An organization's death exhibits many of the same feelings and reactio
ns that humans experience with the loss of a loved one. People are for
ced to disconnect from established relationships and to reconnect with
others. This disconnecting and reconnecting involves stages of antici
pation or uncertainty, confirmation or recognition of the need for cha
nge, action, and adjustment. Describes an observational study of an or
ganization which exhibits the feelings and reactions during different
stages of an organization's death. Three propositions explain how peop
le cope during these stages: (i) Those who are able to take positive a
ction have a more pronounced sense of their own ability to control the
ir own destinies (internal locus of control) and a realistic feeling o
f invulnerability. (ii) The beliefs and illusions about an organizatio
n's pending termination may be created and nourished by very little in
formation, rumours and preconceived beliefs. (iii) Some people, who we
re more receptive to feedback, have some very realistic beliefs about
their future and were very capable of adjusting their ''paradigms'' of
how to respond to their future. The painful feelings of disconnecting
might be assisted by feedback and support, while reconnecting to new
organizations might depend on one's attitudes and beliefs.