A sequence of stages of growth and development through which organizations may pass Four principal stages: Organizational birth Organizational growth Organizational decline Organizational death
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Kozhikode Organizational Life Cycle
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Kozhikode Five Phases of Organizational Growth (Greiner’s Model)
Organizational Life Cycle 4
Five Phases of Organizational Growth (Greiner’s Model) Five key dimensions: Age of the organization Size of the organization Stages of evolution Stages of revolution Growth rate of the industry Stages of evolution (Incremental change / Convergence): Quiet periods of prolonged growth when only modest adjustments appear to be necessary for maintaining growth Stages of revolution (Discontinuous change / Upheaval): Turbulent times typically exhibiting serious upheaval of management practices
Management Make & sell Efficiency of Expansion of Consolidation Problem
Focus operations market of org solving & innovation Org Informal Centralized & Decentralized Line, staff & Matrix of Structure functional & geographical product teams groups Top-Mgt Individualistic Directive Delegative Watchdog Participative Style & entrepreneuri al Control Market results Standards & Reports & Plans & Mutual goal System cost centers profit centers investment setting centers Mgt Reward Ownership Salary & Individual Profit sharing Team bonus Emphasis merit bonus & stock increases options Crisis of Leadership Autonomy Control Red Tape ???
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Kozhikode How companies grow? (Greiner’s Model)
Organizational Life Cycle 7
Stages of Decline and the Widening Performance Gap (Weitzel & Jonsson’s Model)
Organizational Life Cycle 8
Stages of Decline (Weitzel & Jonsson’s Model) Stage 1: Blinded Organizations are unable to recognize internal / external problems that threaten their long-term survival Stage 2: Inaction Denial despite of clear signs of deteriorating performance Stage 3: Faulty Action Taking wrong decisions which do more harm than improvement Stage 4: Crisis Now only radical changes in strategy and structure can stop the decline Stage 5: Dissolution Decline is irreversible and inevitable