Apply the concept of the life cycle to an organization you are familiar with, such as your current employer, a local business, or a popular company. What do you think is the current stage the organization in now? How did the organization handle or pass through its life cycle crises? Match the four stages of the life cycle described in Exhibit 9.4 of the course text with the actual characteristics of the organization you chose. (Please refer the power point presentation uploaded under Unit 6: Organization Size, Life Cycle and Decline)
No word limit
PowerPoint Presentation for
Organization Theory & Design
Richard L. Daft
Ann Armstrong
Created for the
Third Canadian Edition
Chapter 8, Slide 1
Copyright © 2015 by Nelson Education Ltd.
Part 4
Internal Design Elements
Chapter 8
Organization Size, Life Cycle, and Decline
Chapter 8, Slide 2
Copyright © 2015 by Nelson Education Ltd.
Chapter Snapshot
Organization size: Is bigger better?
Organizational life cycle
Organizational bureaucracy and control
Bureaucracy in a changing world
Organizational control strategies
Organizational decline and downsizing
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Chapter 8, Slide 3
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Organization Size: Is Bigger Better?
8-
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Chapter 8, Slide 4
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Organization Size: Is Bigger Better?
– Cont’d
Pressures for Growth
Dilemmas of Large Size
Large
Huge resources and economies of scale
Standardized, mechanistic, complex
Small
– Flexible, responsive, fast
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Chapter 8, Slide 5
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Dilemmas of Large Size – Cont’d
Big/Small Hybrid
Design that combines resources of a large organization with simplicity and flexibility of a small one
Size does not have to be at odds with organizational speed and flexibility.
Examples include companies such as
GE
Walmart
eBay
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Organization Size: Is Bigger Better?
– Cont’d
Chapter 8, Slide 6
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Organizational Life Cycle
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Chapter 8, Slide 7
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Organizational Characteristics During the Life Cycle
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Chapter 8, Slide 8
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Organizational Bureaucracy
and Control
What Is Bureaucracy?
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Chapter 8, Slide 9
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Organizational Decline
and Downsizing
Causes
Organizational atrophy
Vulnerability
Environmental decline or competition
Model of Decline Stages
Blinded stage
Inaction stage
Faulty action stage
Crisis stage
Dissolution stage
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Chapter 8, Slide 12
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Organizational Decline and Downsizing – Cont’d
Downsizing Implementation
Communicate more, not less.
Provide support to displaced workers such
as training, severance, and outplacement activities.
Help the survivors deal with survivor guilt.
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Chapter 8, Slide 13
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Something to Ponder
Do you think the “growth at all cost” management philosophy should
be re-examined within business
school curriculums?
Why or why not?
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Chapter 8, Slide 14
Copyright © 2015 by Nelson Education Ltd.
Chapter Summary
Size has a significant impact on design, and organizations experience pressures to grow.
Organizations go through a predictable life cycle.
Larger organizations usually adopt bureaucratic characteristics.
All organizations require systems for control.
Good analysis and prompt action can address the challenges of organizational decline.
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Chapter 8, Slide 16
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LEARNING ACTIVITY 6
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Group activity: Stages of Life-Cycle Development
Group: 5 members
Time for planning: 30 mins
Time to present: 5 mins/group
Worth: 3%
Chapter 8, Slide 16
Copyright © 2015 by Nelson Education Ltd.
LEARNING ACTIVITY 6
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Group 1:
Entrepreneurial Stage
Group 2:
Collectivity Stage
Group 3:
Formalization Stage
Group 4:
Elaboration Stage
Chapter 8, Slide 16
Copyright © 2015 by Nelson Education Ltd.