Organizational Life Cycle

The organizational life cycle is the life cycle of an organization from its creation to its termination.

There are five level/stages in any organization.

  1. Birth
  2. Growth
  3. Maturity
  4. Decline
  5. Death

According to Richard L. Daft there are four stages in an Organizational Life Cycle.

The four stages are:

  1. Entrepreneurial stage -> Crisis: Need for leadership
  2. Collectivity stage -> Crisis: Need for delegation
  3. Formalization stage -> Crisis: Too much red tape
  4. Elaboration stage -> Crisis: Need for revitalization

(Richard L. Daft, Understanding the Theory and Design of Organizations, first edition 2007, ISBN 0-324-42271-7)

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