The Reality company is most likely at what stage in the organization life cycle?

The HR department at the Reality company has asked a HR professional to evaluate the compensation and benefits programs in order to identify variable pay options. However, there is resistance from some members of the leadership because of increased bureaucracy and lack of agility.

The Reality company is most likely at what stage in the organization life cycle?
A . decline
B . maturity
C . growth
D . startup

View Answer

Answer: B

Explanation:

Companies in the maturity phase of the organization’s life cycle are hindered by highly developed policies, procedures, and rules when trying to enhance programs or respond to change.

Companies in decline are also characterized by bureaucracy but are most likely eliminating programs rather than creating them.

Companies in the growth stage are in the process of developing more structure to manage rapid growth factors, and startups are not usually in a financial position to offer enhanced compensation and benefits.