09 - OBIIFinal...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 OB II Final Chapter 9: Organizational Size, Life Cycle, and Decline Organization Size: Is Bigger Better? P RESSURES   FOR  G ROWTH o Companies strive for growth of all sizes and resources needed to compete on a  global scale, to invest in new technology, control distribution channels and guarantee  access to markets o Some firms must grow to remain economically healthy, rather than being stagnate o Stability might mean that customers may not have their demands fully met or that  competitors will increase market share at the expense of your company o Greater size = greater power and revenues o Also offers vibrant and exciting place for employment and can give many challenges  and opportunities for advancement  D ILEMMAS   OF  L ARGE  S IZE o Large Large organizations have the resources to be a supportive economic and  social force in difficult times Huge economies of scale and resources are needed for success Easier to recover from disasters, giving employees a sense of security and  belonging in uncertainty They are often standardized, mechanistically run and have complex  functional specialties Can stabilize a market and employees can join an organization that can  provide longevity, raises and promotions o Small
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1 OB II Final Chapter 9: Organizational Size, Life Cycle, and Decline Very responsive and flexible in fast changing global markets Regional reach to local markets at expected performance levels for  satisfaction Flat structure and organic, free-flowing management style that encourages  entrepreneurship and innovation Personal involvement of employees in small firms encourages motivation &  commitment, employees identify with company’s mission o Big Company/Small Company Hybrid Small companies can become victims to their own success (growing large)  shifting to a mechanistic structure emphasizing vertical hierarchies and  spawning ‘organization men’ rather than entrepreneurs Big companies become committed to their existing products and technologies  and have a hard time supporting innovation in the future Increasing IT and decentralizing of authority allows for companies to act both  large and small, achieving advantages of each Organizational Life Cycle Stages of Life Cycle Development
Image of page 2
1 OB II Final Chapter 9: Organizational Size, Life Cycle, and Decline 1. Entrepreneurial Stage o Emphasis on creating a product or service and survival in marketplace o Founders devote time to production and marketing; it is informal and non  bureaucratic o Growth is based on new products or service; control based on owners  supervision o
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern