ADVANTAGES OF SCALE IN ORGANIZATIONS

IMPLEMENTATION STAGE: Restructure and reengineering

The growth of the Organization Stages of the organizational life cycle The stages of organizational decline as a result of growth and

environmental risks.

CAUSES OF DECLINE
BIG COMPANIES SMALL COMPANIES

Economy of Scale Flexibility

Vulnerability Environmental Decline or Organizational Atrophy

Global reach. Compete on a global scale Reaction capacity Competition

Invest in new technology, control distribution Flat, organic structure

channels
Stimulates innovation and commitment
Stages
Remain economically healthy
It allows to serve market niches

Having power in the market

1. BLINDNESS: Problem: External or internal changes not detected. How to avoid it: Effective tracking, timely information.
2. LACK OF ACTION: Problem: Deny the signs of poor performance. How to Avoid it: Recognize and take action through greater participation, decentralization
3. DEFECTIVE ACTION Problem: Bad performance indicators cannot be overlooked. Solution: Important Changes (Reduction of personnel) communicate the staff.
SYSTEMS AND PROCEDURES ARE NEEDED FOR GUIDANCE AND TO CONTROL THE INEFFICIENCIES THEY COULD 4. CRISIS Problem: The Company goes into a state of panic, chaos. Solution: Reorganization. Senior managers are replaced and there are revolutionary changes in

BRING TO INNOVATE. structure, strategy, culture. Severe reduction of personnel.

5. DISSOLUTION Problem: Loss of market and reputation. Irreversible decline. Solution: Close with order and reduce trauma

Combine the resources and scope of a large company with the simplicity and flexibility of a small company.

ADEQUATELY REDESIGN THE STRUCTURE.

Interpret the needs of the organization and respond

adjusting what is necessary, so that the company is in

the right stage.

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ENTREPRENEURIAL STAGE: COLLECTIVITY STAGE: FORMALIZATION STAGE: ELABORATION STAGE:

Feature: Not bureaucratic Feature: Pre bureaucratic Feature: Bureaucratic Feature: Very Bureaucratic
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