Presentation On ORGANIZATIONAL LIFE CYCLE submitted by - Ritika wasnik Puspendra rana Rohit waghade Resham Ramteke
What is an Organizational Life Cycle ? The organizational life cycle is the life cycle of an organization from its certain to its termination. Organization move from one stage to another because the fit between the organization and its environment is so inadequate that either the organization’s efficiency and effectiveness is seriously impaired or the organization’s survival is threatened.
Organizational life cycle phases Birth Phase Growth Phase M aturity Phase R evival Phase
The Birth Phase Signifies the start of an organization’s expansion. The main importance is centered around the acknowledgment of having an adequate number of customers to keep the organization or business active. Organization birth , the founding of an organization, is a dangerous stage of the life cycle and is associated with the greatest chance of failure. The failure rate is high because new organizations experience the liability of newness-the dangers associated with being the first in a new environment. A new organization is fragile because it lacks a formal structure to give its value creation processes and actions stability and uncertainty. Organization structure emerges gradually as decisions about procedures and technology are made.
Drivers for Birth phase development Creativity Product and service innovation Leaders self-awareness Entrepreneurial intuition Strategic vision Intense commitment Willingness to understand risk flexibility
The Growth Phase At this stage, organizations look to pursue growth , establish a framework and develop their capabilities. there is a focus on regularly setting targets for the organizations, with the main aim being to generate sufficient revenue for survival and expansion. Some organization enjoy adequate growth to be able to enter the next stage, whilst are unsuccessful in achieving this and consequently fail to survive. Drivers for Growth phase development Involvement of lower management in decision making Effective delegation Team approach Capability to deal with almost constant state of change Ability to manage high growth
The Maturity Phase T his stage signifies the organization entering a more formal hierarchy of management. At this time the structure and processes are formalized as management is separated from ownership which however may not be the case of small and medium-sized organizations. A frequent problem encountered at this stage would be those associated with red tape . Drivers for Maturity phase development Exploring the feasibility of growth Retaining high performance employees Responsiveness to environmental changes
The R evival Phase Revival stage represents a renewed focus of the organization on exploration of new possibilities. New resources are brought to the organization, represented by people skilled in engineering, planning or performance analysis. The organization that successfully goes through revival stage experience further growth or become stabilized in mature stage once more. Drivers for Maturity phase development Division autonomy Integration Effective internal communication Innovative high performance