How Microsoft Growth Led to Control Problems

Critical Thinking Issue 1: Relate Microsoft’s problems with its control and evaluation systems to each of the stages of growth in the Greiner’s model. Organizational growth is similar to the life cycle of any living entity. The organization is birthed in an entrepreneur’s head and then goes through the growth cycles to create its own version of becoming a legitimate entity that the stakeholders find dependable, responsible, and having the ability to create value (Jones, 2010). As the organization grows it must develop skills and competences to create value that in turn make the organization attractive to investors thus allowing it to acquire additional resources to grow even more. Resulting growth generates more revenue it creates the freedom to generate surplus resources thereby allowing for even more growth. Over time as the organization continues the growth process it eventually becomes a mature organization that may be completely different from what it started out as (Jones, 2010, p. 312-313). The entrepreneur that originally started the organization must learn to choose employees wisely and then trust others that are able to guide the business side of the organization. All this combines together to grow his baby business into a teen-ager and eventually on into adulthood. This change and growth process can be marked by various stages as represented in the Greiner’s Model of Organizational Growth. This Model of Organizational Growth includes five stages of growth as an organization moves from a small, young organization, up to a large, mature one. Each stage has a growth stage followed by a crisis. How the organization handles the various crisis states determines if the organization will continue to change, grow, and survive, or if it will not (Jones, 2010). According to the Greiner’s Model of Organizational Growth the first stage in the life cycle of an organization is Growth Through Creativity. In this stage the entrepreneurs are birthing or

References: Jones, G. R. (2010). Organizational theory, design, and change (6th ed.). Upper Saddle River, NJ:  Pearson Prentice Hall. Kinicki, A. & Kreitner, R. (2009). Organizational Behavior, key concepts, skills & best practices. McGraw-Hill, New York, NY. Recklies, O. (2001). Managing Growth – 5 Phases of Growth. Retrieved on 12-09-10 from http://www.themanager.org/Strategy/ManagingGrowthI.htm