Population Ecology

Topics: Decision making, Organizational studies and human resource management, Organization Pages: 7 (1472 words) Published: July 29, 2013
A Population ecology model of organizational birth
1. Population ecology theory: A Theory that seeks to explain the factors that affect the rate at which new organizations are born in a population of existing organizations Population of organizations: The organizations that are competing for the same set of resources in the environment Environmental niches: Particular sets of resources

2. Population ecology model
Number of births determined by the availability of resources Population density: The number of organizations that can compete for the same resources in a particular environment Two factors that produce rapid birthrate:

1. Availability of knowledge & skills to generate similar new organizations 2. New organizations that survive provide role models and confer legitimacy As the environment is populated with a number of successful organizations, birthrate tapers off because of following two factors: 1. Fewer resources are available for newcomers

First-mover advantages: Benefits derived from being an early entrant into a new environment 2. Difficulty of competing with existing companies
2 Sets of Survival strategies
1. Strategies that organization can use to gain access to resources/enhance chances of survival 2. r-strategy versus K-strategy
r-strategy: A strategy of entering a new environment early, providing first-mover advantages which facilitate core competencies/rapid growth K-strategy: A strategy of entering an environment late, after other organizations have tested the environment Its pursued by those establishedin other environments

Greiner proposes 5 sequential growth stages
Stage 1: Growth through Creativity
Stage 2: Growth through Direction
Stage 3: Growth through Delegation
Stage 4: Growth through Coordination
Stage 5: Growth through Collaboration
Each stage results in a crisis
Advancement to the next stage requires successfully resolving crisis in previous stage § Each stage results in a crisis Four major crisis are:
Crisis of leadership
Crisis of autonomy
Crisis of control.
Crisis of red tape
§Advancement to the next stage requires successfully resolving the crisis in the previous stage

§Organizational decline: the life-cycle stage that an organization enters when it fails to anticipate, recognize, avoid, neutralize, or adapt to external or internal pressures that threaten its long-term survival §May occur because organizations grow too much

§Organizational deathstage where decline is irreversible & dissolves itself by divesting resources & declare itself bankrupt §Organizational inertia: The forces inside an organization that make it resistant to change Three factors increase inertia are: §Risk aversion: Managers become unwilling to bear uncertainty of change as organizations grow §The desire to maximize rewards: Managers may increase the size of the company to maximize their own rewards even when this growth reduces organizational effectiveness §Overly bureaucratic culture: large organizations, property rights can become so strong that managers spend all their time protecting their specific property rights instead of working to advance the organization Session 9

§Organizational culture: Set of shared values & norms that controls organizational members’ interactions with each other & with people outside the organization §Source competitive advantage

§Increase organizational effectiveness
3 ways culture affect organisation effectiveness
Provide an organisation with a competitive advantage
Improve way an organisation
structure works
Increase motivation of employees to pursue organizational interests §Socialization: Members learn and internalize the values and norms of an organization’s culture §Role orientation: The characteristic way in which newcomers respond to a situation §Institutionalized role orientation...
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