HR 2002: Human Capital in Organizations

Organizational Transformations

Session outline
To understand the mutual interdependence

between organization and its environment

To appreciate the organizational life cycle and its
influence on business strategy

Birth
Growth
Decline and Death

A Model of the Organizational Life Cycle

Why so?

Jones, G (2012). Organizational Theory, Design, and Change (7th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 328

The external environment-internal organization link detailed

External environment

pressures:

Political
Economic
Social
Technological
Legal
Ecological

Internal organization

responses:

Organization strategy
Organization structure
Management style
Working practices
Employment patterns
Innovative solutions

Political:

Economic:

Government policy
War
Terrorism
Interest groups

Economic growth
Currency exchange rates
Wage rates
Raw material prices

Social:
Demographic trends
Life style
Social values
Education
Labor mobility

The Organization

Technological:
IT Innovations
Computing costs/power
New product methods
New product, facilities

Legal:
Specific laws
Human rights concerns
Local regulations
Taxations
Business practices

Ecological:
Environmental concerns
Hazard prevention
Noise pollution
Regulations on use of
certain techniques

A Population Ecology Model of Organizational Birth

Diminishing
resources
Tough
competition

Organizational Birth Rates over Time

Jones, G (2012). Organizational Theory, Design, and Change (7th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 332

Survival Strategies

Jones, G (2012). Organizational Theory, Design, and Change (7th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 332

Greiners Model of Organizational Growth

Adapted from Jones, G (2012). Organizational Theory, Design, and Change (7th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 339

Organizational Decline and Death

The relationship between organizational size and organizational effectiveness

Jones, G (2012). Organizational Theory, Design, and Change (7th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 343

Weitzel and Jonssons Model of Organizational

Decline

Jones, G (2007). Organizational Theory, Design, and Change (5th ed). Pearson International Edition. Chapter 11: Organizational Transformations: Birth, Growth, Decline, and Death, pp. 324