LIFE CYCLE MODELS

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LIFE CYCLE MODELS
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PERSPECTIVES

• MOST ORGANIZATIONAL LITERATURE TENDS TO FOCUS
  MATURE ORGANIZATIONS
• LIFE CYCLE LITERATURE ARGUES THAT ORGNS GO THRU
  DIFFERENT STAGES

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THREE ASSUMPTIONS

• SEQUENTIAL IN NATURE
• HIERARCHICAL PROGRESSION NOT REVERSIBLE
• INVOLVE MANY ACTIVITIES
• LEADERSHIP, STRATEGY, STRUCTURE, MOTIVATION ETC

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FAILURE RATE

• 54 OF NEW ORGANIZATIONS FAIL IN 1-1/2 YEARS
• MEDIAN AGE IS 7 YEARS

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MOTIVATION FOR GROWTH

• WHY GROW?
• STAGE 1
• LEGITIMACY, RESOURCES, SURVIVAL THRESHOLD
• STAGE 2
• GROWTH, CREATIVITY
• STAGE 3
• FORMALIZATION OF RULES, PREDICTABILITY

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CRITICAL MANAGERIAL CONCERNS

• WHAT MANAGERS WORRY ABOUT
• STAGE 1
• BECOMING VIABLE
• STAGE 2
• GAINING REPUTATION
• STAGE 3
• EXPANDING DOMAIN

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STRATEGY AND STRUCTURE

• STAGE 1
• LACK OF STRUCTURE
• SINGLE PRODUCT
• PATERNALISTIC REWARDS
• STAGE 2
• FUNCTIONAL SPECIALIZATION
• IMPERSONAL REWARDS
• STAGE 3
• MULTIPLE PRODUCT LINES
• GROWTH

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REVOLUTION 5 STAGES

• ORGN PROBLEM AT END OF EACH STAGE
• TRANSITION
• NEW PHASE

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• STAGE 1
• ENTREPRENEURIAL CRISIS OF LEADERSHIP
  RATIONALIZATION
• STAGE 2
• RATIONAL LEADERSHIP CRISIS OF AUTONOMY
  DECENTRALIZATION
• STAGE 3
• DECENTRALIZATION NONINTEGRATED GOALS
  COORDINATION

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• STAGE 4
• COORDINATION CRISIS OF RED TAPE COLLABORATION /
  FLEXIBILITY
• STAGE 5
• FLEXIBILITY PSYCHOLOGICAL / INFORMATION
  OVERLOAD (NO RESOLUTION)

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MENTALITY OF MEMBERS

• STAGE 1
• INDIVIDUALITY, INFORMALITY
• ..FINAL STAGE
• GROUP UNITY AND COLLECTIVITY

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FUNCTIONAL PROBLEMS

• STAGE 1
• ADAPTING TO ENVIRONMENT
• STAGE 2
• RESOURCE ACQUISITION, WORKFLOW PROCEDURES
• STAGE 3
• EFFICIENT PRODUCTION OF OUTPUT
• STAGE 4
• PATTERN MAINTENANCE, INSTITUTIONALIZATION

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ORGANIZATIONAL STRUCTURE

• STAGE 1 PRIMITIVE
• INFORMAL COOPERATION
• STAGE 2 STABLE
• FORMAL RESPONSIBILITIES
• STAGE 3 ELABORATION
• DEALING WITH EXTERNAL ENVIRONMENT

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ORGANIZATIONAL ACTIVITIES

• STAGE 1
• ENTREPRENEURIAL
• STAGE 2
• PRODUCING RESULTS
• STAGE 3
• ADMINISTERING RULES
• STAGE 4
• DECLINE (BUREAUCRATIC)

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LAST MODEL MEDICAL SCHOOL

• STAGE 1
• FORMATION OF IDEOLOGY, MARSHALLING OF RESOURCES
• STAGE 2
• PRIME MOVER, STAFF HIRED SUPPORT OF
  CONSTITUENCIES
• STAGE 3
• HIGH ENERGY, HIGH COMMITMENT, ORGANIZATIONAL
  IDENTITY
• STAGE 4
• FORMALIZATION

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INTEGRATION

• STAGE 1 ENTREPRENEURIAL
• LOTS OF IDEAS
• MARSHALLING OF RESOURCES
• LITTLE PLANNING, COORDINATION
• FORMATION OF NICHE
• PRIME MOVER HAS POWER

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INTEGRATION

• STAGE 2 COLLECTIVITY STAGE
• SENSE OF COLLECTIVITY
• SENSE OF MISSION
• HIGH COMMITMENT
• LONG HOURS
• INFORMAL STRUCTURE

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INTEGRATION

• STAGE 3 FORMALIZATION
• STABLE STRUCTURE
• FORMALIZATION OF RULES
• EFFICIENCY
• CONSERVATISM
• INSTITUTIONALIZED PROCEDURES

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INTEGRATION

• STAGE 4 ELABORATION
• DECENTRALIZATION
• DOMAIN EXPANSION
• ADAPTATION
• RENEWAL

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EFFECTIVENESS CRITERIA

• OPEN SYSTEMS MODEL
• MEANSFLEXIBILITY, READINESS
• ENDS RESOURCE ACQUISITION
• HUMAN RELATIONS MODEL
• MEANSCOHESION, MORALE
• ENDS HUMAN RESOURCE
• INTERNAL PROCESS MODEL
• MEANS INFO MGMT, COMMUNICATION
• ENDS STABILITY CONTROL
• RATIONAL GOAL MODEL
• MEANS PLANNING, GOAL SETTING
• ENDS PRODUCTIVITY, EFFICIENCY

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STAGE lt -- gt CRITERIA

• STAGE 1 ENTREPRENEURIAL
• OPEN SYSTEMS
• STAGE 2 COLLECTIVITY
• OPEN SYSTEMS
• HUMAN RELATIONS
• STAGE 3 FORMALIZATION
• INTERNAL PROCESS
• RATIONAL GOAL
• STAGE 4 ELABORATION
• OPEN SYSTEMS