MGMT 625 Midterm Subjectives
MGMT 625 Midterm Subjectives
The most famous theory about manipulation of nature of people was expressed by douglas
MacGreg by his theory known as “Theory X and Theory Y”. Theory X assumed the nature of
average people who mostly dislike work and wish to avoid responsibility; these people must be
controlled, threatened, coerce and directed. This theory also refers as Hard because this approach
may produce resistance and antagonism. While Y theory refers to soft and may result in laissez-
faire management.
Resistance antagonism
Antagonism
Antagonism
Laissez-faire
Laissez-faire
Laissez-fair
The role of elite is most decisive and critical in bringing change in organization. Otherwise any
problem can bring deadlock or crisis like scenario in organization. In case of radical or
transformational change, the dilemma gets intense. So change process of organization mostly
involves around the value of powerful elites. For example international standard organization
(ISO certification) unless the most powerful people at the top like owners, stakeholders or senior
executive agree for the certification simple training and documentation is useless because elites
have authority and Kurt Lewin termed this a driving force in qualitative implementation of
change in organization.
Marvin Wiesbord’s six box model
It is diagnostic framework, mostly uses in diagnosing problems in organization since 1976 when
this model published. This model is based on following critical areas:
Purposes->structures->rewards->helpful->relationship->leadership->purposes
This model is introduced to diversify the student’s mind with variety of tools for cognitive
planning and systematic examining the processes and activities in organization.
Organizational climate define as people’s perception which are strongly affected by
organizational conditions.
Organizational culture is meant to describe the relativity enduring set of norms and values that
motivate a social system.
Garnier Model explains why and how organizations are unable to grow and in a way suggest
how organization ought to grow. This model has following assumptions. First of all
organizations are rigid, bureaucratic, controls centric and centralized entities. Second,
organizations are unable to see their future that lies in the organization and also fail to assess
their evolving states of development. Thus inability of management to understand organization
development problems can result in organization becoming frozen in its present time of
evolution regardless of market opportunities.
a large hierarchical level organization
When an organization go for a large in size or for empire building, it often no longer be able to
serve his target customers or stakeholders but in trying to serve itself. Three major problems for
such organizations are:
1. It is an expensive option.
2. It complicates the communication process.
3. It complicates the control and planning systems.
Convergent period and reorientation
The model was developed by Tushman and Roamnelli who argues that organization progresses
through convergent periods punctuated by reorientation which demark and set bearings for next
convergent period. Convergent periods are relatively long spans of incremental change and
adaptation while reorientation is relatively short periods of radical or discontinuous change.
Change is generally theorized by five domains of organization activities.
1. Culture
2. Strategy
3. Structure
4. Power structure
5. Control system
All of these domains together form strategic orientation.
Turf protection means favoritism or protection of individuals or a group or groups who have
some vested interest in change process.
Turf protection means favoritism or protection of individuals or a group or groups who have
vested interest in change process. For instance, protectors are those,
1. Who are non performers
2. May be who are most loyalist toward change initiators.
Therefore turf protection leads an organization towards in failure of change implementation. In
the case of developing countries, where we have seen the most personalized management style,
turf protection is common and highly lucrative.
Punctuated equilibrium PE model presents two approaches, incrementalism and radicalism.
Features of these approaches are:
Features of incremental change
Unidirectional
Continuous
Constant learning
Relevant to all or most levels of organization
Convergent
Short time
Features of radical change
Multidirectional
Discontinuous
Periodic learning
Relevant to top levels of organization
Frame breaking
Long term
Punctuated equilibrium PE model suggest four kind of organization change
1. Fine tuning
2. Incremental adjustment
3. Module transformation
4. Corporate transformation
Fine tunings. Ongoing process of finding fit or matches between strategies, structure and people
process.
Incremental adjustment…… Quinn’s model
Modular transformation…… realignment of one or more departments
Corporate transformation….. Radical shift in strategy and revised change
Inappropriate Innovation
Organizations are recognizing need of innovation but responding in ways that have poor strategic
fit with business. Firms may take changes but they cannot support them. Adaptation is problem
for such innovations. For example the failure of EMI body scanner is attributed in part to a lack
of suitable experience.
Episodic innovations.
Organizations recognizing need of innovation but on occasional basis so that intensive
innovation effort is followed by a period of inactivity. Maintaining continuity and ensuring
steady stream of innovations are main problem
Causes of revolutionary changes according to Dunphy are
Environmental Creep
Organizational creep
Diversification, shutdowns
Industry reorganization
Technological breakthrough
Environmental creep
Environment itself may be changing incrementally and in ways become invisible for managers.
Therefore degree of change over time is long and required major readjustment.
Organizational creep
Organizations may sometimes move out of strategic alignment with the environment which
remains stable.
Why was James Quinn against radical change?
Quinn believes in planned changes and orderly transitions. He was thoroughly against radical
change in strategy and in organization direction, systems or central processes. He believes that
best manager is the one who moves the organization forward in small and logical steps. He
thinks that incremental change increases confidence in employees and reduce organization
dependence on outsiders for providing momentum for strategic change. That is why he values
evolutionary rather then revolutionary and order rather than disorder.
Unilateral or traditional approach is based on action rather than of attitude. If action goes right
then automatically the behavior and attitude will also go right. This approach is also sometimes
called as classic school of bureaucratic approach. Unilateral approach is typical top to down
management. This approach measures through outward actions and focuses on process design or
redesign, restructuring of authority, communication and rules.
Sticking to one’s knitting means living around the core of the business which is definitely an
area of mission statement. This balance is lost when organizations obtain some successes and see
attractive alternates. At this point organizations might have a chance of deviation from its core.
Models for strategic organizational change (SOC)
Organizational development (OD) model
Behavioral modification model
Organizational development model
OD model focuses on planned and controlled change of organization in desired direction. OD
attempts to change organization by changing organization’s structure, technology and people. It
is based on close system and focuses on internal aspects and mostly neglects external aspect of
environmental studies. For example kurt lewin’s model.
The Behavior Modification model
BM model gives wider concept of motivation, reward, learning and organizational culture. This
is an attempt to understand and reduce complex change process in the organization to an explicit
rules, procedures and strategic actions to deal with all contingencies.
Andrew Pettigrew defines context of change as why and when of change.
Content of change define as what of change. It is concerned with transformation.
Process is describes as how of change. It is concerned with action and interactions of various
stakeholders.
Context is define as when and why of change and its component is outer context and inner
context
Outer context refer to existing economic circumstances. It also refers to social, political,
economic, business and competitive environment in which firm operates. The aspects of outer
context are:
The extent of regulation of industry
Ownership structure
Investor’s relationship with board
Others stakeholders
Inner context refers to internal influences such as structure, resources capabilities, culture and
politics. It also refers to the structure corporate culture and political context within the firm. The
inner context is further divided into tangibles and intangibles. Tangibles are structure and
resources of organization while intangibles are organization politics and organization culture.
Intangibles govern tangibles. In term of technology intangibles are software which governs
hardware.
The process of change refers to the action, reaction and interaction from various interested
parties when an organization seeks to move from its present state to the future state. This may
change the following aspects of organization
Assessment and choice of products and market
Objectives and assumptions
Evaluation criteria and fixation of target.
Change agent is an individual or a group that affects strategic change in an organization. In
other words change agent is a creator of change. They may be senior executives, CEO, middle
level managers and external consultants. Traditionally they are external consultants.
Another change agent is internal consultants like senior executives; they are also referring
as strategic leaders who are well versed with organization’s problems and policies. The
approach of strategic leaders could be legal, bureaucratic, transactional or transformational. The
attributes of strategic leader are:
Visionary
True communicator (a communication which touches heart and full of empathy and
commitment.)
Committed (who stand committed and have feelings for others.)
Components of Strategy
Following are the basic components of strategy:
Objectives (this may mean goals, missions, visions and targets)
Resources (they may be human, informational, financial, technological etc)
Environment (they may be government, customers, society, economic conditions.
Environment can be friendly, hostile or neutral)
Time orientation (short term or long term orientation)
Competitors
Types of strategic change
Adaptation
Adaptation is a change that can be accommodated within the current paradigm and occurs
incrementally. This is the most common change occurring in organizations.
Reconstruction
Reconstruction is change which requires rapid change and upheaval in organization. For example
an organization may make changes in structure of organization by some rapid cost-cutting
programs to deal with rapidly changing market conditions.
Evolution
Evolution is a change in strategy which requires paradigm change but over time. Evolution can
also explain by means of taking organization as a learning system continuously adjusting
strategies with the change in environment. The only danger lies in following incremental and
evolutionary change lies in experiencing strategic drift because organizations are based and
bounded with existing paradigm and routines of organization.
Revolution
Revolution is a change which require rapid and major strategic and paradigm change, or where
strategic drift is experiencing due to developing extreme pressure for change.
Millers and Snow research
According to Miller and Snow’s research there are four types of strategic organizations
Defenders
Prospectors
Analyzers
Reactors
Defenders
Defender organizations are those whose success comes primarily through efficiently serving to a
stable market.
Prospectors
Prospector’s prime capability is that of finding and developing new product and market
opportunities. For prospector organizations maintain a reputation as an inventor in product and
market development is more important profitability.
Analyzers
Analyzer is an organization that attempts to minimize risk while maximizing the opportunity for
profit. It combines the strength of both defenders and prospectors into a single system. Best word
for analyzer’s approach is balance
Reactors
This type of organization exhibits a pattern of adjustment to its environment which is both
unstable and inconsistent. This type of organization lack set of response mechanism.
Normative order
Normative orders are the ways of organizing which are defined right and proper from both
members and relevant sectors of environment.
Environment niche is different for all organizations
The environmental niche in an environment perceived by Ants is entirely different from
perceived by Elephants. Minor changes in environment can affect badly while may be
unnoticeable for Elephants. Similarly environmental niche for small and large organizations are
subjectively different. Therefore different organizations perceive and experience the
environment. Environments are not similar for all organizations.
Vital rates means death rate and founding rate of organization. This leads not only with large
organization but also with small business. Important determent of organizational death and
inception are:
Role of competition
Institutional constraints
Role of government
Type of product and industry becoming obsolete
Rogers define five stages of innovation
Need recognition
Research on the problem
Development of idea into useful form
Commercialization
Diffusion and adoption
Unprecedented novel