Understanding Organizational Growth and Survival

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16 Questions

What is the principal stage of the organizational life cycle?

Growth

What is the term used to describe the dangers associated with being the first in a new environment?

Newness liability

What theory explains the factors that affect the rate at which new organizations are born and die in a population of existing organizations?

Population ecology theory

Which process ensures the survival of organizations that best fit with the environment?

Natural selection

What benefits are derived from being an early entrant into a new environment?

First-mover advantages

What is the term used to describe particular sets of resources that organizations compete for in the environment?

Resource niches

Which stage of the organizational life cycle is associated with the greatest chance of failure?

Birth

What factor affects the rate at which new organizations are born and die in a population of existing organizations?

Population density

What term is used to describe the process that produces a rapid birthrate for new organizations?

Rapid expansion phenomenon

What term refers to the number of organizations that can compete for the same resources in a particular environment?

Density of competition

What is the strategy of entering an environment late, after other organizations have tested the environment?

K-strategy

Which type of organizations concentrate their skills to pursue a narrow range of resources in a single niche?

r-Specialists

What does coercive isomorphism refer to?

Organizations being forced to comply with norms to become similar

In Greiner's model of organizational growth, what crisis occurs as power struggles over resources emerge between top-level and lower-level managers?

Crisis of control

Which stage in Greiner's model emphasizes greater spontaneity in management action and greater use of product team and matrix structures?

Stage 5: Growth through collaboration

What does institutional theory study in organizations' ability to grow and survive in a competitive environment?

Organizational legitimacy in the eyes of stakeholders

Study Notes

  • Organizational life cycle: sequence of growth and development stages
  • Principal stages: Birth, Growth, Decline, Death
  • Organizational birth: founding of an organization, occurs when entrepreneurs seize opportunities
  • Dangerous stage associated with high failure rate: Liability of newness
  • Population ecology model: explains factors affecting new organization birthrate
  • Competition for resources determines newborn population density
  • Availability of resources and skills influences newborn population
  • Natural selection: ensures survival of organizations best adapted to the environment
  • First-mover advantages: benefits of being an early entrant into a new environment
  • Strategies for competing in the resource environment: specialist vs. generalist
  • Specialists concentrate skills to a single niche; generalists compete in many niches
  • Institutional theory: organizations increase ability to grow and survive by becoming legitimate
  • Organizational growth: life-cycle stage of value creation skills development
  • Organizational isomorphism: similarity among organizations in a population
  • Coercive, mimetic, and normative isomorphism: processes that make organizations similar
  • Greiner's model: growth stages with crises and advancements
  • Stage 1: Growth through creativity, crisis of leadership
  • Stage 2: Growth through direction, crisis of autonomy
  • Stage 3: Growth through delegation, crisis of control
  • Stage 4: Growth through coordination, crisis of red tape
  • Stage 5: Growth through collaboration, crisis of collaboration
  • Understanding organizational growth: case discussion - National Geographic Society.

Explore the basics of organizational growth, survival strategies, and the concept of organizational life cycle in this post graduate certification session. Delve into topics like organizational birth, isomorphism, and competing strategies in the resource environment.

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