GREINER’S MODEL OF GROWTH (PART 2)

Question 1

What does Greiner’s model of growth characterise

Answer 1

Greiner’s model on growth characterises an organisation’s growth over time into a series of stages and crises.

Question 2

What is stage 4

Answer 2

Stage 4: Coordination

The leaders need to create policies and procedures for middle managers to follow and execute

Often associated with increases in the number of layers in the hierarchy to oversee the execution of strategic decision

Good for establishing consistency across the organisation however, rules and policies can be demotivating, poorly designed or execute and time consuming to carry out

Question 3

What is a red tape crisis

Answer 3

Red Tape Crisis:

With too many policies and producers, staff are disempowered and find their job role inflexible and time consuming to effectively carry out.

Question 4

What is stage 5

Answer 4

Stage 5: Collaboration

More decision making is decentralised to junior managers, who are able to implement their own systems to combine more effectively with the other functional areas

The organisation may adopt a matrix structure and be more flexible in order to meet demand

Good for reestablished creativity and improving motivation of empowered employees

However, organisation has reached limits of internal growth capabilities

Question 5

What is stage 6

Answer 5

Organisation needs to look outside itself to find further opportunities for growth through mergers, JVs or outsourcing

Complex structures and reporting systems, with product lines, geographical areas or conglomerate type systems in place.

Good for taking advantage of growth opportunities and developing synergies

Can create a lack of focus on core competences and difficulty identifying the business’s corporate culture

Question 6

What is an identity crisis

Answer 6

Identity Crisis: The organisation has become large and complex. It can be difficult to identify the core purpose and meaning of the business, leading to a lack of direction and demotivated staff

Question 7

What is sritisism

Answer 7

A simplistic representation of a complex and nuanced process that is unique to each business

The duration of each phase and the model will differ from business to business

Some businesses may muss stages, or experience the crises in different order

Some businesses may be experiencing more than one crisis at the same time