In the process of their development, organizations go through several stages, and the transition from one stage to another is not accidental. The cycle begins with the birth of an organization and ends with its aging and renewal.
Birth, childhood and adolescence
The life cycle of an organization is a set of stages through which an enterprise passes. These are: birth, childhood, then adolescence, which is replaced by early maturity. At a certain stage, the heyday of forces comes, the stage of full maturity, aging. And the renewal stage ends the cycle.
The first step is the birth of the organization. At this stage, the founders of the company identify the needs of the potential consumer. Purposefulness and dedication are especially important for the management of the enterprise at this stage. A directive method of managing a company is often encountered.
Childhood. For the organization, this is the most dangerous period, since most of the problems arise during the first years of work at the enterprise. World statistics claims that it was during this period that a lot of organizations go bankrupt due to the incompetence of the leadership. The goal of this period can be considered the healthy development of the enterprise, and not just its survival. Management should be carried out by a trained leader and his team.
Adolescence. At this stage, the growth of the organization occurs unsystematically, in leaps and bounds. The company is gaining strength, planning is getting better, and many specialists are being recruited. In this case, friction with the previous composition may occur. The founders of the enterprise act as the leaders of the organization. They plan, manage and control.
Early maturity and later stages
Early maturity is distinguished by the characteristics inherent in this particular period - expansion and differentiation. Diversification can also be observed. At the stage of early maturity, the organization expands, structural divisions are formed, the results of which are measured by profit. At this stage, tendencies of bureaucracy and the struggle for power begin to appear.
The prime of life. The organization reaches its maximum development, there are shareholders on the board of the company. At this stage, the goal becomes balanced growth of the organization. Stability and control in operations are essential, as are innovation and decentralization.
Full maturity. This stage is distinguished by a slight slowdown in growth rates. An organization can deviate from its original goals under the influence of external pressures. At the same time, the management of the organization can ignore the symptoms of weakness of the enterprise - this is a typical mistake of managers, which is characteristic precisely for this stage of the life cycle.
Aging. If the management of the organization realized the need for constant updating, this stage of the life cycle would not occur. Ineffective motivation system, high competition, bureaucratic red tape create conditions for stopping development. The organization gradually begins to disintegrate, it rolls back, and the struggle for survival begins. There is a way out of this situation - it is necessary to adopt a rigid update system.
Update. After the reorganization, the company can continue its successful development, going through a series of measures that contribute to the renewal.
