Annotated Bibliography
The Organizational Change and Transition Process:
How Executives and Organizational Structure
Influence Growth
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Baum, R. J., Kirkpatrick, S. A., Locke, E. A. (1998). A longitudinal study of the relation of
vision and vision communication to venture growth in entrepreneurial firms. Journal of
Applied Psychology, 83 (1), 43-54.
The study was used to evaluate the relationship among vision content, vision
communication, and venture growth. It was the first study to discover that both vision
and vision communication had positive effects on organizational level. It was also
observed that leaders can reinforce values in vision, not only through verbal or written
communication, but also through nonverbal communication. Research findings proved
that fewer layers of authority and close contact between CEO and employees, customers,
and suppliers may cause a more direct effect between growth and vision. It also
confirmed that the vision of executives with high control was more easily understood
compared to executives with low control. The consensus was that vision affects
organizational-level performance, while vision affects performance directly and
indirectly through vision communication. Overall the study demonstrated that vision is an
important element of charismatic leadership theory. Also, attributes based on theory can
be used to measure vision.
Churchill, N. C. & Lewis, V. L. (1983). Growing Concerns: The five stages of small business
growth. In D. E. Gumpert (Ed), Harvard Business Review, 30-50.
The authors have identified five stages of small business growth which include
existence, survival, success, take-off and resource maturity. They contend that
companies are different in terms of their size and growth capacity. However, they
maintain that once a company is able to determine its current stage, it will be able to
evaluate existing constraints and better plan for possible challenges in the future. The
authors contend that while much research has been conducted over the years with various
models developed, they have focused on firm size and maturity stage, which is not
appropriate for small firms. Instead, they propose that a combination of business
experience be applied, as well as literary and empirical research. They also outline four
key factors critical to a growing business. These include financial resources, personal
resources, systems resources, and business resources. They also discussed four factors
that relate to the owners themselves which include individual goals, operational abilities,
managerial abilities, and owner’s strategic abilities.
Eggers, J. H. (1999). Developing entrepreneurial growth. Ivey Business Journal, 63 (4), 76-81.
Retrieved September 2, 2000, from PerAbs_FT database (01831649).
Eggers maintains that growth goes hand in hand with entrepreneurship. As such,
business leaders are trying to determine how to become more entrepreneurial. He
explains that factors that give rise to growth can be learned, measured, and used to foster
growth in entrepreneurial organizations. He identifies four fundamental factors that
foster growth: competitive advantage and market size, psychological characteristics,
capacity and ability to effectively manage and lead growth, and organizational cultures
that drive growth.
Fenn, D. (1996). Breakthrough leadership: Higher ground. Inc, 18 (15), 92-99.
Fenn contends that once business owners realize that company growth is based not on
their own individual competencies but rather, on other their team of employees, then the
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company can be very successful. He also maintains that once employees are given the
tools and guiding principle, and empowered to make decisions, then they will assist the
company in assuming continued growth.
Ford, S. (2005). Making your organization change-ready. Harvard Management Update, 4.
Ford maintains that in order for and organization to grow and be flexible strategically,
it must be open to change. Ford explains that the initial step for an organization in terms
of becoming change-ready is to ensure people within the organization are both prepared
and capable of not only changing their tasks but also work-processes and work relations.
According to Ford, specific measures can be taken to change a company’s mindset
regarding change: challenge complacency through communication, encourage employee
to voice their ideas, encourage participative approaches to work, and aim to remove or
reduce fear.
Greco, S. (1996). Replace yourself. Inc. Retrieved August 30, 2000, from AIB_INFORM
database (01337440).
Elliott explains that change is not any easy phase for CEO’s to accept even when the
change is necessary. She discusses four phases entrepreneurs go through when they seek
out new hires to assume their own positions, and likens the stages to the grieving process.
Elliott explains that the process starts off with the owner experiencing denial, and then
anxiety sets in, followed by sadness, and finally acceptance.
Hayes, R. H., & Wheelwright, S. G. (1979). The dynamics of process-product life cycles.
Harvard Business Review, 57 (2), 127-136.
Hayes and Wheelwright present a model intended to help companies evaluate their
strategic evolution and long term direction while involving marketing and manufacturing
functions in the coordinating and implementation effort. They present a thorough
analysis of the opportunities and constraints faced by companies as they evolve over
time. Their study also outlines concepts that are useful to managers in terms of
determining organizational changes needed, the timeline for these changes, and the
consequences of changes to the organization’s production process and/or products.
Hayes and Wheelwright contend that it is imperative that organizations keep current in
terms of technological developments, maturing markets, and maintain a learning curve.
They delve into the different types of growth, alternatives open to companies, and how
they affect marketing and manufacturing functions.
Hickson, D. J., Pugh, D. S., & Pheysey, D. C. (1969b). Operations Technology and
Organization Structure: An Empirical Reappraisal. Administrative Science Quarterly, 14,
378- 396.
The authors use data collected from a previous study to test the hypothesis that
technology and structure are correlated. They separated the concepts of technology into
different stratums, namely operations, material, and knowledge technology. Given the
negative outcomes of their study, successive tests were prepared, a revised hypothesis
created, and the role of the technology re-examined. Based on findings, it was
determined that operations technology only affects variables that are based on workflow.
They also concluded that the smaller the organization the more likely it is that its
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structure would be largely influenced by the effects of technology. Conversely, the larger
the organization the more likely it is that the effects of technology would be limited to
factors such as the number of individuals employed.
Jacques, E. (1990). In praise of hierarchy. Harvard Business Review, 68 (1), 127-133.
Jacques contends that managerial hierarchies have been a source of controversy.
However, despite the inherent problems with managerial hierarchies called bureaucracies,
these organizational forms have persisted since they enable the employment of large
numbers of individuals and they ensure accountability for their tasks. Jacques further
explains that managerial hierarchies are the only forms of organizations that enable the
matching of individuals and tasks to facilitate the creation of value in each task. He
maintains that managerial hierarchies need to be aware of their own nature and purpose in
terms of positioning talent and energy. He also explains that many individuals oppose
such structures claiming that they undermine initiative and reduce creativity. He counters
this argument by stating that once hierarchies are properly structured, they will not only
boost creativity, but also increase productivity and morale.
Jaques, E. (1992). Managerial Accountability. Journal for Quality and Participation, 15 (2), 4044. Retrieved September 4, 2000, from AIB_INFORM database (00725529).
Jaques declares that statistical methods and process variance control can be used to
reduce variances in businesses and thus ensure quality and continuous improvement. He
declares the importance of accountability using Dr. W. Edwards Deming’s process
variance control that is linked to quality and Dr. Joseph Juran’s emphasis on the
importance of managerial systems through quality circles and teams. Jaques maintains
that hierarchical management does not result in autocratic behavior; instead it results
from managerial hierarchies that are not effectively managed. He explains that
organizational work systems are hierarchies whose boards of directors make team
decisions, and are accountable for their subordinates. Jaques calls for managerial
hierarchies with the correct structures and processes, human resource practices, and
growth methods to ensure continuous improvement.
Johnson, K. (1989). Building your management skills. Managers Magazine, 21-23.
Johnson contends that many managers are verse in management theories; however
they are unable to apply such knowledge. He describes a great manager as one who not
only knows how to manage technically, but also lead people, and possess the right
management ability in order to utilize the appropriate management style at the right
times. He maintains that effective managers possess four characteristics: they are
achievement oriented, administrators, entrepreneurs, and integrators. Johnson also
presents four components of effective organizational management which include: the
lone avengers, bureaucrats, firestarters, and therapists. He contends that there is no
perfect manager. Rather, the degree to which a manager may possess two or more
characteristics above depends on the situation. Consequently, the needs of the business
determine the most appropriate style of management. Also, the individual’s personal
needs determines which management style is used. He also identified four stages of
business development: age of organization, bell curve peak decline, and regeneration.
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Kilzer, J., Glausser, G. (1984). Closing the small business management gap. Management
Accounting, 65, 57-61.
The authors defined small business as those businesses that have a smaller
management team than actual management functions. They maintain that certain critical
management areas are not given sufficient attention, since members of management often
focus on areas in which they excel and less on areas in which they lack expertise. The
authors contend that smaller companies usually tend to have a “management gap.” This
gap may be eliminated when management combines its own efforts with that of outside
consultants. They advise that the obstacles entrepreneurs face can be overcome by
planning to make the time, planning for growth, making contingency plans, and
developing know-how through clear strategies which include equitable treatment of all
stakeholders, tactical planning, and maintaining operating budgets.
Kotter, J. (2007). Leading change. Harvard Business Review, 86 (1). Retrieved January 18,
2007, from Business Source Elite (00178012).
Kotter contends that in order for a business to cope with new market challenges it
must be able to reinvent itself, however change is often resisted. Kotter examines why
transformation efforts fail, and presents eight fundamental steps that leaders can use to
successfully transform their organization. These include: establishing a sense of urgency
through situation analysis, assembling a coalition to guide the change, creating a vision,
communicating the vision, empowering others to adopt the vision, planning and creating
short-term improvements, combining improvements and enforcing more change, and
institutionalizing the new approaches.
Lang, D., Wittig-Berman, U., Ursula, S. (2000). Managing work-related learning for employee
and organizational growth. Advanced Management Journal, 65 (4). Retrieved January
18, 2007, from (07497075).
The authors examine the nature and importance of work related learning, the
challenges it involves, and techniques that can be used to facilitate and increase such
learning. The study incorporated prior research, including analysis of learning
orientation and its environments, career development, and practices used by advanced
learning organizations. The research revealed that organizational culture has a direct
effect on learning which is likely to influence a manager’s ability to inspire meaningful
learning.
Lee, P. M. (1989). Growing Pains. Small Business Reports, 14 (7), 34-37.
Lee gives an account of E-mu Systems Inc. and its founders’ experiences while
growing the business. Based on their encounters, Lee concludes that with growth comes
the need for additional resources, capital, and management experience. He contends that
innovation and morale are reduced when managers are in the process of developing
systems and structures necessary to manage growth.
Olivier, A. (2004). Entrepreneurs and entrepreneurial executives. Proceedings of BIOSS/Third
Foundation Systems ’96: International conference on managing complexity,
Johannesburg. 1-14.
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The study is based on the similarities between entrepreneurs and corporate
intrapreneurs. According to Olivier, these similarities could increase the rate of success
of start up companies, as well as increase the development of entrepreneurs in developing
countries. The research results proved that success is based on an individual’s advanced
conceptual ability that can increase the organization’s growth. The study also indicated
that successful entrepreneurs must be above growth curves and possess specific work
styles. Findings also revealed that organizations need to engage in effective “talent
management” in order to identify, develop, and retain a high performing pool of
intrapreneurs. Olivier maintains that conceptual ability of an organization’s workforce is
critical in the global marketplace. He also explains that intellectual capital is
fundamental to the strategies of developing nations given the existence of poverty and
unemployment.
Olson, P. D., & Terpstra, D. E. (1992). Organizational structural changes: Life-cycle stage
influences and managers’ and interventionists’ challenges. Journal of Organizational
Change Management, 5(4), 27-40. Retrieved September 2, 2000, from PerAbs_FT
database (00667378).
Olson’s and Terpstra’s research is focused on the predictable changes, and the major
challenges experienced in existing organizational structures and management systems, as
small firms transition from start-up to the growth stage of development. They present
compelling qualitative and quantitative evidence to support their claim that organizational
transition is characterized by structural complexity, formalization, and decentralization.
Olson and Terpstra also contend that an organization’s stability and existence is
threatened if it is not willing to apply effective strategies in terms of developing new
structures and systems to accommodate growth effects. Based on research findings,
Olson and Terpstra conclude that most literature available on organizational life-cycles
focus on conceptual and anecdotal evidence as opposed to empirical evidence. They
propose the need for additional research in the link between organizational change and
life-cycle stages.
O’Neill, H. M. (1983). How Entrepreneurs Manage Growth. Long Range Planning, 16, 116123.
O’Neill contends that as companies manage growth, each face significant challenges
and must therefore develop strategies for growth. He presents a model that is based on
the varied experiences of several small business owners. O’Neill also outlines the tasks
entrepreneurs need to learn in order to complete the growth cycle. He explains that the
entrepreneur must thoroughly analyze the current operation, identify and make the most
of the business’s competitive advantage, and develop a system of management. O’Neill
also outlines five steps in successfully developing a sound business structure. These
include identifying the main functions in the firm, promoting and training managers, and
providing opportunities for skills development. Once these four steps are complete the
firm is expected to grow and flourish.
Osborne, R. (1994). The myth of the renaissance man: The balance between enterprise and
entrepreneur. Review of Business, 16(3), 36-40. Retrieved August 30, 2000, from
ABI_INFORM database (00865738).
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Osborne argues that people’s perception that successful companies are built on
executive’s competence, their experience, and credentials as leaders is a flawed
assumption. He describes society as being driven by competition, with the expectation of
reward when victory is achieved. Osborne conducted a study of entrepreneurs focusing
on their credentials, gross profit margin, market growth, and company cash flow
requirements. Based on findings he concludes that, while entrepreneurs are able to
influence profit margins, company growth can be attributed to the firm’s underlying
business concept and its ability to generate capital. He calls for a shift in the
entrepreneurial paradigm to include this concept. Osborne also challenges executives
with a list of questions intended to create a sense of balance between the entrepreneur and
the company.
Perrow, C. (1967). A framework for the comparative analysis of organizations. American
Sociological Review, 32, 194-208.
Perrow explains that organizations can be defined by the nature of work they engage
in, raw materials, and their technologies. He explains that the structures of tasks changes
with the technology being used. He also maintains that social structures are correlated to
technology and task structures. Technology is described as having structures that vary in
terms of the exceptions encountered and extent to which they can be analyzed or not. He
argues that technology is a better measure for comparing organizations.
Pugh, D. S. (1973). The measurement of organization structure: Does context determine form?
Organizational Dynamics, 1, 19-34.
Pugh explores the context of organizations, the most appropriate organizational
structures, and the level of flexibility each company is expected to have in order to
accommodate possible future change or growth. Pugh contends that in order to handle
the many business challenges, organizations need to design the required structure, and
develop measurement scales useful in measuring differences quantitatively. He presented
numerous questions with practical and informed answers. Based on his research he
identified six organization structure variables which he explains must be measured.
These include specialization, standardization, and standardization of employment
practices, formalization, centralization, and configuration. Pugh developed
organizational profiles for six organizations and maintains that more evidence is required
in terms of the course taken to change organizational structures.
Pugh, D. S., Hickson, D. J., Hinings, C. R. (1968). Dimensions of organization structure.
Administrative Science Quarterly, 65, 64-105.
The study identified six areas of organization structure which includes specialization,
standardization, formalization, centralization, configuration, and flexibility. Scales were
developed to measure organizational dimensions as well as to identify differences
between organizations. Based on findings the authors were able to develop a profile that
parallels the structure of an organization. This structure was then compared to other
organizations which resulted in four structural dimensions: structuring of activities, line
of control, concentration of authority, and the size of the supporting constituents.
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Pugh, D. S., Hickson, D. J., & Hinings C. R. (1969a). An empirical taxonomy of structures of
work organizations. Administrative Science Quarterly, 14, 115-125.
According to the authors the structure of work organizations can be categorized as
structuring of activities, concentration of authority, and line control of workflow. A
number of organizations were examined based on these three categories, and different
structures developed. These groups of organization structures include full bureaucracy,
nascent full bureaucracy, workflow bureaucracy, nascent workflow bureaucracy, preworkflow bureaucracy, personnel bureaucracy, and implicitly structured organizations.
Each group included variables such as size, dependence on other organizations, level of
technological integration, and organizational ownership. The study proved that
bureaucracy emerges in different forms depending on the setting; therefore, having one
bureaucratic structure is not sufficient.
Pugh, D. S., Hickson, D. J. Hinings, C. R., & Turner, C. (1969). The context of organization
structures. Administrative Science Quarterly, 14, 91-113.
This study examines the link between an organization’s structure and the context
within which it functions. Seven elements of organization context are examined and used
as variables in a regression analysis to determine three types of organization structures
already developed. These elements include: origin and history, ownership and control,
size, character, technology, location, and dependence in terms of its relationship with
other organizations and social environments. Correlations were obtained from a sample
of 46 organizations. Findings indicate that the size of an organization determines its
structure, while a level of dependence is likely to cause a concentration of authority.
Scott, M., Bruce, R. (1987). Five stages of growth in small business. Long Range Planning,
30(3), 45-52.
Scott and Bruce propose a business model that can be used by business mangers to
analyze the current status of a small business to determine the factors that facilitate
progress toward each development stage. The model highlights five distinct stages of
growth for a small business with a different crisis point associated with each stage of the
transition process. Scott and Bruce maintain that once managers anticipate and
effectively manage change at each stage, they can be successful in formulating strategies
that ensure the survival and future growth of the business. Scott and Bruce also contend
that all small businesses may not follow the same path, but may instead employ a
combination of two or more stages given internal and external factors.
Stevens, M. (1988). Guiding a business through it life cycle. D & B Reports, 36 (3), 38-49.
Stevens maintains that in order for a business to succeed, it must adapt superior
management systems and controls. He identified four stages through which an
entrepreneur must guide his/her business. The first stage is the existence stage which
involves building working relationships and a customer base. Once this is achieved, the
company moves to the second stage, survival. So long as the entrepreneur develops
realistic visions, commitments, an income stream, and maintains a market share with
potential for growth, then the business will move into the third stage, success. To go
beyond this stage to the maturity stage, the company must increase its customer base and
sales in order to break-even. Having a strong management support system is critical at
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this stage, since it allows the manager to focus on building new business and maintaining
strong links within the marketplace. Provided that the entrepreneur develops his/hers
skills and adapt with the company, corporate decline may be avoided.
Tice, C. (2007). Building the 21st century leader. Entrepreneur, 64-69.
Tice examines the characteristics of a great leader by comparing old and new
leadership styles, and maintains that the new leader possess skills that have been adapted
to the 21st Century. The new leader is characterized as the “enlightened warrior,”
because of his/her strategic abilities, passion, and creativity. Tice also discussed six key
traits critical to success in the changing workplace. These include: adaptability, selfawareness, people skills, purposefulness, decisiveness, and collaborative skills. Tice
adds that leaders need to behave in a manner that is exemplary to staff, foster innovation,
and execute their strategy.
Waldrop, H. (1987). How to manage a growing company. Working Woman, 12 (4), 39-42.
According to Waldrup, there is a pattern of changes that growth companies experience
in terms of what is need from their leaders. Growth requires that entrepreneurs make
changes to their management styles. Failure to do so is likely to result in the company’s
downfall. Management specialist, Jeffrey A. Hansen conducted a study of 213
entrepreneurs. Based on findings he identified three stages of development in an
entrepreneurial company, the most fitting management styles, and the objectives that
should be achieved. Jeffrey explains that with success comes the first stage of growth,
which involves developing an innovative business concept and applying it the business
operations. In the second stage the entrepreneur should regroup his/her priorities while
developing the organization. Finally, in the third stage, the entrepreneur should take
advantage of current market opportunities as he/she promotes the organization.
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