Greiner's model of growth Flashcards
On what axis does this model
Organisation size
Time
How many phases
6
How many crisis
5
Describe Phase 1
Growth through creativity
individualistic, entrepreneur
work long hours
leadership crisis
need a strong business manager
Describe Phase 2
Growth through direction
install a capable manager to promote sustained growth with strong leadership
creation of hierarchies and centralised decision making
autonomy crisis occurs as people want more expertise
Describe Phase 3
Growth through delegation
decentralised for faster decision making
communication from the top infrequent but they require progress reports
respond to customers more quickly, new products
managers experience a control crisis
Describe Phase 4
Growth through co-ordination
merge decentralised units into product groups which become investment centres
this allows for efficient allocation of resources
managers regain responsibility but have to justify their actions to head office
red tape crisis results in a lack of confidence in units and innovation declines
Describe Phase 5
Growth through collaboration
Emphasis on teamwork
matrix structure
economic rewards for team performance
growth crisis as no more internal solutions for growth
Describe Phase 6
Growth through alliances
merge, outsourcing
Expertise required for development
Which phases are organic and which are inorganic?
1-5 organic
6 inorganic