Presentation on theme: "Summary The hierarchical organization based on the strategy-structure-systems doctrine of management no longer delivers competitive results. While a top-down."— Presentation transcript:
0Changing the Role of Top Management (Beyond Structure to Processes)
1SummaryThe hierarchical organization based on the strategy-structure-systems doctrine ofmanagement no longer delivers competitive results. While a top-down structure ofcorporate divisions gives managers tight control and allows companies to grow, it alsofragments resources and creates a vertical organization that prevents small units fromsharing their strengths with one another. Structural fixes, such as skunk works, alliances,and acquisitions, have not solved the problem. Based on a study of 20 companies withvanguard management styles, the authors predict a managerial revolution that will focuson horizontal processes rather than vertical structures. The job of management will be topromote three core organizational processes: frontline entrepreneurship, competencebuilding, and renewal
2Classical doctrine of Top Management Three core responsibilities- To be the chief strategist- Structural architect- developer and manager of information and control systemBut,Today’s hierarchical structure no longer delivers competitive results.Large companies were becoming increasingly inflexible, slow toinnovate, and resistant to change.
3Portfolio of Dynamic Process Managers have begun to notice horizontal process matter (Reengineering)- Not top-down- Separating organizational units- Integrating functionally separated tasks into unified horizontal work process- Organizing in some fu fundamentally different ways, not hierarchy of staticroles
4Core Organization Process Entrepreneurial Process Competence-Building RenewalThe externally oriented, opportunity seeking attitude that motivates employees to run their operations as if they owned themExploiting big-company’s advantage in scale economics and depth and breath of employee’s talents and knowledgeChallenging conventional wisdom, overturning existing knowledge base, and reconfiguring the source of date
5Entrepreneurial Process Encouraging bottom-up ideas and initiativesOur employees are our most important assetsNot controlling behaviors maximizing the risk of individual idiosyncrasiesTop managers should hold in high regard individual employee’s capabilities and have topersuade the organization that they doSelf-discipline- Establishing internal discipline and setting performance standards- Reduce reliance on formal control systems and increase self-discipline- A clear set of company-wide expectations and management practicesEx) Respect for the individual is an unquestioned article of faith
6Competency-Building Process Ability to develop scarce skills, knowledge, and other resourcesNot controlling or allocating, but creating an environment that allows to develop and diffusedeep within the organizationEntrust the operation units with the challenge of creating the competenciesAccess powerful information Network – giving front-line managers access to informationthroughout the organization, ex) Value-Added Network on Kao Corporation in JapanCreating a sense of community exceeding personal interests and particular responsibilitiesSharing organization's ambitions and values, which will be a stronger incentive andallowing to contributeEducational institution – everyone is both teacher and studentCreating mutual dependence and reciprocity in the organizational environments
7The Renewal ProcessEcdysis – Biological process in which certain animals shed their shells to take on new formsHaving the organization continuously questioning the past for renewing ourselvesDesigning to challenge a company’s strategyTop managers should take a role, disturbing the organizational equilibriumSupplementing traditional call for compliance with another voice that challengestheir organizations to stretch beyond the predictable goals set by long-range plansThe goal is to encouraging employees to see themselves andthe organization for future possibilitiesOrganizational process – top management has a direct role to play because someonemust resolve the healthy conflicts and challenges that are cultivated within an organization
8Discussion 귀사 에서는 Core Organization Process 를 실천하고 있습니까? 3개의 Process 중에 어떤 Process 가 제일 중요하다고 생각하십니까?귀사에서는 위 Processes 를 실천하는데 제일 큰 장애요소는어떤 것입니까?