With respect to the life cycle of an organization, which venture descr

QUESTION

With respect to the life cycle of an organization, which venture describes the necessary action to prevent decline?

1. Avoid organizational crises.
2. Provide periodic personnel evaluations.
3. Consider change necessary for survival.
4. Allow only expected outcomes to occur.

ANSWER:

Answer: 3
Rationale: According to Peter Drucker, an organization’s life cycle includes growth, stability, and decline. Periodic evaluations to determine necessary change to keep up performance will prevent decline. The organization should not avoid crises, as crises are important to force the organization to assess itself through periodic evaluations of the organization itself. Management should not allow only expected outcomes to occur, as sometimes unexpected outcomes are also helpful in preventing decline.