Scientific paper ID 1649 : 2018/3

The classical problem of organizations is connected usually with their inevitable declination. Being social systems, the organizations underwent a way similar to biological systems. The paper discusses particularity of the process of organizational development using a model of a life cycle of biological systems. We can summarize that since the very establishment of the organization, when the mission vision, functions and the strategy of the organization are established, when the structure and the composition are defined, and the organizational culture is formed till the moment when the routine started to dominate the processes and low emotional satisfaction of the personnel is emerged, the organization encounters problems of different origin. When the organization is able to demonstrate flexibility it is able to overcome the problems. Than we can witness positive development and grow. As a result of decreasing ability to take timely and correct decisions the rganization comes to the stage of aging and degradation. A set of techniques for bringing the organizations back to their creative period and preventing the stage of aging and degradation exists. In this context the paper discusses entrepreneurship as a tool for organizational renovation. Next to the mandate system, functional cycles establishment, internal hierarchy development and rotation the paper discusses the entrepreneurship as a tool for organizational renovation. The paper presents the main thesis of a research carried by the author and related results will be published in a dissertation.