The Competing Values Framework Essay Example

dominated by the open systems model while he rational goal model dominates the corporate world.

A Unitary System As the twentieth century was coming to an end, the frequency with which change occurred increased at an exponential rate, establishing "a highly dynamic environment filled with complexity, ambiguity and paradoxical demands", as Quinn (2003) describes it.The need to achieve organisational effectiveness in this type of environement created complex situations followed by complex responses. Most management problems can be understood only by examining them from several perspectives, so no model offers a complete solution. There are situations in which managers need to focus on the stability supported by the internal process model, like maintaining the culture of the company or the same line of products.

There are also times when companies benefit from the open systems approach of adaptability in order to keep up the pace with the market. Learn the difference between scientific management and administrative management. This is an example of how different models are applied by the same company, but at different times. Moreover, this is an isolated case, since most of the time different models are being used simultaneously. Frequently, companies need change and stability at the same time.

Despite the fact that each model contributes to the knowledge of management, none is sufficient in itself. The four models represent complementary elements in a larger whole known as the competing values framework, which "integrates them by highlighting their underlying values". (Soddy, 2008)Managers must meet the needs of their employees while pushing those same employees to do more with less to satisfy increasingly demanding customers ever more so

quickly. Managers must inspire innovation and risk-taking while making sure of the continuity and stability of the organization. One roof testifying that higher behavioral complexity expressed by executives leads to more efficiency and effectiveness in terms of growth and innovation is the study conducted by Hart and Quinn in 1993 on 916 CEOs.

During the study, what they found was that the ability to play multiple and competing roles produces a higher business performance. Here is what Hart and Quinn stated: "The CEO's with high behavioral complexity saw themselves as focusing on broad visions for the future (open systems model), while also providing critical evaluation of present plans (internal process model). They also saw themselves attending to relational issues (human relations model), while simultaneously emphasizing the accomplishment of tasks (rational goal model). " In real life all of these concerns are valid.Open Systems, the Model of Newcomers The central theme of the open systems model view of management is that organisations depend on the wider environment for inputs if they are to survive and prosper and that is the reason for which new born entrepreneurs dominantly expose their companies to this model. At the beginning, the entrepreneurs goes through a rocess of understanding who he is as a business man, what is his professional style, how must the company operate, what will the culture of the company be like, what is the best market segment for the company, who to create and balance the team.

A start-up's main focus is constantly brainstorming on what are the key features of the products or services it provides. It hasn't come up with a solid marketing strategy, doesn't know its

customers very well. They are in the testing stage. There is no concrete plan for the future of the company; the employees shape it with their effort, interests and initiatives. Entrepreneurial decisions cannot be made through an optimisation process in which mechanical calculations are made in response to a given set of alternatives.There is an endless relationship of sharing between the company and the environement and between departments.

In the globalised world we live today, everything is interconnected and the start-ups take advantage of it the most. Furthermore, Venkataraman (1997) offers a definition of the entrepreneur that correlates the existence of the entrepreneur with opportunities.Its small size makes a start-up flexible and enables it to react to new opportunities and rapidly implement hanges, at the same time giving it the possibility to be creative, whereas mathematical control would only slow down the process of reaching the right shape of the company. Effectiveness is evaluated based on the ability to adapt to change and acquire external support. All entrepreneurs are expected to facilitate adaptation and change, of course, but this core competency is especially relevant in the open system model.

Paying attention to the changing environment, identifying important trends and fueling and fostering innovation are fundamental tasks for managers applying this model. In addition, managers must build their power base and negotiate agreement before they can put their ideas into action. An important theory developed from the work of Eric Trist and Ken Bamforth (1951) at the Tavistock Institute in London introduced the approach that within the open systems model, the work system is a combination of a technological system and a social system.A company is a socio-technical

system. Each affects the other, so people need to manage both. The components of the social system are capabilities, social needs, psychological needs, relationships, learning opportunities, communication and work esign, while the technical system is composed of material, apparatus, stages in an operation, physical location, buildings and facilities, maintenance, supply.

All those components stand as a foundation of any start-up. The Corporate Focus Inside a corporation, every stage and department is sorted out. The testing stage is long gone.While start-ups do not seek to optimize the functionality of each branch and focus on trying to understand how their departments should work in accordance the companys market segment and which department is more important, the orporate world cannot afford to experiment.

For such a big organisation to persist through time, it needs to operate with a mathematical precision, otherwise it will fall apart in time, as it is historically proven, not only by companies, but by kingdoms and empires as well. Why is the corporate world dominated by the rational goal model?Because, as Taylor argues, "the principal object of management should be to secure the maximum prosperity for the employer, couple with the maximum prosperity for each employee. The words mean the development of every branch of the business to ts highest state of excellence, so that the prosperity may be permanent. " Improving and increasing productivity and profitability is the central criteria of effectiveness for the rational goal model. This requires that all members of the organisation understand the mission of the organisation and what they must do to help achieve that mission.Managers focusing on the competing at all levels need to have a thorough understanding of

the external environment before they can develop an appropriate vision of the organisation.

To turn that vision into reality, managers must ommunicate not only the broad vision but must also clarify expectations for employees through processes such as planning and goal setting, and designing and organising work. Finally, the effective competitor must translate goals into actions with effective execution.Competing effectively in todays fast-paced environment requires a strong work ethic and the ability to take oriented and work focused. They are characterised as having high interest, motivation, energy, and personal drive.

They are supposed to accept responsibility, complete assignments, and maintain high personal productivity. This usually involves motivating members to increase production and to accomplish stated goals. Conclusion Therefore, I have showed you that, due to the present global circumstances, all four management models are applied within any type of company.As managers seek to influence others to add value to resources, they use their mental model of the situation to decide which theory of management to apply.

The competing values framework is an approach that views each of the four models as elements of a larger, integrated model. Not only have I showed you why, but I have also talked about how they are applied. Moreover, I explained why one model is dominantly used in accordance with the type of company. I explained that in the start-up phase, a company is dominated by the open systems model and that corporations are dominated by the rational goal model.