MANAGEMENT FUNCTION AND STAGES OF CORPORATE GROWTH

The functions of management do not remain the same for all the types of organizations,They change in focus,emphasis, and importance with the size of the organizations.As the organization grows in size,management functions also become too complex.we can identify four different stages of corporate growth by following ways:

STAGE I-It represents the case of smaller business unit with one-person operation.There is neither Superior not subordinate in this situation.Hence,there is no body to assist the owner-manager in his or her work.

STAGE II-The owner-manager becomes a player-coach.This situation implies extensive participation of subordinates in the operation of the business.The owner-manager,in this case,has to allocate roles to different individuals,and coordinate their function,in addition to his or her own work.Thus, he or she has to perform all the managerial work bu himself or herself.

STAGE III-An additional level of supervision is added.Once this happens, some of the difficulties may arise.The owner-manager looses direst contact with his or her bottom- the staff.He or she has to work through an intermediate level of management.

STAGE IV-It is the stage of formal organization.This involves increase size and multi-layers organization.The plans,policies,budgets,personnel practices,organizational charts control systems,etc. have to be formulated.