Main cause of Organizational Decline

Organizational decline (Inflexibility and loss of effectiveness and efficiency) may lead to downsizing, merger, reorganization, or liquidation.

Management complacency is one of the main causes of organizational decline.

But how to identify Management complacency?

The following are its characteristics:

1. A lack of innovation
2. Faulty perception of markets and competition
3. Failure to observe or properly appraise the initial warnings of decline
4. Not focusing on daily objectives

As a result, employees fail to add value to the operations, ultimately negatively impacting the organization.