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Essay about Organizational Management

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I. Introduction The organizational life cycle (OLC) is a model which proposes that over the course of time, business firms move through a fairly predictable sequence of developmental stages. This model, which has been a subject of considerable study over the years, is linked to the study of organizational growth and development. It is based on a biological metaphor—that business firms resemble living organisms because they demonstrate a regular pattern of developmental process. Marketing experts acknowledge the existence of product-market life cycles. It seems reasonable to conclude that organizations also have life cycles. This paper examines the life cycle using four fundamental organizational life cycles: start-up, growth, …show more content…

This paper will use four fundamental organizational life cycles: start-up, growth, maturity, and decline. Phase 1: Start-Up In the start-up cycle an organization will typically have substantial limitations. For example, organizations during this phase will often have limited operational budgets, infrastructure and manpower. The internal structure will be comprised of a few members, if not just the founder in some cases. This non-bureaucratic environment contributes to other challenges which include: highly controlled decisions and information, as well as placing the overall ownership in the hands of one or few individuals. The decision-making process is placed in the hands of the one(s) who are focused on the development and existence of the organization (Lester, Parnell & Carraher, 2003). During this phase the organization will attempt to secure a competitive place in the marketplace through the use of long hours, informal structure and information, and centralization. Other challenges deal with the organization’s focus on production and quality while operating with limited resources (Beverland & Lockshin, 2001). These are just a few challenges management must consider during the start-up cycle. Nonetheless, managers must work hard toward the implementation of business strategies which will

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