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Eric Flamholtz, Ph.D.
Eric Flamholtz, Ph.D., UCLA Management Professor and President and co-founder of Management Systems
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Growing Pains

From Eric Flamholtz, Ph.D.

Recognizing and Assessing the Need for Organizational Change

When an organization has not been fully successful in developing the internal systems it needs at a given stage of growth, it begins to experience “growing pains.” Growing pains are symptoms that an organization needs to make a transition. This article examines in detail the most common organizational growing pains. It also discusses the degree to which different sizes and types of business experience growing pains based on data collected over the past twenty years.

The Ten Most Common Organizational Growing Pains

As organizations enlarge, they often experience a variety of growing pains that signal that something has gone wrong in the process of organizational development. The ten most common organizational growing pains are listed here:

1. People feel that “there are not enough hours in the day.”
2. People spend too much time “putting out fires.”
3. People are not aware of what other people are doing.
4. People lack understanding about where the firm is headed.
5. There are too few good managers.
6. People feel that “I have to do it myself if I want to get it done correctly.”
7. Most people feel that meetings are a waste of time.
8. When plans are made, there is very little follow-up, so things just don’t get done.
9. Some people feel insecure about their place in the firm.
10. The firm continues to grow in sales but not in profits.

Each of these growing pains is described below.

People Feel That “There Are Not Enough Hours in the Day.”One of the most common organizational growing pains is the complaint that there is never enough time. Employees feel that they could work twenty-four hours per day, seven days a week, and still not have sufficient time to get everything done. They begin to complain about “overload” and excessive stress. Both individuals and departments feel that they are always trying to catch up but never succeeding. The more work they do, the more there seems to be, resulting in a never-ending cycle. People feel as if they are on a treadmill.

The effects of these feelings can be far reaching. First, employees’ belief that they are being needlessly overworked may bring on morale problems. Complaints may increase. Second, employees may begin to experience physical illnesses brought on by excessive stress. These psychological and physical problems may lead to increased absenteeism, which can decrease the company’s productivity. Finally, employees may simply decide that they can no longer operate under these conditions and may leave the organization. This will result in significant turnover costs and replacement costs related to recruiting, selecting, and training new people.

When many employees have the feeling that there is not enough time in the day, usually no one is suffering more from this feeling than the company’s founding entrepreneur. The entrepreneur, feeling ultimately responsible for the firm’s success, may work sixteen hours a day, seven days a week in an effort to keep the company operating effectively and help it grow. As the organization grows, the entrepreneur begins to notice that he or she can no longer exercise complete control over its functioning. This realization can result in a great deal of personal stress.

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