Growth Phases model
(Greiner)

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What is the Growth Phases model?

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:

1. Growth through creativity. Start-up company, entrepreneurial, informal communication, hard work and low earnings. Ending by a leadership crisis.
2. Growth through direction. Sustained growth, functional organization structure, accounting, capital management, incentives, budgets, standardized processes. Ending by an autonomy crisis.
3. 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.
4. 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.
5. 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:

6. Growth through extra-organizational solutions (mergers, holdings, networks of organizations)

Book: Larry E. Greiner - Power and Organization Development

Forum Start a new topic about Organizational Growth (Growth Phases) Write here. Ask a question or explain something. Current forum discussions about Organizational Growth (Growth Phases): Is an Organizational 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... 31   6 comments Growth Phases of Communities Does this apply to community organizations as well, or are these growth phases only specified for business organizations?... 29   2 comments What are the Strategic Goals of Small Businesses? When assessing the goals and the success of an organization, such as when advising on the organization's strategy, it is important to not only consider its growth strategies, but also other perception... 20   12 comments Length of Greiner Phases Is there any typical time frame for each phase?... 19   3 comments Organizational Death... A Taboo? Another approach is to take a broader and cyclic view and see an organization as a human or organism going through a full Organizational Life Cycle. Organizational Life Cycles typically describe the f... 13   7 comments

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Information Sources Various sources of information regarding Organizational Growth (Growth Phases). Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. The Nature and Complexity of Organizational Change Change Management, Organizational Change Presentation about organizational change. The presentation discusses and highlights the complexity and multi-dimensional... Greiner's Model of Organizational Growth Greiner, Growth, Stages of Growth, Phases of Growth, Organizational Change The growth phases model of Larry E. Greiner suggests that organizations go through different stages of growth and need a... Growth Phases Model Diagram Organizational Development Download and edit this 12manage PowerPoint graphic for limited personal, educational and business use. Republishing in ...

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