Which statement is NOT a characteristic of Greiner's Stage 1?

• A. It resembles a typical startup.
• B. Communication is frequent and informal.
• C. Leaders are hierarchical and risk-averse.
• D. The stage is fun and has a strong market response.

Answer: (C)

Greiner's Stage 1, the Creativity phase, is all about a small, startup-like effort driven by the founder. Decisions are made quickly, communication is informal and frequent, and the leadership style is hands-on and flexible rather than top-down and rigid. The atmosphere tends to be energetic and entrepreneurial, with the team responding promptly to market opportunities.

The statement about leaders being hierarchical and risk-averse does not fit this stage. Hierarchical, risk-averse leadership emerges as organizations formalize and scale, which leads into later stages. In Stage 1, the emphasis is on agility, informal processes, and a willingness to take risks to pursue growth.