Organizational Theory Design and Change

Organizational Theory Design and Change

Why do organizational decline?

The organizations steps into the declining phase when the organization practically reach into the phase where the organization is out of resources and faces reduction in revenues over a span of time. The phase of the organizational decline can be seen majorly at the time when it is very critical for the company to recover from the losses. The organizational decline can occur after the stage of the growth on the curve of the PLC. The decline phase of an organizational lead with respect to several reasons attached to it, which can be qualitative that are hard to explain or gage and some are quantitative that can be easily measure. Quantitative reasons can be the financials of the organization, or there could be flaws in the operations of the organization, or it could be reduced workforce, reduced market share, reduced profit or share price. Qualitative reasons could be fierce competition, Lack of Customers, Obsolete technology, Economic downfall, Organizational atrophy.

What steps can organizational leaders take to halt decline and restore organizational growth?

When the organization are at the phase of the decline and all the actions previously made for the crises management in any case of business decision and plans are failed. Then in this kind of situation it is very obvious that without some major changes the decline cannot be halt, and in these circumstances it is the duty and the responsibility of the organizational leader to plan accordingly and make some strategic steps to halt the decline of the organization. In the decline stage majority of the stakeholders begin to step back from the organization (Richard, 2009).

Thus, the organizational leaders should realize and take some strategic implications in order to make the decline phase halt. The organizational leaders require ...