The organisational 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 organisation. One way of
understanding these is provided by Greiner (1972), who has also put forward a stage model of growth.
He argues that the underlying dynamic in each stage is evolutionary growth which eventually creates
a situation of revolutionary crisis, when the organisation’s 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. Greiner’s stages
of growth and the crises involved are illustrated in Figure 5.5. A rapidly growing organisation 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 organisation 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.