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Change Management

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Change Management ­MGMT625
VU
Lesson # 23
ORGANIZATIONAL ADAPTATION
The word adaptation is a metaphor that captures the endeavours of organizations to be fitted better to
its environment. Two things remain prominent with organisation in this process:
1) It has an articulated purpose
2) An established mechanism for achieving it.
Most organizations are constantly evaluating their purposes, questioning, verifying and re-defining
the way of interaction with their environments. Effective organisations maintain alignment with its
environment, and ineffective organization fail to maintain the alignment with environment. These
effective organizations also constantly modify and refine the mechanism by which they achieve their
purposes and are re-arranging their structure of roles, relationships and managerial processes. Hence
the essence of management is coping with external environmental change by changing objectives,
changing structures and changing processes
We will discuss here the same as the concept of organisation adaptation frame-work or model as
proposed Miles and Snow. The model contains two major elements:
1. It specifies the major decisions needed by organization to maintain an effective alignment with its
environment.
2. This also highlights an organisational typology which portrays different patterns of adaptive
behaviour.
The Adaptive Cycle:
Strategic Choice theorists argue that organization behaviour is only partially ordained by
environmental conditions and the choices made by top managers are the critical determinant of
organization structure and processes. The adaptive cycle is present in all organization, according to
Miles & Snow, and it is more visible in new or growing organizations
Now the question is what is meant by adaptive cycle? This has been defined by the two leading
scholars as under:
The Entrepreneurial problem
An entrepreneur must give a concrete definition of organization domain: a specific good or service
and a target market or market segment, and the entrepreneurial problem is an added dimension. In
either a new or on-going organization the solution to entrepreneur problem is marked by
management's acceptance of a particular product-market domain, and this acceptance becomes
evident when management decides to commit or allocate resources.
Second is to achieve objectives related to the entrepreneur domain. In many companies
entrepreneurial solution is sought by through the development and projection of an organizational
image, internally and externally. Therefore in this phase two important phenomena are the
identification of a new opportunity and the initial impetus for movement toward it. Engineering
problem begins to appear at this stage.
The Engineering Problem
The engineering problem involves the creation of a system which operationalizes management's
solution to the entrepreneurial problem. Such a system requires management to select appropriate
technology (input-transformation-output) for producing and distributing the chosen product, and
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Change Management ­MGMT625
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further need new information, communication and control linkages. (Job-order, batch or flow
production) As solution to the problems are reached through initial implementation of the
administrative system but final configuration of the organization will be reached as management
consolidates relations with the environment (final shape of the organization will be settled during
administrative phase)
The Administrative Problem
Administrative system is to reduce uncertainty within the organizational system. Therefore in this
phase management establishes process for coordinating and controlling internal operations and
rationalizing the system already developed. It also involves formulating and implementing those
principles which will enable the org. to continue to evolve (innovation). This phase is termed pivotal
by the author in the cycle of adaptation owing to the followings:
Rationalization and Articulation
Management must be adept at two conflicting functions: first, to create an administrative system
(structure & processes) for monitoring and controlling current activities and second, at the same time
allowing the system not to jeopardise the future innovation. This has been identified as lagging and
leading variable in the process of adaptation. The lagging variable suggests organization must
rationalize through the development of appropriate structure and processes, strategic decisions made
at previous points in the adjustment process. While the leading variable the administrative system
must facilitate the org. future capacity to adapt by articulating and reinforcing the paths along which
innovative capacity can proceed. Therefore an administrative system is such to deal with past and
future. The same dilemma can be identified in the classical principle of Henri Fayol; especially when
he talked of maintaining stability and initiative in the organization. In terms of marketing
management of an organization the same problem persists as revenues from existing product and at
the same time the need to develop new products and businesses. The dilemma is, how can we get
both out of the same structure one needs innovation and creativity while the other demands tight
discipline and regimentation?
Having dealt with adaptive cycle as given by Miles and Snow the question then arises how
organisations move through the cycle. For this we need to understand the typology presented by them
in the form of different set of organizational strategies. The question is what strategies organizations
employ in solving their entrepreneurial, engineering and administrative problems. The research of
Miles & Snow shows that there are essentially three-strategic types of organizations:
1. Defenders
2. Prospectors
3. Analyzers
Each strategy has a distinct way to engage or interact with its environment. Each type has its own
unique strategy for relating to its chosen market. Each has a particular configuration of technology,
structure and process that is consistent with its market strategy. Besides the fourth type of
organizations exist known as Reactor, which is identified by Miles & Snow as a form "Strategic
failure" owing to inconsistencies among its strategy, structure, technology and process.
1. Defenders
The defender deliberately enacts in an environment for which a stable form of organization is
appropriate. Stability is achieved by the defender's definition of, and solution to its entrepreneurial
problem. The defenders define it as " how to seal off a portion of the total market in order to create a
stable domain, and they do so by producing only a limited set of products directed at a narrow
segment of the total potential market. With in this domain defender strives aggressively to prevent
competitors entering its turf, but also ignores developments and trends outside of their domains. Over
a time he is successful in carving out its own niche which is difficult for competitors to penetrate.
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Change Management ­MGMT625
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The engineering problem for the defender is how to produce and distribute goods as efficiently as
possible? The defender does so by developing a single core technology that is highly cost efficient
out put on continuous and predictable basis. Some defenders follow vertical integration strategy by
incorporating each stage of production from raw material to distribution of final output.
The defender's Administrative problem is "How to achieve strict control of the organization in order
to ensure efficiency. So this is resolved through structural-process mechanism described as
mechanistic bearing the following features:
i) Top management group heavily dominated by production and cost-control specialist
ii) Little or no scanning of the environment for new avenues.
iii) Functional  structure  characterized  by  division  of  labour,  centralized  control,
communications through hierarchical channels
Such administrative is suitable for generating and maintaining efficiency but have adaptive or
adaptability problems. Therefore this system operates well for stable industries and is ineffective for
turbulent industries (where market environment changes quickly)
For example this view of strategic adaptation is popular amongst managers in developing countries
e.g. electronic industries in context of Pakistan split air conditioner may be different from traditional
manufacturers of window air conditioning units. The question then is why traditional stable business
in this industry was un-able to realise and adapt quickly in the changed environment. Or it is the
organization who acted like defenders of the Miles & Snow's typology.
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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