In the past, educators have based their decisions on an assumption that schools would continue to grow in enrollment and resources. Educational literature too has focused on developmental and growth assumptions. Such assumptions may no longer be valid, as educational organizations are being confronted by problems of retrenchment and decline. This paper reviews the literature in order to formulate hypotheses about organizational decline, raise research questions, and provide a basis for conjecture about administration in declining situations. The authors found that there is little conceptual literature about decline and that almost none can be found in educational administration journals. The paper (1) provides a historical perspective on the emergence of decline as a major force acting on public and private organizations, (2) outlines the causes of decline, (3) notes the organizational implications of decline, and (4) suggests directions for research. (Author/JM)