-
M. S. Ramaiah University of Applied Sciences
1 Faculty of Management and Commerce
Module Code: HRM502
Module Title: Organisational Life Cycle Management
Module Leader: Dr. Sandhya Iya
E-mail: [email protected]
Session 5: Organisational Life Cycle
-
M. S. Ramaiah University of Applied Sciences
2 Faculty of Management and Commerce
Session Objectives
At the end of this session, students will be able to:
Describe organisational life cycle and its phases
Discuss organisational learning and learning organisation
Explain entrepreneurship and intrapreneurship
-
M. S. Ramaiah University of Applied Sciences
3 Faculty of Management and Commerce
Session Contents
Organisational life cycle
Organisational learning
Learning organisation
Entrepreneurship and Intrapreneurship
-
M. S. Ramaiah University of Applied Sciences
4 Faculty of Management and Commerce
Organisational Life Cycle
-
M. S. Ramaiah University of Applied Sciences
5 Faculty of Management and Commerce
Organisational Life Cycle (OLC)
-
M. S. Ramaiah University of Applied Sciences
6 Faculty of Management and Commerce
Five Phases of OLC
Start up (Birth)
Growth
Divided into early growth (fast growth) and maturity phase (slow
growth or no growth)
Maturity often leads to
Decline: when in decline, either
Renewal (or)
Death
-
M. S. Ramaiah University of Applied Sciences
7 Faculty of Management and Commerce
Five Phases of OLC Contd.
Each of these phases presents different
management and leadership challenges that one
must deal with
-
M. S. Ramaiah University of Applied Sciences
8 Faculty of Management and Commerce
The Start-Up Phase
Getting ready is the secret of success.
Henry Ford
-
M. S. Ramaiah University of Applied Sciences
9 Faculty of Management and Commerce
The Growth Phase
Increased revenue
New products and services
Improved operations and processes
More employees hired, etc
However, dependent on market conditions
OD interventions necessitated to stem the decline
-
M. S. Ramaiah University of Applied Sciences
10 Faculty of Management and Commerce
The Decline Phase
Early symptoms could be:
Declining market share
Disappearing profit margins
Increasing debt burden
Proactive leadership required to read signs early
-
M. S. Ramaiah University of Applied Sciences
11 Faculty of Management and Commerce
Renewal/Death
OD an important tool to prevent death
Training to inject new knowledge and skills
Transformational leaders can bring about change in culture e.g.
Lee Iacoccas turnaround of Chrysler Corporation
-
M. S. Ramaiah University of Applied Sciences
12 Faculty of Management and Commerce
Features at Each Stage of OLC
Birth Youth Midlife Maturity
Size small medium large very large
Bureaucratic Non-bureaucratic Pre-bureaucratic
bureaucratic very bureaucratic
Division of labor
overlapping tasks some departments
many departments
extensive, with small jobs and many descriptions
Centralization one-person rule two leaders rule
two department heads
top-management heavy
Formalization no written rules few rules policy and procedures
manuals
extensive
-
M. S. Ramaiah University of Applied Sciences
13 Faculty of Management and Commerce
Features at Each Stage of OLC Contd.
Administrative intensity
Secretary, no professional staff
Increasing clerical and maintenance
Increasing professional and staff support
L arge-- multiple departments
Internal systems
nonexistent
crude budget and information system
control systems in place; budget, performance, reports,
etc..
extensive -- planning, financial, and personnel added
Lateral teams, tasks forces for coordination
none top leaders only
some use of integrators and task forces
frequent at lower levels to break down bureaucracy
-
M. S. Ramaiah University of Applied Sciences
14 Faculty of Management and Commerce
Organisational Learning
-
M. S. Ramaiah University of Applied Sciences
15 Faculty of Management and Commerce
Organisational Learning
The process of "detection and correction of errors (Argyris)
An ecological system that facilitates or hinders individual
learning
-
M. S. Ramaiah University of Applied Sciences
16 Faculty of Management and Commerce
Learning Organisation
A group of people continually enhancing their capacity to create
what they want to create (Senge)
Relevant due to increased complexity and uncertainty in
environment
Major contributor to competitive advantage
-
M. S. Ramaiah University of Applied Sciences
17 Faculty of Management and Commerce
Creativity and Innovation
-
M. S. Ramaiah University of Applied Sciences
18 Faculty of Management and Commerce
Creativity, Innovation, Invention
Creativity is the capability or act of conceiving something
original or unusual
The process of idea generation
Innovation is the implementation of something new
Applicable to every aspect of business
May be incremental or radical
Invention is the creation of something that has never been made
before and is the product of some unique insight
-
M. S. Ramaiah University of Applied Sciences
19 Faculty of Management and Commerce
Entrepreneurship and Intrapreneurship
Entrepreneurship
Is the willingness and ability of an individual to seek out
investment opportunities, establish, and run an enterprise
successfully
The process of creating value by using resources to exploit an
opportunity
Intrapreneurship
The practice of entrepreneurship by employees within an
organisation; looking out for opportunities which profit the
organisation
A significant method for companies to reinvent themselves and
improve performance
-
M. S. Ramaiah University of Applied Sciences
20 Faculty of Management and Commerce
Summary
Organisations go through five phases of a life cycle
The phases are birth (start up), growth (maturity), decline,
renewal, (or) death
Each of these phases presents different management and
leadership challenges
According to Argyris, organisational learning is the process of
detection and correction of errors
-
M. S. Ramaiah University of Applied Sciences
21 Faculty of Management and Commerce
Summary
According to Senge, a learning organisation is A group of people
continually enhancing their capacity to create what they want to
create
Major contributor to competitive advantage
Creativity is the process of idea generation
Innovation is the implementation of something new
-
M. S. Ramaiah University of Applied Sciences
22 Faculty of Management and Commerce
Summary
Entrepreneurship is the ability of an individual to seek out
investment opportunities, establish, and run an enterprise
successfully
Intrapreneurship is the practice of entrepreneurship by
employees within an organisation
