Organization Life Cycles;

Phases in Organizational
Development Practices

Hasbul Hadi bin Hamzah (GS55871)

Noorazlina binti Mohd Noor (GS55465)
Mardiana binti Abdul Rahman (GS55467)
Enjoy the Movie!
 Not resist change…,
only have good reasons to resist!

Excuses?
 1. Not resist change, but…
Not see benefit for changes!
 2. Too much effort,
too much time, too high risk!
The –ve is higher than the benefit!
3. Not good for me,
because I’m comfortable in
my current situation!
4. Not in love with suggested change!
Do You rather busy ‘fighting alligator’
than climbing the mountain?

Next: Life Cycle of resistance to change

Change and Reinvent
• Many surveys have found that such changes often have unintended
consequences.
• Organization today face a major challenge in managing change
effectively – high cost
• Organization in dynamic environment must have the capacity to adapt
quickly in order to sustain.
• “Any business that is satisfy with the present state of affairs is
deluding itself. Sitting still or moving at a snails’s pace effectively
moving backward” says the CEO of a major Fotune 500 company.
• The most serious challenge to improving program is always people.
Forces that cause resistant to
change
Individual level
• Alteration of set patterns of behavior, defined
relationships with others, work procedures and job skills

Organization level
• Policies, procedures, sunks costs, organization structure,
manufacturing processes and work flow
The Life Cycle of Resistance to
Change
• Few people who see need to change
Phase 1 • Conform to establish organizational norms

• Movement for change grows, forces identifiable

Phase 2 • Change – discussed, understood by more, lessen perceived threat

• Decisive battles, direct conflict between forces for and against change
Phase 3 • life or death to change effort
The Life Cycle of Resistance to
Change (cont.)
• Remaining resistance – stubborn, nuisance
Phase 4 • Need wisdom, convince the benefits

• Few resisters
Phase 5 • Conflict is subtle

Next: Life Cycle/ Phases of Organization’s growth

Source: Larry E. Greiner, 1972. Evolution and revolution organizations gro w.
 What is IKEA?
I
 Founder: Ingvar Kamprad
 Established in Sweden
 A European multinational group that designs
and sells ready-to-assemble furniture, kitchen
appliances and home accessories
 As of June 2019, there are 433 IKEA stores
operating in 52 countries and in fiscal
year 2018, US$44.6 billion worth of IKEA
goods were sold
I = Ingvar  Most of IKEA's stores and factories are owned
K = Kamprad by INGKA, a holding company controlled by
E = Elmtaryd the Stichting INGKA Foundation, one of the 40
A = Agunnaryd wealthiest foundations in the world.
 Life Cycle of IKEA
Phase 1: Make & Sell
• 1943: IKEA is founded by Ingvar
Kamprad
• 1948: Furniture is introduced into
the IKEA range
• 1951: The first IKEA catalog is
published
• 1953: Furniture showroom opens
in Älmhult, Sweden
Phase 2: Efficiency of Operations
• 1956: Designing furniture for flat
packs and self-assembly
• 1958: The 1st IKEA store opens in
Sweden
• 1959: The 100th co-worker join IKEA
• 1960: The 1st IKEA restaurant is
opened
• 1961: Product testing begins
• 1962: Develops strong relationships
between IKEA and Polish supplier
 Life Cycle of IKEA (cont.)
Phase 3: Expansion of Market
• 1963: Expand market out of
Sweden
• 1965: Largest IKEA store opens
in Stockholm, Sweden. The
opening of self-serve warehouse
• 1976: The Testament of a
Furniture Dealer: It documents
IKEA’s vision & business idea
Phase 4: Consolidation of
Organization
• 1982: IKEA Group is formed
• 1985: Has 10,000 co-workers and 60
stores
• 1990: The first environmental policy at
IKEA (Our responsibility)
• 1991: IKEA acquires its own sawmills and
production plants- Swedwood
• 1997: IKEA on the web (www.IKEA.com)
• 1999: The IKEA group grows to 50,000 co-
workers and has 158 stores in 29
countries
• 2004: The 200th IKEA store opens in US
• 2006: IKEA food is launched
 Life Cycle of IKEA (cont.)
Phase 5: Problem Solving & Innovation
•2008: announced that it had created IKEA
GreenTech
•2014: added an augmented- reality feature
to its catalogue, allowing customers to see
what products would look like in their homes
•2015: Launched Space10- IKEA’s research hub
and exhibition space that brings together
designers, artists, and technologists to
innovate tomorrow’s new products and
solutions
•2017: launched a kitchen made from recycled
plastic bottles and reclaimed wood 
People always ask, “Is the change over? Can we stop
now?” You got to tell them . “No, it just begun.” They
must come to understand that it is never ending.
Leader must create an atmosphere where people
understand that change is a continuing process, not
an event.
- John F. Welch, General Electric’s retired CEO