The organizational life-cycle approach is useful but largely descriptive. In order to analyse why these things happen. Some explanation is required of the dynamics within the organization. One way of understanding these is provided by Greiner (1972),who has also put forward a stage model of is growth evolutionary He argues that the underlying in each is evolutionary growth which eventually creates a situation of revolutionary crisis, when the organizations existing ways of doing things are no longer efficient and effective. If managers can establish ways of overcoming each crisis there will be a platform for further growth. Failure to deal with a particular crisis will result in decline or demise .Greiners stages of growth and the crises involved are illustrated in Figure 5.5 A rapidly growing organization will have a steep line of growth and relatively short periods between crises. Slow growth will produce a flatter line. and consequently longer periods between crises.
As an organization passes through the various stages of birth, growth, maturity and decline, the leadership/management style may need to change. One of the ways of explaining this process is to use Greiner s Life Cycle model.