THE STRUCTURAL EVOLUTION OF BIOCON
Q. Explain the Evolution of Organization Theory with reference to Life-Cycle Perspective Growth phase. (Biological Metaphor/ Organizations as Living Beings) {Refer Growth- Gareth Jones/ Decline-R. Daft/ PLC-Chs. 2,17- Stephen Robbins}
a.) A Life-Cycle refers to a pattern of predictable change. There are distinct stages, through which organizations proceed. Research on the organization life-cycle leads us to a five-stage model.
a. Entrepreneurial Stage: The organization is in its infancy. Goals tend to be ambiguous. Creativity is high.
b. Collectivity Stage: Organization’s mission is clarified. Communication & structure within the organization remains essentially informal. Members demonstrate high commitment to the organization.
c. Formalization-and-control-stage: The structure of the organization stabilizes. Formal rules and procedures are imposed. Innovation is de-emphasized. Efficiency and stability are emphasized.
d. Elaboration-of-structure stage: Organization diversifies its product or service markets. Organization structure becomes more complex and elaborated. Decision-making is decentralized.
e. Decline Stage: The demand for organization products or services shrinks. Employee turnover increases. Conflicts increase. People assume leadership in an attempt to arrest the decline.
All organizations not necessarily proceed through the five stages. If possible, management would like to avoid having the organization reach stage five. However, excluding this stage from our model assumes that organizations follow an unending growth curve or at least hold stable. Tata Steel, for example, is more than 100 years old. Whether this example is now in the decline stage is questionable, but certainly our model must recognize decline and even the possibility of death.
Also, the life-cycle stages do not at all correlate with an organization’s chronological age. Observation confirms that some organizations have reached stages three and four in less than five years
a.) A Life-Cycle refers to a pattern of predictable change. There are distinct stages, through which organizations proceed. Research on the organization life-cycle leads us to a five-stage model.
a. Entrepreneurial Stage: The organization is in its infancy. Goals tend to be ambiguous. Creativity is high.
b. Collectivity Stage: Organization’s mission is clarified. Communication & structure within the organization remains essentially informal. Members demonstrate high commitment to the organization.
c. Formalization-and-control-stage: The structure of the organization stabilizes. Formal rules and procedures are imposed. Innovation is de-emphasized. Efficiency and stability are emphasized.
d. Elaboration-of-structure stage: Organization diversifies its product or service markets. Organization structure becomes more complex and elaborated. Decision-making is decentralized.
e. Decline Stage: The demand for organization products or services shrinks. Employee turnover increases. Conflicts increase. People assume leadership in an attempt to arrest the decline.
All organizations not necessarily proceed through the five stages. If possible, management would like to avoid having the organization reach stage five. However, excluding this stage from our model assumes that organizations follow an unending growth curve or at least hold stable. Tata Steel, for example, is more than 100 years old. Whether this example is now in the decline stage is questionable, but certainly our model must recognize decline and even the possibility of death.
Also, the life-cycle stages do not at all correlate with an organization’s chronological age. Observation confirms that some organizations have reached stages three and four in less than five years