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Levels of organisational development – Level 4
Level 4 of the 6 levels of organisational development is the expansion level of organisational development
This post continues from:
The Levels of Organisational Development- Level 1 or the Formation Stage,
Levels of Organisational Development – Level 2 – The formalisation stage of organisational development
Levels of Organisational Development – Level 3 – the integration stage of development
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The 6 Levels of Organisational Development
Find out exactly where your organisation or business is right now and where it should be heading.
Level 4: Expansion level
The distinctive features of the expansion level of organisational development is characterised by 4 major elements: –
- Competition within the organisation
- Insufficient delegation
- Lack of corporate-wide culture
- No measurement of indicators
Competition within the organisation
Competition now starts to appear between departments to achieve better results. They are now competing against each other to achieve their own personal departmental goals and indicators and to obtain more of the centralised resources of the organisation.
Insufficient delegation of authority to the ‘lower’ management levels. This level of organisational development is characterised by decisions being made at levels higher than necessary. This considerable slows down decision making and slows the organisational responsiveness to external factors.
Lack of corporate-wide culture
c) Absence of an organisation wide corporate culture (principles, values and policies). We tend to find this stage of development characterised by a dog-eat-dog competitive culture with departmental or unit cultures driving behaviour and thinking.
No measurement of internal indicators
d) Absence of a system for measuring loyalty, satisfaction and emotional commitment of employees.
In this stage of development we tend to find that key operational indicators of employees’ activities are developed aimed at improving employees’ motivation and developing a results oriented work environment. Additionally there is often an introduction of ‘internal entrepreneurship’, which includes changing the organisation structure and management accounting system within the organisation to produce better financial results (more sales). This is often accompanied by the introduction of competence based approaches to personnel development and effort to control and boost productivity.
In my next post I will look at Level 5 of the 6 levels of organisational development
You can get a complete explanatory infographic of the 6 levels of organisational development including the full reference to this study
What you should to know about the organizational levels of development
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