Crelner (1972) lndlcaLed LhaL Lhe fuLure of an organlzaLlon be less deLermlned by Lhe exLernal facLors

Lhan lL ls by Lhe prevlous experlence of Lhls organlzaLlon Pe has uLlllzed Lwo new Lerms whlch are
'evoluLlon' and 'revoluLlon '
1he Lerm volotloo ls used Lo descrlbe Lhe prolonged perlods of growLh where no upheaval occurs ln
organlzaLlon pracLlces
1he Lerm 'kevolotloo ls used Lo descrlbe Lhe perlods of subsLanLlal Lurmoll ln organlzaLlon llfe
Crelner (1972) has also poslLed LhaL a company grows Lhrough developmenLal phases Lach evoluLlonary
perlod generaLes lLs own revoluLlon and Lhe subsLanLlal Lasks of managemenL's soluLlon Lo each
revoluLlonary perlod deLermlne wheLher an organlzaLlon wlll move Lo Lhe nexL sLage of evoluLlonary
growLh
llve key dlmenslons for bulldlng a model of organlzaLlon developmenL
1 ge of Lhe organlzaLlon
2 Slze of Lhe organlzaLlon
3 SLage of evoluLlon
4 SLage of revoluLlon
3 CrowLh raLe of Lhe lndusLry
ge of Lhe organlzaLlon ls an essenLlal dlmenslon of any developmenLal model Cbvlously organlzaLlonal
pracLlces have noL malnLalned LhroughouL a long Llme span 1hls ls evldenL LhaL managemenL problems
and prlnclples are rooLed ln Llme
Slze of Lhe organlzaLlon ls Lhe second dlmenslon of developmenLal model n organlzaLlon's problems
and soluLlon Lend Lo change remarkably as Lhe number of employee and sales volume lncrease ln facL
lf Lhe company never changes ln slze lL probably remalns Lhe same managerlal lssues and pracLlces for
Lhe lengLhy perlods dversely an lncreaslng number of employee sale volume eLc have lmplemenLed
a numerous problems as coordlnaLlon communlcaLlon new funcLlons as well as lnLerrelaLlon
SLage of evoluLlon ls Lhe perlod of Llme when no upheaval occurred Cnly modesL ad[usLmenLs are
necessary for malnLalnlng growLh under Lhe same paLLern of managemenL
SLage of revoluLlon ls Lhe perlod of Llme when Lhe Lurbulences and upheaval have appeared 1he vlLal
mlsslon of an organlzaLlon ls Lo flnd and apply a new seL of managemenL pracLlces lf Lhe company falls
Lo abandon Lhe prevlous pracLlces lL wlll be unable Lo move Lo Lhe nexL sLage of evoluLlon and an
lnevlLable consequence ls LhaL Lhe company fold Lhe buslness or level off Lhelr own raLes ln addlLlon
Lhe applled soluLlon aL Lhls Llme wlll be Lhe basls of managlng Lhe nexL perlod of evoluLlon each
evoluLlon wlll creaLe lLs own revoluLlon 1he company ls faclng by an lrony quesLlon Lhe soluLlon ln Lhls
Llme wlll be Lhe problem laLLer daLe
(noLe lf managers of a company feel unable Lo adapL new pracLlces Lhey wlll leave and flnd anoLher
company belng ln Lhe lower developmenLal phase)
Pow does company recrulL a quallfled manager wlLh Lhelr own evoluLlon or revoluLlon sLages?
CrowLh raLe of Lhe lndusLry
(noLe Crelner menLloned LhaL evoluLlon and revoluLlon closely assoclaLe Lo markeL envlronmenL lL has
Lurned adversely whaL he has deflned before Lhe fuLure of organlzaLlon less deLermlned by ouLslde force
buL growLh raLe of lndusLry ls acLually an exLernal facLor whlch affecL slgnlflcanLly Lhe growLh of
company)
Company ln fasL growLh lndusLry Lend Lo experlence revoluLlonary perlod qulcker Lhan oLher company ln
slow growLh lndusLry because LhaL company has Lo employ more sLaff need a new organlzaLlonal
sLrucLure and apply new managemenL pracLlces LvoluLlon can lasL long and revoluLlon delayed when
Lhe proflL galned easlly neverLheless revoluLlon sLlll occurs and when lL appears lL becomes much
more reverse and more dlfflculL Lo resolve
llve phases of growLh
(1) CreaLlvlLy
ManagemenL focus Cnly make and sell
CrganlzaLlonal sLrucLure lnformal
CommunlcaLlon lrequenL and lnformal
ManagemenL sLyle lndlvlduallsLlc and enLrepreneurlal
ConLrol sysLems MarkeL 8esulLs
ManagemenL reward emphasls Cwnershlp

(1) Leadershlp crlsls
s Lhe company growlng larger new funcLlon applled enLrepreneur ls confronLed wlLh unprecedenLed
managlng responslblllLles 1hey do noL wanL Lo sLay aslde buL Lhey have Lo hlre manager Lo apply Lhelr
knowledge and managlng skllls Lo lead company Lo Lhe nexL evoluLlon sLages
(2) ulrecLlon
ManagemenL focus Lfflclency of operaLlon
CrganlzaLlonal sLrucLure CenLrallzed and funcLlonal
CommunlcaLlon lormal and lmpersonal
ManagemenL sLyle ulrecLlve
ConLrol sysLems SLandard CosL cenLers
ManagemenL reward emphasls Salary merlL lncrease
(2) uLonomy crlsls
1he hlghesL level of manager ls responslble for monlLorlng maklng Lhe dlrecLlon and Lhe lower manager
consldered as a funcLlonal speclallsL [usL follow and could noL make Lhe lndlvldual declslon 1hey wlll
soon reallze LhaL Lhey posses dlrecL knowledge from markeL and machlnery Lhan Lhelr leader
consequenLly Lhey have Lo make a cholce keeplng follow Lhe scenarlo or maklng Lhelr own lnlLlal
buslness
(3) uelegaLlon
ManagemenL focus Lxpanslon of markeL
CrganlzaLlonal sLrucLure uecenLrallzed and geographlcal
CommunlcaLlon lnfrequenLly and Call or emall
ManagemenL sLyle uelegaLlve
ConLrol sysLems 8eporL and roflL CenLers
ManagemenL reward emphasls lndlvldual 8onus
(3) ConLrol crlsls
1op execuLlves senses LhaL Lhey are loslng conLrol over hlghly dlverslfled fleld operaLlons Managers aL
auLonomous fleld Lend Lo play Lhelr own game and breed a parochlal aLLlLude 1hls ls Lhe Llme when Lop
execuLlves wanL Lo regaln Lhelr power buL are noL able Lo apply cenLrallzaLlon aL phase 2
(4) CoordlnaLlon
ManagemenL focus ConsolldaLlon of CrganlzaLlon
CrganlzaLlonal sLrucLure LlfesLaff and producL groups
CommunlcaLlon lnfrequenLly and Call
ManagemenL sLyle WaLchdog
ConLrol sysLems lan and lnvesLmenL cenLers
ManagemenL reward emphasls roflL sharlng and sLock opLlons
(4) 8edLape crlsls
Lack of confldence gradually bullds beLween headquarLers and Lhe fleld Llne managers resenL heavy
sLaff dlrecLlon Cn Lhe oLher hand sLaff complalns abouL uncooperaLlve and unlnformed llne managers
8oLh groups crlLlclze bureaucraLlc sysLem
(3) CollaboraLlon
ManagemenL focus roblem solvlng and lnnovaLlon
CrganlzaLlonal sLrucLure MaLrlx of Leams
CommunlcaLlon 8eal Llme managemenL and dally declslon
ManagemenL sLyle arLlclpaLlve
ConLrol sysLems MuLual goal seLLlng
ManagemenL reward emphasls 1eam bonus
(3) Crlsls of whaL
1he organlzaLlon has become large and old 1he nexL revoluLlon has noL revealed buL Lhe auLhor has
suggesLed a phase of psychologlcal saLuraLlon"
lmpllcaLlon of hlsLory
know where you are ln Lhe developmenLal sequence
1he Lop managers should be aware of whaL sLage Lhelr organlzaLlon ln and Lhey should work wlLh Lhe
flow raLher Lhan agalnsL lL Lach phase presenL lLs own sLrengLhs and experlences LhaL wlll become
essenLlal for success ln Lhe subsequenL phases
8ecognlze Lhe llmlLed range of soluLlon
Lach revoluLlonary sLage can be ended by only speclflc soluLlon 1hls soluLlon musL be dlfferenL Lo Lhe
soluLlon applled ln Lhe prevlous revoluLlon
8eallze LhaL soluLlon breed new problem
1he greaLer undersLandlng of organlzaLlon hlsLory wlll help manager Lo evaluaLe Lhe organlzaLlon
problems and predlcL Lhe fuLure as well as make declslon of grow or noL grow