Ch9 Organization Size, Life Cycle, And Decline

Question 1

What are the four stages of the organizational life cycle

Answer 1

Entrepreneurial stage
Collectivity stage
Formalization stage
Elaboration stage

Question 2

Describe the entrepreneurial stage and its crisis

Answer 2

The entrepreneurial stage is the start up of an organization.
crisis: a need for leadership
Need: creativity

Question 3

Describe the collectivity stage and its crisis

Answer 3

In the collectivity stage the organization grows and develops a more elaborate design
crisis: a need for delegation with control

Question 4

Describe the formalization stage and its crisis

Answer 4

The formalization stage involves the installation and use of rules, procedures, and control systems.
The crisis involves a needed to deal with too much red tape

Question 5

Give the population ecology perspective on the organizational lifecycle

Answer 5

X-axis: stage of population (life/time)
Y-axis: number of organizations 
Birth and early life
Growth as many organizations get attracted to that business idea 
Decline 
Death

Question 6

Defined bureaucracy

Answer 6

In a bureaucracy, rules and standard procedures enable organizational activities to be performed in a predictable, routine manner.

Question 7

What are Max Weber’s six dimensions of bureaucracy

Answer 7

• Rules and procedures
• Specialization and division of labor
• Hierarchy of authority
• Technically qualified personnel
• Separate position from position holder
• Written communication and records

Question 8

What are three types of control?

Answer 8

Bureaucratic control
market control
clan control

Question 9

Describe bureaucratic control

Answer 9

Bureaucratic control is the use of rules, policies, hierarchy of authority, written documentation, standardization, and other bureaucratic mechanism to standardize behavior and assess performance.

Question 10

Describe market control

Answer 10

Market control occurs when price competition is used to a valuate the output and productivity of an organization.

Question 11

Describe clan control

Answer 11

Clan control is the use of social characteristics, such as organizational structure, shared values, commitment, traditions, and believes, to control behavior.

Question 12

For bureaucratic control to work managers must have the authority to maintain control over the organization. Describe three types of authority as identified by Max Weber

Answer 12

Rational-legal authority: employees belief in the legality of rules
Traditional authority: the belief in traditions and of the people exercising authority through them
Charismatic authority: based on the devotion to the character or heroism of an individual person

Question 13

Describe the five-step model of decline stages

Answer 13

Stage (what could lead to successful organizational performance)

1. Blinded stage (good information)
2. Inaction stage (prompt action)
3. Faulty action stage (correct action)
4. Crisis stage (effective reorganization)
5. Dissolution stage