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Ch9 - Organization Size, Life Cycle, and Decline

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Joel Marcus

Chapter 9 Organization Size Life Cycle and DeclineOrganization Size Is Bigger BetterPressures for GrowthExecutives believe that firms must grow to stay economically healthy to stop growing is to stagnateGrowing companies can be new and exciting places to work attracting talented employeesDilemmas of Large SizeLargeSmallBig OrganizationSmall Organization Hybridthe advantages of small organizations sometimes enable them to succeed and grow large o Combination of a large companys resources and reach and a small companys simplicity and flexibility by cutting out layers in hierarchy making for a flatter organizational structureHuge amounts of resources economies of scale global reach vertical hierarchy standardized mechanistic complex stable Largemarket employee longevity Responsive and flexible in fast changing environment regional reach flat structure encouraging innovation organic simple Small niche finding entrepreneurs personal involvement of employees increasing motivation and commitmentOrganizational Life CycleStages of Life Cycle Development 1 Entrepreneurial Stagestart up of the organization emphasis on creating a product or service and surviving in the marketplace Crisis Need for Leadership 2 Collectivity Stageorganization grows and develops a more elaborated design departments are established and there is a division of labor few formal system of communication start to appear Crisis Need for delegation with control 3 Formalization Stageorganization becomes more bureaucratic Crisis Need to deal with too much red tape 4 Elaboration Stageorganization becomes more
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