Professional Documents
Culture Documents
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Learning Objectives
1. Appreciate the problems involved in
surviving the perils of organizational
birth and what founders can do to
help their new organizations to
survive
2. Describe the typical problems that
arise as an organization grows and
matures, and how an organization
must change if it is to survive and
prosper
Copyright 2007 Prentice Hall
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Organizational Birth
Organizational birth: the founding of
an organization
Occurs when entrepreneurs take advantage
of opportunities to use their skills and
competences to create value
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Contrasting Stories
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Greiners Model of
Organizational Growth
Greiner proposes five growth stages
Each stage results in a crisis
Advancement to the next stage requires
successfully resolving the crisis in the
previous stage
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Greiners Model of
Organizational Growth (cont.)
Stage 2: Growth through direction
Crisis of leadership results in recruitment
of top-level managers who take
responsibility for the organizations
strategy
Often turns around an organizations
fortunes
Crisis of autonomy
Creative people lose control over new product
development
Professional managers run the show
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Greiners Model of
Organizational Growth (cont.)
Stage 3: Growth through delegation
To solve the crisis of autonomy, managers
must delegate
Strike a balance between the need for
professional management and the opportunity
for entrepreneurship
Movement toward product team structure
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Greiners Model of
Organizational Growth (cont.)
Stage 4: Growth through coordination
To resolve crisis of control, managers
must find right balance of centralized and
decentralized control
Top management takes on role of
coordinating different divisions
Attempt to inculcate a companywide
perspective
Crisis of red tape
Increasing reliance on rules and standard
procedures
Organization becomes overly bureaucratic
Copyright 2007 Prentice Hall
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Greiners Model of
Organizational Growth (cont.)
Stage 5: Growth through collaboration
Emphasizes greater spontaneity in
management action
Greater use of product team and matrix
structures
Changing from a mechanistic to an
organic structure as an organization
grows is a difficult task
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2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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