The document discusses the life cycle of organizations, including maturity, decline, and death. It describes the typical stages of organizational maturity, from level 1 where success depends on individual relationships to level 5 where teamwork exists across the organization and continuous process improvement is undertaken. Key factors that can contribute to organizational decline are discussed, such as age, size, financial success, ownership structure, and inability to adapt to environmental changes. The stages of decline decrease an organization's ability to attract resources until eventual dissolution and death occur. Managers are advised to analyze their environment, structure, and sources of inertia to prevent decline.

1. Life cycle of the
Organisation
Submitted by : Sukhdeep kaur
Submitted to : Prof. Perfait mpelo

2. MAIN POINTS
●
Maturity
●
Decline
●
Death of the Organisation

3. What is organization?
A social unit of people systematically
structured and managed to meet a need
or to pursue collective goal on a continuing
basis . All organizations have a management
structure that determines the relationship
between functions and positions and subdivides
and delegate roles ,responsibilities,and
authority to carry out defined tasks.

4. Organization types
●
Non profit organisations
●
Profitable organnisations
basically non profit organizatios are
charity ans service organisations and
profitable orgaisation main goal is
money eg compaies restaurants etc

5. Organization structure
There are normally 4 type of
structures
●
Tall
●
Flat
●
Hierarchical
●
Centralized and decentralized

6. Tall structure
12
10
8
Column 1
Column 2
Column 3
6
4
2
0
Row 1
Row 2
Row 3
Row 4

7. Advantages and Disadvantages
Disadvantages
Advantages
●
●
employees can be closely
supervised.
clear management structure.
●
●
●
Freedom of employees
restricted
Decision making could be
slowed down
High management costs
because managers are
generally paid more than
subordinates

8. Flat structure

9. Positive and negative points
Positive points
●
●
Good communication
between managers and
workers
Negative points
●
Good team work
●
Easier decision making
●
Less costs
●
Function of each
department/person could
be blurred and merge into
the job roles of others.
structure limited to small
organizations such as
partnerships, cooperatives and some
private limited companies

10. Hierarchical Organisation

11. Advantages and disadvantages
Advantages
●
●
●
Authority and responsibility
and clearly defined
There are specialists
managers and the
hierarchical environment
encourages the effective use
of specialist managers
Employees very loyal to
their department within the
organization
Disadvantages
●
●
The organization can
respond slowly to changing
customer needs and the
market within which the
organization on operates.
Departments can make
decisions which benefit them
rather than the business as
a whole especially if there is
Inter-departmental rivalry

12. Centralized and Decentralized
Organization
Advantages
●
●
●
Senior managers enjoy greater control over
the organization
The use of standardized procedures can
results in cost savings.
The organization can benefit from the
decision making of experienced senior
managers.

13. Organization maturity
Organization maturity depend upon
●
People
●
Process
●
Technology
●
Measurement
and all these processes have 5 levels
described in step by step

14. people
➔
➔
➔
➔
➔
Level 1:performed :in this success is directly related with their
relationship with other workers
Level 2:managed:success depends upon individuals and
management system .workers are trained
Level 3;project groups work together .training is planned and
provided according to their roles
Level 4:predictable : strong sense of team work exist within the
organizational
Level 5:A strong sense of teamwork exists across the organization.
Everyone is involved in process improvement.

15. processes
➔
➔
➔
➔
➔
Level 1: Few stable processes exist or are used.
Level 2 :Documented and stable estimating, planning, and
commitment processes are at the project level.
Level 3 :Integrated management and engineering processes are
used across the organization.
Level 4 :Processes are quantitatively understood and
stabilized.
Level 5 :Processes are continuously and systematically
improved.

16. technology
➔
➔
➔
➔
➔
Level 1:The introduction of new technology is risky.
Level 2 :Technology supports established, stable
activities.
Level 3 : New technologies are evaluated on a qualitative
basis.
Level 4 :New technologies are evaluated on a qualitative
basis.
Level 5:New technologies are proactively pursued

17. measurement
➔
➔
➔
Level 1 :Data collection and analysis are ad hoc.
Level 2:Planning and management data is used by individual
projects.
Level 3 :Data is collected and used in all defined processes.
Data is systematically shared across projects
●
●
Level 4:Data definition and collection are standardized
across the organization Data is used to understand the
process qualitatively and stabilize it.
Level 5 ;Data is used to evaluate and select process
improvements.

18. Key Factors that Contribute to Decline
●
●
●
Age of the organization: Older, more
established firms may rely on legacy practices
Size of the organiza­tion: Large firms with
many vertical levels can have trou­ble adapting
Financial success and past performance: Past
success can lead to desire to follow same path
in hopes of future success

19. ●
●
●
●
●
Ownership and equity structure: Is there
accountability at all times to outside agents?
Environmental influences: External shocks
Ability to learn and discern patterns: Lack of
learning organization culture
Certainty/uncertainty: Effectiveness of change
management
Leadership: Young & inexperienced without
desire to learn

20. Organizational decline occurs when a firm
fails to manage crises in the growth stage
or fails to adapt to pressures. Regardless of
the time or cause, the decline stage
decreases the ability to attract resources.
Banks hesitate to lend money to a troubled
company and talented employees choose
successful, secure organizations. An
organization’s decline may result from too
much growth. Some organizations, such as
Gm, grow past the point of effectiveness.

21. Signs of potential problems include too many
employees, slow decision-making,increased
conflict among subunits, and reduced
profits. An effective top-management team
with good information can thwart decline and
return to growth. Managers must have
information to take timely corrective action.
An organization may use its resources more
effectively and not pursue continued growth

22. Dissolution Results in Organizational
Death As organizational death occurs,
people understand that further actions
are useless. The organization cuts ties
to stakeholders and transfers
resources to other organizations.
Within the organization, formal closing
services occur to help members focus
on new roles outside the organization

23. Managerial Implications: Organizational
Decline To prevent decline, managers
should analyze the environment,
structure, and sources of inertia. The
founder must always put organizational
survival and stakeholders first and
allow for new leadership

24. Organizational Decline and Death
Companies do not move to more organic
structures until they face the problems
ofincreased costs and reduced quality. Many
large companies downsize before adoptingorganic
structures. Greiner’s model suggests that
organizations grow throughcollaboration until a
new, unknown crisis arises. For some
organizations, the next stagein the life cycle is
decline rather than growth

25. Organizational Decline and Death
Companies do not move to more organic
structures until they face the problems
ofincreased costs and reduced quality. Many
large companies downsize before adoptingorganic
structures. Greiner’s model suggests that
organizations grow throughcollaboration until a
new, unknown crisis arises. For some
organizations, the next stagein the life cycle is
decline rather than growth

26. Thank you for Ur
attention