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[COMM 210] - Final Exam Guide - Ultimate 69 pages long Study Guide!Premium

69 pages538 viewsFall 2015

Department
Commerce
Course Code
COMM 210
Professor
Karim Boulos
Study Guide
Final

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Concordia
COMM 210
FINAL EXAM
STUDY GUIDE
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1
Evolution & Revolution as Organizations Grow
Larry Greiner
Article #1
*CLAIM: In order for a company to be able to progress and move on, it must go through
phases of evolution and revolution and constantly be changing its organizational structure.
The 5 phases: They each being with a period of evolution which is characterized by
steady growth and stability, which in its turn leads to revolution that is characterized by a
changing organizational structure.
If a company successfully resolves their stage of revolution determines if they will move on
to the next stage of evolution.
There are 5 key dimensions on organizational development:
1. Age of the Organization
The life span of a company determines the number of organizational practices that
have been used. It is found in the research that “managerial problems and
practices are rooted in time”
ex. The practice of decentralization cannot be applied for too long, at some point
practices are going to change and the management is going to have to adapt to
it.
2. Size of the Organization
The more the number of employees and volume of sales, the more the
management is going to have to change its organizational structure.
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2
3. Stages of Evolution
Companies that survive a crisis usually enjoy 4 to 8 years of continuous growth
before falling into a revolution. Evolution is used because only slight changes
should be applied in order to solve the problems encountered during this period.
4. Stages of Revolution
Revolution part of an organization can be described as “a serious upheaval of
management practices”. Revolution is an important part of the game because to
get out of it, management must find new ways to lead their company and let go of
the past procedures that seemed to be working so well. What is even more ironic
is that the new procedures adopted end up becoming the basis of the upcoming
problem of the company.
5. Growth Rate of the Industry
Evolution can last much longer and an industry that is not as evolving as another.
Basically, the more an industry is growing, the faster the companies in that industry
will be going through evolution and revolution. Also, when the industry is poor and
there is not much money to be made in that industry (or market) revolution tends to
be much more severe.
The 5 phases of Evolution and Revolution
1. CREATIVITY
The first phase of evolution is characterized by creating both a new product and a
market for that product. The founders of the company are usually
entrepreneurially oriented or technically oriented. They dedicate their time to
making and selling the new product. The communication between the owners and
the employees is very frequent and informal. The long hours of work injected in the
company by both the owners and the employees are not properly equated to the
salary they make at the end of the day. Promises of ownership are made to
employees. Management is very sensitive to the customer’s response because they
don’t want to miss out on any sales. Creative activities are essential for the
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