2. Greiner, L. E. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50, 37-46.

Question 1

What is the main purpose of the article (Evolution and revolution as organizations grow. Harvard Business)?

Answer 1

The main purpose of the article is to examine how historical forces within an organization can shape its future growth and success.

Question 2

What is meant by a company becoming “frozen” in its present stage of evolution?

Answer 2

When a company becomes “frozen” in its present stage of evolution, it is unable to make progress or move forward in its development due to a lack of understanding of its own history and development.

Question 3

What is the definition of evolution in the context of organizational development?

Answer 3

The term evolution is used to describe prolonged periods of growth where no major upheaval occurs in organization practices.

Question 4

What is the definition of revolution in the context of organizational development?

Answer 4

The term revolution is used to describe those periods of substantial turmoil in organization life.

Question 5

What are the five key dimensions of organization development?

Answer 5

The five phases of organization development are:
- Age of the Organization
- Size of the Organization
- Stages of Evolution
- Stages of Revolution
- Growth Rate of Industry

Question 6

What is meant by the lifespan of an organization?

Answer 6

The lifespan of an organization is the period of time that an organization exists for, during which it goes through different stages of development. It is used to explain how management principles change over time and how employee behaviour becomes more predictable and difficult to change.

Question 7

What are the implications of the lifespan of an organization for management principles?

Answer 7

The lifespan of an organization implies that the same practices are not maintained over a long time and this affects how management principles are described. Additionally, it explains that the passage of time leads to the institutionalization of managerial attitudes, which makes employee behaviour more predictable, yet more difficult to change.

Question 8

What are the implications of an organization increasing in size?

Answer 8

As an organization increases in size, the problems associated with coordination and communication become more pronounced, new functions emerge, and the management hierarchy becomes more complex. This can lead to increased difficulty in making decisions, implementing changes, and managing operations efficiently.

Question 9

What is an evolutionary period?

Answer 9

An evolutionary period is a period of prolonged growth in both age and size of organizations that typically lasts 4-8 years.

Question 10

What are the key characteristics of an evolutionary period?

Answer 10

The key characteristics of an evolutionary period are that it is a period of sustained growth and that only minor adjustments to the existing management structure are required to sustain it.

Question 11

How do evolutionary periods affect organizational size and age?

Answer 11

Evolutionary periods cause organizations to grow in both age and size.

Question 12

What can cause turbulence in organizational growth?

Answer 12

The need to abandon outdated practices, but can also lead to a new set of organizational practices which eventually become problematic themselves.

Question 13

What is the job of management during periods of turbulence?

Answer 13

To recognize and respond to these turbulence periods and find new solutions to promote future growth

Question 14

What determines the speed of an organization’s evolution and revolution?

Answer 14

The market environment of its industry.

Question 15

What happens when profits come easily?

Answer 15

Organizations may avoid revolutions.

Question 16

What are the five phases of evolution and revolution which companies experience in order to grow?

Answer 16

1. Creativity
2. Direction
3. Delegation
4. Coordination
5. Collaboration

Question 17

What does the article argue about action the founders of the company should take in phase 1?

Answer 17

The article argues that the founders of the company must find a strong manager who has the necessary knowledge and skill to introduce new business techniques, even if the founders are reluctant to step aside.

Question 18

What is the main focus of Phase 1: Creativity?

Answer 18

The main focus of Phase 1: Creativity is on creating both a product and a market.

Question 19

What can cause a company to struggle in phase 2?
(Direction)

Answer 19

A company can struggle in phase 2 if it is difficult for managers to delegate responsibility and lower-level managers are not used to making decisions for themselves. This can lead to employees becoming more disenchanted and leaving the organization.

Question 20

What can the delegation phase help businesses to do?

Answer 20

Delegation can help businesses to penetrate larger markets, respond faster to customers, and develop new products.

Question 21

What can decentralized managers in the delegation phase lead to according to the passage?

Answer 21

Decentralized managers can lead to businesses penetrating larger markets, responding faster to customers, and developing new products. Additionally, they can help with regaining control when a control crisis develops.

Question 22

What is the main purpose of coordination systems?

Answer 22

The main purpose of coordination systems is to increase efficiency and growth by prompting field managers to consider the needs of their local units more carefully and by holding them accountable by a “watchdog” audience at headquarters.

Question 23

What are the potential risks of over-reliance on coordination systems in the coordination phase?

Answer 23

The potential risks of over-reliance on coordination systems include a “red-tape crisis,” where procedures take precedence over problem solving, and innovation is stifled.

Question 24

What is phase 4 (coordination) characterized by?

Answer 24

The rise of formal systems for achieving greater coordination.

Question 25

What does phase 5 (collaboration) emphasize?

Answer 25

Strong interpersonal collaboration in an attempt to overcome the red-tape crisis.

Question 26

What is the red-tape crisis that is mentioned in the article?

Answer 26

The red-tape crisis mentioned in the passage refers to the difficulties that large U.S. companies are facing in finding new and innovative solutions due to bureaucratic processes and hierarchies.