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8.4.1 Learning and organisational life cycles

The 'life cycle' or stage of development of an enterprise will impact the skill mix, and what constitutes an effective manager. As managers in open systems actively seeking to improve processes and systems, a modern manager can no longer be viewed simply as controlling what exists.

Table 3 - Enterprises cultural and strategic maturity

Life Cycle Stage

Key Strategic/Cultural Features

Embryonic

High levels of cohesion

Dominant role of founder

Outside help not valued

Lack of procedures and planning systems

Politics play an important role

Growth

Large variety of culture changes

Levels of cohesion decline

Emergence of middle management

Tensions/conflict may arise in enterprises trying to get people to accept new ways of thinking

Diversification of business activities

Line/Staff differences

Maturity

Institutionalisation of values and beliefs

Evolutionary rather than revolutionary changes

Inertia may emerge in enterprise

Strategic logic may be rejected

Decline

Culture may act as a defence against a hostile environment

Major decisions may have to be taken

Readjustment necessary

(Garavan, 1991:22)

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