 What
is the Growth Phases model? Description
The growth phases model of Larry E. Greiner suggests that organizations
go through 5 (6) stages of growth and need appropriate strategies and structures
to cope. It is a descriptive framework that can be used to understand
why certain management styles, organizational structures and coordination
mechanisms work, and why some don't work at certain phases in the development
of an organization. The 1972 Growth Phases model of Greiner describes five
phases of organizational development and growth:
- Growth through creativity. Start-up company, entrepreneurial,
informal communication, hard work and low earnings. Ending by a leadership
crisis.
- Growth through direction. Sustained growth, functional organization
structure, accounting, capital management, incentives, budgets, standardized
processes. Ending by an autonomy crisis.
- Growth through delegation. Decentralized organizational structure,
operational and market level responsibility, profit centers, financial incentives,
decision making is based on periodic reviews, top management acts by exception,
formal communication. Ending by a control crisis. Compare:
Centralization and Decentralization.
- Growth through coordination and monitoring. Formation of product
groups, thorough review of formal planning, centralization of support functions,
corporate staff oversees coordination, corporate capital expenditures, accountability
for ROI at product group level, motivation through lower-level profit sharing.
Ending by a red tape crisis.
- Growth through collaboration. New evolutionary path, team action
for problem solving, cross-functional task teams, decentralized support
staff, matrix organization, simplified control mechanisms, team behavior
education programs, advanced information systems, team incentives. Ending
by an internal growth crisis.
More recently Greiner added a sixth phase to his Growth Phases model:
- Growth through extra-organizational solutions (mergers,
holdings, networks of organizations)
Book: Larry E.
Greiner - Power and Organization Development -
Recent User Comments
|
Emmanuel - Tanzania
|
Growth of Communities |
"Does this apply to community organizations as well, or are these growth phases only specified for business organizations?" |
 |
|
15 |
|
 |
|
Cris - Romania
|
Greiner after phase 6 |
"I wonder what's beyond phase 6? Should't the entire Greiner Curve go further with "ex-organizations" split up (divide, sell) or just reinvent the organization? Maybe it's a circle (with a dotted line unifying the ends) and not just a linear growth?" |
 |
|
-3 |
|
|
|
George - Canada
|
Is a crisis a must for growth? |
"It is typical for Greiner's thinking that the growth phases are seperated from each other by organizational crises. Without a crisis a firm can not enter the next stage. Personally, I doubt if this is always the case?" |
 |
|
5 |
|
|
|
Eddie - UK
|
Greiner |
"What Leadership style is needed for the newly added 6th phase?" |
|
|
5 |
|
|
|
Pete - France
|
Greiner |
"What's the main difference with Mintzbergs model?" |
|
|
-6 |
|
|
Growth Phases Special Interest Group
Growth Phases Education & Events
Add a link to this page
Copy and paste this code to your web page:
More information?
12manage Premium may contain the following additional information about (the) Growth Phases :
- Expert Tips and Management Papers - More info
- News and Videos on this method - More info
|
Compare with: Organization Chart
|
Mergers
& Acquisitions |
Competitive Advantage
| Core Competence |
Parenting Styles |
Relative Value of Growth
| BCG Matrix |
Distinctive Capabilities |
Organizational Configurations
| Leveraged Buy-out
Return to Management Hub: Change & Organization | Communication & Skills | Ethics & Responsibility | Human
Resources | Knowledge & Intangibles | Leadership
| Strategy |
Supply Chain & Quality
More Management Methods, Models and Theory
|
|
12manage for:
|
