Changes in a Kibbutz Plant's Life Cycle Induced by Cultural Change

Abstract

This is an organizational life cycle case study of a kibbutz industrial plant and its cultural features. The plant began as a new enterprise, in a new area of manufacturing magnets. Gradually, the plant evolved and grew, but socialist management problems and environmental competition interfered with its existence. The plant passed into a decline stage, and finally was shut down and acquired by a new private owner. The life cycle changes were accompanied by major changes in the plant’s organizational culture. From a socialist entity based on democratic values, it transformed into a hierarchic organization with social stratification.