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Published byAmie George Modified over 9 years ago
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Knowing when to redesign: Size, History, and Life-Cycle v Why do organizations grow? v What are the consequences of size? v How do organizations and industries evolve? v What are design consequences of organizational life-cycle?
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Causes and Consequences of Organizational Growth v Why do Organizations grow? Business Expectations ( Organizational Goals ) Executive Advancement Economic well-being and Survival v What happens when organizations get larger? Formalization: Rules, procedures, manuals Decentralization: Decision making authority Complexity: Expansion of departments and positions
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Relative Distribution of Personnel in Large Vs. Small Organizations Small Large
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Large Size and Bureaucracy: Good and Bad TYPES OF FORMALIZATION DEGREE OF FORMALIZATION EnablingCoercive Low High Organic Enabling Bureaucracy Autocratic Coercive Bureaucracy
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Evolutionary Processes in Organizations Two Alternative Perspectives v Analysis of the industry as a whole v Analysis of individual organizations
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Dynamics of Organizational Ecology Effects of Legitimacy & CompetitionLiability of Newness Carrying Capacity of the Environment Population Density Time 1 Age Likelihood of Failure
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Organizational Life Cycle The Internal dynamics of growth 1. Entrepreneurial Stage: Growth through creativity crisis: Need for leadership 2. Collectivity Stage: provision of clear direction crisis: Need for delegation and control 3. Formalization Stage: Addition of internal systems crisis: Need to deal with red tape 4. Elaboration Stage: Development of teamwork crisis: Need for Revitalization
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Greiner’s Model of Organizational Growth Organizational Size Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Age of the organization Leadership Crisis Autonomy Crisis Control Crisis Red tape Crisis CreativityDirectionDelegationCoordinationCollaboration
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Horizontal coordination mechanisms Information carrying capacity Costs low high lowhigh sPaperwork sDirect contact sLiaison roles sTask force sFull time integrator sPermanent teams
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Vertical coordination mechanisms Information carrying capacity Costs low high lowhigh sHierarchical referrals sRules, plans, SOPs sNew positions in hierarchy sVertical information systems
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Organizational Characteristics New Organizational Realities Managing the Organization Managing the Environment NETWORKED FLAT FLEXIBLE DIVERSE GLOBAL Team structure Incentives/ careers Workforce management Conflict resolution Cross-border integration Alliances Boundaries Learning Stakeholders Local responsiveness
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