GREINER’S MODEL OF GROWTH (PART 1) Flashcards
What dos Greiner’s model of growth do
Greiner’s model of growth characterises an organisation’s growth over time into a series of stages and crises.
What does each stage come to an end
Each stage comes to an end when there is a crisis.
What is stage 1
Stage 1: Creativity
Job roles flexible and based on necessity
Communication informal and spontaneous
Good for creativity and adaptability
Poor for clearly defined roles and organisation
What is a leadership crisis
As the organisation grows, it becomes more and more difficult for the leader to make effective decisions. THey are likely to be overworked and stressed.
What is stage 2
Stage 2: Direction
Leadership roles established - I.E marketing, finance etc
Operating decisions are made by management and new products and services continue to be developed
Good for consistency and order
Poor for dealing with rapid growth
What is an autonomy crisis
The business is becoming nigger and needs strategic direction. Management is too tied up in the day to day running of the business and important decisions are not being made.
What is stage 3
Stage 3: Delegation
Day to day operations delegated to middle managers so leaders can concentrate on strategic direction
Organisation develops in complexity. Communication through formal structures.
Good as organisation can begin to take a more long term view
Can be chaotic as top managers become distant from the clients, and the functional areas may not be very well coordinated.
What is a control crisis
Middle managers may be making decisions that are not aligned with the organisation’s objectives, or conflicting with the other functional areas as there is too little management oversight.
