While organizational decline and retrenchment have become increasingly common phenomena, relatively little research has focused on either their organizational implications or their management. Using an approach pioneered at the Tavistock Institute for understanding group processes, the author describes the impact of individually experienced anxieties greatly heightened by conditions of decline on collective behavior. Case discussions of two nonprofit organizations illustrate group processes under such conditions. In its conclusion, the article considers the implications of the findings for managing the difficult process of retrenchment.
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