What are the 4 stages in the organizational life cycle?
- Entrepreneurial
- Collective
- Formalization
- Elaboration
Explain entrepreneurial stage and the crisis
Creating product and services -> need to survive
Crisis: need for leadership -> adjust structure or bring in strong managers
Explain the collectivity stage and the crisis
Obtained strong leadership, begin to develop goals + strategy
Departments established
Informal communication starting to formalize
Crisis: need for delegation
Explain the formalization stage and its crisis
Installation of rules, procedures, control systems
Less frequent, but formal communication
Crisis: too much red tape -> innovation restricted
Explain the elaboration stage and its crisis
tackle crisis through new sense of collaboration and team work -> more flexible
Crisis: need for revitalization -> misalignment, replace managers, inflexible
What are the 6 characteristics of bureaucracy?
- Rules and procedures
- Specialization
- Hierarchy of authority
- Technically qualified personnel
- Separation of position and incumbent
- Written communication and records
What are the 3 aspects of size and strucutural control?
- Formalization
- Centralization
- Personnel Ratios
What are the 2 temporary systems for flexibility/innovation
- incident command systems
2. professionalism -> professional partnerships
What are the 3 organizational control strategies?
- Bureaucratic Control (rational authority, traditional authority, charismatic authority)
- Market Control
- Clan Control
What are the 3 causes of organizational decline?
- Organizational atrophy (grow older, inefficient, overly bureaucratized)
- Vulnerability (unsuccessful in environment)
- Environmental decline (reduced available resources to support)
Name the 5 stages of decline
Blinded, Inaction, Faulty Action, Crisis, Dissolution
Explain the Blinded stage and its solution
organization needs to tighten up because internal/external change threatens survival
solution: develop effective scanning and control systems
Explain the inaction stage and its solution
denial despite signs of deteriorating performance, leaders persuade all is well
solution: acknowledge decline and take prompt to realign
Explain the faulty action stage and its solution
organization facing serious problems and cannot ignore poor performance - forced to make major changes
solution: retrenchment, downsizing, communicate with employees
Explain the crisis stage and its solution
organization has not dealt with decline properly -> PANIC, CHAOS, SHARP CHANGES, ANGER
solution: major re-organization, replace top admin + management, change strategy, downsizing
Explain dissolution stage and its solution
decline is irreversible, suffering loss of markets, reputation, loss personnel and capital depletion
solution: close organization in an orderly fashion and reduce seperation trauma of employees
What are 3 techniques for downsizing?
- Communicate more
- Provide assistance to displaced workers
- Help survivors thrive
