Toward a General Theory of Organizational Deterioration

Organization studies have typically ignored the problem of organizational deterioration. In developing a general theory of organizational deterioration, supporting literature is reviewed, definitions for the theory are explained, a series of hypotheses are constructed, and implications for organizations are discussed. Unlike the previous conceptualizations of organizational deterioration, this article presents the hypothesis that organizations will ultimately deteriorate; however, they will deteriorate at different rates depending upon the strength of management, institutional incentives, and environmental pressures. This theory presents a challenge for both managers and theorists in the future.