Re-Examining Organizational Life Cycles Criteria: An Analysis of Service Organisations in Growth and Maturity Stages

Amizawati Mohd Amir, Sofiah Md. Auzair

Abstract


ABSTRACT

The understanding on different types of changes within and between organizational life cycle stages may identify the appropriate effectiveness model that could be applied. Hence studies have been undertaken to identify the best match of management techniques at various organizational development stages. Considering that the underlying characteristics of the life cycle model has been established more than three decades ago, the aim of this study is to re-examine the consistency of these organizational characteristics in defining the life cycle stages over years. Based on Miller and Friesen’s (1984) organizational model, this paper reevaluates the criteria of the life cycle classification scheme focusing on the growth and maturity stages. Data was collected through a questionnaire survey to top–level management of profit-oriented service firms operating in Malaysia. Using cluster analysis, the service firms are grouped according to the established criteria defining their life cycle stages namely, their strategy, the organizational structure and management decision making style. The findings suggest some inconsistencies with the initial description of growth and maturity levels’ criteria. Despite the expectation that the level of complexity of management approaches progress through the life cycle, the findings indicate that growth firms has higher mean score in all measurable items defining their stage of growth. The results also imply the likeliness of other factors influencing firms’ adaptation to changes.

Keywords: Organizational life cycles; service organisations; growth and maturity stages

ABSTRAK

Pemahaman tentang jenis perubahan di dalam dan antara tahap kitaran hayat organisasi mungkin berupaya mengenalpasti model keberkesanan yang sesuai untuk diaplikasi. Oleh yang demikian, kajian telah dilakukan untuk mengenalpasti padanan teknik pengurusan yang terbaik di pelbagai tahap perkembangan organisasi. Memandangkan ciri-ciri yang mendasari model kitaran hayat telah dibentuk lebih dari tiga dekad yang lalu, kajian ini bertujuan untuk mengkaji konsistensi ciri tersebut dalam mendefinisikan tahap kitaran hayat masa kini. Menggunakan model organisasi cadangan Miller and Friesen’s (1984), kertas ini akan menilai semula kriteria skema klasifikasi kitaran hayat itu dengan menumpu kepada tahap pertumbuhan dan kematangan. Data telah dikutip melalui survei soalselidik kepada pengurus atasan firma perkhidmatan berorientasi keuntungan yang beroperasi di Malaysia. Dengan menggunakan analisis kluster, firma perkhidmatan dikelompokkan berdasarkan kriteria yang mendefinisikan tahap kitaran hayat mereka iaitu strategi, struktur organisasi dan cara pengurusan membuat keputusan. Hasil penemuan kajian mendapati ketidakselarasan antara deskripsi asal kriteria tahap pertumbuhan dan kematangan. Walaupun dijangka bahawa tahap kerumitan pendekatan pengurusan akan meningkat mengikut kitaran hayat, penemuan kajian ini mencadangkan firma di tahap pertumbuhan menunjukkan skor min yang tinggi bagi semua item yang diukur. Hasil kajian juga membayangkan kemungkinan ada factor lain yang mempengaruhi adaptasi firma kepada perubahan.

Kata kunci: Kitaran hayat organisasi; organisasi perkhidmatan; tahap pertumbuhan dan kematangan


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