SLIDE 1:

ORGANIZATIONAL DECLINE AND DOWNSIZING

Organization decline – degradation (decrease) in an organization’s resource base which occurs over-
time

Companies face reduction in size or in shape

SLIDE 2:
The factors causing decline:

1) Organization atrophy
2) Vulnerability
3) Environmental Decline or Competition
SLIDE 3:
A MODEL OF DECLINE STAGES

SLIDE 4:
DOWNSIZING IMPLEMENTATION
-The leader’s role
ACTIONS TO BE TAKEN:
1) Communicate more, not less
2) Provide assistance to displaced workers
3) Help survivors thrive
SLIDE 5:
Conclusion
-Organizations face many pressures while growing
-Large companies enable economies of scale
-Organizations evolve through distinct life-cycles
-As organizations get old, they become more bureaucratic
-All organizations need systems for control
-Many Organizations are declining, they go through stages of decline process