Greiner's Model (1972)
An organizational structure evolves and grows according to its age and size. To understand the current and future/desired structural position of a company, one should use the Greiner Model which helps us to determine the upcoming structural crises that the firm will face and what is the most appropriate way to overcome that situation, namely by adopting a new organizational structure. This model considers 5 phases as being extremely important regarding a structural change of an organization namely:
Phase 1 – Creativity growth leads to a leadership crisis.
Founder does not have sufficient expertise to do all the needed task on his own.
Phase 2 – Leadership growth leads to an autonomy crisis.
The decisions are centralized on the founder, so the organization demands for decentralized decisions.
Phase 3 – Delegation growth leads to control crisis.
Top managers start losing control on important decisions.
Phase 4 – Coordination growth leads to Red Tape crisis.
The distance between top managers and staff increases creating an uncooperative environment in the organization.
Phase 5 – Growth by Collaborating.
This phase considers a high willing of the organization to innovate and use team activities to succeed. On this stage there should be no crisis left because the company is very well organized.
It is worth for any company to understand in which phase of this model it currently is in order to understand its future direction and anticipate a possible crises scenario.