Microsoft And Greiner’s Model Of Organizational Growth

1193 words - 5 pages

Relate Microsoft’s problems with its control and evaluation systems to each of the stages of growth in Greiner’s model.
Greiner’s model of organizational growth describes the five distinct phases that organizations go through (Jones, 2010). Each stage is composed of a period of relatively stable growth, followed by a crisis that must be overcome in order to move on to the next stage.
Stage 1: Growth Through Creativity
In the first stage of growth, the founders of an organization develop skills and create new products. Learning is a huge component of this phase of organizational growth. Entrepreneurs learn what works and what doesn’t. People’s behaviors are governed by organizational culture rather than by hierarchy (Jones, 2010).
As the organization grows in this stage, the entrepreneurs must learn how to manage the organization. It is at this point that a crisis of leadership emerges. In the beginning, the organizational is so busy getting started and developing new products and markets that they fail to understand the importance of managing the organizational resources. The crisis can be averted, and growth can continue to stage two, if the organization can learn the skills necessary to manage the organization.
For Microsoft, I would opine that this stage in Microsoft’s development was in the early years as Jones (2010) states, “from the beginning Microsoft organized its software engineers into small work groups and teams . . . (to) speed the development of innovative software.” Microsoft has been around since the 1970’s and if they had not learned how to manage the organization, Microsoft would have not grown into one of the largest software manufacturers in the world.
Stage 2: Growth Through Direction
The new management that came out of the crisis of leadership takes control and directs the company as it moves to growth through direction. In this stage, decision-making becomes more centralized and structure is given to the nascent organization. Rules and procedures are put into place and the company continues to grow (Jones, 2010).
The crisis in the growth through direction stage occurs when a crisis of autonomy develops. Power has become so centralized that the creative freedom to innovate and take risks frustrates those trapped in the bureaucracy. The crisis is usually resolved through new structures that are developed.
Microsoft seemed to develop a crisis of autonomy in the 2000s when many of the software engineers felt their efforts were not being rewarded and began to leave the organization.
Stage 3: Growth Through Delegation
In order to avert the crisis of autonomy, more authority must be delegated to managers at all levels. There must also be rewards offered in order to recognize achievements. In this stage a balance must be found between ways to innovate and create new products and the need to recruit top level managers to oversee the organization. Organizations at this stage often take on a multidivisional...

Find Another Essay On Microsoft and Greiner’s Model of Organizational Growth

Dividend Growth Model, Capital Asset Pricing Model, Modern Portfolio Theory, Estimation of Untraded Stocks

1248 words - 5 pages dividends do not fit the assumption parameters, and thus this model cannot be used. In this model, a company may not exceed the market growth rate.In addition, since the dividend growth rate is expected to remain constant indefinitely, the other measures of performance within the company are also expected to maintain the same growth rate. If in the current state, the dividend rate is greater that earnings, in time this model will show a dividend

Brief History of Microsoft and Apple

647 words - 3 pages (Quick and Dirty Operative System) for $50,000 to modify it and re-name it as MS-DOS (Microsoft Disk Operative System).Microsoft was able to keep the license of the Operative System and it was licensed to 200 PC manufacturers, making the MS-DOS the standard Operative System for PCs (Personal Computers) bringing Microsoft to a growth in 1980. While in the development of the Macintosh, Steve Jobs showed Mac prototypes to Microsoft Company and

The History of Bill Gates and Microsoft

1104 words - 4 pages for copies of the software. This allowed Microsoft to license software they called MS-DOS to other PC manufactures. Microsoft also released another software called Softcard. This allowed Microsoft BASIC to operate on Apple II machines. Due to the new software being released, Microsoft’s growth exploded, mainly between 1978 and 1981. The staff had increased from 25 to 128. Revenue shot up from $4 million to $16 million. By 1983, Microsoft went

The History and Mission of Microsoft Corporation

929 words - 4 pages • Microsoft health • Windows phone • Internet explorer • Microsoft office • Visual Studio Microsoft is a Public Company, that Microsoft has its headquarters ____________________ USA Microsoft Strengths: the brand itself is huge. Microsoft is the leading software and hardware company in the world. It has one of the easiest to operating systems to use, and also the easiest operating systems to install. Because of the easiness in the use, people

The Dupont Analysis of Apple and Microsoft

1055 words - 4 pages Apple vs Microsoft Apple Inc. originated out of California in 1976. Steve Jobs and Steve Wozniak dropped out of college together to begin making technology in their garage. Apple’s technology skyrocketed becoming one of the top technology producing companies. They fell short in the nineties though, companies began to catch up and now there was more competition than before. Apple released their ipod in 2001, putting them back in the leadof the

Financial Evaluation Of Microsoft Corporation and ExxonMobil

777 words - 4 pages The Microsoft Corporation Cash Availability and Debts According to the Balance sheet as on 2002,the current assets of the company have increased from 39,210 to 48,576 (mil $) in year 2002 as compared to its current liabilities which amount to 12,744 (mil $). So, the company has more than four times of its current assets than current liabilities. Therefore company has adequate amount of cash to pay out its current liabilities on urgent basis

THe Evolution of the PC and Microsoft

757 words - 3 pages Xerox, Apple, IBM, and Compaq all played major roles in the development of the Personal Computer, or "PC," and the success of Microsoft. Though it may seem so, the computer industry did not just pop-up overnight. It took many years of dedication, hard-work, and most importantly, thievery to turn the personal computer from a machine the size of a Buick, used only by zit-faced "nerds," to the very machine I am typing this report on.Xerox started

The history of Microsoft and Bill Gates

734 words - 3 pages Microsoft is one of the biggest companies in the world. It distributes products worldwide and is the number one software company in the world. Microsoft would never have existed if it weren't for Bill Gates.Bill Gates was born on october28, 1955. He was born into a family that was successful in business and was living a pretty comfortable life in Seattle. In primary school Gates quickly shot to the head of most classes especially math's and

Applying Alderfer's Existence, Relatedness, and Growth Model in Today's Business World

1323 words - 5 pages Critique Clayton Paul Alderfer was a psychologist who was born on 1st September, 1940 in Pennsylvania. He expounded Maslow’s hierarchy of needs by integrating it into the existence, relatedness and growth model. He is also the proponent of frustration regression principle. This paper is a critique of Alderfer’s existence, relatedness and growth (ERG) model and its application today in the world of business. Alderfer’s ERG model provides a

A Look at Communication at Hitachi Automotive Products - MGT 331: Organizational Behavior (provide example of successsful and unsuccessful communication using process model.)

956 words - 4 pages alongside the products, which HAP-LA had failed to comply with. XYZ was made aware of this and called for an immediate halt and recall of all products sold through the HAP-LA facility.Using the communications process model, as seen below, the preceding example can be broken down as follows: HAP-Japan qualifies as the source in this scenario since they provided the information to HAP-LA, the receiver. The communication channel, or pathway that the

Steve Jobs of Apple and Bill Gates of Microsoft

734 words - 3 pages Microsoft. Both started their careers almost at the same time and within the same industry. They are without a doubt two of the most successful and wealthy men in the PC industry. Steve Jobs is a true creative thinker and technological leader while Bill Gates is the opportunity seeker. The competition and rivalry between Gates and Jobs has become one of the most enduring and fascinating in the American business industry. In the end both men are well

Similar Essays

Growth And Development Of The Capital Asset Pricing Model

2486 words - 10 pages Comparing and Contrasting Pricing Model In this paper I will discuss the growth and development of the Capital Asset pricing Model (CAPM).I will also identify and analyze the different applications to the CAPM. I will try and illustrate how the model can be used to form expected return and valuation measures. These illustrations will be informed by examples from stock options and restricted stock. Finally I will conduct a comparative analysis of

Miller And Friesen: A Model Of Organizational Adaptation

1044 words - 4 pages tend to have momentum associated with it. A Model of Organizational Adaptation The model has three related tenets 1. Momentum is expected to be a dominant factor in organizational evolution.Reversals in the direction of change in variables of strategy and structure are expected to be rare. 2. Momentum is likely to coexist among a great many variables of strategy and structure at the same time. Changes(or stability)in the variables will tend to

An Overview Of How Can The Ppf Model Help To Explain The Issues Of Choice, Opportunity Cost, Growth And Unemployment

611 words - 2 pages , and can be used to explain a number of different issues, such as the issues of choice, opportunity cost, growth and unemployment.That is, the PPF model explains the effect all these different issues have on the economy. For instance, a PPF model, showing unemployment in the economy, demonstrates very effectively how, due to unemployment, the economy's resources are no longer fully employed and therefore is no longer as effective as it should

Explain How The Neoclassical Growth Model Can Be Extended To Enhance Our Understanding Of Economic Growth

1858 words - 8 pages Explain how the neoclassical growth model can be extended to enhance our understanding of economic growth. INTRODUCTION AIM AND OBJECTIVE The aim of this essay is to clarify how the neoclassical growth model can be used to explain economic growth by taking into account two new inputs: Natural Resources (R) and Land (T) by substantiating it with relevant research. THE NEOCLASSICAL GROWTH MODEL According to the Neoclassical Solow Model