The Five Phases of Organizational Growth

It is also important to note that just like technologies and markets, organizations go through their own stages of growth. This can be shown in “The Five Phases of Organizational Growth” figure. This model shows the various crises that develop during the growth cycles, and the organization leadership challenges that have to be met for growth to continue. Although one is tempted to think of technical organizations working only at the lower left portion of the growth curve, this is not true. Technical organizations, as they grow larger in big organizations, also go through each of the five phases.

To develop a vital organization of people capable of implementing and reformulating business strategy an ongoing human resource management system has to be in place. The HR system will constantly diagnose the human resource system, develop a revised vision of the organization and people needed, develop accountability for human resource management by surfacing normally hidden information, and make ongoing strategic and tactical human resource planning a management development experience.