The impact of the relationship between the organization’s life cycle and organizational structure

Abstract

The research aims to study the impact of the relationship between the organization’s life cycle (X) and the organizational structure (X) on performance (Y). In order to achieve this, the stages of the organization’s life cycle (birth, growth, maturity, and decline) were adopted based on the 1991 Hodge & Anthony (Jones 1999), defining the organizational structure with three types: organic, mixed and mechanistic) by measuring the three dimensions of the structure (formal, centralized and complex) based on (Hach 170:1997). As for the dependent variable, which is performance, it was measured according to the indicators that Determined by the (Kaplan Norton) model that was used in the research, which is (ROI, productivity, and individuals’ development ratio). The two independent variables, the organization’s life cycle and organizational structure, were measured using a questionnaire prepared for this purpose, while the dependent variable was measured based on the final data and accounts for the years (1999 - 2002) and (2004). The research was conducted in the Iraqi banking sector and included a sample of (12) banks, including (4) government and (8) private banks, and the number of members of the sample was (78) managers occupying advanced administrative positions. The Spearman correlation coefficient and the t-test were used to measure the significance of the relationship between the study variables, and multiple regression analysis, analysis of variance (ANOVA), and the F test were used to determine the significance of the regression equation. Also, (R) was used to interpret the amount of influence of the two variables. Independents in the derived variable. The research reached a set of conclusions, including: - The association of each stage of the organization’s life cycle with a type of organizational structure that is most appropriate to the requirements of that stage, and the effect of this association is reflected in performance indicators. 2 - The possibility of the organization adopting certain types of organizational structure in Each stage of its life cycle, but in a different order between one stage and another and according to the requirements of that stage, and this is evident through the difference in the impact of these connections on performance indicators. Then the research concluded with a set of recommendations related to its three variables, and others related to future research.