Change Management –MGMT625 VU
© Copyright Virtual University of Pakistan 46
LESSON # 20
CLASSIFICATION OF ORGANIZATIONAL SPECIES
Another major issue is the classification of organizational specie. Like biology it emphasizes
population within a species as unit of analysis. But then the problem is what characterizes an
organizational form (Specie)? Hannan and Freeman state, “An organization form is a blue print for
organizational action, for transforming inputs into out puts.” The blue print can usually be inferred
by examining any of the following:
• Formal structure of the organization in the narrow sense, that is through written rules of
operations.
• Pattern of activity within the organization- what actually gets done by whom.
• Normative order- the ways of organizing that are defined as right and proper by both
members and relevant sectors of the environment
Ulrich defines form as a “legally defined entity” with a population of firms consisting of similar
competencies, structures and strategies. Similarly organization form can be determined according to
other criteria, for e.g. technology, industry grouping and product.
2. Extent of Environmental Selection
The population ecology model stress that the environment determines the distribution and form of
organization through selection. Here environment in a biological sense is not a objective
phenomenon. Biologists refer to a very interesting phenomenon of environmental niche. The
environmental niche in an environment perceived by ANT is clearly different from that perceived
by an ELEPHANT; minor changes in an environment may spell the demise of population of ANTS
but be unnoticed by an ELEPHANT. In the same way the environmental niches inhabited by
SMALL and LARGE organizations are subjectively different. Therefore different species
(organization) perceive and experience the environment differently. Another thing to be take note
of is that environments are multidimensional and complex, not similar for all type of organization.
Hence environment is different for different type of organizations, while the ecological approach
suggests that one focus one common fate with respect to environmental variation.
Now the question is what is the effect of changes in environment on the mortality of population.
Individual organization mortality may be there out of an accident, incompetence, or rational choice.
So distinction should be there when owners arbitrarily decide to close down the business for
personal or for economic reasons. Similarly owners also set the tone for level of growth and
profitability. Another scholar talked of vital rates of founding and mortality (entries and exit), and
process of founding and mortality of organization. So the thrust of organization ecology should be
the investigation of the leading question, how social environment shapes the following dimensions
of organization:
• Rates of creation and death of org. forms,
• Rates of org. founding and mortality, and
• Rates of change in organization forms.
What is more important to discuss and for further research is the relationship between adaptation
and selection, and determinant of vital rates.
Relationship between Adaptation and Selection
One such empirical study conducted by Carroll found the role of strategy in a way that the timing of
executive succession was found to be and important factor in organization survival. Similarly in
biological sense, adaptability is an individual behavioral phenomenon. Penning stressed the role of
adaptation and according to him, “Organization will maneuver themselves in their environment, so
docsity.com
