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BA 5201 Organization and Management Organizational size, growth, and life cycles

BA 5201 Organization and Management Organizational size, growth, and life cycles. Instructor: Çağrı Topal. Organizational size-1. Financial and market measures Concentration levels The number of markets serve d or the number of products offer ed The number of employees

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BA 5201 Organization and Management Organizational size, growth, and life cycles

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  1. BA 5201Organization and ManagementOrganizational size, growth, andlife cycles Instructor: Çağrı Topal

  2. Organizational size-1 • Financial and market measures • Concentration levels • The number of markets servedor the number of products offered • The number of employees • Students for a university • Rooms for hotels • Passenger seats for airlines and theaters • Beds and patients served for hospitals

  3. Organizational size-2 • Measures dependingon the type of industry and organization • Relative size of an organization within a specific industry • No single measure capturingthe whole picture • Factor of capital or labor intensity • Technology as a factor

  4. Organizational growth • Where • Growth in the number of people or employees for the core business • Growth in administrative support areas • Operational specialization in the core business • Why • Competitive advantage and survival • Economies of scale

  5. Organizationallife cycleBirth • Entrepreneurial stage • Characteristics • Rapid growth • Liability of newness • Challenges • Survival

  6. Organizational life cycleEmergent structure • Collectivity stage • Characteristics • Continued growth • Balance • Stability • Flexibility • Challenges • Delegation of responsibility • Professional management

  7. Organizational life cycleFormal organization • Formalization stage • Characteristics • Slow growth • Formal organization • Beginning of bureaucracy • Challenges • Balancing needs for coordination and control with needs for flexibility and responsiveness

  8. Organizational life cycleDinosaurs and turnarounds • Elaboration stage • Characteristics • Slow growth or stagnation • Large and complex • Highly bureaucratic • Challenges • Restructuring • Reengineering • Rethinking

  9. Organizational decline • Blinded stage: failure to detect environmental pressure • Inaction stage:failure to decide on corrective actions and interpret information • Faulty action stage; faulty decision and/or faulty implementation of solutions • Crisis stage: faulty action in a hostile environment or inaction in a favorable environment • Dissolution stage: quick or slow yet inevitable

  10. Small size • Downsizing • Redesign • Virtual organization • Changing the culture

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