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Organizational growth is a vital aspect as it always creates a more complex company. These kinds of organizations require a highly sophisticated management team. Again, these organizations also require a fresh infrastructure. 

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What is Meant by Growing Organizations?

Growth is equal for every company no matter it is a small company or a big one. A small firm wishes to become bigger and companies that are already big wish to become bigger. So, growing organizations is different for different companies.

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The Traits of the High-Growth Organizations

Some traits that high-growth organizations have are:

The high-growth organizations get the ideal individuals on the bus – The high-growth organizations always manage to get appropriate people for growing and innovating business. Additionally, these organizations also think of employing ahead.

The high-growth organizations are aware of their metrics – These kinds of organizations find their revenues soar to be diligent regarding sales, operating data, and marketing. Hence, when a company struggles with growth, then it suffers from a tough time in giving a reply to some fundamental questions.

A high-growth organization shows a strategic perspective – It is directly opposite of an organization which has been exhibiting survival thinking or operating in some panic mode. The organizations that plan and move towards global and national expansion actively possess a sturdy 1 as well as 3-year agenda. They also make measurable and steady strides for meeting the crucial milestones.

A high-growth organization operates with transparency – Some features, like integrity, commitment, and transparency happen to be closely related. An organization which is growing tends to have a positive and transparent operation.

The high-growth organizations communicate well – The high-growth organizations communicate good as well as bad news with straightforward and candor language. Additionally, they can identify the vital requirements well.

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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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