vikram chawla
Vikram Chawla
ORGANIZATIONAL LIFE CYCLE
The organizational life cycle is a sequential and predictable pattern followed by most of the organizational as they grow and develop. Organizational typically develop from small to large units by moving through stages of a life cycle.There are four stages of organizational life cycle:
Birth stage: In this stage company is created. The founder is usually an entrepreneur. The founder is responsible for all the managerial activities and makes all the decisions. There are some features such as:
*The new organization is informal.
*There are very few rules and regulations.
*There is no professional staff.
*There is no internal system for planning, performance evaluation and coordination.
Youth stage: This stage is characterized by growth and expansion of all organizational resources. The company adds employees as its products and services enjoy increased sales. A few trusted employees take part in the decision making process but it is still centralized. A few professional and administrative personnel are hired there is some sort of a division of labour.
Midlife stage: This stage is a period of gradual growth and stability. By the time the organization has reached this stage it has become large and reasonably successful. The features of this following stages are as follows:
a) Formalized bureaucracy with functional departments.
b) Decentralized authority.
c) Large set of policies, rules, regulations and systems.
d) Extensive division of labour with little scope for creativity.
Maturity stage: During this stage the organizational becomes very large, mechanistic and specialized organization. There is a complete set of bureaucratic rules, regulations and policies. It must be noticed that each organization moves through the life cycle at its own pace and in its own manner.
:smile:
The organizational life cycle is a sequential and predictable pattern followed by most of the organizational as they grow and develop. Organizational typically develop from small to large units by moving through stages of a life cycle.There are four stages of organizational life cycle:
Birth stage: In this stage company is created. The founder is usually an entrepreneur. The founder is responsible for all the managerial activities and makes all the decisions. There are some features such as:
*The new organization is informal.
*There are very few rules and regulations.
*There is no professional staff.
*There is no internal system for planning, performance evaluation and coordination.
Youth stage: This stage is characterized by growth and expansion of all organizational resources. The company adds employees as its products and services enjoy increased sales. A few trusted employees take part in the decision making process but it is still centralized. A few professional and administrative personnel are hired there is some sort of a division of labour.
Midlife stage: This stage is a period of gradual growth and stability. By the time the organization has reached this stage it has become large and reasonably successful. The features of this following stages are as follows:
a) Formalized bureaucracy with functional departments.
b) Decentralized authority.
c) Large set of policies, rules, regulations and systems.
d) Extensive division of labour with little scope for creativity.
Maturity stage: During this stage the organizational becomes very large, mechanistic and specialized organization. There is a complete set of bureaucratic rules, regulations and policies. It must be noticed that each organization moves through the life cycle at its own pace and in its own manner.
:smile: