Inside an Organizational Life Cycle

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Inside an Organizational Life Cycle
Benefit from the development of information technology, we have entered an informational age. In a general, according to Dr. Henryk Sterniczuk, in order to success in the new informational age, the key elements are speed, flexibility, integration, and innovation. As leaders or managers, an essential concept, organizational life cycle, should be known ahead. Just like an organism, an organization will experience born, growth, maturity, and death those four stages. Therefore, the main task for leaders and managers of organizations is trying to maintain and extend the maturity stage and finding a better solution to make their organizations can continue develop. This paper will explore the Daft’s Organizational Life Cycle theory, Handy’s Sigmoid Curve Theory, and an case study about Motorola. Daft’s Organizational Life Cycle Theory

Richard L. Daft cited the organization stages of development in his book Organization Theory and Design from Robert E. Quinn, Kim Cameron and Larry E. Greiner. This theory includes four stages of an organization. First is the “entrepreneurial stage”. During this stage, an organization first emerges to the market and tries to survive by providing its own products or services. Generally, the owners are the controllers of the enterprise. They focus on how to enhance the viability of their organizations. Hence, the work hours are long and they control their companies based on their personal supervision. As a result, informal and less bureaucratic are the characteristics of the organizations in entrepreneurial stage. The key point in this stage is whether the enterprise has a wise leadership. As the enterprise grows, the amount of employment grows. The owners face to the challenge issue about a scientific management if they belong to the creative and technically oriented people. In another word, they may lack the experience to manage their enterprises. Thus, to deal with the first crisis, they can either change the structure of the enterprises or find a suitable person to take this responsibility (Daft, 2007). The second stage is the “collectivity stage”. After the crisis of the first stage, organization obtains strong leadership and it begins to develop clear goals and directions. In addition, departments are established along with a hierarchy of authority, job assignments, and a beginning division of labor. During this stage, the founders of the organizations usually bring skilled managers to run their companies. Moreover, employees identify with the mission of the organization and spend long hours helping the organizations successful. Members feel part of a collective, and communication and control are mostly informal although a few formal systems begin to appear (Daft, 2007). However, within this stage, a crisis called “need for delegation” will appear. During this stage, lower-level employees gradually find themselves restricted by the strong top-down leadership with the success of the new management. However, lower-level managers begin to acquire confidence in their own functional areas and they need more discretion. As a result, an autonomy crisis occurs because top managers, who were successful because of their strong leadership and vision, do not want to give up their responsibility. Top managers want to pull all parts of the organization together and make them coordinated. However, lower-level managers and employees find that they do not have enough delegation to do things. Consequently, the organization needs to find mechanisms to control and coordinate departments without direct supervision from the top (Daft, 2007). The third stage is the “formalization stage”. This stage involves the installation and use of rules, procedures, and control systems. Within this stage, employees and managers communicate less frequently and more formally. In addition, others employees such as engineers, human resource specialists may be added within this stage....
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