Life Cycle Development; Life Cycle Management.

De acuerdo con Olivier P. Roche, Corporate Governance and Organizational Life Cycle: The Changing Role and Composition of the Board of Directors, Cambria Press, Amherst, NY, 2009, ISBN 1604976284

El autor usa una perspectiva de tres fases en una organización

emeriging

maturing

decline and exit

Director roles shift from resource providers

in early stage and small organization toward monitoring

in mid-stage and larger organizations.

Incentive reward with organizational life

cycle from competitive advantage viewpoint

The life cycle analogy is developed in order to explain the development of organizations over time [4] The earlier literature on organizational life cycles is theoretical rather than empirical, and authors differed about the number of stages of the life cycle [2,13]. Different authors emphasized a unique set of characteristics found in each stage of their life cycle models. However, what is important is that, regardless of the numbers, these stages are: (i) sequential in nature; (ii) occur as a hierarchical progression that is not easily reversed; and

(iii) involve a broad range The organizational life cycle describes the stages of growth and development of an organization. In general, organizational life cycle models assume that an organization goes through inception to growth, maturity and decline or redevelopment

During inception and early growth, the organization is a single product company and is characterized by a “one man show”, with the founder bearing the responsibility of managing all aspects of the company. The organization has just come into existence and established its position in the market place, usually through technological advances, innovation or entrepreneurship

[2,13]. The prime concern at this stage is to secure its financial resources in order to ensure its survival [11]. In this stage, possessing obviously different technology or product, it will be the chief incentive to attract the financial sources. During the growth stage, rapid expansion takes place. The organization is now capable of producing more than one product. More emphasis is placed upon establishing rules and procedures and maintaining

stability of the organizational structure [2,13]. In this stage, the organization is istinguished by a more formalized structure; focus on task performance, functional specialization and epartmentalization. Such organizational feature exactly supports mass-produce and cost advantage becoming. Moreover, when an organization organization has successfully experienced the first stage and gotten existence position, it also needs more lowcost advantage than before to hold the competitiveness and market share in the industry.

The organization enters the maturity stage because of rapid growth and expansion. As the organization matures, this very same process of formalization reduces innovativeness and flexibility, and the ability to adapt to turbulent environments in the future. Another problem is that organizations tend to develop activity programs that replicate earlier successes, but the very existence of such programs creates enormous inertia. At this point, it is imperative for the founder to be able to delegate responsibilities in order for the company to survive [13]. Therefore, the key point of an organizational strategy should focus effort and esources on one particular segment of a market/product, and adequately delegate particular market/product managers to stand continuously in the industry. As the organization enters the decline or redevelopment phase, the organizational climate is characterized

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