12 terms

Organizational Life Cycle

Life cycles of Non Profit Organizations
Entrepreneurial Stage
The first stage of an organization is when it is first created or "born." Known as the entrepreneurial stage, the organization's founders begin the process of product and/or service identification and creation, creation of an organizational design, and understanding associated marketing and production mechanisms. This is the organization's childhood
Collectivity Stage
The second stage of an organization is the collectivity stage. During this stage, the organization develops and establishes clear goals and direction. Leadership emerges; job descriptions are clarified; and division of labor occurs. Collectivity occurs as employees begin to identify themselves as apart of the collective organization. The organization is considered to be entering its youth
Formalization Stage
The establishment of rules and control systems occur during the formalization stage. Additional staff may be added to meet the needs of the organization. The need for strategy and planning occurs among top managers; middle managers become entrenched with operations. The organization is said to be entering its
Elaboration Stage
The last stage of the organizational life cycle is elaboration. During this stage, managers and staff may find themselves confronted by the day-to-day rigors of work. Additionally, managers and staff learn to work within the organization's bureaucracy. Formal systems may be replaced or simplified. As the organization reaches a level of maturity, the need for renewal or revitalization can occur.
The Characteristic of Entrepreneurial Stage
Organizational structure is small
Organization is non bureaucratic
Ways to overcome the Entrepreneurial stage
Maximize Current Business
Pay attention to emerging ideas
Pay attention to investments needed to build and sustain the organization's future
Create strong leadership that can manage day-to-day issues
The Characteristics of the Collectivity Stage
Communication is informal
Control is informal
Growth is rapid
Ways to Overcome the Collectivity Stage
Establish strong leadership
Delegate authority
Find mechanisms to control and coordinate throughout the organization
The Characteristics of the Formalization Stage
Growth continues
Bureaucratic characteristics emerge, such as red tape
Division of Labor and hierarchies emerge
Linkages between top management and the others should occur
Less innovation may occur
Ways to Overcome the Formalization stage
Create open lines of communication
Instill mechanisms to encourage motivation
The Characteristics of the Elaboration Stage
Formal operations
Social controls in place
Organizational reputation and stature become important
Ways to Overcome the Elaboration Stage
Adoption of collaborative and teamwork approaches to work to alleviate bureaucratic tendencies
Consider innovation as a form of revitalization
Redefine job descriptions