Chapter 8

Question 1

What are the 4 stages in the organizational life cycle?

Answer 1

1. Entrepreneurial
2. Collective
3. Formalization
4. Elaboration

Question 2

Explain entrepreneurial stage and the crisis

Answer 2

Creating product and services -> need to survive

Crisis: need for leadership -> adjust structure or bring in strong managers

Question 3

Explain the collectivity stage and the crisis

Answer 3

Obtained strong leadership, begin to develop goals + strategy
Departments established
Informal communication starting to formalize

Crisis: need for delegation

Question 4

Explain the formalization stage and its crisis

Answer 4

Installation of rules, procedures, control systems
Less frequent, but formal communication

Crisis: too much red tape -> innovation restricted

Question 5

Explain the elaboration stage and its crisis

Answer 5

tackle crisis through new sense of collaboration and team work -> more flexible

Crisis: need for revitalization -> misalignment, replace managers, inflexible

Question 6

What are the 6 characteristics of bureaucracy?

Answer 6

1. Rules and procedures
2. Specialization
3. Hierarchy of authority
4. Technically qualified personnel
5. Separation of position and incumbent
6. Written communication and records

Question 7

What are the 3 aspects of size and strucutural control?

Answer 7

1. Formalization
2. Centralization
3. Personnel Ratios

Question 8

What are the 2 temporary systems for flexibility/innovation

Answer 8

1. incident command systems

2. professionalism -> professional partnerships

Question 9

What are the 3 organizational control strategies?

Answer 9

1. Bureaucratic Control (rational authority, traditional authority, charismatic authority)
2. Market Control
3. Clan Control

Question 10

What are the 3 causes of organizational decline?

Answer 10

1. Organizational atrophy (grow older, inefficient, overly bureaucratized)
2. Vulnerability (unsuccessful in environment)
3. Environmental decline (reduced available resources to support)

Question 11

Name the 5 stages of decline

Answer 11

Blinded, Inaction, Faulty Action, Crisis, Dissolution

Question 12

Explain the Blinded stage and its solution

Answer 12

organization needs to tighten up because internal/external change threatens survival

solution: develop effective scanning and control systems

Question 13

Explain the inaction stage and its solution

Answer 13

denial despite signs of deteriorating performance, leaders persuade all is well

solution: acknowledge decline and take prompt to realign

Question 14

Explain the faulty action stage and its solution

Answer 14

organization facing serious problems and cannot ignore poor performance - forced to make major changes

solution: retrenchment, downsizing, communicate with employees

Question 15

Explain the crisis stage and its solution

Answer 15

organization has not dealt with decline properly -> PANIC, CHAOS, SHARP CHANGES, ANGER

solution: major re-organization, replace top admin + management, change strategy, downsizing

Question 16

Explain dissolution stage and its solution

Answer 16

decline is irreversible, suffering loss of markets, reputation, loss personnel and capital depletion

solution: close organization in an orderly fashion and reduce seperation trauma of employees

Question 17

What are 3 techniques for downsizing?

Answer 17

1. Communicate more
2. Provide assistance to displaced workers
3. Help survivors thrive