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Abstract
This paper reviews current perspectives on organizational decline and integrates important underlying factors into a conceptual framework that refines the definition of decline in organizations. In the model developed here, decline moves through the following stages: (1) the organization is blind to the early stages of decline; (2) it recognizes the need for change but takes no action; (3) it takes action, but the action is inappropriate; (4) it reaches a point of crisis; and (5) it is forced to dissolve. The discussion of this model points to areas in which additional research is needed to develop sensitivity to the conditions leading to decline and a better understanding of conditions that are common to declining organizations.
Journal Information
Founded in 1956 by James Thompson, the Administrative Science Quarterly is a peer-reviewed, interdisciplinary journal publishing theoretical and empirical work that advances the study of organizational behavior and theory. ASQ publishes articles that contribute to organization theory from a number of disciplines, including organizational behavior and theory, sociology, psychology and social psychology, strategic management, economics, public administration, and industrial relations. ASQ publishes both qualitative and quantitative work, as well as purely theoretical papers. Theoretical perspectives and topics in ASQ range from micro to macro, from lab experiments in psychology to work on nation-states. An occasional feature is the "ASQ Forum," an essay on a special topic with invited commentaries. Thoughtful reviews of books relevant to organization studies and management theory are a regular feature. Special issues have explored qualitative methods, organizational culture, the utilization of organizational research, the distribution of rewards in organizations, and critical perspectives on organizational control.
Publisher Information
Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com
Which of the following is a difference between the inaction stage and the faulty action stage of organizational decline?
a. In the inaction stage, managers wait to see if organizational performance problems correct themselves, whereas in the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits.
b. In the inaction stage, managers assume that if they just run a tighter ship, company performance will return to previous levels, whereas in the faulty action stage, companies typically lack the resources to fully change how they run their businesses.
c. In the inaction stage, managers lack awareness about changes or are unable to understand their significance, whereas in the blinded stage, managers find it difficult to change the practices and policies that previously led to success.
d. In the inaction stage, the company is dissolved through bankruptcy proceedings, whereas in the faulty action stage, management recognizes the need to change but still takes no steps.
Asked by ramonklaharn Which of the following is a difference between the inaction stage and the faulty action stage of organizational decline? a. In the inaction stage, managers wait to see if organizational performance problems correct themselves, whereas in the faulty action stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits. b. In the inaction stage, managers assume that if they just run a tighter ship, company performance will return to previous levels, whereas in the faulty action stage, companies typically lack the resources to fully change how they run their businesses. c. In the inaction stage, managers lack awareness about changes or are unable to understand their significance, whereas in the blinded stage, managers find it difficult to change the practices and policies that previously led to
success. d. In the inaction stage, the company is dissolved through bankruptcy proceedings, whereas in the faulty action stage, management recognizes the need to change but still takes no steps.
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