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

Meridian Software has decentralised divisions that have each developed their own systems and strategies; head office has lost visibility of performance and duplicated costs are rising. Meridian introduces group-wide planning, central capital allocation and shared services, but managers now complain of bureaucracy and slow decisions. Which statement best analyses this in Greiner's model?

Meridian has resolved Greiner's crisis of control by coordination, using group planning, central capital allocation and shared services. The resulting bureaucracy and slow decisions signal the crisis of red tape, which the model suggests is addressed by collaboration, such as team-based and more flexible working.

  1. AMeridian has resolved a crisis of control through coordination and is now entering a crisis of red tape, which may be addressed through collaborationCorrect
  2. BMeridian has resolved a crisis of autonomy through delegation and is now entering a crisis of leadership
  3. CMeridian has resolved a crisis of red tape through coordination and is now entering a crisis of control
  4. DMeridian is still in the creativity phase and has not yet experienced a crisis

Explanation

Loss of control after delegation is the crisis of control, resolved by coordination (planning, central allocation, shared services). Excess systems then produce the crisis of red tape, resolved by collaboration through teams and more flexible working. The other options reverse or misplace the sequence.

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