Organization theory and stages of decline: the case of the afl-cio, 1955-2005

Abstract

Despite the appeal of studying successful organizations, valuable tools have also been developed by social scientists for understanding organizations that fail. This study applies one such tool − a model of stages of decline − to the case of the AFL-CIO (American Federation of Labor-Congress of Industrial Organizations), an organization that has arguably been in decline for decades. The AFL-CIO is an interesting case due to the lack of agreement among key constituencies about the appropriate criteria for measuring organizational performance. Reformers and conservatives have struggled over this issue, each viewing the conflict over performance criteria as crucial in determining who will ultimately control the organization. As the AFL-CIO has moved through successive stages of decline, struggle over the organizational mission has grown increasingly intense, finally leading to the exit of major constituencies. This study confirms the value of the concept of stages of decline, and underscores the role of internal politics, especially in a non-profit organization, in setting the criteria for evaluating performance.