greiner and growth Flashcards
to obtain massive dicc and ball torture
Greiner major claims
organizations go through series of evolution and revolution phases that are a function of age and size of organization
management practices that work well in one phase become the problem of the next
how do the companies grow
companies in low forth industry will go through five phases slower
companies in medium “”” will get through five phases a bit faster
in high growing industry, event faster
what are the five phases of growth
creativity. ——-> crisis of leadership
direction ——–>. crisis of autonomy
delegation. ———> crisis of control
coordination ——-> red tape crisis
collaboration ——-> ???
Phase 1: creativity
beginning involves creating product and designating market
new entrepreneurs disdaining management activities since priority is all on new product
communication frequent and informal
long hours of work rewarded by modest salaries and potential ownership
management act as customers react (customer feedback crucial af)
crisis of leadership (1)
increased number of employees can’t be managed with informal communication
new employees not as motivated as first ones
conflict among leaders grows intense
strong managers is needed
founders often times have to let someone else manage the whole thang
Phase 2: direction
able directive leadership
gyu organization structure separating factoring from marketing
job positions become increasingly specialized
accounting systems for purchasing snd inventory introduced
communications grows more formal as personal and positions of hierarchy grow
incentives, budgets and work standards implemented
new manager and supervisors responsible for direction
lower managers are functional specialists instead autonomous decision makers
crisis of autonomy (2)
direction becomes inappropriate for more divers and complex organization
lower level employees feel restricted by centralized hierarchy
these wanna take initiatives of their own cause they feel they have more knowledge than those at the top
have to move to delegation
Phase 3: delegation
decentralized organizational structure
bigger responsibilities for lower level managers = heightened motivation
bonuses used to motivate employees
top executives at HQ limit themselves to managing (except when periodic reports from field)
management wonders if acquiring outside enterprises can link up with other decentralized units
communication from the top is infrequent (calls, correspondence or field visits)
crisis of control (3)
top levels executives feel they lost control over highly diversified field operation
managers with more autonomy want do their thang without necessarily coordinating plans and resources with rest of organization
top managers seek to regain control with coordination (going back to centralization fails)
Phase 4: coordination
use of formal systems to achieve greater coordination
top executives take responsibility of these new systems
decentralized units merged into product groups
new formal planning procedures (intensely reviewed)
numerous staff members hired and located at headquarters
New company wide control programs and manager line reviews
stock options and company wide profit sharing used to motivate employees
more efficient allocation of company’s resources
red tape crisis (5)
lack of confidence starts to build up between line and staff as well as headquarters and field
programs and systems introduced start to exceed their usefulness
both groups criticize new bureaucratic system
company too big to be managed by new systems and programs
collaboration
teams and skillful confrontation
social control and self discipline replace formal control
more flexible and behavioral approach to management
solve problems quickly through team action
economic rewards to team performances instead individual
greener’s secondary claims
organizations should not try to skip phases
top managers whose style is no longer appropriate should remove themselves
growth is not inevitable
managers trained in behavioral skills
conferences of key managers held frequently
experimenting with new shit is promoted
