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
Special Interest Group
Organizational Growth (Growth Phases) Special Interest Group.
Forum discussions about Organizational Growth (Growth Phases). Below you can ask a question about this topic, share your experiences, report a new development, or explain something.
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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...
Growth Through Training and Development
I think growth through training and development could also be added in this chart.
Because you can give growth to any business or community through training and development of people....
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 Greiner? Should it be someone who is inclined to teamwork and collaboration?...
Input parameters for each phase of growth?
Thinking about each phase of growth, what are the required parameters to be mandatorily considered as inputs to make the growth phase an absolute success?...
The 'Growth Through Collaboration' Phase Elaborated
Can anyone give more information or guide me to books, articles that elaborate upon further steps than those mentined in the summary to be taken in the collaboration phase?...
Alternative Forms of Organization Development
Hi everyone.. Can anybody give me some ideas regarding alternative forms of organizational development. Please I tried everyway but hope to get from this community. Thnx with regards......
Greiner Chart should be a Circle
While reading about Greiner's Growth Phases model, I realized that after reaching phase 6, it's clearly impossible to increase a company value level only by growing trough alliances. It is necessary t...
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 steps that a company goes to multinational?...
Add Learning and Innovation
There must be one more step - Learning and Innovation - which will generate internal growth and will be similar to the other growth curves....
Limitations of the model by Greiner
Given that the model has been shown in a continuous single line against time suggests that all the levels are at a higher level after each level. Instead I suggest that there need to be 5 or 6 lines r...
Phase 6... Create Alliances And/or Rebuild Organization?
Does management restructure the organization at this point and continue to move forward or will the rapid pace of technology lead to too much growth wherein the organization is biting more than they c...
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...
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...
Greiner Five Phases of growth
1. The Five(six) Phases of growth is a measure of influence of age and size on the organizational structure. The cycle may not necessarily be followed step wise as suggested.
2. Reading the Greiner C...
Small Business Succession, Best Practices Often small businesses are transferred from one generation to another. This may continue for several generations. The pr...
The Factors Determining Sustainable Growth A study conducted by Bain & Company revealed that only one out of seven companies is able to achieve a sustainable, long...
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.
Change Management, Organizational Change Presentation about organizational change. The presentation discusses and highlights the complexity and multi-dimensional...
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...
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