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Management 193

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Question:

An organisation's five growth phases (Greiner)

Author: Sixten Bigner Af Klintberg



Answer:

(Advanced structural framework) An organisation goes through five phases and five crises in-between. 1. Creativity (similar to adhocratic structural configuration) leads to leadership-crisis. 2. Direction. Organisation develops toward machine bureaucracy to get clear leadership, leading to crisis of lack of autonomy. Many skilled employees leave. 3. Delegation/Decentralisation: Move away from vertical control and toward Mintzberg's divisionalized form. Lack of control-crisis appears. 4. Coordination. Does not mean more vertical control, but more sophisticated processes. Organisation eventually becomes too large for regular structures, manifested by distrust between divisions etc (red-tape bureaucracy) 5. Collaboration. More action-oriented operations. Last crisis: mental health of employees When analyzing a case from the structural perspective, Greiner's model can be used to understand in what phase the company is, and how it thus should be structured (for example in accordance with Mintzberg's structural configurations)


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