Some warning signs for organizational atrophy include excess administrative and support staff, cumbersome administrative procedures, lack of effective communication and coordination, and outdated organizational structure.
Organization atrophy typically happens in organizations that have been in existence for awhile. New hirers and people leaving overlapping can create too many people following the same work routines they have been for years. Older companies struggle with this after being on the same path and not realizing they need to reevaluate and make appropriate changes to the structure.