founders start to get overburdened with management responsibilities and begin

Founders start to get overburdened with management

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founders start to get overburdened with management responsibilities and begin to have leadership conflicts with employees. This crisis marks the beginning of the first revolutionary period. Direction phase, a formidable manager who is favorable to the founders is appointed to get the organization back on track. Eventually, low-level managers begin to desire more power, a point at which the second phase of the revolutionary period begins. This next phase, delegation, is marked by the organization becoming more decentralized, which increases morale and motivation at lower levels of management. However, upper-level management's difficulty with surrendering responsibility and control eventually leads them return to a more centralized structure. Low-level managers who had grown accustomed to more freedom and control begin to feel resentful about the shift back toward centralization.The controlphase utilizes formal systems for top management to try to manage the increasingly unwieldy organization and the complex relationship among various levels of management. The implementation of rigid systems leads to a crisis of red tape.The final stage is the collaborationstage during which formal structures are loosened up in an effort to initiate more social control via a team work environment. Greiner does not stipulate what would bring about a crisis during this phase, but it is likely that if a crisis were to occur that it would involve employees reaching a saturation point with the demands of a team culture.Just-in-time inventory systeminvolves scheduling materials to arrive just as they are needed, so that little or no inventory is necessary. The goal is to maintain Zero Inventory, so that all the carrying costs (the costs of keeping an inventory) fall on the supplier. Servant-leadersare often seen as humble stewards of their organization's resources: human, financial and physical.
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  • Winter '12
  • None
  • Management, scientific management

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