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Change Management

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Change Management ­MGMT625
VU
LESSON #8
LIFE CYCLE THEORY
Life cycle theory
It is one of the most common explanation theories in change management literature. It is a
metaphor of organic growth to explain org. development in an org. entity from its initiation to its
termination. Entity may mean individual's job, a work group, a programme, strategy, product, or
overall organisation. Like individual organisations also have a life, mean age and stage, and
associated characteristics like birth, growth, maturity, decline and death ­ exhibits certain traits at a
particular stage of their life. Now, if we apply theory in context of organizations in Pakistan, the
question is what is the average life of a typical organisation in Pakistan (be it public sector
organization or private sector). I believe multinational have evolved themselves as excellent high
performing organization because they have a perpetual life, and have over come through Product
Life Cycle (PLC), in case or Organization Life Cycle (OLC).
According to this theory, "Change is imminent; that is the developing entity has with in it an
underlying form, logic, program or code that regulates the process of change and moves the entity
from a given point of departure toward a subsequent end that is prefigured in the present state...
Similarly, to Ven & Poole, "External environmental events and processes can influence how the
entity expresses itself, but are always mediated by the immanent logic, rules, or programs that
govern the entity's development"
Characteristics of a Life Cycle Theory:
1.  The progression (order + sequence) of change events in this model is a unitary sequence
(follows a single sequence of stage or phases) and is cumulative (earlier stage traits are
retained in later stages).
2. There is such a progression to the final end state which is pre-figured and requires a
specific historical sequence of events.
3. Each of these events contributes a piece to the final product, occurs in a prescribed order,
and sets the stage for the next. Each stage of development is seen as a necessary precursor
of succeeding stages.
The author referred to Nisbet who worked on the philosophy of developmentalism, and has
stated, "Organisation development is driven by some genetic code or pre-figured program
within the developing entity". Rogers is quoted to have posited five stages of innovation: need
recognition, research on problem, development of idea into useful form, commercialisation, and
diffusion and adoption".
Life cycle theories explain development in terms of institutional rules or programs that requires
developmental activities to progress in a prescribed sequence. For example in International
Business we talk of the specific application in context of product development and marketing
known as International Product Life Cycle (IPLC). This depicts how a product having birth in the
Western country like USA receives growth, goes international reaches maturity and eventually is
in a decline in subsequent stage, in the form of  importing the same product from external
economies. Similarly Western business practices exhibit life cycle management model.
Unit of Change: Life cycle theories operate on a single entity, development as a function of
potentials immanent with the entity ­ environment and other entities are considered secondary.
Mode of change: It is important to know the sequence of change events is prescribed by either
probabilistic or deterministic laws. There are two modes of change: prescribed mode and
constructive mode.
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Change Management ­MGMT625
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Prescribed Mode: A prescribed mode of change channels the development of entities in a pre-
specified direction. Watzlawick termed this as first-order change, routinized or pre-established
programme. Variation is first-order change.
Constructive Mode: A constructive mode of change generates unprecedented novel forms, often
are discontinuous and unpredictable departures from the past. Watzlawick termed this as a second-
order change, as it breaks with the past basic assumption or framework.
So going by the traits of life cycle theory above we come to know that life cycle (and evolutionary)
theory operates in a prescribed modality. Let us now see some other examples of life cycle theory.
According to Hollman, organisational change such as MBO can be best understood by viewing
change as systematically moving through distinct developmental stages rather than as either an
evolutionary or revolutionary process. This developmental process consists of three phases or life
cycle: Missionary, Modification and Maturity
·
Missionary phase: When organisational member goes through MBO training programme
reads book or article or is in business education programme and tries to introduce the same
in his own organization with at least one high level sponsor in the organization (may be
politically driven as to seek legitimacy and credibility)
·
Modification Phase: After birth the problem of acceptance is there; primarily from three
sources: interpersonal (lack of support, hostility, learning new terminology, skills and
values, altering superior-subordinate relationships) organisational (authority-responsibility
pattern, budgetary allocations, training/procedural revision needed) & environmental
(government regulation or competitive pressure). Out of such pressures ­ customised
version come out through negotiating and bargaining amongst multiple forces.
·
Maturity phase: When the change introduced becomes org. routine, or when the new
programme gets merged with the existing organization processes and loses its unique and
special status as management tool in organization process in budgetary allocation or
compensation mechanism. This is considered death phase change in one sense. It can fail as
well, and death can occur at any stage on missionary - maturity continuum.
Application:
1. Viable time-oriented framework used by organisation to diagnose, evaluate and adjust
new programme (like MBO)
2. Evolution of MNCs: How MNC evolves themselves? Sales agent, regular export,
franchise/license, Wholly Owned subsidiary)
3. Though many consider OLC as static and deterministic yet some consider strategic
choices at each stage can affect (shorten or prolong) the development, rate and direction
of OLC stage.
4. Introduction of new technology or application of new managerial concepts in an
organisation. For e.g. MBO can be examined in terms of its introduction, growth and
effectiveness in organization
Miller & Freisen (1984) came up with a similar model
1. Birth
2. Growth
3. Maturity
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Change Management ­MGMT625
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4. Revival
Baird & Meshoulam (1988) described stages four stages in OLC of an international organization. It
is important to note that OLC for domestic firm is distinct from OLC for international firm
1. Organisation initiation
2. Functional growth
3. Controlled growth
4. Strategic Integration
Stage 1: Organisation Initiation
A typical start up organization survives on the basis of strong entrepreneurship skills and values.
Management and leadership are informal in nature, and managed on the basis of convenience.
Organization at this stage offers limited range of highly specialized products to restricted markets.
Management culture remains ethnocentric, and the objective is short term survival with in domestic
market.
Stage 2: Functional growth
Once organization maintains its existence it starts to look for diversification. Therefore firm looks
for new export markets. Informal ways of management is replaced by formalisation by focussing on
functional and technical specialization and production efficiency. Managerial confidence of a firm
begins to increase owing to dynamic growth.
Stage 3: Controlled Growth
The firms' overseas market moves into maturity phase, with its focus on efficient structure and
management practices. The firm now wants to control its overseas market through tight operations
so as to achieve economies in production and other functional areas.
Stage 4: Strategic Integration
The firm now seeks greater with local market through localisation and adaptation of resources.
Moreover synergy is sought to optimise in operations through network and interdependencies of
resources and responsibilities across subsidiaries. Ethnocentrisms is replaced by polycentricism and
geo-centricism resulting in increasing influence of foreigners and evolution of universal
management character
Organisation death or extinction is another important concept which needs attention. The death of
an organization occur when it value stability too much and avoid uncertainty and risk taking. This
means organization is unable to innovate, and incapacity to appraise their own performance. It
believes in stable programming and reluctant to deviate. All this happens when executives have
narrow and parochial view of external reality, and resistance for change is very high. Therefore
either it is organization's inability for adaptation or the hostility of environment leads the
organization for extinction. For example take the case of sick units in textile sector, the industry
booms under government supports and collapses with the withdrawal of concessions and subsidies.
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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