The Effects of Organizatoinal Life Cycle on Human Resource Management Practices

by Hsieh, Ya-chun

Abstract (Summary)
Although the organizational life cycle is inevitable, each stage could be extended by some means or other. Besides, continuous innovation and revival could enable the organization not to move toward the decline stage easily or even to die. The Taiwanese industries are facing common new challenges--the internal market is not large enough and the global competition is becoming more rigid. While local industries, under a ceaseless change environment of innovation, are unable to compete with those from other major nations in terms of capital, cost, marketing channels and other resources, the specialized talents are becoming un-replaceable great assets to the local industries and the application of human resource management practices appears more and more vital. Therefore, this study attempts to explore the characteristics of organizational life cycle as well as the impact to and the human resources management practices by the linkage of the organizational life cycle and the human resources management practices. The purpose of this study is to investigate the inter-relationship between organizational life cycle and human resource management practices. In this study, organizational life cycle is defined as independent variable, and the organization life cycle various stages are defined by the eight constructs of the organization situation and the organization structure. On the other hand the human resource management practices are defined as dependent variable, including HRM planning, employment management, performance appraisal, training and development, and compensation. This study adopts a questionnaire survey and targets on various industries. As far as the data analysis is concerned this study adopts factor analysis, cluster analysis, and one-way ANOVA to define the various of organizational life cycle. Furthermore, using factor analysis and one-way ANOVA to examine the effect of organizational life cycle on human resources management practices. The findings of the study indicate as follows. (1) The organizational life cycle may be differentiated into five stages: start-up, growth, maturity, decline, and diversification. (2) The different stages of organizational life cycle show different characteristic, and the differences are very significant. (3) The organizational life cycle reveals the differences to a certain extent to the human resources management practices in terms of four factors, i.e. highly human resources planning, and emphasized talents selection, performance appraisal management, as well as training.
Bibliographical Information:

Advisor:Liang-chih Huang; Shyn-jer Chen; Jin-feng Uen

School:National Sun Yat-Sen University

School Location:China - Taiwan

Source Type:Master's Thesis

Keywords:organizational life cycle organization situation structure human resource management practices


Date of Publication:06/13/2006

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