greiners model of growth Flashcards
as a bs grows what does it bring with it
many org issues relating to management e.g cord an comm
what does greiners model consider
challenges bs likely to encounter as it gets bigger and older
whats on horizontal and vertical axis
Horizontal axis - business age
Vertical axis - business size
state the 6 phases in order
growth through creativity
growth through direction
growth through delegation
growth through coordination
growth through collaboration
growth through alliances
how do we rember teh stages in order
c
2d
2c
a
state the crises in order
leadership crisis
autonomy crisis
control crisis
red tape crisis
growth crisis
identity crisis
how do we remeber crises
lacey ate connie reids giant ice
describe whats hapening in growth through creativity
3
in terms of bs and employess
rules and procedures
jod descriptions
Business just starting out so relatively few employees + approach is likely to be fairly informal
Not many clear rules and procedures
Job descriptions may be fairly broad and people tend to help out as and when is needed
in growth through creativity - At some point if bs grows approach may cause problems
what are these
2
Overlap as individuals end up duplicating the tasks they do
Other jobs may not be taken as its assumed someone else is doing htem
what crisis do we have in rgowth through creativity
leardership crisis
with a leadership crisis we need
clearer direction
in terms of leadership crisis business may beenefit from
how cna this be provided through
bringing in professional managers
define jobs roles and org structure more formally
canbe provided through growth and direction
what is stage 1 good for
creativity and adaptability
what is stage 1 poor for
clearly defined roles and organisation
what is phase 2
growth through direction
what is grwoth through direction( and other phases) can lead …
bs forwards as it continues to grow and get older
describe growth through direction
3 points
pressures
dm
desire
At some point with more employees, products and with bs operating in more markets may be pressure from managers for more independence
may be a need to respond to local mkt conditions and so more decentralisation
There’s a desire for more autonomy
what is stage 2 good for
consistency and order
what is stage 2 poor for
dealing with rapid growth
whats the crisis in growth through direction
autonomy crisis
what is autonomy crisis
business ibecoming bigger , needs strategic direction.
Management is too tied up in the day to day running of the business and important decisions are not being made.
whats phase 3
growht through delegation
what is growht through delegation
managers create …
more self running units e.g separate profit centres that are more more self governing
what may begin to appear in growht through delegation
middle managers may begin to appear
what crisis may we get in growht thtrough delgation
control crisis
How does control crisis in growth through delegation happen
delegation gets more complex : senior managment dont know whats going on at bottom of org &loose control of everyday operaitions
Middle managers may DM not aligned with the organisation’s objectives/ conflict with other functional areas as little management oversight
what is good about S3
Good org can begin to take more LT view
WHATS BAD ABOUT S3
chaotic
top managers become distanced from the clients
functional areas may not be very well coordinated
how may senior managment get cnotrol in control crisis
establishing systems such as budgets to provide targets and monitor the progress in place (phase 4)
what is phase 4
growth through coordination
what is growth through coord
introduce
create
introduce more control
leaders need to create policies and procedures for middle managers to follow and execute
what is the danger of growht through coordination
with continued growth centralised system put in place to keep control may become burdensome and bureaucratic
what is buearacracy
complex org got multilayered systems and processes.
in stage 4 wat happesn when an org becomes burdensoe and bureacratic
and whatcrisis does this cause
can lead to time consuming paperwork and slow down effective DM as key descision needs to be approved by ehad office
crisis of red tape
what is red tape
what does this lead to
too much paper work and from filling
With too many policies and procedures, staff are disempowered and find their job role inflexible and time consuming to effectively carry out.
stage 5
what is stage 4 associated with
increases in the number of layers in the hierarchy to oversee the execution of strategic decision
WHATS GOOD FOR S4
Good for establishing consistency across the organisation
WHATS ABD ABOUT S4
rules and policies can be demotivating, poorly designed or executed and time consuming to carry out
what is stage 5 and waht i the crisis
growth through collaboration
growth crisis
what happens in stge 5 growth through collaboraton
Bs tries to develop processes that enocoruage collab between hte dif parts of bs w/o too much central regulation
describe what happens in stage 5 grwoth through coollab , examples
senior managers may move around the bs,
individuals may xp centralised training to instil core values but then be given high levels of independence
in stage 5 describe reward systems and what may be encouraged
Reward system may focus more on collab sharing and teamwork with
teh sharinf od info between senior managers in all parts of org being encouraged
in stage 5 we et through growth crisis what does this mean
its difficult to grow further internally and maintain appropriate levels of control
bs may look to expand through a mergers and acquisiotons
in stage 5 org may adpat … why
matrix structure and be more flexible in order to meet demand
what is stage 5 good for
Good for re-establishing creativity and improving motivation of empowered employees
in stage 5 org has reached
limits of internal growth capabilities
what is stage 6 and waht is its crisis
growth through alliances
identitiy crisis
what happens in stage 6
To avoid difficulties of internal growth the bs may decide at this stage to pursue external growth thorough alliances mergers and takeovers
but alliances, merges and takeovers brin
problems with them
describe how the bs is operating in stage 6
Complex structures and reporting systems, with product lines, geographical areas or conglomerate type systems in place
what is stage 6 good for
Good for taking advantage of growth opportunities and developing synergies
what is a negatove of stage 6
Can create a lack of focus on core competences and difficulty identifying the business’s corporate culture
what is the 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
why does model still have valye
highlights issues of in org growth meaing bs can plan better
criticisms of greinres model of growht
Bs may move at diff speeds through the stages , may skip over some and revisit some
Rate of growth varises between diff bs and industries - give example pls
bs may groth through multiple crises at the same time
too simplistic
the longer you are in eahc stage
more resistance managers have when face a crisis and try to employ and adapt to new management strategy/style
Loop this into resistance to change
explain 2 ways why this model is useful
founder can ID which phase youre in and you can look to adpt management style accordingly to keep bs growing and successful
Founder knows need to do and impact itll have on employees so you can plan ahead on ways to keep them motivated and productive/reduce resistance
what is stage 2 poor for
