Growth Phases model
(Greiner)

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Adjusting the strategy and structure of organizations while they develop. Explanation of Growth Phases of Greiner. ('72)

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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 -

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Discussions about Organizational Growth (Growth Phases).

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	Examples of Companies in Revolutionary Periods What would be examples of companies currently going through a revolutionary period? Why? (...)

	What Leadership Style is Required in Greiner's 6th Stage? What kind of leader (style) is preferable in the growth through alliances stage of the model by Grei (...)

	Input parameters for each phase of growth? Thinking about each phase of growth, what are the required parameters to be mandatorily considered a (...)

	Internal and External Challenges After Having Established a Start Up Business… It is a great feeling to be a small business owner starting out on a great journey with endless oppo (...)

	Collaboration Elaborated? Can anyone give more information or guide me to books, articles that elaborate upon further steps th (...)

	Alternative Forms of Organization Development Hi everyone.. Can anybody give me some ideas regarding alternative forms of organizational developme (...)

	Greiner Chart should be a Circle While reading about Greiner's Growth Phases model, I realized that after reaching phase 6, it's clea (...)

	When Can We Call a Company a Multinational? Can anyone clear to me that in which situation we can say 'multinational' to acompany? What are the (...)

	Add Learning and Innovation There must be one more step - Learning and Innovation - which will generate internal growth and will (...)

	Limitations of the model by Greiner Given that the model has been shown in a continuous single line against time suggests that all the l (...)

	Phase 6... Create Alliances And/or Rebuild Organization? Does management restructure the organization at this point and continue to move forward or will the (...)

	Greiner vs. Mintzberg? What's the main difference with Mintzbergs model? (...)

Best Practices - Organizational Growth (Growth Phases)

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Resources - Organizational Growth (Growth Phases)

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Growth Phases model (Greiner)

Adjusting the strategy and structure of organizations while they develop. Explanation of Growth Phases of Greiner. ('72)

What is the Growth Phases model? Description

Growth Phases model
(Greiner)