OBOD

1. EVOLUTION AND REVOLUTION
AS ORGANIZATIONS GROW
Submitted By :
GROUP 5
Salman
Mathan
Pooja
Navaneeth
Pravin

2. AT THE END OF PRESENTATION,YOU
ARE GOING TO LEARN
• STAGES OF EVOLUTION
• STAGES OF REVOLUTION
• HOW COMPANIES GROW
• 5 PHASES OF EVOLUTION AND REVOLUTION

3. STAGES OF EVOLUTION
• Evolutionary period : Prolonged Growth Of Organisation
• Most growing organization donot expand for 2 years and then
contract for one.
• Those that survive a crisis usually enjoy 4-8 years of continuous
growth without a major economic setback or severe internal
disruption.
• Evolution – Quiet Periods – Modest adjustment to be necessary
for maintaining growth of organization.

4. STAGES OF REVOLUTION
• Not necessary smooth linear growth of organization but
substantial turbulence interspersed between smoother periods of
evolution.
• But turbulent times – Periods of Revolution-They typically
exhibit a serious upheaval of Management practices.
• A number of companies fall short because of traditional
management practices & brought under scrutiny by frustrated
top level managers.

6. PHASES OF GROWTH
•5 PHASES :
1. CREATIVITY
2. DIRECTION
3. DELEGATION
4. COORDINATION
5. COLLABORATION

7. PHASES OF GROWTH

8. PHASES OF GROWTH- CONTD..
1. CREATIVITY
• Birth stage of
organization.
• Creating both a product
and a market.
• Founders – technically
or entrepreneurially
oriented.
• Communication-
Informal
• FAIL – CRISIS OF
LEADERSHIP occurs.

9. PHASES OF GROWTH- CONTD..
2. DIRECTION
• Business Manager
• Incentive , budget , work
standards are adopted.
• Communication-Formal
• FAIL : CRISIS OF AUTONOMY
 Become inappropriate for
controlling a more diverse and
complex organization.
 Top level managers fail to give
responsibility to low level
managers

10. PHASES OF GROWTH- CONTD..
3. DELEGATION
• Successful application of a
decentralized organizational
structure.
• Profit centers and bonuses used to
motivate employee.
• Communication: From top level is
infrequent and usually occurs by
telephone, correspondence to field
locations.
• FAIL : CRISIS OF CONTROL
 Top level executives sense that
they are losing control over over a
highly diversified field operation.

11. PHASES OF GROWTH- CONTD..
4. COORDINATION
• Use of formal systems for
achieving greater coordination
by top level executives.
• Decentralized units are merged
into product groups.
• FAIL : CRISIS OF RED TAPE
 Lack of confidence build
between line manager & staff
and between headquarter and
field.
 Many new systems failed

12. PHASES OF GROWTH- CONTD..
5. COLLABORATION
• Strong interpersonal collaboration in
an attempt to overcome the red tape
crisis.
• Managed by teams of skillful people.
• Social control & Self discipline
replace formal control.
• FOCUS: Solving problems quickly
through team action.
• Many large U.S. companies are now
in Phase 5.
• FAIL : CRISIS OF ‘?’
 Psychological saturation of
employees who grow emotionally &
physically exhausted from intensity
of team work.