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)

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:

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 -

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Best Practices - Growth Phases Premium   Organizational Death... A Taboo? Another approach is to take a broader and cyclic v...           Is an Organizational Crisis a Must for Growth? It is typical for Greiner's thinking that the grow...

Expert Tips - Growth Phases Premium   Critical Success Factors for 2nd Generation Succession Often small businesses are transferred from one ge... Usage (application): Small Business Succession, Best Practices       How to Achieve Sustainable Growth? A study conducted by Bain & Company revealed that ... Usage (application): The Factors Determining Sustainable Growth

Resources - Growth Phases Premium The Nature and Complexity of Organizational Change Presentation about organizational change. The pres... Usage (application): Change Management, Organizational Change   Greiner's Model of Organizational Growth The growth phases model of Larry E. Greiner sugges... Usage (application): Greiner, Growth, Stages of Growth, Phases of Growth, Organizational Change   Growth Phases Model Diagram Download and edit this 12manage PowerPoint graphic... Usage (application): Organizational Development     News about Growth Phases         News about Organizational Growth         Videos about Growth Phases         Videos about Organizational Growth         Presentations about Growth Phases         Presentations about Organizational Growth         Books about Growth Phases         Books about Organizational Growth         More about Growth Phases         More about Organizational Growth

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

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