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employees at the same time to achieve economies of scale。
。 Public courses： These are less expensive than running a training
programme in a hotel。 You can also select different courses for different
employees and so tailor the training more precisely to their needs。 Most
public courses are generic and the other a。。endees are more likely to
e from big business or even the public sector。 So； much of what is
covered may be of li。。le direct relevance to your business and quality
can be patchy。
Figure 4。12 Training needs analysis worksheet
Development area Gap
identified
Action to be taken
to address the gap
Date action to be
achieved by
Knowledge
Skills
Attitudes
Learning options
Organizational Behaviour 157
。 Interactive distance learning： This kind of training can be delivered by a
bination of traditional training materials； teleconferencing； internet
and e…mail discussions。 You miss out on the personal contact； but the
costs are much lower than traditional training。
。 Off…the…shelf training programmes： These e in packaged kits； which
may consist of a training manual； video or a CD ROM。 Once again the
cost is lower than for face…to…face training； but you miss out on a professional
trainer’s input。
。 Universities and colleges： Many universities and business schools now
offer programmes tailored for the needs of the organization。 Professional
instructors who understand the needs of small firms deliver
these。 They are relatively expensive but can o。。en be very effective。
。 Business games； case studies and simulation exercises： A business game
is virtually mandatory at some stage while taking an MBA。 The game
is constructed as a model； usually though not always so。。ware based；
to simulate an entire pany or industry or a particular functional
area。 They allow trainees working in teams to see how their decisions
and actions influence a bigger picture。 Outward Bound activities are
also popular MBA development tools； using hazardous remote environments
to create opportunities for conflict； leadership and the
prospects of cohesion。 These are also popular as elements in the management
selection process。
Preparing for development
To make sure you get the best out of investment in development； follow
these guidelines：
。 Introduce a routine that ensures all employees a。。ending training are
briefed at least a week beforehand on what to expect and what is expected
of them。
。 Ensure that all employees discuss with their manager or supervisor
what they got out of the training programme – in particular； did it meet
both their expectations。 This should take place no later than a week
a。。er the programme。
。 Managers should check within a month and then again at regular intervals
to see whether skills have been improved； and that those skills are
being put into practice。
。 Evaluate the costs and benefits of your training and development plans；
arriving at financial ratio such as return on investment； and use this
information to help set next year’s training budget。
158 The Thirty…Day MBA
MANAGING CHANGE
The story told in business schools to illustrate the dangers of ignoring the
need for change is that of the hypothetical frog dropped into a pot of boiling
water。 The immediate impact of a radically different environment spurs the
frog into action； leaping out of the pot。 The same frog placed in the same
pot； but where the initial temperature is much lower； will happily allow
itself to be boiled to death； failing to recognize the danger if the process is
slow enough。
The first task of a leader； therefore； is to define an organization’s purpose
and direction。 This inevitably means changing those in response to changing
circumstances。
Why change is necessary
The need for change es from two main directions： either a new impetus
from outside or inside the organization； or from the natural evolution of
the organization itself。
Impetus…driven change
These are the primary sources of the impetus for change that disturb the
equilibrium of an organization：
。 New management： This doesn’t always trigger change but the temptation
to tamper with even the best of organizations is usually too much
for a ‘new broom’。 The person appointed almost invariably will want
to put their stamp on strategy and structure； if all was really so hunkydory；
why appoint them in the first place？
。 petitor behaviour： This can be either new entrants or existing
players changing the dynamics in your markets by peting with
be。。er products； lower prices or smarter operations。
。 Technology： Changes here can hit whole business sectors。 For example；
the advent initially of online DVD services and more recently of
broadband delivery has profoundly changed the environment for the
retail video rental business。
。 Economic； political or legal environment： These include such factors
as： business cycles altering demand levels radically； changes of government
with consequent shi。。s in expenditure and taxation； and regulatory
changes such as those affecting the tobacco industry and its ability
to promote its wares。
Organizational Behaviour 159
Natural evolution
Organizations are in some ways like living organisms and have a natural
progression from birth through childhood； adolescence； adulthood； senility
and death。 Some stages in the process for an organization are easily
recognizable。 All have a start and finish date and though their life span
varies； for businesses at least； the average is around 35 to 38 years。 Some
last much longer； there is a small club for businesses who have been around
for over 250 years。 （Japan’s 1；400…year…old Kongo Gumi may be the oldest
business enterprise； but guns （Bere。。a）； banking （Rothschild） and booze （the
Gekkeikan brewery founded in 1627） also feature strongly （see ‘Business
history’）。）
The phases of growth
Larry Greiner； a Harvard professor； identified the key phases an organization
has to go through in its path to maturity。 （See Figure 4。13。） Churchill
and Lewis （Churchill； N C and Lewis； V L （1983） ‘The Five Stages of Small
Business Growth’； Harvard Business Review； May/June） refined this for small
businesses。
Figure 4。13 The five phases of growth
Source： L E Greiner； Harvard Business Review； July/August 1972
Size of organization
Age of organization
2。 Crisis of
AUTONOMY
1。 Crisis of
LEADERSHIP
3。 Crisis of
CONTROL
4。 Crisis of RED
TAPE
5。 Crisis of ？
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
LARGE
SMALL
YOUNG MATURE
1。 Growth through
CREATIVITY
2。 Growth through
DIRECTION
3。 Growth through
DELEGATION
4。 Growth through
COORDINATION
5。 Growth through
COLLABORATION
160 The Thirty…Day MBA
Each phase of growth calls for a different approach to managing the
organization。 Sometimes strong leadership is required； at others a more
consultative approach is appropriate。 Some phases call for more systems
and procedures； some for more cooperation between staff。 O。。en leaders
believe that taking on another salesperson； a few hundred thousand square
metres of space or another bank loan can solve the problems of growing
up。 This approach is rather like suggesting that the transition from infancy
to adulthood could be acplished by nothing more significant than providing
larger clothes。
Managing the process
Because change is inevitable and unpredictable in its consequences doesn’t
mean that it can’t be managed as a process。 These are the stages in managing
change：
。 Tell them why： Change is be。。er accepted when people are given a pelling
business reason。 Few bankers would question the need for change
a。。er the 2008 debacles at Bear Stearns； SocGen and Northern Rock。
。 Make it manageable： Even when people accept what needs to be done；
the change may just be too big for anyone to handle。 Breaking it down
into manageable bits can help overe this。
。 Take a shared approach： Involve people early； asking them to join you
in managing change； and give key participants some say in shaping
the change right from the start。 This will reduce the feeling that change
is being imposed and more brains will be brought to bear on the
problem。
。 Reward success early： Flag up successes as quickly as possible。 Don’t
wait for the year…end or the appraisal cycle。 This will inspire confidence
and keep the change process on track。
。 Expect resistance： Kurt Lewin； a German…born professor at the
Massachuse。。s Institute of Technology （MIT）； was one of the first researchers
to study group dynamics and how change can be best effected
in organizations。 In 1943 in an article entitled ‘Defining the Field at a
Given Time’ published in the Psychological Review； Lewin described
what is now known as Force Field Analysis。 This is a tool （see Figure
4。14） that you can use to anticipate resistance to change and plan to
overe it。
。 Recognize that change takes longer than expected： Three researchers
（Adams； J； Hayes； J and Hopson； B） explained in Transition： Understanding
and Managing Personal Change （1976； Martin Robinson； London） the six
stages that people go through when experiencing change and hence
the reason the process takes so long。 The stages are： immobilization or
shock； disbelief； depression； acceptance of reality； testing out the new
Organizational Behaviour 161
situation； rationalizing why it’s happening and then final acceptance。
Most major changes make things worse before they make them be。。er。
More o。。en than not； the immediate impact of change is a decrease in
productivity as people struggle to cope with new ways of working
while they move up their own learning curve。 The doubters will gloat
and even the change champions may waver。 But the greatest danger
now is pulling the plug on the plan and either adopting a new plan or
reverting to the status quo。 To prevent this ‘disappointment’ it is vital
both to set realistic goals for the change period and to anticipate the
time lag between change and results。
Figure 4。14 Force field analysis template
What is the problem/
change issue？
Where are we now？
Where do we want to get
to？
What/who are the main
forces at work？
Driving forces Neutral forces Resisting forces
What action can we take
to help driving forces；
encourage neutral forces
to help and to overe
resisting forces？
Monitoring staff morale
One way both to identify the need for change and to keep track of progress
while implementing changes is to carry out regular surveys of employee
a。。itudes； opinions and feelings。 HR…Survey （hr…survey 》
Employee Opinions） and Custom Insight （custominsight 》 View
Samples 》 Sample employee satisfaction survey） provide fast； simple and
easy…to…use so。。ware to carry out and analyse Human Resources surveys。
They both have a range of examples of surveys that you can see and try
before you buy； which； who knows； might just be enough to stimulate your
thinking。
Business history
。 The foundations of contract law
。 The first business gurus
。 Early accounting （and the death penalty！）
。 Stock markets and coffee houses
。 Limiting liabilities
。 Encouraging innovations
。 Banking beginnings
。 The world’s oldest ventures
‘Those who cannot learn from history are doomed to repeat it’； a quote
a。。ributed in several guises to the philosopher George Santayana； is just one
of a host of contradictory messages on the relevance of a study of history。
Henry Ford； the founder of the car pany； famously said： ‘History is
more or less bunk。 It’s tradition。 We don’t want tradition。 We want to live in
the present and the only history that is worth a tinker’s damn is the history
we make today。’
There are at least two reasons why an MBA student should acquire a
basic appreciation of the milestone events that have led up to the current
theories of how organizations； their constituents and their surrounding
environments currently operate。 The first is much the same reason as why
most people learn something of the history of their country； its neighbours；
its friends and enemies。 Such a study lends interest； context and an appreciation
of how we got to where we are today。 It is much easier to understand；
for example； the enmity between the French and the British with
a sma。。ering of information on the Hundred Years’ War； the Peninsula
War and the smouldering mercial and territorial disputes that ranged
around the world from the Americas to India as well as across the African
continent。
The second reason is perhaps even more important。 Harvard professor
Geoffrey Jones； who edited The Oxford Handbook of Business History （2008；
5
Business History 163
Oxford Handbooks in Business & Management） with University of
Wisconsin…Madison professor Jonathan Zeitlin； claims in his core history
text used at Harvard that： ‘Over the last few decades； business historians
have generated rich empirical data that in some cases confirms and in other
cases contradicts many of today’s fashionable theories and assumptions by
other disciplines。 But unless you were a business historian； this data went
largely unnoticed； and the conse