scared or
making assumptions. In the structural model, the Adult ego state circle is placed in the middle
of the Parent and Child ego states to show how it needs to orchestrate between these two. For
example, the Parent may criticise the Child, saying "You are no good, look at what you did
wrong again, you are useless". The Child may then respond with "I am no good, look how
useless I am, I never get anything right". (Most people don’t hear their internal dialogue as it
goes on so much they just believe life is this way). An effective Adult can intervene by stating
that this kind of parenting is not helpful and asking if it is prepared to learn another way.
Alternatively, the Adult can just stop any negative dialogue and decide to develop another
positive Parent ego state perhaps taken in from other people they have met over the years.
● Child Ego State
The child ego state is the part of the personality, which is preserved from actual childhood; it
also contains all the impulses a person was born with. The child ego state is, primarily about
spontaneous feelings, needs and wants of the child. It is also important to note that the child
ego state contains ‘recordings’ of childhood memories and experiences. Therefore, when the
person feels and acts as they did when they were very young, they are experiencing their child
ego state. The creativity, depression, conformity, dependence, hate, fear, etc. are some of the
main characteristics of this ego state.
Three types of child ego states are:
Free Child - The natural child is sensuous, impulsive, affectionate and does things that come
naturally.
Rebellious Child -rebellious child is one who is not allowed to open up and experiences anger,
fear and frustration.
Adaptive child - is the one who is trained and instructed by parents to behave in a manner
taught by them.
Adult ego state is considered as the most ideal ego state as an individual in this state think
more rationally and logically. They do not focus on past rather they emphasise on here and now
activities. Thus it plays as a facilitator between child and parent ego state for effective
communication.
B) PAYOFFS
i. Strokes
Strokes are the recognition that one person gives to another. They are essential to a
person’s life. Evidently, young children need actual physical strokes in order to remain
alive. Adults can get by on . Fewer physical strokes as they learn to exchange verbal strokes.
These can be positive like- praise or Expressions of appreciation, or negative like- negative
judgments or put downs.
Positive strokes are sometimes called “warm fuzzes”. Few examples are holding hands or
saying, &”I love you”; giving the person receiving them a feeling of being OK.
Negative strokes are painful forms of recognition such as sarcasm, putdowns, a slap, an insult
or saying "I hate you”. Negative strokes make the person receiving them feel not OK. Still, even
though unpleasant, negative strokes are a form of recognition. For this reason, people prefer a
situation of negative strokes to a situation without strokes at all. This explains why some people
seem to intentionally hurt themselves in their relationships with others. It is not because “they
enjoy hurting themselves”; but because they can't get positive recognition, and choose painful
negative strokes to having no strokes.
Overtime, people can learn to freely exchange, give and ask for strokes without shame or
embarrassment. Different kinds of strokes appeal to different people. There are many kinds of
positive strokes - there are physical strokes and verbal strokes.
Physical strokes include hugs, kisses, holding, caressing, strong or light, sensual or just
friendly, nurturing or slightly teasing and so on.
Verbal strokes can be about a people's looks - their face, body, posture or
movements or about a person's personality - their intelligence, loving nature sensitivity or
courage. In any case, people need and deserve strokes and if they ask for them they will
 usually find someone who has just the strokes they want and is willing to give those to
them.
The Critical Parent has a set of rules that govern the giving and taking of strokes. The
effect of these rules, called the stroke economy, is that they prevent people from freely
stroking each other and taking care of their stroke needs. As a consequence, most human
beings live in a state of stroke hunger.

ii. SOCIAL PAYOFFS (TIME STRUCTURING)

Stimulus-hunger finds its roots in infanthood, taking various forms beyond
physical stroking as the individual grows up. It goes on to become recognition-
hunger as one strives for recognition in life. (Berne, E., 1964) After stimulus-hunger and
recognition-hunger comes structure-hunger,
characterized by the human need to structure one’s waking hours – how they are
spent, with whom and in what manner – called time structuring, the social payoff
of a game. This need expresses itself in most human beings during long periods of
unstructured time – such as during social hiatuses where uneasiness and
silences grace the occasion when one can think of nothing to do or say.
There are five ways people structure their time in day to day life, in order of
complexity these are:
a) Rituals – Simple and stereotyped transactions consisting of recognition
strokes, learnt from family and culture. The strokes received are minimal.
b) Pastimes – Time spent talking about something while engaging in no action
about the same. These are pre-set conversations about certain topics where
strokes received are more solid than in rituals. Eg: Gossip
c) Games – These are repetitive series of transactions which follow a learned
pattern of behaviour and involve concealed motives/gimmicks. Games are
mostly played by unknowing people who want strokes, but they end in
negative strokes for all those involved.
d) Intimacy – It is a direct and powerful exchange of strokes involving the child
ego states of people who are congruent at the social and psychological
levels. There are no hidden motives in intimacy.
e) Activity – Commonly known as “work”, activities are projects headed by adult
ego states, aimed at achieving goals and dealing with external reality in a
productive manner. Here stroking is strong but delayed, received at the
completion of activities.
Intimacy and activities like work are the highest paying ways of time structuring,
where there is high satisfaction and security. However, intimate bonds are
difficult to forge since many a times people shut themselves emotionally and
work done in isolation and without praise becomes a burden.

iii. EXISTENTIAL PAYOFFS (LIFE POSITIONS)

While experiencing and going through the journey of life, humans tend to attach
purpose and meaning to their existence in different ways.
These deductions about oneself and others are made very early in life and as a
result of these beliefs, individuals make decisions and behave in certain ways.
These beliefs and patterns may be further reinforced by our parents and
evidence we seek to justify them and form our lifescript.
Such expectations based on a decision of how life will be is what is called one’s
existential position. For example, some people decide they are good enough and
are going to have a good life; but many others decide they are not adequate and
will fail in some way. (Steiner, C. et al.,1999)
There are four main existential or life positions:
a) “I'm OK, you're OK” – An individual holding such a life position may be
confident and content within their work, home and life, mutually respecting
others’ thoughts and opinions, even if they disagree with them and hence get
along with others well.
b) “I'm OK you're not OK” – Such a life position holder tends to be angry,
showing hostility, viewing others as incompetent and not to be trusted from a
superior position, belittling them with competitiveness. Without much
conscience, they attribute faults within situations to others and not
themselves.
c) “I'm not OK you're OK” – Unhappy, inadequate and perhaps useless are
words that may describe this life position. It is characterized by a lack of self-
belief and putting oneself down by undervaluing one’s own skills or
contributions in life. Such people are eager and willing to please others in
order to gain approval but find difficult to acknowledge such recognition once
gained.
d) “I'm not OK you're not OK.” – With this position, a sense of abandonment is
felt due to either few or non-existent strokes which may lead to confusion and
a sense of pointlessness. The person simply stops trying to bother with
anything at all. Depression and withdrawal can conclude with mental
institutionalization.
Generally, once a person has decided on a life position, there is a tendency for it
to remain fixed. People may play games in order to maintain their life positions
without realizing they are doing so because they are familiar to such patterns of
thinking and being even though they might be harmful to them.
A TRASACTIONAL ANAYSIS MODEL OF ORGANIZATIONAL CHANGE AND DEVELOPMENT
A basic therapeutic assumption of TA is that the wound programmes that the individual carries
can be unwound and new healthy programmes can be learned or incorporated by the
individual. The wrong or unhealthy “mental software” installed early in life can be uninstalled in
a deliberate and conscious way and new healthy and productive mental software is to be
installed that overhauls the life of the individual once the programme becomes active or once
the individual assimilates the new script. The willingness, the desire and the assumption of
responsibility to change life underlies another basic principle of TA therapy.
A TA model of organizational change and development may be postulated .The Fig.1 explains
the important variables and the relations that exist among them that lead to a productive
organizational life.
In the diagnosis of the ego states the individual manager/worker is to be taught the nature of
different ego states that surface in interpersonal interactions by the means of verbal and non-
verbal expressions. The development of self-awareness and insight into one’s own ego states as
and when they surface in the conscious mind is the key to change the ego state and transact
with others in an appropriate manner so as to derive mutual benefits from the relationships. In
the development of self-awareness into ego states, the individual comes to have control over
different subcomponents of ego that enable him to execute a suitable transaction. Ego state
analysis involves analysis of the transactions that can be productive ++, productive +-
unproductive - - unproductive -+. The communication participants are to have sound
knowledge into the changing mode of productive and unproductive transactions. This
knowledge prevents a breakdown in communication or it enables the leaders to influence the
transaction of others in the desired manner. Another component of the model is the analysis of
scripts and schemata. Maladaptive and maladjustive scripts and schemata that the individual
uses in his life are to be identified. The therapeutic 29 help that can be rendered by an expert in
the field is a way to erase unhealthy scripts and imprint healthy scripts. The analysis of the
script matrix calls for thorough examination into the working of the ego states of the individual.
Bartunek and Moch (1987) have identified a number of ways of identifying schemata that
organizational participants come to have.Analysing the language, causing a change in worker’s
routine, conduct of group reflections in which members express and describe the events and
the way they understand them and analysis of collages and biographies go a long way in
unraveling the schemata that are either facilitative or inhibitive in the arena of organizational
functioning. Development of healthy scripts and appropriate schemata results in a manifold
increase in the productivity of the workforce. The proper understanding of the organizational
positions in relation to okayness leads to the development of constructive relationships. Game
analysis is another significant component of the TA model of change and development. Many a
time it becomes difficult for the individual player to understand the game in to which they have
fallen or from which they cannot escape. Because the games played go unnoticed or not
understood by the players themselves the intervention of an expert is the ideal way of curing
the ills that afflict the participants.
 DIAGNOSIS OF EGO DEVELOPMENT OF HEATHLY
STATES AND ADJUSTIVE PERSONALITY

ANALYSIS OF IMPROVED AND PRODUCTIVE

TRANSITION TRANSACTIONS

ORGANIZATION
UNDERSTANDING OF DEVELOPMENT OF
DEVELOPMENT AND
ORGANIZATIONAL CONSTRUCTIVE REALTIONSHIPS
CHANGE
POSITIONS

POST

SCRIPT AND SEMANTIC DEVELOPMENT OF HEALTHY

ANALYSIS SCRIPTS AND SCHEMA

ANALYSIS OF GAMES PRODUCTIVE AND CREATIVE

RELATIONSHIP

FIG 1. TRANSACTIONAL ANALYSIS MODEL ON ORGANIZATIONAL

DEVELOPMENT AND CHANGE
Use in Organizations

A trainers can use transactional analysis to help participants understand how we

communicate in dysfunctional patterns such as from a Parent or Child ego state
instead of an Adult ego state. When people become more aware, they can
communicate more openly at work. This awareness on the part of many individuals
promotes functional communication and eradication of dysfunctional behavior
patterns. Following transactional analysis, professionals can work together to identify
organizational needs and problem-solving methods.

Transactional Analysis has numerous applications in an organizational setting. Some of these are
given below.

Conflict resolution.
Conflicts may be functional or dysfunctional and may occur between groups and individuals.
Functional conflicts refer to healthy discussions and deliberations that lead to a fruitful
conclusion, whereas dysfunctional conflicts lead to a decline in the performance of groups or
individuals. Transactional analysis is a distinctive approach that can convert this dysfunctional
conflict into collaboration. Understanding Transactional Analysis can vastly improve
communication, thereby aiding conflict resolution. There are several means to ensure effective
communication. The first condition for effective communication is to keep transactions
complementary. In the sense, one should choose to express his/her views from the Ego State
that the other person is the most likely expecting to hear. Also, if one notices a mismatch in
communication, i.e. when transactions become crossed, an individual can help by trying to shift
the other person’s Ego State or shifting his/her own ego state. There are three Ego States that
are particularly useful in case of crossed communication: the Adult, the Nurturing Parent and
the Free Child.
In the Adult ego state, rationality and objectivity is brought into the communication, as this is
the state where facts prevail. One can shift to this ego state by asking questions, stating facts,
and asking for others' viewpoints. Some individuals are more protective, caring and
encouraging than others, and so, they prefer to be in the Nurturing Parent position more than
the other ego states.
Therefore, by feeding their natural instinct and putting them in their desired position, and
putting oneself on the receiving end, i.e., in the ego state of the Adaptive Child, one can
communicate effectively. This can be done by asking for their help, asking for their advice or
expert opinion, and communicating fears and worries.
Communication is the most effective if it is open. In the Free Child strategy, an individual
invokes the free child ego state in the other individual. Therefore, a communication between
two free child ego states would be open, creative, spontaneous, light, funny, and full of
enthusiasm and unconventional ideas. But, this strategy should only be put to use if an
individual is certain that his free child ego state will be able to invoke the free child in the other
individual. One can invoke another person's free child by being oneself, showing the funny
side of the situation, not hiding one's amusement, being enthusiastic, showing an
unconventional way of looking at things, and being spontaneous. The next approach to
effective communication is planning our transactions beforehand. For example, how we plan to
start a conversation, trying to suit a monologue according to the official's seniority.
Planning can be done according to what message one has to communicate effectively. This
involves thinking about which Ego State would be the most appropriate to send the message
from and which Ego State would be the most suitable receiver. If one receives a reply from the
unexpected Ego State then he/she can either try to shift his/her own or the other individual&
ego state or, if he/she can't, then maybe postpone the conversation until the other
person is a suitable ego state. Planning also involves noting which ego state one needs to
communicate to. This involves mentally deliberating about which ego state would be the most
appropriate and the most receptive to the idea one wants to communicate.
Recent research–
The effect of transactional analysis ego states on conflict management styles, Jaiswal,
Bhavna,Srivastava, Praveen; assessed the transactional analysis ego states and conflict
management style of employees of the banking sector, and to explore the relationship between
them. The data was collected from a survey of 300 male employees working in different private
and public banks in the age group of 23-60 years, with minimum education taken as graduation.
The result reveals that there exists a relationship between the transactional analysis ego states
of banking employees and their conflict management style. The study reveals that banking
employees of child ego state use competing style (Win-Lose); adult ego state use
accommodating style (Lose-Win); and parent ego state use competing style (Win-Lose) as their
conflict management style.
Stroking
A stroke is a unit of attention which provides stimulation to an individual(Woollams and Brown,
1978). Berne based his theory on the infant’s need for touching. A stroke can be positive or
negative. A positive stroke such as a genuine smile, a compliment, or a pat on the back, makes
us feel happy, empowered and encouraged. These are the most effective in bringing about a
required attitudinal or behavioral change, and contribute to the person's state of being
OK. Whereas, a negative stroke such as being blamed, being on the receiving end of an anger
outburst, or being humiliated in front of a significant number of people can make one feel
upset, demotivated and emotionally drained and can often lead to lowered self-efficacy and
self- esteem. These contribute to the person's state of not being OK. These are five times
less effective in helping to bring about a required change. However, both positive and negative
strokes are better than 'no strokes', i.e., not being acknowledged, or being ignored.
Even if the stroke is negative, it means that one is being
acknowledged. Berne termed humans as 'recognition-hungry', i.e., while an infant
needs cuddling, an adult craves a smile, a wink, a hand gesture, or other form of recognition.
In the workplace, managers and supervisors can create a positive work environment and
positive relationships with employees by giving constant strokes, such as verbal praise of an
employee, compliments or positive feedback about a project, an encouraging handshake, or a
pat on the back. Negative work attitudes ensue if employees experience negative strokes such
as constant criticism from an overbearing boss. If only positive strokes are always given, they
may lead to the employees developing an indifferent attitude towards the strokes. Constant
negative stroking leads to the employees becoming self-conscious, vulnerable and defensive.
Therefore, there must be a balance between the two. However, negative stroking is better than
no stroking, as an employee would rather settle for negative strokes in the absence of positive
strokes, than settling for no strokes, or indifference. No strokes would lead to the employees
feeling hopeless.
Leadership
Transactional analysis focuses on human personality and a system of enhancement of human
relationship. It offers a systematic approach to understand the bond between human needs
and behavior. It offers a comprehensive model of personality, communication, motivation,
leadership, conflict resolution, goal-setting and among others to the business organizations and
helps the leaders in a firm to understand behavioral patterns, communication, interpersonal
relationships, time management etc.
Leadership is the action of leading employee to achieve goals. It plays an important role in
employee performance and productivity. Organizational leadership is a field of business
management that specifically relates to meeting the challenges and goals brought by either
individual employees or an organization as a whole. Organizational leaders often rise to top
administrative and executive positions of their organizations because of their abilities to
manage the present while looking toward the future.
Recent research –
The effects of a transactional analysis training programme on team leadership factors in
automotive industry Daniel Ciucur , Augustina Florentina
The aim of this study was to identify a modality to improve the leaders’ and managers’ qualities
and abilities requested in team leadership. The study sample was represented by 30 managers
and leaders from a local automotive factory, randomly selected. The 16PF Inventory was used
as a data collection tool. The results highlighted significant differences regarding Emotional
Stability and Social Boldness between the managers who attended a Transactional Analysis
based Leadership Training Programme and those who did not attend. No statistically significant
differences were found regarding Warmth. The results indicate that non intellective,
personality traits (Emotional Stability and Social Boldness) in managers can be improved by
implementing an organisational Transactional Analysis based Leadership Training Programme.
Decision making
Decision-making is one of the most important aspects of a small business, but the process of
arriving at a decision must be precise, so that it yields the best results. Berne states that
dysfunctional behaviour is the result of self-limiting decisions (made in childhood in the interest
of survival) which culminate in an unhealthy life script. Generally, once a person has decided on
a life position there is a tendency for it to remain fixed unless there is some intervention, such
as therapy, to change the underlying decisions. The aim of transactional analysis psychotherapy
is to change an unhealthy life script. This is based on the supposition that because we made the
decision in the first place, we have the power to change it. Once our script is brought into our
awareness, there is hope that we will be able to do things differently.
Recent study–
A study on Transactional Analysis Decision-Making Model and Ethical Hierarchy by Valerie Nash
Chang discusses a five-step process that moves from identifying a problematic situation, to
determining its professional relevance, and then to sorting out the differences between ideals,
values, and ethics. The last steps relate to legal duties and ethical obligations. Even with this
type of thorough consideration, problems may still exist because there are frequent conflicts
between ethical obligations and between ethical obligations and legal duties. Using a hierarchy
of TA ethics, some of the organisational dilemmas can be resolved.

STAGES OF TEAM DEVELOPMENT

This process of learning to work together effectively is known as team development.
Research has shown that teams go through definitive stages during development.
Bruce Tuckman, an educational psychologist, identified a five-stage development
process that most teams follow to become high performing.

Forming stage

The forming stage involves a period of orientation and getting acquainted. Uncertainty is
high during this stage, and people are looking for leadership and authority. A member
who asserts authority or is knowledgeable may be looked to take control. Team
members are asking such questions as “What does the team offer me?” “What is
expected of me?” “Will I fit in?” Most interactions are social as members get to know
each other.

Storming stage

The storming stage is the most difficult and critical stage to pass through. It is a period
marked by conflict and competition as individual personalities emerge. Team
performance may actually decrease in this stage because energy is put into
unproductive activities. Members may disagree on team goals, and subgroups and
cliques may form around strong personalities or areas of agreement. To get through this
stage, members must work to overcome obstacles, to accept individual differences, and
to work through conflicting ideas on team tasks and goals. Teams can get bogged down
in this stage. Failure to address conflicts may result in long-term problems.

Norming stage

If teams get through the storming stage, conflict is resolved and some degree of unity
emerges. In the norming stage, consensus develops around who the leader or leaders
are, and individual member’s roles. Interpersonal differences begin to be resolved, and
a sense of cohesion and unity emerges. Team performance increases during this stage
as members learn to cooperate and begin to focus on team goals. However, the
harmony is precarious, and if disagreements re-emerge the team can slide back into
storming.

Performing stage

In the performing stage, consensus and cooperation have been well-established and
the team is mature, organized, and well-functioning. There is a clear and stable
structure, and members are committed to the team’s mission. Problems and conflicts
still emerge, but they are dealt with constructively. (We will discuss the role of conflict
and conflict resolution in the next section). The team is focused on problem solving and
meeting team goals.

Adjourning stage

In the adjourning stage, most of the team’s goals have been accomplished. The
emphasis is on wrapping up final tasks and documenting the effort and results. As the
work load is diminished, individual members may be reassigned to other teams, and the
team disbands. There may be regret as the team ends, so a ceremonial
acknowledgement of the work and success of the team can be helpful. If the team is a
standing committee with ongoing responsibility, members may be replaced by new
people and the team can go back to a forming or storming stage and repeat the
development process