Description
Select and compare two of the following change models: environment-industry-organization contingency, organizational life-cycle, action research model, eight-step approach, appreciative inquiry. Pros and Cons of the two models chosen.
Explanation & Answer
Two Models: Contingency Theory and Organizational Life Cycle
Contingency Theory:
Contingency theory is the behavioral theory that claims that there is no single best way to design organizational structures. The best way of organizing e.g. a company, is however contingent upon the internal and external situation of the company. Managers have always asked questioned such as :
- what is the right things to do ?
- Should we have a mechanistic or organic structure?
- Functional or divisional structure?
- wide or narrow spans of management?
- Tall or flat organizational structure?
- Should we be centralized or decentralized ?
Advantages:
- Contingency theory purports to apply to all aspects of management and not just organizing and leading.
- Measures the effectiveness of group performance using leadership styles.
- It is used to help management choosing best leaders.
- It has been criticized because it has failed to explain fully why people with certain leadership styles are more effective in some situation then others.
- It fails to explain adequately what organizations should do when there is a mismatch between the leader and the situation in the workplace.
- Least prefer co worker scale (LPC) because it did not seem valid on the surface.
Organizational Life cycle / Business life cycle:
Organizational Life cycle is a model which purposes that businesses, over time progress through a fairly predictable sequence of development Four of Five stages which are:
- Introduction or development stage,
- growth ,
- maturity ,
- Diversification (situational )
- decline and death stage.
Advantages:
- It help businesses to make choices.
- It implies that every one in the whole chain of product life cycle, from cradle to grave, has a responsibility and a role to play taking into account all the relevant impacts on the economy , the environment and the society.
- It avoid shifting approaches from one life cycle stage to another, from one geographic area to another.
Disadvantages:
- When you depreciate your small business assets you can spread the cost of those assets over their full life cycle , this allows you to receive part of the write-off for your assets as they produce income for you each year.
- Using life cycle concept can cause hardship in business and cost you more money than you may anticipate.
- Life cycle costing methods spread the expense of an asset out evenly over several years.
- Life cycle concept assumes an asset will be as productive in later years as it is when it's new., this may not be the case for example if a machine breaks down when use it for sometime then it will generate less productivity and hence income.