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Chapter 9

0. Chapter 9. Organization Size, Life Cycle and Decline. Differences Between Large and Small Organizations. 0. Organization Size: Is Bigger Better?. 0. Pressures for Growth Companies in all industries strive for growth to acquire the size and resources needed to compete globally

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Chapter 9

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  1. 0 Chapter 9 Organization Size, Life Cycle and Decline

  2. Differences Between Large and Small Organizations 0

  3. Organization Size: Is Bigger Better? 0 • Pressures for Growth • Companies in all industries strive for growth to acquire the size and resources needed to compete globally • Size enables companies to take risks • Dilemmas of Large Size • Large organizations are able to get back to business more quickly following a disaster • Large companies are standardized, mechanistic and complex • Small companies are flexible and can be responsive

  4. Organizational Life Cycle 0

  5. Organization Characteristics During Four Stages of Life Cycle 0

  6. Weber’s Dimensions of Bureaucracy and Bases of Organizational Authority 0

  7. Size and Structural Control 0 • Formalization – rules, procedures, and written documentation • Centralization – level of hierarchy with authority to make decisions • Personnel Ratios – clerical and professional support staff ratios

  8. Percentage of Personnel Allocated to Administrative and Support Activities 0

  9. Bureaucracy in a Changing World 0 • Bureaucracy worked for the industrial age • The system no longer works for today’s challenges • Today bureaucracy leads to inefficiency • Organizations are creating temporary structures to respond to crisis

  10. Approaches to Busting Bureaucracy 0 • Cutting layers of hierarchy • Maintaining light headquarter staff • Empowering lower-level workers • The increasing professionalism of employees is attacking bureaucracy

  11. Bureaucracy versus Other Forms of Control 0 Bureaucracy • Rules, standards, hierarchy, legitimate authority Market • Prices, competition, exchange relationship Clan • Tradition, shared values and beliefs, trust

  12. Organizational Decline 0 The decrease of an organization’s resources is caused by: • Organizational atrophy • Vulnerability • Environmental decline or competition Downsizing refers to intentionally reducing the size of a company’s workforce

  13. A Model of Decline Stages 0

  14. Downsizing Implementation 0 • Communicate more, not less • Provide assistance to displaced workers • Help the survivors thrive

  15. Design Essentials 0 • Organizations experience pressures to grow • Organizations evolve through the stages of the life-cycle • Larger organizations usually adopt bureaucratic characteristics • All organizations require systems for control • Many organizations experience decline

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