greiners model of growth

Question 1

phase 1- leadership crisis

Answer 1

increase in creativity = sharing of new ideas and where to take the business

• need for strong leadership and direction to prevent the business from actually changing and growing
• Need for structure

Question 2

Phase 2 - autonomy crisis

Answer 2

leaders set up organisational structures where employees have a specific role.
however as employees become more experienced they want more say
- business ideas becomes too big
- so more of a need for autonomy and delegation

Question 3

Phase 3- delegation crisis

Answer 3

More power and responsibility is delegated to deal with the growing business

• Decentralised decisions
• leaders may try to regain control in order to coordinate the business.

Question 4

Phase 4 - red tape crisis

Answer 4

As control is regained by senior managers, decisions become more centralised and new procedures to coordinate different areas of the business
HOWEVER
there can be too many procedures which will decrease efficiency as people are contantly waiting for decisions to be made and approved

Question 5

Phase 5 - collaboration crisis

Answer 5

some formal procedures are replaced by collaboration between departments

• focus on better communication and information management
• struggle with internal growth as they have to considered external growth