The limitation of Change Management Theories

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Each and every theory has been developed based on some assumptions; therefore those assumptions are not applicable for the real world theory. At that situation validity and applicability of theory is problems.

Business environment is changing rapidly, under those situations the theory that was applied in the past, not applicable for present situations. It is get obsolete.

All theories are created in mind and those were developed by different type of peoples. That highlight different theories highlight different context problem analysis and coping strategies. There is no universally applied or common theory. All that theories existed make confuse that which theory need to be used or put in to practice based on problem or scenario existed.

Physiological barriers - most of organizations running leader are don't like use different theories. To make their decision used own experiences and knowledge as well as they don't respect those theories developers. In that type of scenario change management theories are not valid and impractical.

In generally the above limitations can be seen those theories. In practice chaos theory can be considered in the current world. All the political changes in the world directly affect on the different regions business development, economic cooperation, nationalization. Therefore risk of political changes is applying some scenarios. In the Microsoft and IBM companies are analyzed political changes because of research and development budget allocation is depending on the leader who becomes power. Another example is Sri Lanka war situation has made unstable situation in politically, economically. But once that won war everything get settled within reasonable time duration. Another popular example is in the organization if any company is going to introduce new IT operating within the organization, which is real headache for people who work in that organization. They don't like those types of changes because of the following reason; fear of lost of job, complicating their work, sometimes which might effect on the informal relationship. Therefore chaos theory can apply in some practical situations.

L2 - Case study - Role of David Style in review of mission and goals as leader

There many of the leadership theories out of those following main theories can elaborate;

Leadership theory


1. Trait theories

This theory is described there are number of common personality and characteristics, and leadership is emerged on that those trait. When it further analyzed those leaders internal belief and processes that are creating vital effect for leadership qualities. As example following qualities and characteristic can be seen in the these type of leaders;



Good decision making

2.Behavioral theories

Under this theory is describe, how leaders are behave in terms support to work, dictate, encourage or accept. According to curt levy there are there 3 type of leadership can be identified. Those are;

Autocratic leaders - make decisions without consulting their team.

Democratic leaders - Always take input from the team in the decision making.

Laissez -faire leader - Allow team to take many decision

Contingency theory

This says that the most appropriate leadership is emerged based on the situation.

Power and influence theory

Under this theory describes that leaders are use their powers and influence to get the done things correctly.

Recommended theory is that for David style is behaviors theory. Here the above mentioned of 3 approaches can be used in balancing based on the scenario. Especially mission and goals are major key drivers of company. Therefore to review it very well both party (CEO and staff) must be involved. If there are any deviations from the mission and goals apply autocratic behavior at the same time can assist to improve the organization mission and goals further.

L3 - Personal development plan for 1st 3 month

Before develop the training development plans as a leader need to identify the objectives company and each individual needs. To identify the organizational objectives need look at the corporate vision, mission and goals; based on the training must design. Most of companies' common corporate goals are;

Maximize shareholders wealth

Company growth

Increase the market share

Increase profitability

On the other side individuals goals need to be analyzed. Some individual needs are;

Professional development (Ex. Skill based trainings, providing technical knowledge, providing the overseas training to increase the capacity.

Personal development (Ex. Promotions, enhancing & supporting to upgrade knowledge, benefit)

To balance between to different end at the first stage need carry out the individual need analysis by using survey questionnaires. By using that survey questionnaires need to analyze the followings;

Their job satisfaction & if they dissatisfy with the job need to collect reason for that.

Satisfaction of existing training, training methods, happiness of training providing venue.

Suggested trainings methods, future required training and suggested training holding venue.

The above facts give valuable insight to develop training plan based on the different staff training requirement. From the organizational perspective expected skills are, personality development, leadership skills, decision making skills, negotiation skills, inter personal skills development, etc. Those skills provide to develop the above personal and professional development in the job environment. Therefore training plan need to be;




Personal development training

Leadership skill development training

Decision skill development training

Need to cover

Personal goal setting in relation to organizations goals. As an example if X staff member is expected £1600 salary increment he or she must achieve given target within the time frame.

Evaluation the achievement

Giving example well developed role model of

Spiritual development

Need to cover

How to become leader.

Qualities of well developed leaders

Example leadership role model

Challenges in the leader in the 21stcentury.

Need to cover

Different decision making techniques (simple &complex)

Factors need to considered in decision making (environmental factors and organizational interest)

How to evaluate the effectiveness of decision making.

Evaluating effectiveness of training via survey and real achievement can be measure their personal position after on year period of time.

L4. Critically compare and contrasting how company respond to internal and external triggers of changes

Functional activities

Comparison contrasting respond of changes


Operations managers need to look at the both internal &external changes due to the following;

Internal changes might be changes of production process, service providing process, methods and polices directly affect on internal staff because of they are the people who are facing effect of those changes. Based on that strategies must be changed.

Introduce of new product design or new service activities need to look the external environment factors such as quality of raw materials, lead times of suppliers, logistic, communication. The above motioned changes are derived from external environment. Therefore based on that operations strategies need to be developed.


Marketing managers also need to look at internal policies changes such as sales on credit, credit dates, discounts based on that they need changed their approaches and marketing strategies to get the maximum result by coping with those changes. In the external environment changes might be from the perspective of marketing disposal income changes, influencing factors and person buyer decision making, attitude towards products, competitors and their actions, cultural changes, expected after service level, etc. based on those changes marketing managers of the company need to develop the marketing mix strategies to multiage risk in the external environment.


From the point of finance policies are the most crucial changes. That hardly effect on the every functions of the organization. Pricing policy, analysis of cost and allocation of the overheads, budgeted profit margin changes, dividend policy changes, etc. These changes are directly influencing people's activities such as manager's decision making process, create pressure on them to achieve the sales targets, sales people are become fed up with theses changes. Therefore finance strategies need to develop by considering those future internal effects. As an external changes increases of inters rate, tax, exchanges rates, economic downturns are directly affect on the finance decision making. Technological changes are effect on the management reporting such new ERP systems. On the other hand introducing new accounting standards and practices highly effect on the people and accounting report. Therefore finance people need to develop coping strategies based on that.


Human resource most important part of the organization. Internal procedures, policies and decision are directly affected on the internal staff. Those changes might be effect to motivate or demotivates people. Therefore the above changes must be made by considering staff common interest and needs. External environment changes are the changes in the social and economic environment. Changes of labor force, level of education, age, income are directly affect on the future forecasted labor requirement. Therefore HR strategies need to develop based on the both environmental changes.

L5. Critical assessment of the general limitation of change management new theories and defend theory of against these charges

In the modern change management theories are as follows;

Risk analysis - Here talk about that different risk creating different impact on the business such political risk, economic risk, market risk, physical & ecological environmental risk, legal risk.

Force field analysis - Under this analysis do the analysis force for changes and forces against the changes .This is analyses to determine force against the decision making

Win - Win theories - Here talk about the parties who make negotiation or do business or any other matte negotiate to gain mutual advantages

Unfreeze - change - Refreeze model

Under unfreeze assume that current way of doing things no longer works, if do not learn new things

Changes might be safe circumstance to in which to experiment, opportunities for training and practices and support an encouragement

Refreeze highlighting rewarding, appraising, training

The above mentioned theories are having same limitations as above mentioned L1. Therefore as a defend theory can be used risk analysis theory. All the modern business organizations are talking about the risk analysis. They are disclosing potential risk which affect on their organization in their annul report. But the limitation is that every and each organizations are disclosing similar set of risk. That is not happening in practice. Based on the nature and operating style, management style risk are totally different each other. Therefore modern theory of change management, risk analysis does not shows real situation of the business.

L6. Case 2 - Electrical goods - changes in culture effectively compete in market

According to information provided in the case has highlighted cultural changes has been made to compete in the market very well. But effect of the cultural changes made huge impact on the two groups. One is internal staff and the other peoples are customers. Here internal staff is the vulnerable parties' effect of those cultural changes. Therefore to adopt those cultural changes takes time and some staff member is not able manage this change. It might lead increase labor turnover rate and internal conflicts, sub optimization, collapse marketing relationship with customers, etc. Therefore to manage this kind of the effect companies need to develop different programs to adopt the new culture such as get together, different trainings which are relate to new culture changes, different internal marketing programs such as holding internal staff competition (Ex. Best idea generator, best achiever or best performer)

From the customer perspective cultural change might be slight effect or if the cultural changes are not match with customer's life style, social status; it will be harder effect on the customers. That will leads to lost of customers; competitors attract the customers by using new cultural weakness. Therefore to mitigate this risk company need to good training for internal staff as well as marketing team need carryout creative and hart touchy advertising program how the new culture respect to the customers based on their social status, life style comparing with the competitors. This must be consistent message based on the target market needs and interest.

L7. Case 3 - Advise Global by using change management tools and techniques before approaching international market

The following main tools might be used to get analyzed the global environment changes by Gold plc. Those techniques can be divided into following ways to analyze different processes which face by gold plc.

Basic processes

Micro tools

Macro tools

Diagnosis global environment processes changes Ex. Export and import requirement changes

Questionnaires, active searching tools, mapping can be used to get analyze process changes

Appreciative inquiry Future forecasting

Psychological change processes

Various coaching techniques, peer mentoring, meta mirror, 6 hat thinking.

Open space technology

Future search conference

Learning process

Dialogues, tools for self reflections, mentoring

Formal training, on the job, Open space technology

concept building process

Visioning, creativity techniques of the company that apply (ex. Walt Disney cycle)

Project management cycle, appreciative inquiry, scenario techniques.

Implementation processes

General management theories and techniques applies

General management techniques, real time strategic changes

Management of all changes processes

General management techniques

General management techniques

Information process

Tools for recognizing and utilizing the different thinking styles, pacing and leading

Public relations, campaigns , intranets, stakeholders forum

The above techniques are applicable for some scenarios. But the company needs to use strategic management and marketing management tools & techniques rather using the above total tool and techniques. Therefore company needs to analyze the following environment before approach global market by using PESTEEL analysis techniques;

Economic environment in global

Economic environment changes are create huge impact all over the markets.

Trend of GNP

Trend of GNP shows economic growth and downs.

Its help to determined income, export and import and balance of payment

Business cycles

Analysis of economic depression or boom

Help to analyze decrease or expand sales and production

Disposable income as globally

Disposable income help to determined the price of the cars

Segmenting the market into different categories.

Interest rates

This is help to analyze cost of borrowing

Impact on capital expenditure of the company.


Affect on factors of production such as materials, labor and components which are used to produce car.

Help to determined the price and cost of the cars

Social environment

Changes of income, age, education and level of employment can be analyzed by these changes. Here most important factor is to introduce new car model social environment is play vital role.

Legal environment

Impact on corporate law

mergers and acquisition

anti competition

customer protection laws

Foreign currency usage regulation

environment protection law

Help to determine extra tax burden and legal impact on the company

Technological environment

Technology environment changes

To develop user friendly and environmental friend cars. Ex

Creating new distribution channels Ex. online ordering

new technological application for plant operations

Risk Areas

Threat from natural environmental risk

Some of natural environment impacts stopped business operations. Cyclones, snow are directly affected plant operations and product distribution.

Changes in Interest rate risk

Interest rate makes huge impact on cost borrowings.

Directly affected on financial cost and reduce profitability

Make impact on the cost of material and components (supplier prices)

Raise the end price of the cars.

Effect of changes in exchange rate

Changes of exchange rate is directly affected

Profitability of the company and creating loss on company

Money appreciation and depreciation derived by economic activities like import and export.

Labour turnover rate

This leads;

Inefficiencies plant operations - new staff does not have good experience

Increase cost of training and development of new staff

Leakage of sensitive information

This risk might leads

Competitors attack

Government institution such as customs, Inland Revenue creating tax issues.

In addition to that five force analysis can be used the company to get analyze the global scenario.

L8. Critically assessing the role of a leader in 21st century based on leadership literature framework and competencies with impacts on finance, marketing and administration

In the 21st century leaders characteristic in terms of qualities & skills; those are;

Ability to forecast future

Through knowledge of business

Problems analysis and make decision quickly

Interpersonal skill and networking or relationship skills

Negotiation skills

Creativity skills

In the traditional theories are not looking at the above major skills which are very essential to drive any type of organizations. To manage the following organization major functions




To manage finance team the senior manage need to have subjective knowledge and experience and decision making skills, otherwise he or she cannot be a good leader in terms of skills. As an example finance manager or accountant must be through in Accounting standard to carry out his job perfectly.


Every marketing manager who is leading marketing department must have future forecasting ability and creativity and decision making skills to manage his functions properly. Not only must that he have interpersonal skills to manage sales forces.


Manger who is overlooking the administration function specially need have interpersonal skills to manage people's behaviors and deviation from the organization rules and regulations.