Essay about Microsoft and Greiner’s Model of Organizational Growth

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Relate Microsoft’s problems with its control and evaluation systems to each of the stages of growth in Greiner’s model. Greiner’s model of organizational growth describes the five distinct phases that organizations go through (Jones, 2010). Each stage is composed of a period of relatively stable growth, followed by a crisis that must be overcome in order to move on to the next stage. Stage 1: Growth Through Creativity In the first stage of growth, the founders of an organization develop skills and create new products. Learning is a huge component of this phase of organizational growth. Entrepreneurs learn what works and what doesn’t. People’s behaviors are governed by organizational culture rather than by hierarchy (Jones, 2010).…show more content…
In this stage, decision-making becomes more centralized and structure is given to the nascent organization. Rules and procedures are put into place and the company continues to grow (Jones, 2010). The crisis in the growth through direction stage occurs when a crisis of autonomy develops. Power has become so centralized that the creative freedom to innovate and take risks frustrates those trapped in the bureaucracy. The crisis is usually resolved through new structures that are developed. Microsoft seemed to develop a crisis of autonomy in the 2000s when many of the software engineers felt their efforts were not being rewarded and began to leave the organization. Stage 3: Growth Through Delegation In order to avert the crisis of autonomy, more authority must be delegated to managers at all levels. There must also be rewards offered in order to recognize achievements. In this stage a balance must be found between ways to innovate and create new products and the need to recruit top level managers to oversee the organization. Organizations at this stage often take on a multidivisional structure, which helps to develop and get new products to market and decentralized decision making which leads to more responsiveness to customers (Jones, 2010). The crisis of this stage is control; rapid growth and decentralized decision-making makes top level managers feel as though they have lost control of the organization. The lower level managers

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