The theoretical framework underlying this article
that was previously presented (Flamholtz, 1995) is
reviewed briefly below. A more extensive discussion
can be found in Flamholtz (1995) or Flamholtz and
Randle (1998).
The initial premise or hypothesis underlying this
framework is that organizations must perform certain
tasks to be successful at each stage of their
growth. The six key tasks or dimensions, all of which
have been supported by previous research are:
Identification and definition of a viable market
niche
v Development of products or services for the
chosen market niche
v Acquisition and development of resources
required to operate the firm
v Development of day-to-day operational systems
Development of the management systems necessary
for the long-term functioning of the organization
v Development of the organizational culture that
management feels necessary to guide the firm
A second premise or hypothesis is that each of these
tasks must be performed in a stepwise fashion in
order to build a successful organization. Each of
these key tasks will be discussed in detail below.