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Organization Size, Life Cycle, and Decline

Organization Size, Life Cycle, and Decline. Which is Better?. Large Firm Huge resources Economies of scale Hierarchies/ Mechanistic Complex products Stabilize the market Careers at one company. Which is Better. Small firm Responsiveness Internet= Expanding reach Flat structure/Organic

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Organization Size, Life Cycle, and Decline

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  1. Organization Size, Life Cycle, and Decline

  2. Which is Better? • Large Firm • Huge resources • Economies of scale • Hierarchies/ Mechanistic • Complex products • Stabilize the market • Careers at one company

  3. Which is Better • Small firm • Responsiveness • Internet= Expanding reach • Flat structure/Organic • More commitment

  4. Hybrids • Divisional • Front/Back Approach • Other

  5. Life Cycle • Entrepreneurial Stage • Collectively Stage • Formalization Stage • Elaboration Stage

  6. Bureaucracy • Good or bad? • Formalization • Centralization • Personnel ratio • Administrative ratio

  7. How to Combat Bureaucracy • Incident Command System • Give frontline workers more power • Cut layers of hierarchy • Increase professionalism of workers • Professional partnership

  8. Three Control Strategies • Bureaucratic control • Market control • Clam control

  9. Bureaucratic Control • What is it? • Rational • Traditional • Charismatic

  10. Market Control • Market exerts force • Modular companies

  11. Clan Control • Small and informal • Works in high uncertinty

  12. Organizational Decline • Factors • Organizational atrophy • Vulnerability • Environmental decline or competition

  13. Stages of Decline • Blinded Stage • Inaction Stage • Faulty Action Stage • Crisis Stage • Dissolution Stage

  14. Implementation of Downsizing • Communicate more • Provide assistance • Help “survivors”

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