Organizational Theory - Research Paper Example

employees to provide the society with a valuable offering (Daft, 2013). The organization theory has no single definition as it is described as a way of thinking regarding the entity and how individuals and resources are gathered and arranged collectively to attain the business purpose (Smith, 2010). Likewise, the organizational design encompasses two vital aspects of the enterprise i.e. structural features and contingency factors. The structural facet is comprised of the internal elements such as organization size, hierarchy, infrastructure, IT, employees, suppliers and many more.

While, the contingency factors are those aspects which influence the organization’s structural dimension like competitors, government, environment, technological developments, globalization, culture and etc. (Serra, Almeida & Ferreira, 2012). Hence, it is imperative for a company to monitor its design so that it can avoid entering the decline stage. Since organization exists in the business environment which is evolving at a fast pace, there are various external factors which can impact its business operations.

For instance, a manufacturing concern which has been the leader in the industry for decades can enter into decline stage if it does not upgrade its machinery or fails to respond to the changing market needs. Similar to any product, the management team has to remain alert about the indicators which can show signs of an arising issue in the near future (Serra, Almeida & Ferreira, 2012). There are four crucial phases through which every organization passes i.e. birth/introduction, growth, maturity and decline.

When a firm is at the maturity stage, it has to start developing plans for maintaining or revamping its image so that it can gain momentum again and retrieve back its enhanced performance level (Daft, 2013). The two foremost signs of maturity stage are