Table 2.
Organizational characteristics of the OLC models
| Lippitt and Schmidt (1967) | Greiner (1972) | Adizes (1979) | Galbraith (1982) | Churchill and Lewis (1983) | |
|---|---|---|---|---|---|
| Vertical differentiation | The number of supervisors increases up to fourth stage and decreases in the fifth stage (from 2° to 5°) | Venture managers manage the span of control issues (from 2° to 5°) | Balance between number of employees and supervisors (from 2° to 5°) | ||
| Horizontal differentiation | Functional and divisional structure (2°, 3°) | Functional to divisional, line-staff and then to matrix structure (from 2° to 5°) | Functional then divisional structure (from 2° to 9°) | Functional to modified functional and then to divisional or matrix structure (from 2° to 5°) | Functional, a divisional and line/staff structure (from 3° to 5°) |
| Coordination mechanisms | Systematic plans and upward communication flows (2°, 3°) | Budgets, profit centers and task group (from 2° to 5°) | Organizational culture and facilitators (from 2° to 9°) | Structures to coordinate, planning and budgeting systems (from 2° to 5°) | Budgets, operational and strategic planning (from 3° to 5°) |
| Centralization/decentralization |
C: venture managers do everything (1°) D: delegation increases over time (2°, 3°) |
C: centralization to have control and coordination (1°, 4°, 5°) D: functional organization with decentralization (2°, 3°) |
C: founders have all the power (from 1° to 4°) D: decentralize to the subordinates (from 5° to 9°) |
C: owner has all the power (1°, 2°, 3°) D: the management decentralize to the departments (4°, 5°) |
C: the owner does everything (1°, 2°) D: decentralize to functional manager (3°, 4°,5°) |
| Mutual adjustment/standardization |
M.A.: firms should move with speed and flexibility (1°) S.: firms implement and then update policies (2°, 3°) |
M.A.: informal communication, team action, social control and self-discipline (1°, 5°) S.: formal communication and planning procedures (2°, 3°, 4°) |
M.A.: people take own initiative (1°, 2°, 3°) S.: formal plans and written procedures (4°, 5°, 6°, 7°) |
M.A.: decision process is spontaneous (1°, 2°) S.: formal rules and control (3°, 4°, 5°) |
M.A.: no formal planning (1°, 2°) S.: formal systems (3°, 4°, 5°) |
| Organizational structure | Functional and divisional | Functional, divisional, line-staff and matrix | Functional and divisional | Functional (and with integrated departments), divisional and matrix | Functional, divisional, and line-staff |