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                                                                          The management of crisis and turnaround
                                    7 Poor communication.
                                    8 Outdated organization structure.
                                    There are similarities between the signs of organizational decline given above and
                                    the syndrome of ineffective leadership and change management discussed in
                                    Chapter 3 (see Figure 3.2) and the various ineffectiveness – effectiveness patterns
                                    identified in Table 8.1 and Table 16.1.


                     Table 16.1  Organizational syndromes (from Miller, D., and de Vries, K., (1984). Reprinted with
                              permission of © John Wiley & Sons, Inc.)

                      Syndrome      Characteristics  Symptoms    Strengths      Weaknesses     Examples
                      Tight control  Distrust     Incremental    Good knowledge  Lack of clear  Dramatic loss
                                                  change         of threats and  strategy      of market or
                                    Analytical
                                                  ‘Muddling      opportunities  Insecurity     market share
                                    Centralized   through’       Diversification
                                    Reactive      Too much con-
                                    Sophisticated  sultation
                                                  Too many meet-
                                    Information
                                    systems       ings
                                                  Poor innovation
                      Systems focus  Tight, formal  Lack of      Efficient      Traditional    Achievement
                                    controls      innovation     operations     structures     of dominance
                                                                                predominate    from a relatively
                                    Standardization  Ritual      Well-integrated
                                                                                               weak position
                                                                 product–market  Managers
                                    Hierarchical  Low involvement  strategy     dissatisfied over  Frequent loss of
                                    structures
                                                  Inflexibility                 influence and  control during
                                    Conformity                                  discretion     history
                                                  Fixation
                                                  Distinctive
                                                  competence
                      Personal style  Highly      Unbridled      Change         Wasted resources  Rapid growth
                                    centralized   growth                        Problems of    Chief executive

                                    Inadequate    Inconsistent                  control        wishing to
                                    structures    strategy into and                            ‘prove’ him- or
                                                                                Inadequate role
                                                  out of markets                               herself
                                    Poor information                            of second-level
                                    systems       Decisions without             managers
                                                  analysis                      Rash expansion
                                                  Little consultation           policies
                      Paralysis     Lack of       Insular        Efficient      Limited to tradi-  Well-established,
                                    confidence                   operations     tional markets  same technol-
                                                  Decisions
                                    Leadership    avoided        Focused strategy  Apathetic man-  ogy, customers
                                                                                               and competition
                                    vacuum                                      agers
                                                  Change difficult                             for many years
                                    Bureaucratic                                Weak competi-
                                                                                tive position
                                    Hierarchical
                                                                                                            ➔


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