In addition, as a rule, they can not be simply and quickly replaced. There comes a 'crisis of control', which allowed the development of programs coordination. Stage 4. 'Growth through coordination. " Coordination activities lies in the fact that slabotsentralizovannye units are combined into food groups, introduced a complex system of allocation of investment funds organization between its business units.
Greatly expanded headquarters, where he developed strong planning and monitoring of the plan. However, the right to make major production decisions is on the ground. Gradually, the organization faced with overly complex system of planning and allocation of money, as well as overload control system. Her reaction to changes in the environment is much slower, that causes of falling levels of organizational effectiveness. There is a clear 'red-tape crisis'. Step 5. Starbucks is likely to agree. 'Growth through partnership'. The organization is aware of byurokratizirovannost entire system of management and organizational structure and gradually make it more flexible.
We introduce the internal team of consultants who do not direct divisions, and help managers professional advice. Encouraged any new ideas and criticism of the old system. The headquarters is reduced in size and lowers the bar for continuous monitoring. Theoretically, at this stage can be introduced matrix structure. The crisis at this stage, Greiner sees 'psychological satiety' employees who are tired of constant innovation introductions. Larry Greiner one of the first to consider the organization as an organism whose future depends not only on the conditions under which it is at the moment, but also on the history that exists in the organization. Thus, Greiner said that the life of the organization is to advance through the stages, where each evolutionary period creates its own revolution. Revolution – the rapid period in the development of the organization that requires serious revision of management practices. The way the organization from one stage of its development to the next is through the overcoming of the crisis of the corresponding transition. But the model Greiner, being one of the first to describe a rather general organizational development, highlighting only in outline stage of the organization. Greiner does not address how and why successful organizations suddenly cease to exist, giving only a general description of crisis. The model does not give any time estimates of the company at one stage or another. Do not say the same about the changes in corporate culture, style management organizations and about the qualities required of employees and managers at different stages of the company's history, and of those external factors that greatly influence the development of the organization. This model, being the first and quite general, provided an impetus for further studies of organizational development. Using the idea that the organization develops like a living organism, it is possible to consider the organization of the totality of the processes occurring in it, to supplement and develop the model by Larry Greiner.