Organizational decline occurs when organizations are in danger of losing their abilities to meet goals and are unable to mount productive change efforts.

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Organizational decline is the gradual deterioration of an organization's performance that may lead to its eventual failure or inability to achieve its goals. It occurs when an organization is unable to adapt to changing circumstances or fails to keep pace with competitors, resulting in a loss of relevance or competitiveness over time. In such situations, the organization may struggle to initiate and sustain effective change efforts, leading to further decline.

Organizational Decline Occurs When Organizations Are in Danger of Losing