Organization Size, Life Organization Size, Life Cycle, and DeclineCycle, and Decline

Which is Better?Which is Better?

Large FirmLarge Firm Huge resourcesHuge resources Economies of scaleEconomies of scale Hierarchies/ MechanisticHierarchies/ Mechanistic Complex productsComplex products Stabilize the marketStabilize the market Careers at one companyCareers at one company

Which is BetterWhich is Better

Small firmSmall firm ResponsivenessResponsiveness Internet= Expanding reachInternet= Expanding reach Flat structure/OrganicFlat structure/Organic More commitmentMore commitment

HybridsHybrids

DivisionalDivisional Front/Back ApproachFront/Back Approach OtherOther

Life CycleLife Cycle

Entrepreneurial StageEntrepreneurial Stage Collectively StageCollectively Stage Formalization StageFormalization Stage Elaboration StageElaboration Stage

BureaucracyBureaucracy

Good or bad?Good or bad? FormalizationFormalization CentralizationCentralization Personnel ratioPersonnel ratio

Administrative ratioAdministrative ratio

How to Combat BureaucracyHow to Combat Bureaucracy

Incident Command SystemIncident Command System Give frontline workers more powerGive frontline workers more power Cut layers of hierarchyCut layers of hierarchy Increase professionalism of workersIncrease professionalism of workers

Professional partnershipProfessional partnership

Three Control StrategiesThree Control Strategies

Bureaucratic controlBureaucratic control Market controlMarket control Clam controlClam control

Bureaucratic ControlBureaucratic Control

What is it?What is it? RationalRational TraditionalTraditional CharismaticCharismatic

Market ControlMarket Control

Market exerts forceMarket exerts force Modular companiesModular companies

Clan ControlClan Control

Small and informalSmall and informal Works in high uncertintyWorks in high uncertinty

Organizational DeclineOrganizational Decline

FactorsFactors Organizational atrophyOrganizational atrophy VulnerabilityVulnerability Environmental decline or competitionEnvironmental decline or competition

Stages of DeclineStages of Decline

Blinded StageBlinded Stage Inaction StageInaction Stage Faulty Action StageFaulty Action Stage Crisis StageCrisis Stage Dissolution StageDissolution Stage

Implementation of Implementation of DownsizingDownsizing

Communicate moreCommunicate more Provide assistanceProvide assistance Help “survivors”Help “survivors”