Investigating organizational characteristics during the first three lifecycle stages using the PAEI framework and the sy
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Investigating organizational characteristics during the first three lifecycle stages using the PAEI framework and the system dynamics approach Ramin Mowlanapour1 · Yaghoub Farjami2 · Fatemeh Saghafi3 Accepted: 23 October 2020 © Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract The purpose of this research is to analyse the characteristics and behaviour of an organization over the course of 100 months of the courtship, infancy, and go-go stages of its lifecycle. Moreover, the causal feedback loops and stock-and-flow diagrams of each stage of the organizational lifecycle are plotted. The PAEI framework proposed by Adizes and the system dynamics approach are employed to understand the organizations treatment throughout its lifecycle. To tackle problems that the organization may face during each stage of its lifecycle, we have suggested some appropriate strategies. Although there are studies that analysed the dynamic treatment of the lifecycles of organizations, the current study is the first attempt to employ the Adizes’s PAEI framework and the system dynamics method to understand organizations treatment throughout their lifecycles. Keywords Adizes’s PAEI framework · System dynamics · Strategic management · Strategy formulation
* Yaghoub Farjami [email protected] Ramin Mowlanapour [email protected] Fatemeh Saghafi [email protected] 1
Department of Computer and IT, University of Qom, Qom, Iran
2
Faculty of Computer and IT, University of Qom, Qom, Iran
3
Faculty of Management, University of Tehran, Tehran, Iran
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R. Mowlanapour et al.
1 Introduction This model indicates that the development of an organization happens as the result of changes in the so-called roles of production (P), entrepreneurship (E), administration (A), and integration (I) (Adizes 2014). According to Adizes’ model, an organization starts its activities with emphasis on the role of entrepreneurship (E), which is then followed by attaching more importance to the (P) role. Then approaching the adolescence stage of the lifecycle, the organization will attach more importance to the administration (A) and integration (I) roles (Adizes 2014). Unnecessary emphasis on stability, administration, and the rules of the organization results in its death (Adizes 2004). Adizes considered ten stages for the lifecycle of an organization— the first five stages indicate the development phase of the organization, and the second five stages explain why the organization dies. These ten lifecycle stages have been illustrated in Fig. 1. The first role is the (P) which guarantees the short-term effectiveness of the organization; P is the first letter of ‘produce’, ‘perform’, and ‘purpose’; that is, the very first role of the management of the organization is to define the purpose of the organization. Each organization needs a reason to justify its existence. If the (P) is fulfilled, the organization will become effective, as the needs for which the organization has been established are met; this can be meas
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