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)

Famous quotes containing the words life and/or cycle:

    “The best thing to do with the best things in life is to give them up.”
    —Dorothy Day (1897–1980)

    “The Buddha, the Godhead, resides quite as comfortably in the circuits of a digital computer or the gears of a cycle transmission as he does at the top of a mountain or in the petals of a flower.”
    —Robert M. Pirsig (b. 1928)