Growth Models
Business Management: IB Diploma, topic 1.6.3
Greiner's Model of Growth
Greiner’s model of growth offers solutions to overcoming the challenges of growth experienced by businesses.
Greiner's model
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.
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.
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.
Test yourself on Growth Models
According to Greiner's model of growth, which stage is growth through creativity?