The problem of aging organizations

Abstract

A change in any of the variables that compose an R&D unit can lengthen or shorten its life-span. Professor Roberts has developed a "wheels within wheels" theory that describes the rise and fall of an R&D organization. His theory is based on the industrial dynamics approach, which assumes that the problems affecting an organization are the natural outgrowths of its own activities and structure. The variables can be put into feedback loops, each of which is one "wheel." Since each variable in a loop agects every other, all parts of the unit must function correctly in order to have a positive feedback. For instance, if the technical effectiveness declines, management lowers its goal objectives, and the unit produces less. Thus, the loop starts a downward cycle. Professor Roberts goes on to explain the theory in more detail, dealing with the cycles of other feedback loops. © 1967.