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Evolution & Revolution As
Organization GrowsSubmitted to:
Dr. Janaki Naik
Submitted By:
Shabbun Bhatia - 1024
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(From Harvard Business Review, July-August, 1972)
Mr. Greiner was Associate Professor of
Organizational Behaviour at the Harvard Business
School and was the author of several previous HBR
articles on organization development.
Author
Larry E. Greiner
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Definitions:
Evolution The term evolution is used to
describe prolonged periods of growth where
no major upheaval occurs in organizationpractices.
Revolution
The term revolution is used todescribe those periods of substantial turmoil
in organization life.
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Model Of OrganizationDevelopment
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Key Elements
Age of the organization
Size of the organization
Stages of Evolution
Stages of Revolution
Growth Rate of the Industry
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Large
Small
Size OfOrganization
Age Of
OrganizationYoung Mature
Low-growth
Medium-growth
High-growth
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Phases Of Growth
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1.
Entrepreneurial
Stage
2.
Collectivity
Stage
3.
Formalization
Stage
4.
Elaboration
Stage
Crisis:
Need to deal
with too much
red tapeCrisis:
Need fordelegation
with controlCrisis:
Need for
leadership
Creativity
Provision of clear direction
Addition of internal systems
Development of teamwork
Crisis:Need for
revitalization
Decline
Continued
maturity
Streamlining,small-company
thinking
S
I
Z
E
Large
Small
Organizational Life Cycle
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Evolutionary Stage:
Growth Through CREATIVITY
Revolutionary Stage:Crisis of LEADERSHIP
Phase 1
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Evolutionary Stage: Growth Through Creativity
Personal control systems
Innovation by owner/manager
Goal: Survival
Management style: Entrepreneurial
Phase 1
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Revolutionary Stage: Crisis of Leadership
- Require knowledge about the efficiencies.
- Increased numbers of employees cannot be
managed.
- New accounting procedures are needed for
financial control.
Phase 1
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Evolutionary Stage:
Growth Through DIRECTION
Revolutionary Stage:Crisis of AUTONOMY
Phase 2
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Evolutionary Stage: Growth Through Direction
Personal rewards aimed at individuals whocontribute to organizational success
Innovation from employees and managers
Goal : Growth
Management style : Charismatic, directive
Phase 2
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Revolutionary Stage: Crisis of Autonomy
- Centralized Hierarchy.- Difficult for top managers who were
previously successful at being directive to
give up responsibility.- Lower-level managers are not accustomed to
making decisions for themselves.
Phase 2
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Phase 2
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Evolutionary Stage:
Growth Through DELEGATION
Revolutionary Stage:Crisis of CONTROL
Phase 3
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Phase 3
Evolutionary Stage: Growth Through Delegation
Much greater responsibility is given to managers
Profit centers and bonuses are given
The top executives at headquarters restrain
themselves to managing by exception
Management style : Delegation
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Phase 3
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Revolutionary Stage: Crisis of Control
- Autonomous field managers prefer to run
their own shows.
- Freedom breeds a parochial attitude.
Phase 3
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Evolutionary Stage:
Growth Through CO-ORDINATION
Revolutionary Stage:Crisis of RED TAPE
Phase 4
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Phase 4
Evolutionary Stage: Growth Through Co-ordination
Formal planning procedures.
Certain technical functions are centralized while
daily operating decisions remain decentralized.
Management style : Decision - Making
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Revolutionary Stage: Crisis of Red Tape
- organization has become too large and
complex to be managed through formal
programs and rigid systems.
- Line managers resent heavy staff direction.
- Staff people complain about uncooperative
and uninformed line managers.
Phase 4
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Evolutionary Stage:
Growth Through COLLABORATION
Revolutionary Stage:Crisis of ?
Phase 5
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Phase 5
Evolutionary Stage: Growth Through Collaboration
Builds around a more flexible.A matrix-type structure is frequently used.
Educational programs are utilized to train
managers in behavioural skills for achieving better
teamwork and conflict resolution.
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Phase 5
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Revolutionary Stage: Crisis of ?
- crisis will centre on the psychological
saturation of employees who have grown
emotionally and physically exhausted by the
intensity of teamwork and the heavy pressure for
innovative solutions.
Phase 5
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Implication of History
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Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Management
Focus Make & Sell Efficiency ofoperations Expansion ofmarket Consolidationof organizationProblem
solving &
innovation
Organization
Structure Informal Centralized &functional Decentralized& geographical Line-staff &product groups Matrix ofteams
TopManagement
StyleIndividualistic&
entrepreneurial Directive Delegate Watchdog Participative
Control SystemMarket results Standards &cost centers
Reports &profit centers
Plans &
investment
centersMutual goal
setting
Management
Reward
Emphasis OwnershipSalary & merit
increases Individualbonus Profit sharing& stock optionsTeam bonus
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Guidelines for Manager
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Recognize these stages
Ready to work with the flow of the tide rather
than against it
Each phase results in certain strengths and
learning experiences
Limited Range of Solutions
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Mapping
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Organisation Life Cycle
Organization Development
Red Tapeism
Leadership
Training & Development
Delegation
Performance Appraisal
Line & Staff Managers
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Levels of Hierarchy
Span of Control
Formalization
Specialization
Centralization
Decentralization
Team Development
Mechanistic vs. Organic
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