Organizational Management
I. Introduction The organizational life cycle (OLC) is a model which proposes that over the course of time, business firms move through a fairly predictable sequence of developmental stages. This model, which has been a subject of considerable study over the years, is linked to the study of organizational growth and development. It is based on a biological metaphor—that business firms resemble living organisms because they demonstrate a regular pattern of developmental process. Marketing experts acknowledge the existence of product-market life cycles. It seems reasonable to conclude that organizations also have life cycles. This paper examines the life cycle using four fundamental organizational life cycles: start-up, growth, maturity, and decline. I will also provide the challenges, advantages, and usefulness each provides during that phase.
II. Body Early theories and empirical studies have identified various organizational life cycles. Many authors who have addressed the topic of developmental phases have presented different models. As a result, when researching this topic one will find differentiations between the numbers of phases within an organization’s life span. Some analysts depict an organization’s life span as ten different stages (Adizes, 2007) while others have reduced it to as few as three stages. Most models, however, show the organizational life cycle as a period comprised of four or five stages that usually follow along the similar stages of start-up, growth, maturity, decline, and death (or revival). However, regardless of the number of life cycles, what we know is that these cycles are sequential in nature; occur as a hierarchical progression that is not easily reversed; and involve a broad range of organizational activities and structures (Gupta & Chin, 1994). This paper will use four fundamental
II. Body Early theories and empirical studies have identified various organizational life cycles. Many authors who have addressed the topic of developmental phases have presented different models. As a result, when researching this topic one will find differentiations between the numbers of phases within an organization’s life span. Some analysts depict an organization’s life span as ten different stages (Adizes, 2007) while others have reduced it to as few as three stages. Most models, however, show the organizational life cycle as a period comprised of four or five stages that usually follow along the similar stages of start-up, growth, maturity, decline, and death (or revival). However, regardless of the number of life cycles, what we know is that these cycles are sequential in nature; occur as a hierarchical progression that is not easily reversed; and involve a broad range of organizational activities and structures (Gupta & Chin, 1994). This paper will use four fundamental