Greiner's model describes growth as moving through periods of stability with embedded crises.

• A. True
• B. False
• C. Only in Stage 3
• D. Not addressed

Answer: (A)

Greiner’s Growth Model describes how organizations grow through a sequence of stable periods, each followed by a crisis that arises from increasing organizational complexity. These crises are not external shocks; they are built into the progression as the firm reaches the limits of its current structure and needs to reinvent itself to move to the next stage. After the crisis is resolved, the organization reaches a new, higher level of stability, only to encounter another crisis at the next stage. This pattern—stability interspersed with embedded crises at the end of each growth phase—is the core idea of how growth unfolds in the model.

So, the statement is true because it directly reflects how Greiner views growth: stability exists, but crises are an expected, recurring mechanism that drives advancement through successive stages.