Academic journal article Asian Social Science

The Influence of Phase the Organizational Life Cycle on Organizational Structure Management and Transaction Costs

Academic journal article Asian Social Science

The Influence of Phase the Organizational Life Cycle on Organizational Structure Management and Transaction Costs

Article excerpt

Abstract

The aim of this work is to establish the relationship between the stages in the organizational life cycle, management structure and the structure of the transaction costs of the organization. This article discusses the life cycle stages. Are described the major characteristics of each stage, including the features of the organizational structure of the management. For each stage in the life cycle of the organization is different structure of transaction costs, because there are distinctions of the development priorities of the organization. In this article is analyzing the stages of the life cycle from the point of view of transaction costs. Adjustment of structure and the level of transaction costs are achieved by changing the organizational structure of the management, management methods. These operations will enable the organization to make the most effective use of its resources to achieve the objectives of the organization. For each stage of the life cycle is a specific type of organizational management structure. In the article was done the analysis of transaction cost of the enterprise of food industry of the Russian Federation in phases of the organizational life cycle. Draws conclusions on the causes of changes in their structure. Study of the level and structure of transaction costs the organization allows to do analysis of the effectiveness of the functioning of the organization. This analysis allows seeing bottlenecks in the development of the structure of internal and external communications of the organization. That ultimately gives the opportunity to develop a strategy to improve the efficiency of the organization.

Keywords: organizational life cycle, transaction costs, the management efficiency, organizational structure of management

1. Introduction

Transaction costs are accompanying the activities of any organization and they are often very significant. If the organization will be able to reduce costs without compromising the achievement of organizational goals, this would enhance the effectiveness of the organizational structure of the management as a whole. The size and structure of the transaction costs depends on the stage of the life cycle of the organization and the type of organizational structure of the management.

To improve the effectiveness of the organization, managing director of the company should set itself the task of defining the structure, dynamics, and the sources of growth in transaction costs at each stage of the life cycle of the organization (Bagautdinova, 2014).

Development of the concept of the life cycle is associated with the theoretical concepts of the cyclical fluctuations in the economy, the basic provisions of the systems approach, and research in the field of management, organization theory, organizational behavior, and other sciences.

The best known research on the organizational life cycle are of the following authors: Greiner (1972), Adizes (1979), Kimberly (1979), Miller and Friesen (1984), Lester and Parnell (2006), Hanks (1990).

One of the most popular models of the life cycle has been proposed Greiner (1972) in an article "Evolution and Revolution as Organizations Grow" published in the Harvard Business Review in 1972. In 1979, the magazine Organizational Dynamics Adizes (1979) for the first time presented his ten-step of the lifecycle model, which is still relevant today.

From the 80 years of the 20 century, an interest is growing to the practical application of the concept of life-cycle management of the organization. Works Cameron and Whetton (1981), Miller and Friesen (1984), Mintzberg (1984), Hanks (1990), Drazin and Kazanjian (1990), Gupta and Chin (1994), Serrasqueiro and Ferrera (2003), Petrauskiene and Pundziene (2004), Lester and Parnell (2008), Zhipeng (2006) are devoted on empirical research life cycle and identify the quantitative and qualitative characteristics of the stages of development of the organization. …

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