BUS 435 Week 7 Discussion 2

Discuss the organizational characteristics that arise during the four (4) stages of organizational growth. When comparing the characteristics of a company in Stage I with those of the same company in Stage IV (after years of steady growth), is anything important lost? Explain.

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The organizational structure in Stage I is pre functional. Individuals perform various tasks because the organization is not yet large enough to define specialized functions. For instance, one person may perform both marketing and administrative duties. In Stage II structure the organization has transitioned from a pre functional structure to a functional structure where specialized functions are organized and performed to achieve the mission of the company. The organization’s focus is on its initial product and thus is not ready to move into the divisional stage. The organization defines reporting relationships in a formal organization chart and establishes systems to support the implementation of the structure.

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