Leading People and Organisations
Assessment Task 2:
Table of Contents
Explain the differences in research between the Competing Values Framework and the 4plus2 formula?
The Competing Values Framework (CVF) was developed as a result of the evolution of four management models that were used during the nineteenth century. Quinn and Rohrbaugh (1983) developed the CVF model by defining the dimensions (i.e. internal versus external and flexibility versus control) that influenced a company’s success. Quinn (1996) further developed the CVF model by defining each quadrant and the associated criteria and actions (illustrated in Diagram 1). The 4plus2 formula was developed as the result of an empirical study of business performance by many academics over a fixed period of time i.e. a 10year period from 1966 and 1996. Research that resulted in the development of the 4plus2 model was finite in that the study was conducted over a pre-defined and set period of time i.e. a 10year period from 1966 and 1996. The actual study and analysis of the relevant business performance statistics lasted five years. The 4plus2 formula involved the analysis of company performance statistics and data by trained coders and in-depth studies of relevant management models by academic experts. More than fifty academics and consultants who used industry accepted tools and processes were engaged to identify, collate and analyse the performance information relative to the one hundred and sixty companies over the ten year period (Nohria, Joyce and Robertson, 2003). Research for the 4plus2 model was conducted on a limited number (160) of US firms whereas the development of the CVF model started out with US based firms in the early 19th century and eventually took into consideration events that affected firms all around the world and not just the US. For example the emergence of Japan in the eighties as a major producer of goods on the global market, the introduction of the internet and e-commerce, the rise of other Asian countries like China, South Korea, Taiwan and others that have become major producers of goods and services in the global market. The development of the CVF model continues to evolve with the emergence of significant events that affect the way in which the world does business today i.e. the Global Financial Crisis (GFC), the attack on the World Trade centre, the disintegration of the USSR and the emergence of the BRIC economies etc. In a dynamic new world of volatility, complexity and ambiguity executives needed a “time tested” tool like the CVF to assist in managing their environments (Quinn et al 2011, pg 12). Even though the research conducted in the development of the CVF and 4plus2 models was different (i.e. an historical, literature review for the CVF versus a ten year empirical study for the 4plus2 model), the relationship between the primary characteristics of the 4plus2 and the CVF are closely aligned. The similarities between the two models are explained below. Explain the similarities between the four primary practices, and the four quadrants of the CVF? Diagram 1, illustrates the relationship between the four models and the associated criteria and actions that define the CVF. Diagram 1
The four models (i.e. Human Relations, Open Systems, Rational Goal and Internal process) associated with the quadrants of the Competing Values Framework have a direct relationship with the primary practices of the 4plus2 formula. This relationship is summarised below: * The “Strategy” practice (4plus2 model) and “Create” action (CVF model) both promote innovation, change and growth. * The “Execution” practice (4plus2 model) and “Compete” action (CVF model) both promote productivity and profitability. * The “Culture” practice (4plus2 model) and “Collaborate” action (CVF model) both promote effective communications and...