1.6.3

Growth Models

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Greiner's Model of Growth

Greiner’s model of growth offers solutions to overcoming the challenges of growth experienced by businesses.

Illustrative background for Stages 1 and 2 of growthIllustrative background for Stages 1 and 2 of growth ?? "content

Stages 1 and 2 of growth

  • Growth through creativity occurs as businesses begin to establish themselves but have few employees and an informal structure throughout the business. As growth occurs, roles may overlap and there is a leadership crisis which requires structure and direction.
  • Growth through direction occurs, and as departments become established, managers request autonomy, and there is an autonomy crisis.
Illustrative background for Stages 3 and 4 of growthIllustrative background for Stages 3 and 4 of growth ?? "content

Stages 3 and 4 of growth

  • Growth through delegation occurs, until senior managers may feel there is too much control delegated throughout the business. Senior managers may regain control if they are worried about vision and a control crisis occurs.
  • Growth through co-ordination occurs as managers begin to introduce centralised systems for budgeting and staff performance management. A lack of autonomy or a red-tape crisis can then happen.
Illustrative background for Stages 5 and 6 of growthIllustrative background for Stages 5 and 6 of growth ?? "content

Stages 5 and 6 of growth

  • Growth through collaboration then occurs as departments and functions begin to work together, centrally, however further internal growth becomes difficult and a growth crisis occurs.
  • Growth through alliances can only occur through external growth: takeovers and mergers, however, present their own challenges to a business pursuing growth.

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1Business Organisation & Environment

2Human Resource Management

3Finance & Accounts

4Marketing

5Operations Management

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