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Change Management

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Change Management ­MGMT625
VU
LESSON # 16
GREINER'S MODEL OF ORGANISATIONAL­ EVOLUTION AND REVOLUTION
The model explains why and how organizations are unable to grow, and in a way suggest how
organisations ought to grow? The model is based on certain assumptions about the organization
which are as under:
First assumption is organisations are rigid, bureaucratic, control-centric, and centralised entities.
Second, organisations fail to see that the future success of an organisation lie within their own
organisation, and also fail to assess their evolving states of development. Therefore inability of a
management to understand its organisation development problems can result in organisation
becoming frozen in its present stage of evolution (failure to evolve) regardless of market
opportunities.
Here Greiner's proposition is that future of an organisation may be less determined by outside
forces than it is by the organisation history. Therefore to him internal dynamics of organisation
structure play a critical and decisive role in shaping organisation strategy. This view comes closer
to the recently popular management paradigm of Resource Based View of strategy formulation.
According to this view each firm has a unique combination and configuration of its resources which
leads to inimitable competitive advantage.
The position confronts with Alfred Chandler (famous American author) who gave the concept n
strategy and structure perspective in business management, and who proposed that outside market
opportunities determine a organisation strategy which in turn determines company's structure. So
Greiner emphasises structure over strategy while Chandler focuses strategy over structure. Greiner
seems also influenced by European psychologist ­ for whom individual behaviour is determined
primarily by previous events and experiences. Hence the analogy of individual development coined
with organisational development
Before discussing the model, first let us define the two terms: evolution and revolution. Evolution is
used to describe prolonged period of growth ­ where no major upheaval occurs in organisation
practices. The term revolution is used to describe those periods of substantial turmoil in
organisational life. Each evolutionary period creates its own revolution, as organisation progresses
through developmental phases. For instance centralised practices eventually lead to demand for
decentralisation. Moreover the nature of management's solution to each evolutionary period
determines whether organisation will move forward into next stage of evolutionary growth.
According to Greiner, five key dimensions emerge as essential for building a model of organisation
development.
·
Age of the organisation
·
Size of the organisation
·
Stages of Evolution
·
Stages of Revolution
·
Growth rate of the industry
Each dimension influences the other overtime; when all five elements begin to interact, a more
comprehensive and dynamic picture of organisational growth emerges.
1. Age of the organisation
It is the foremost and essential dimension of organisation development. It is very clear to us that the
same organisation practices are not maintained throughout a long span of time. Most basic point is
management problems and practices are rooted in time. MBO a decade back had different meanings
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Change Management ­MGMT625
VU
than today. The passage of time also contributes to the institutionalisation of managerial attitude. As
result employee behaviour becomes not only more predictable but also more difficult to change when
attitudes are outdated. For example Parkinson law of expansion which means work tend to expand
over time.
2. Size of the organisation
Organisation's problems and solutions to such problems tend to change markedly as the number of
employees and sales volume increases. Thus time is not the only determinant of structure; in fact
organisations that do not grow in size can retain many of the same management issues and practices
over lengthy periods. Very typical problems of increased size are of coordination and of
communication, emergence of new functions, levels in the management hierarchy, and jobs become
inter-related.
3. Stage of Evolution
The term seems to describe quieter period in organisation history with modest adjustments necessary
for maintaining growth under the over all same pattern of management. With the increase in size and
time ­ a phenomenon becomes evident ­ which is "prolonged growth". Evolution is equated with
continuous and prolonged growth. According to Greiner, most growing organisations do not expand
two years and then retreat for one year; rather those that survive crises usually enjoy four to eight
years of continuous growth without a major setback or severe internal disruption.
4. Stages of Revolution
Smooth evolution is not inevitable for long. In other words organisation growth cannot be assumed
linear. For example, many case histories of Fortune 500 listed companies reveal that companies had
periods of substantial turbulence spaced between periods of evolution. Turbulent times leading to
severe upheaval of management practices ­ means revolution or period of revolution.
Traditional management practices appropriate for smaller size and earlier times, are brought under
scrutiny by frustrated top managers and disillusioned lower-level managers. Many organisations fail
during such a crisis ­ unable to abandon past practices have to wind-up or compromise to lower
levels of growth.
The critical task for management in each revolutionary period is to find a new set of organisation
practices that will become the basis for managing the next period of evolutionary growth.
Interestingly, the new practices sow their own seeds of decay and lead to another revolution.
Therefore management sees something a solution in one time period becomes a major problem later.
For example at individual level, the same situation can be identified as success trap, means success
has its own trap which generates single-variable-mindedness type of thinking in individual.
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Table of Contents:
  1. COURSE ORIENTATION:Course objectives, Reading material, Scope of the subject
  2. BENEFITS AND SIGNIFICANCE OF CHANGE MANAGEMENT:Traditional management domain
  3. KURT LEWIN MODEL: ASSUMPTIONS AND IMPLICATIONS:Change Movement, Refreeze
  4. IMPLICATIONS OF KURT LEWIN MODEL:Sequence of event also matters, A Critical Look
  5. SOME BASIC CONCEPTS AND DEFINITIONS:Strategic change, Logical incrementalism
  6. TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP:Micro-changes, Organisation Development
  7. THEORIES OF CHANGE IN ORGANISATIONS
  8. LIFE CYCLE THEORY:Unit of Change, Mode of change, Organisation death
  9. TELEOLOGICAL THEORIES OF CHANGE:Unit of change, Mode of Change, Limitations
  10. DIALECTICAL THEORIES OF CHANGE:Unit of Change, Strategic planning
  11. A DIALECTICAL APPROACH TO ORGANISATIONAL STRATEGY AND PLANNING:
  12. LIMITATION OF DIALECTICS; DA AND DI:Overview of application of dialectics
  13. THEORIES OF CHANGE IN ORGANISATIONS
  14. APPLICATION OF EVOLUTIONARY THEORY:Managerial focus
  15. FURTHER APPLICATION OF EVOLUTIONARY THEORIES:Criticism
  16. GREINER’S MODEL OF ORGANISATIONAL– EVOLUTION AND REVOLUTION
  17. GROWTH RATE OF THE INDUSTRY:CREATIVITY, DIRECTION, DELEGATION
  18. COORDINATION:COLLABORATION, The Crisis
  19. ORGANISATION ECOLOGY:Structural Inertia, Internal Structural Arrangements, External Factors
  20. CLASSIFICATION OF ORGANIZATIONAL SPECIES:Extent of Environmental Selection, Determinants of Vital Rates,
  21. FOOTNOTES TO ORGANISATIONAL CHANGE:Stable Processes of Change, Rule Following, Conflict
  22. SOME COMPLEXITIES OF CHANGE:Superstitious Learning, Solution Driven Problems
  23. ORGANIZATIONAL ADAPTATION:The Entrepreneurial problem, The Administrative Problem
  24. PROSPECTORS:Analyzer, Reactors, Adaptation and Strategic Management
  25. SKELETAL MODEL OF ADAPTATION:Determinants of Adaptive ability, The Process of Adaptation
  26. STRATEGIC CHANGE:Nature of Change, The Importance of Context, Force field Analysis
  27. Management Styles and Roles:Change Agent Roles, Levers for managing strategic Change
  28. SYMBOLIC PROCESSES:Political Processes, COMMUNICATING CHANGE, Change Tactics
  29. STRATEGIC CHANGE:Pettigrew & Whipp’s Typology, Context on X-axis (Why of change)
  30. STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management
  31. STRATEGIC CHANGE:Flow of Information, Recruitment, SOC Process
  32. Determinants of a Successful Change Management:Environmental, Management Orientation, Management Orientation
  33. Higgins 08 S Model – An Adaptation from Waterman’s Seven S model:Strategy, Systems and Processes, Resources
  34. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  35. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  36. WHY IMPLEMENTING STRATEGIC CHANGE IS SO DIFFICULT?:Change Typology, Technical Change
  37. IMPLEMENTATION APPROACHES:Attributes of incremental change,
  38. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  39. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Definition of Leadership, Follower Work Facilitation
  40. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Recognize the challenge
  41. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  42. IMPLEMENTATION: PUNCTUATED EQUILIBRIUM MODEL:Features of Radical Change, Theory of P-E model
  43. CHANGE IMPLEMENTATION: OD MODELS:The Transactional Factors
  44. CULTURE, VALUES AND ORGANIZATIONAL CHANGE:Significance and Role of Values, Values Compete
  45. ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management