Organization Size, Life Cycle, and Decline
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Transcript of Organization Size, Life Cycle, and Decline
Organization Size, Life Organization Size, Life Cycle, and DeclineCycle, and Decline
Which is Better?Which is Better?
Large FirmLarge Firm Huge resourcesHuge resources Economies of scaleEconomies of scale Hierarchies/ MechanisticHierarchies/ Mechanistic Complex productsComplex products Stabilize the marketStabilize the market Careers at one companyCareers at one company
Which is BetterWhich is Better
Small firmSmall firm ResponsivenessResponsiveness Internet= Expanding reachInternet= Expanding reach Flat structure/OrganicFlat structure/Organic More commitmentMore commitment
HybridsHybrids
DivisionalDivisional Front/Back ApproachFront/Back Approach OtherOther
Life CycleLife Cycle
Entrepreneurial StageEntrepreneurial Stage Collectively StageCollectively Stage Formalization StageFormalization Stage Elaboration StageElaboration Stage
BureaucracyBureaucracy
Good or bad?Good or bad? FormalizationFormalization CentralizationCentralization Personnel ratioPersonnel ratio
Administrative ratioAdministrative ratio
How to Combat BureaucracyHow to Combat Bureaucracy
Incident Command SystemIncident Command System Give frontline workers more powerGive frontline workers more power Cut layers of hierarchyCut layers of hierarchy Increase professionalism of workersIncrease professionalism of workers
Professional partnershipProfessional partnership
Three Control StrategiesThree Control Strategies
Bureaucratic controlBureaucratic control Market controlMarket control Clam controlClam control
Bureaucratic ControlBureaucratic Control
What is it?What is it? RationalRational TraditionalTraditional CharismaticCharismatic
Market ControlMarket Control
Market exerts forceMarket exerts force Modular companiesModular companies
Clan ControlClan Control
Small and informalSmall and informal Works in high uncertintyWorks in high uncertinty
Organizational DeclineOrganizational Decline
FactorsFactors Organizational atrophyOrganizational atrophy VulnerabilityVulnerability Environmental decline or competitionEnvironmental decline or competition
Stages of DeclineStages of Decline
Blinded StageBlinded Stage Inaction StageInaction Stage Faulty Action StageFaulty Action Stage Crisis StageCrisis Stage Dissolution StageDissolution Stage
Implementation of Implementation of DownsizingDownsizing
Communicate moreCommunicate more Provide assistanceProvide assistance Help “survivors”Help “survivors”