evolution and revolution_group 2
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Group 2:Ajay Pokale FT12305Mahesh Godse FT12228
Gaurav Kathuria FT12324Guruprasad FT12215
Urvashi Babaria FT12169
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Management needs to answer.. Where has our organization been?
Where is it now?
What do the answers to these questionsmean
for where it is going?
Developmental phases in company Evolution Steady growth and stability
Revolution - Organizational change
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Age of the organization Management problems & principles are rooted in time.
Size of the organization As size increases, problems of coordination and
communication, emergence of new functions,multiplication of levels in the managementhierarchy, more interrelated jobs
Stage of evolution Growing org. - expand for 2 years contract for 1
Crisis surviving org. - 4 to 8 years of continuousgrowth
Evolution in terms of quiet periods with onlyminimal changes needed
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Stages of revolution Growth cant be linear forever
Evolution is not indefinitely sustainable
Periods of Revolution Times of upheaval of
management practices Companies that do not change have to shut shop
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When everything changes, changeeverything!
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Growth rate of industry Environment of industry matters One of the forces in
Porters model
Too fast growing industry vs. too slow growing industry
Difference in strategy, organizational structure Emerging Economy vs. Mature Economy
High profits vs. low profits
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Each phase is characterized by dominant
management style and dominant problem tobe solved.
Creativityo Initial emphasis is on creating both a product
and a market.o As companies grow a crisis of leadership
occurs.
o Need for strong business manager who canpull the business togather.
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Direction-o A functional organization structure.o Formal and impersonal communication.
o Lower employees get restricted because ofhierarchy.
o A crisis of autonomy arises and asks fordelegation.
o Delegation-o
Heightened motivation of lower levelmanagers allows expansion.
o Top management tries to gain control andneed arises for co-ordination.
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Co-ordinationo Formal systems used to achieve greater co-
ordination.o Top level responsible for initiation and
administration of these systems.
o A red tape crisis arises asking forcollaboration.
Collaborationo Spontaneous management actions using
matrix type structure.o Social control and self discipline replaces
formal control.
o Arises psychological saturation of employees.
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Know Where you are in the developmentalsequence Tempting to skip the phases out of impatience
Success of each phase depends on previous phase
Recognize the limited range of solutions Tempting to choose solutions that were tried before
but that actually makes impossible for new phase toevolve
Realize solutions breed new problems Historical understanding instead of pinning the
blame on the current development
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