Predictable Change in Organizational Life Cycle PDF

Predictable change Greiner (The organiza$onal life cycle, 1972) maintains that, as organiza$ons mature and grow in size their ac$vi$es go through =ve phases, each of which is associated with a di:erent growth period in an organiza$on’s life. In addi$on, as each growth period moves into the next, the...

Predictable change Greiner (The organiza$onal life cycle, 1972) maintains that, as organiza$ons mature and grow in size their ac$vi$es go through =ve phases, each of which is associated with a di:erent growth period in an organiza$on’s life. In addi$on, as each growth period moves into the next, the organiza$on goes through a shorterlived crisis period. Greiner’s model is useful for iden$fying an organiza$on’s situa$on and providing warning of the next crisis point it may have to face and helps in the planning of necessary change. It also helps to realize that change is, to some extent, inevitable; organiza$ons must of necessity change as they grow and mature. A typical life cycle pa*ern 1. The entrepreneurial stage -> the primary task is to provide a service or make a product. Survival is the key strategy. Organiza$onal culture is fashioned by the founding entrepreneur. 11 2. The collec$ve stage -> the organiza$on begins to take ‘shape’. Departments and func$ons begin to be de=ned and the division of labour is the dominant theme. The organiza$on has begun to establish its posi$on; internal tasks are allocated along with responsibility and autonomy to carry them out. 3. The formaliza$on stage -> systems of communica$on and control become more formal. There is a need to di:eren$ate between the tasks of management and the those of lowerlevel managers. Bureaucra$za$on occurs as systems of coordina$on and control emerge. 4. The elabora$on stage -> strategic change. The organiza$on may have reached a plateau in its growth curve and may even show the =rst stages of decline in performance. Managers have to learn new skills to achieve change. This stage may also include the rapid turnover and replacement of senior managers. 12