1 AIT Asian Institute of Technology

An attempt to understand the dynamics of organizational decline

AuthorOlorvida, Rey Cesar V.
Call NumberAIT Thesis no.IE-90-18
Subject(s)Organization
Note A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology
PublisherAsian Institute of Technology
AbstractA system's dynamics model is developed to analyze the micro-structure of an organization undergoing decline. Relationships among the following variables, namely, resources allocated to productive and control sectors, innovation, workers' morale, organizational turbulence and control activities are simulated d analyzed. The study shows that a highly centralized organization, whethFr with compassion*e management or otherwise, would be unable to sustain growth upder a fluctuating external demand of the product since its need to increase control will eventually limit allocation of resources to the productive sector, thus, creating a downward effect on the organization. In a centralized organization, the policy to direct resources to innovation creation does not in any way help sustain the growth process in the long run, as the need for control eventually exerts greater pressure for resource diversion to the control sector. Decoupling the organization of the effects of control activities on innovation, worker's morale and turbulence, or in other words, creating a decentralized system of administration, enables the organization to sustain growth.
Year1990
TypeThesis
SchoolSchool of Engineering and Technology (SET)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSIndustrial Engineering (IE)
Chairperson(s)Saeed, Khalid
Examination Committee(s)Tabucanon, Mario T. ;Vrat, Prem ;Weber, Karl E.
Scholarship Donor(s)Royal Government of Belgium
DegreeThesis (M.Eng.) - Asian Institute of Technology, 1990


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