The transition to the renewal or decline phase occurs when an organization expands to the point where its operations are far-flung and need to operate somewhat autonomously. Functional structures become almost essential, and subunits may begin to operate as independent businesses. Tensions between mechanistic and organic inclinations can fall out of balance, so the organization must be reorganized or restructured to achieve higher levels of coordination between and among different groups or subunits. Managers may also need to address fundamental questions about the organization's overall direction and administration.