EVOLUTION AND REVOLUTION

AS ORGANIZATIONS GROW
Submitted By :
GROUP 5
Salman
Mathan
Pooja
Navaneeth
Pravin
 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
 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.
 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.
 PHASES OF GROWTH

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