Answer to Question 1
According to Greiner's model of organizational growth, an organization passes through five sequential growth stages during the course of its evolution, and that at each stage a specific organizational design problem causes a crisis that must be solved if a company is not to fall into a chasm and so becomes unable to advance from one stage to the next. The first stage of growth in this model is called growth through creativity.
In this stage (which includes the birth of the organization), entrepreneurs develop the skills and abilities to create and introduce new products for new market niches. As entrepreneurs create completely new procedures and learn to improve them, a great deal of organizational learning occurs. In the creativity stage, the norms and values of the organization's culture, rather than the hierarchy and organizational structure, control people's behavior.
After securing a niche, the founding entrepreneurs are faced with the task of developing the functional competences necessary to allow their organization to grow effectively, a task to which they are often not really suited and for which they lack the necessary skills. As a result, during the growth through creativity stage, organizations experience a crisis of leadership. The crisis of leadership ends with the recruitment of a strong top-management team to lead the organization through the next stage of organizational growth: growth through direction. The new top-management team takes responsibility for directing the company's strategy, and lower-level managers assume key functional responsibilities.
Answer to Question 2
FALSE
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