Stage 4: Coordination and Systematic Growth Challenges PPT
This PPT slide, part of the 28-slide Greiner Growth Model: Stages of Evolution and Revolution PowerPoint presentation, outlines the fourth stage of the Greiner Growth Model, termed "Coordination." This phase emphasizes the establishment of formal systems and procedures aimed at enhancing organizational efficiency and resource allocation. It highlights that top-level executives play a crucial role in initiating and managing these systems, which are designed to streamline operations and facilitate growth.
Key characteristics of this stage include the merging of decentralized units into product groups, which suggests a move towards greater integration within the organization. Formal planning procedures are not only established, but are also subject to intensive review, indicating a focus on accountability and strategic alignment. The hiring of numerous staff members at headquarters to oversee control and review processes reflects a significant investment in management capacity.
Capital expenditures are mentioned as being carefully evaluated and distributed across the organization, underscoring a disciplined approach to financial management. Each product group is treated as an investment center, which implies that performance metrics are closely monitored to ensure a return on invested capital. This focus on financial accountability can drive better decision-making.
However, the slide also warns of potential pitfalls, specifically the "Crisis of Red Tape." As the organization grows, the increasing complexity and rigidity of formal systems can hinder agility and innovation. This suggests that while coordination can enhance efficiency, it may also stifle creativity and responsiveness if not managed carefully. The mention of stock options and profit-sharing initiatives indicates an effort to maintain employee engagement and alignment with organizational goals, even as formal structures become more pronounced.
This slide is part of the Greiner Growth Model: Stages of Evolution and Revolution PowerPoint presentation.
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Maturity Model Growth Strategy Organizational Design Small Business Employee Engagement Financial Management Creativity Hiring Innovation Creativity
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