WHY DO WE NEED TO KNOW THE LIFE CYCLE OF ORGANIZATIONS? What are the practical implications?
Understanding the cycle and dynamics of growth, transformation, and decline allows human service organizations to adapt to new needs/ demands, structure the organization accordingly, and develop responsive service delivery system.
Organizational life cycle theories identify circumstances affecting the growth, transformation, and potential markers of unnecessary decline.
STAGES OF ORGANIZATIONAL CYCLE
- External environment is unstable, uncertain, unknown
- Resources unidentified
- Structure is informal
- Managerial process is informal, characterized by little planning, coordination or communication
- Size is small
- HR management is informal and is dependent upon the founders’ skills
- External environment is moderately stable
- Resources are identified
- Structure is organic
- Managerial process is still informal; communication, collaboration of team work and action
- Size is still small
- HR management is dependent upon group dynamics and the nature of team work
- External environment is stable at this stage, there is certainty
- Resources have a steady flow
- Structure is formal, differentiated, and functional at this stage
- Managerial process has a formalized rules, procedures, and standardization
- Size is medium
- HR management is formalized; there is specialization and professionalism