Business Cycles ; Industry Life Cycle ; Product Life Cycle Historians and academics have observed that organizations, like living organisms, have life cycles. They are born established or formedthey grow and develop, they reach maturity, they begin to decline and age, and finally, in many cases, they die. Study of the organizational life cycle OLC has resulted in various predictive models. These models, which have been a subject of considerable academic discussion, are linked to the study of organizational growth and development.
Simply put, organizations are social systems. They're groups of people organized around a common purpose. Their activities include similar recurring practices, for example, strategic planning, business planning, product and service development, marketing, financial management and evaluations.
Each activity usually includes formally or informally clarifying goals, taking steps toward those goals, deciding if the goals are being met or not, and adjusting activities to be even more effective and efficient in reaching the goals. The social systems can be focused primarily on the entire organization, teams, each product or service, or within a certain activity.
Individuals themselves are systems, needing a clear purpose and activities to continually work toward that purpose. Social systems go through common life-cycles ranging from, for example, from start-up to growth to maturity. For example, as people mature, they begin to understand more about the world and themselves.
Over time, they develop a certain kind of wisdom that sees them through many of the challenges in life and work. They learn to plan and to use a certain amount of discipline to carry through on those plans. They learn to manage themselves. Meanwhile, they go through infancy, child-hood and early-teenage phases that are characterized by lots of rapid growth.
People in these phases often do whatever it takes just to stay alive, for example, eating, seeking shelter and sleeping. Early on, many people tend to make impulsive, highly reactive decisions based on whatever is going on around them at the moment. Why Are They Important to Understand?
Start-up organizations, team and internal practices are like this, too. Often, founders of the organization or program and its various members have to do whatever is necessary just to stay in business.
Leaders make highly reactive, seat-of-the-pants decisions. They fear taking the time to slow down and do planning. Experienced leaders have learned to recognize the particular life cycle that a system is going through. These leaders understand the types of problems faced during each life cycle.
That understanding gives them a sense of perspective and helps them to decide how to respond to decisions and problems in the workplace and their lives and the workplace.
That understanding also suggests the priories that they need to soon address in order to evolve to the next stage. Systems that do not evolve often stagnate or decline between stages.
Symptoms can be unclear priorities, unclear roles, increasing frustrations and conflict, and people leaving the organization.
If the understanding of the life cycle is not known, then these problems are often not resolved. When discerning the particular stage that a system is currently in, it does not depend on the age of the system. Rather, it depends on the nature of its current activities.
For example, if the activities are mostly unplanned, high reactive and decisions are made primarily by certain personalities rather than by plans and policies, then that organization is operating more like an early stage organization. Example of a Simple Organizational Life Cycle Model Life cycles of social systems are so important to understand that there has been an increasing number of suggested frameworks and models for life cycles.
Here is one simple model to further enhance your understanding of life cycles. In this example, the focus is on an organization-wide social system.
Some systems planners consider there to be an additional stage of decline that is after the maturity stage. That stage recognizes that not all systems are meant to exist forever. It also helps systems planners to avoid desperately staying in the maturity stage, lest the system "fails".The Advantages & Disadvantages of a Change in an Organization by Karen Worthy - Updated September 26, Determine what organizational changes are appropriate for your company by first understanding the advantages and disadvantages of change in an organization.
the 4 stages of the organizational life cycle, and the mechanisms of organizational decline the mechanisms of organizational growth and the pros and cons of large size the pros and cons of bureaucracy including Arthur Stichcombe's comparison of bureaucractic and craft administration of production.
Leadership Style and the Organization Life Cycle 1 Running Head: LEADERSHIP STYLES AND THE ORGANIZATION LIFE CYCLE Leadership Style and the Organization Life Cycle A Research Paper Presented to The Faculty of the Adler Graduate School In Partial Fulfillment of the Requirements for The Degree of Master of Arts in Adlerian Psychology.
The organizational life cycle is the life cycle of an organization from its creation to its termination.
It also refers to the expected sequence of advancements experienced by an organization, as opposed to a randomized occurrence of events. However, a historical bias in literature on organizational life-cycles and growth stages has been the tendency to generate studies that focus on the static characteristics of growth stages.
Jun 29, · Every product has a life cycle, which is similar, in some ways, to the cycle of life. First, is the production stage, in which the product is manufactured, processed or harvested.