Organizational life cycle

Organizational life cycle

The organizational life cycle is the life cycle of an organization from its creation to its termination.[1]

There are five level/stages in any organization.

  1. Birth
  2. Growth
  3. Maturity
  4. Decline
  5. Death

According to Richard L. Daft [2] there are four stages in an Organizational Life Cycle.

The four stages are:

  1. Entrepreneurial stage -> Crisis: Need for leadership
  2. Collectivity stage -> Crisis: Need for delegation
  3. Formalization stage -> Crisis: Too much red tape
  4. Elaboration stage -> Crisis: Need for revitalization

(Richard L. Daft, Understanding the Theory and Design of Organizations, first edition 2007, ISBN 0-324-42271-7)


  1. ^ J. Daft, H. Willmott Murphy (2010), Organization theory and design, p. 356 
  2. ^ Understanding the Theory and Design of Organizations, first edition


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