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ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Karlsen Group grew through a directed, centralised functional structure but now has regional managers frustrated that they cannot respond to local markets without head office approval. Under Greiner's model, what is the most appropriate next phase of growth?

The appropriate next phase is growth through delegation. Regional managers' frustration at centralised control is Greiner's crisis of autonomy, which follows the direction phase. Decentralising authority to regional units resolves it. Coordination comes later, to address loss of control once delegation has caused fragmentation.

  1. AGrowth through delegation, using decentralised units with greater regional authorityCorrect
  2. BGrowth through coordination, using formal planning and head-office review
  3. CGrowth through collaboration, using matrix teams and reduced formal systems
  4. DGrowth through creativity, returning to founder-led decision making

Explanation

The crisis of autonomy follows growth through direction. Greiner's resolution is delegation, giving managers of units more responsibility. Coordination is the response to the later crisis of control that arises once delegation has led to fragmentation. Creativity is the first phase.

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