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REVOLUTION AS
ORGANIZATIONS
GROW
GREINER
AGE OF THE ORGANIZATION
• Life span.
• Life cycle – introduction, growth, maturity, decline.
• History illustrates that the same organizational practices are not maintained throughout the life span of a
company.
• Managerial problems and practices are rooted in time.
• Do not last throughout the life of an organization.
• The passage of time relates to cultural development, attitudes, perspectives, and values.
• Attitudes become deeply embedded and institutionalized – rigid, outdated, and difficult to change.
SIZE OF THE OARGANIZATION
• A company’s problems and solutions tend to change as the organization gets larger and
larger – more employees, more problems, greater complexity.
• Size implies more sales and revenue.
• Problems of coordination and communication magnify, new functions emerge, different
hierarchy, different organizational requirements and structure.
HOW COMPANIES GROW
• Two variables under consideration – x axis – age of organization from young to mature –
obviously this represents time.
• Y axis – size going from small to large.
• Stages of growth are creativity, direction, delegation, co-ordination, and collaboration.
• Stages of crisis – leadership, autonomy, control, red tap, the unknown.
• Each period is characterized by a dominant managerial style.
PHASE 1: CREATIVITY LEADING TO A CRISIS OF
LEADERSHIP
• Birth of the company – difficult phase.
• Founder usually technically or entrepreneurial oriented.
• Generally distain managerial activities.
• Physical and mental energies are absorbed entirely by making and selling a new product.
• Communication amongst employees is frequent and informal.
• Long hours of work are rewarded by modest salaries and promise of ownership rewards
in the future.
CREATIVITY PHASE
• The systems that are created prove useful for achieving growth and the efficient
allocation of resources.
• A lack of confidence builds between line and staff as relationships get bogged down.
• Systems and system analytics become more important than ever. People don’t matter,
rather systems do.
• Red tap follows suit due to bureaucracy.
• The organization tends toward bureaucracy rather than achieving outcomes.
PHASE 5: COLLABORATION LEADING TO A
UNDEFINED CRISIS
• The next phase has an emphasis on the development of strong interpersonal
collaboration in an attempt to overcome the red-tape crisis.
• This phase empowers people.
• Focus becomes solving problems through team action.
• Teams are combined across functions to handle team action.
• Staff experts reduced at head-office, reassigned and combined into interdisciplinary teams
that consult as opposed to direct – staff v. line.
COLLABORATION
• Cannot wait for conclusive evidence before educating managers to think and act from a
organizational development perspective.
• The intriguing paradox is that by learning more about history, we may do a better job in
the future.
• It is not possible to manage complex organizations without knowledge of the past.
GREINER: CONCEPT MAP
large
Growth
through
collaboration
Growth
through ?!
Growth coordination
through
Size delegation
Growth Red tape!
through
direction CRISIS!
Control!
Growth
through
creativity Autonomy!
Leadership!
small
young mature
Age