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Change Management

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Change Management ­MGMT625
VU
Lesson # 25
SKELETAL MODEL OF ADAPTATION
A state of adaptation, in a biological sense describes a sate of survival for an organism. Analogously,
a state of adaptation for a business organization is one in which it can survive the conditions of its
environment. There may be several niches available to a firm for surviving the conditions of its
environment.
Simon gives us a three modes that are open to a system
1. Passive insulation (Defender)
2. Reactive negative feed back (Analyzer)
3. Predictive or Proactive adaptation (Prospector)
Three states of adaptation are given by Chakravorti. He used the terms as unstable state, stable state
and neutral state. All three states of adaptation are viable. The unstable state is the most vulnerable to
changes in the firm's environment, a neutral state is the most vulnerable, and a stable state vulnerable
only to certain environmental changes
In the unstable state, a firm tries to buffer itself from its environment, as it is extremely susceptible
to environment to environmental changes. The manager of such a firm, concerned with the fragility
of the firm's adaptation is continuously on the lookout for new buffering arrangements. These firms
are called defenders and have narrow product-market domains, and they seldom seek to make
major adjustments in their technology, structure or methods of operations. To Miles and Snow such
an organization adapts by simply ignoring the environmental events or demands.
A stable state describes the state of adaptation in which instead of buffering itself from the
environment, the firm is open to it and, in fact offers a reactive move in keeping with every move
of the environment. The firm reacts to environmental changes and complies with environmental
mandate. Called an analyzer , by Miles & Snow, such a firm has a buffered core like the defender,
but unlike the defender it also has extensive market surveillance mechanism that enable it to imitate
the best of products and markets by others.
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Change Management ­MGMT625
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In a neutral state, a firm can withstand most environmental changes because they have been
anticipated before their occurrence and the firm has invested in the requisite adaptive ability. For
Miles and Snow such types of organizations are called "prospectors" which are in continuous
search for market opportunities. They often create changes in their environment, to which their
competitors must respond. "A true prospector is almost immune from the pressures of a changing
environment since this type of organization is continually keeping pace with change,
and...frequently creating change itself", accords to Miles & Snow.
All the three states of adaptation are viable ways of coping with the environment. Defender,
Prospector and Analyzer are all "stable" form of organizations, and manager chooses to pursue
either of these strategies to cope effectively with its competitors. "If management chooses to pursue
one of these strategies, and designs the organization accordingly, then the organization may be an
effective competitor in the particular industry over a considerable period of time"
All state of adaptations does not have the same immunity from environmental changes. The neutral
state has the highest immunity, followed by the stable and unstable states. A firm seeking to ensure
its future should prefer a neutral state of adaptation over the other two states. But then the
fundamental question arises: Why do not all firms show for the preference for such an ideal option?
(Similar to the teacher-student environment metaphor, why cannot all students get the same grade
or a grade?). The answer has two parts:
1. The state of adaptation depend on the firm's resources that it commands ­ (adaptive ability)
2. The nature of management processes within these firms (process of adaptation) influences the state
of adaptation sought
Determinants of Adaptive ability
How can adaptability be improved? Lawrence & Lorsch gave the concept as differentiation and
integration. Improving on firm's differentiation and integration would increase its adaptability.
Christenson called this as level of organization ­ which again is composed of differentiation and
integration, and then relabeled as Organizational Capacity.
The organization capacity measures the information processing ability of firm, and is an aggregate
measure of the human resources of that firm. Andrew suggests that adaptation is measure by the
nature and extent of the firm's material resources. Miles and Cameroon defines the same as
Environmental Receptiveness Cluster which influences the state of adaptation. The cluster includes
two things:
1. Resource scarcity the extent to which elements in the input of an org. lean in needed resources
2. Internal resources defined as the generalizability of a firm's core technology and expertise, and the
extent of its slack. Material resources include inputs like finance and technology.
The Process of Adaptation
The process of adaptation consists of two sub-processes: Adaptive generalization and Adaptive
Specialization
i)
Adaptive Generalization
It is the process of improving the goodness of fit in a given state of adaptation. It refers to the
rationalization of processes and structure using Material Capacity (MATCAP) and Organizational
Capacity (ORGCAP) for moving to the nearest adaptive fit. Adaptive generalization refers to the
process that improves the survival potential of the organization. Managing slack is the key to
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Change Management ­MGMT625
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adaptive generalization. This requires that an old fit be consciously disturbed for the sake of new and
higher fit. (Require MATCAP & ORGCAP)
ii)
Adaptive Specialization
This involves the choice of strategy appropriate to the environment and resources of the firm, and the
design of a matching structure. An important part of strategic management is adaptive specialization,
which involves:
1. Managing the choice of purpose for the firm so as to exploit its material and organizational
capacities optimally
2. Minimizing the misfit, in the match between the chosen purpose and the firm's ORGCAP and
MATCAP
Adaptive specialization involves formulation of strategy keeping in view firm's resources. Adaptive
generalization and adaptive specialization follow each other in a cyclical pattern.
References:
The above lecture notes are essentially prepared from the following articles; excerpts and clippings
are also taken from the same:
Chakravarthy Balaji S, "Adaptation: A Promising Metaphor for Strategic Management," The
Academy of Management Review, Vol. 7, No. 1 (Jan., 1982), pp. 35 ­ 44
Miles, Raymond E, Snow Charles C et al, Organization Strategy Structure and Process, The
Academy of Management Review, Vol. 3, No. 3 (Jul. , 1978), pp. 546-562
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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