Presented By

Names Roll No.s

Sheharyar Hanif Naqash Zulfiqar Afnan Saleem Abid Khan Abid Mobeen Khan

22 25 13 10 31

Topic List
1: Maintaining Effectiveness in Times of Change 2: Models of growth and development 3:Issues of size 4:Contraction and decline 5:Structural reorganization and divestment

Introduction
Change is a feature of the organizations environment and requires the organization to change as well in many different ways. In this presentation we will discuss some of these issues.

I.

Maintaining Effectiveness in Times of change:

Change in the context of organization and management, could relate to a number of matters. 1: Change in the environment 2: Change in the products 3: Change in the technology

4: Change in the management and working relationship 5: Change in the organization structure or size

The nature of change

1: New technology 2: Reorganization 3: Working conditions 4: Personnel policies 5: philosophy of management

ll. Models of growth and development: Growth

Organization grow in a number of ways a) Sales Revenue b) Profitability c) Number of goods d) Number of outlets e) Number of employees f) Number of countries

Reasons for Growth

1) Increasing demand for the products 2) Economics of sales 3) To increase power and rewards 4) To gain control over the resources

Greiners model
An organization life cycle was suggested by Greiner.

a) Evolution b) Revolution

Phase-1
a) Growth through creativity b) Crisis of leadership Phase-2 c) Crisis of autonomy d) Growth through direction Phase-3 e) Growth through delegation f) Crisis of control

Phase-4 g) Growth through co-ordination Phase-5 h) Growth through collaboration

Criticisms of organization life cycle models

1) Formation 2) Too many issues 3) Growth is not the same as effective 4) No time sale

lll. Issues of size:

1) Large organization a) Organization Structure b) Planning and control c) Adapting to change d) Motivation 1.1) Overcoming the problems of large size a) Decentralization b) Rewards or team bonuses c) Better job Design d) Delayering

2) Small organization Small organization have their own problems a) Lack of economies of sale b) External factors c) Cannot raise money d) Lack of profit e) Poor cash flow

iv. Contraction and Decline: Decline has three causes

a) Environmental entropy b) Vulnerability c) Organizational entropy 1) Environmental entropy a) Product revitalization occurs when the decline is temporary. b) Endgame. A firm is confronted with substantially lower demand permanently.

2) Vulnerability a) Sudden change in general environmental factors b) New competitors c) Sudden change in Technology 3)Organizational atrophy a) Declining profitability b) Deceasing sales volume c) An increase in gearing d) Falling Market share e) Evidence of a lack of Planning

Possible Causes a) Poor management b) Poor financial control c) High cost structure d) Poor marketing e) Competitive weakness f) Big projects g) Financial policy h) Feedback failure

v. Structural Reorganization and Divestment: Factors creating pressure for change in organizations structure a) Changes in the environment b) Diversification into new products c) Growth d) New technology e) Crisis and turn round

1) Acquisitions and divestment a) Acquisitions can be made to enter new product areas b) Acquisition can be made without cash Problems of Acquisition a) Might be too expensive b) Sudden takeover c) Problems of assimilating new products

2) Non-growth and de-growth strategies Most strategies are designed to promote growth, but management should consider what rate of growths they want, weather they want to see any growth at all, or weather there should be a contraction of the business. Divestment Divestment means getting rid of something. In strategic planning

terms. It means selling off apart of firms operation, or pulling out of certain products-market areas. 3)Management buyouts when a firm decides to divest itself of a part of its operations, it will try to get what it can by selling off the business as a unit, or by selling individual assets. Typically, a better price can be obtained by selling the business as a unit.