Organization life
cycle is nothing but the stages of growth and development
and crisis that the organization go through from its creation to
its termination.
Down's three-stage model of the life cycle of an organization
include: -
- Early stage - This stage focus on struggle for
autonomy where zealots and advocates focus on building political
support for their legitimacy and resources.
- Middle stage - This stage focus on rapid
expansion and innovation. The firm develops the ability of
acquiring resources and optimally using it. This result in gaining
competitive advantage because of the increase in division of labor
and specialization. The organization also create high performance
culture, implement rules and code of conduct and values that govern
the behavior of the employees.
- Deceleration stage - In this stage the
organization grow older and larger where rules are elaborated and
focus on accountability. In this stage the zealots and advocates
might leave the organization for active programs or continue with
their roles in the organization.