Different Periods of Growing Organizations
Many management theorists and scholars have formed models of the process in which an organization changes and grows. Based on the historical company patterns’ observations, some phases of organizational growth are:
Creative phase – This is a period when a company is initially formed. Here, the company focuses on forming products and also reaching the market well.
Direction phase – In this phase, a company starts formalizing the methods of business management. Additionally, they professionalize their practices too.
Delegation phase – In this phase, centralization turns highly cumbersome for a big organization. It starts to delegate decision-making and power in several ways, like by forming semi-autonomous divisions or business units and transforming the risk paradigm and reward to the lower-level employees and managers.
Coordination phase – In the coordination phase, decentralization turns inefficient or excessive. Additionally, management tries to rein in an organization by coordinating or merging the activities of different fragmented portions of the company.
Collaboration phase – In the collaboration phase, the efforts of central coordination turn inflexible and bureaucratic. Additionally, management does adopt a cross-functional and team-based structure.
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