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)