Organizational Life Cycle, HR Roles &
Stakeholders Verified Questions With A+
Graded Rationales Graded A+ Latest Updated
2026
Organizational Life Cycle (stages)
- Entrepreneurial
- Communal
- Formalization
- Elaboration
Entrepreneurial Stage (Organizational Life Cycle)
○ Goal:
- Survival and Growth
○ HR contribution:
- need to hire/maintain employees; emphasis on creating plans for measuring performance
and deciding pay
Communal Stage (Organizational Life Cycle)
○ Goal:
- Develop Identity & Overcome Conflict
○ HR contribution:
- need to develop clear communication channels; emphasis on building strong loyalty among
employees
Formalization Stage (Organizational Life Cycle)
○ Goal:
- Efficient Production
○ HR contribution:
- need to create formalized practices for hiring, training, and compensating; emphasis on
continual improvement of employee skills
Elaboration Stage (Organizational Life Cycle)
○ Goal:
- Adaption and Renewal
, ○ HR contribution:
- need to alter practices to meet changing demands; emphasis on new ways of organizing
work tasks
How is Organizational Success Determined?
- Success at various stages of the life cycle
- Success from the stakeholders' viewpoint
Stakeholder Groups
- Employees
- Customers
- Owners (shareholders)
- Society
Stakeholders
individuals or groups of people who can affect or who are effected by and organization
The Chain of Success
Human Resource Management -> Effective Employees -> Customer Service -> Financial
Performance
HR Roles
- strategic partner: long-term, processes
- human capital developer: long-term, people
- functional expert: short-term, processes
- employee advocate: short-term, people
Current Trends and HR
- workplace diversity (older workers, women, minorities)
- job growth expected in health, education, & HR management
- globalization will require HR depts. to create processes that effectively manage people
working in foreign countries
Four-Fifths Rule
A rule of thumb followed by the EEOC in determining adverse impact
○ Rule is violated when the % of people selected from one group is less than 80 percent of the
percentage of people selected from the best represented group