Vaule Chain Analysis

Topics: Management, Periodization, Time Pages: 6 (1854 words) Published: April 30, 2013
A) The five stages of organizational growth are as follows:
1) Creativity/ Leadership

The first stage of organizational growth is called creativity. In the beginning stage there are very few numbers of people in the company. Due to least number of people each and every members knows each other and shares their knowledge, experience and information’s on what they know. Appropriate topics are discussed thoroughly within the organization to develop each other. This is the usual creative start up culture. Brainstorming is very much useful in small group of people. As the organization grows, it gets very hard to do things in mutual understanding. They have difficulty to differentiate between important and unimportant issue because there are very few or number organizational structure that allows distributing work to certain person. The company itself needs a strong person in charge who can hold the team together and find an appropriate system and structure.

This stage is conquered by the founders of the company, and the main thing is to create both the product and the market. These initiators are usually technically or entrepreneurial oriented and they dislike management activities. They are entirely involved in making and selling new products. But as the organization grows, management problems occur that cannot be handled through informal communication and dedication. Thus the founders find themselves burden with the unwanted management responsibilities and conflicts between the leaders grow more intense. In the beginning stage there are very few numbers of people in the company. | |

2) Direction/ Autonomy
This is the stage of first revolutionary period in which direction the company will go and what will be the result in future. In this stage the crisis of leadership occurs, who is going to direct the organization, redesign and strengthen the company. There will be a confusion that who is going to solve the managerial problems and tackle the organization. It may be the stakeholders or founders, it maybe someone who is within the company and has the talent to be the manager or the best way is to hire a strong manager who is suitable to all the stakeholders and who can take the organization to reach its goal. During this stage the manager will take the overall responsibility for directing, instituting, while lower administrator are treated more as functional specialists than autonomous decision makers. Lower level managers insist more independence, this leads to the next revolutionary period i.e the crisis of independence. As the company grows in future, departments, employees will be added in or As the company grows further, extra departments and layers of management get added in order to handle the increasing complexity of the firm. However, this leads to a second management question, this time about who makes the decisions. As creating a leader and leadership team pulled decision-making in to the core of the company, the local managers and individual professionals now start to feel stifled as they are not allowed to make their own choices. Growth can thus slow as people queue up for decisions whilst an increasing tension is felt as parts of the company try to pull away.

3) Delegation/ Control

Management hands over tasks authorities and function the people within the company. Department forms and develop their own vibrant. If management is not being able to hand or fails to look at these departments they will start handling the tasks by their own way. At this kind of situation departments may split and have competition within them.

The organization at the moment needs to lose the restriction, assigning authority where the responsibilities lie in the department and group of the company. Many organizations struggle in this revolutionary period, sticking to centralized methods, whereas lower level workers build up dissatisfaction and leave the organization. When an organization is in the growth...
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