LIFE CYCLE OF ORGANIZATION

DEVELOPMENT
BY
FAZIL A
 ORGANIZATION DEVELOPMENT

• Organizational development refers to the process of making a company or

group of people better by improving their structures, processes, and
overall effectiveness.
• It involves activities like improving communication, developing
leadership skills, enhancing teamwork, and fostering a positive work
culture to help the organization reach its goals and adapt to changes
WHAT IS LIFE CYCLE OF ORGANIZATION

• The lifecycle of organizational development can help leaders make

informed decisions about strategy, resource allocation, and organizational
change initiatives to ensure the long-term success and sustainability of the
organization.
• The lifecycle of organizational development refers to the various stages
that an organization goes through from its inception to its eventual
transformation, decline.
• There are five phases of organization life cycle.
 BIRTH (OR) START-UP STAGE

• The first stage of the organizational life cycle is the start-up stage. This
stage begins when an organization is born or founded.
• During this stage, organizations accumulate capital, hire workers, and
begin developing their products and services.
• The key issues are deciding what to risk and what to sacrifice.
 GROWTH STAGE
• The growth stage is the period in a product's life cycle when it starts to
gain popularity in the market.
• At this stage, more buyers accept the product as one of their top choices
and it develops a loyal customer base
• . As a result, demand for the product increases, improving sales and
revenue numbers
 MATURITY STAGE
• The maturity stage of the organizational life cycle occurs when an
organization grows to a size suitable to its environment with no need for
more growth.
• An organization is deemed mature when it is established and has many
rules and regulations.
• Sales begin to decrease slowly. Profit margins get thinner
 DECLINE STAGE

• The decline stage is where the organization takes a downward shift in its
operations and is characterized by a decline in profits.
• Organizational managers attempt to avoid the decline stage by acquiring
new companies or expanding their product lines to renew growth in the
company.
 RENEWAL (OR) DEATH STAGE

• The decline stage of the organizational life cycle is the phase in which the
organization crumbles.
• Individuals start to become preoccupied with personal objectives, instead
of focusing on the objectives of the organization
• A declining organization is characterized by shrinking sales and
profitability, fewer customers, and an unstable workforce.
 WHY LIFE CYCLE OF ORGANIZATION
DEVELOPMENT IS MORE IMPORTANT
• The organizational life cycle is essential to the management of an
organization because if it does not take the necessary steps to sustain the
organization's operations, the entity may collapse even before it
accomplishes its purpose for an objectives.
• An organization can prepare for moving from one stage to another
• Therefore the life cycle of organization is more important to run a bu
siness
.