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Changing the Role of Top Management (Beyond Structure to Processes )

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Presentation on theme: "Changing the Role of Top Management (Beyond Structure to Processes )"— Presentation transcript:

1 Changing the Role of Top Management (Beyond Structure to Processes )

2 Summary Summary The hierarchical organization based on the strategy-structure-systems doctrine of management no longer delivers competitive results. While a top-down structure of corporate divisions gives managers tight control and allows companies to grow, it also fragments resources and creates a vertical organization that prevents small units from sharing 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 with vanguard management styles, the authors predict a managerial revolution that will focus on horizontal processes rather than vertical structures. The job of management will be to promote three core organizational processes: frontline entrepreneurship, competence building, and renewal

3 Classical doctrine of Top Management  Three core responsibilities - To be the chief strategist - Structural architect - developer and manager of information and control system But, Today’s hierarchical structure no longer delivers competitive results. Large companies were becoming increasingly inflexible, slow to innovate, and resistant to change.

4 Portfolio 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 static roles

5 EntrepreneurialProcess Competence- Building ProcessRenewalProcess The externally oriented, opportunity seeking attitude that motivates employees to run their operations as if they owned them Exploiting big-company’s advantage in scale economics and depth and breath of employee’s talents and knowledge Challenging conventional wisdom, overturning existing knowledge base, and reconfiguring the source of date Core Organization Process

6 Entrepreneurial Process Entrepreneurial Process  Encouraging bottom-up ideas and initiatives  Our employees are our most important assets  Not controlling behaviors maximizing the risk of individual idiosyncrasies  Top managers should hold in high regard individual employee’s capabilities and have to persuade the organization that they do  Self-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 practices  Ex) Respect for the individual is an unquestioned article of faith

7 Competency-Building Process Competency-Building Process  Ability to develop scarce skills, knowledge, and other resources  Not controlling or allocating, but creating an environment that allows to develop and diffuse deep within the organization  Entrust the operation units with the challenge of creating the competencies  Access powerful information Network – giving front-line managers access to information throughout the organization, ex) Value-Added Network on Kao Corporation in Japan  Creating a sense of community exceeding personal interests and particular responsibilities  Sharing organization's ambitions and values, which will be a stronger incentive and allowing to contribute  Educational institution – everyone is both teacher and student  Creating mutual dependence and reciprocity in the organizational environments

8 The Renewal Process The Renewal Process  Ecdysis – Biological process in which certain animals shed their shells to take on new forms  Having the organization continuously questioning the past for renewing ourselves  Designing to challenge a company’s strategy  Top managers should take a role, disturbing the organizational equilibrium  Supplementing traditional call for compliance with another voice that challenges their organizations to stretch beyond the predictable goals set by long-range plans  The goal is to encouraging employees to see themselves and the organization for future possibilities  Organizational process – top management has a direct role to play because someone must resolve the healthy conflicts and challenges that are cultivated within an organization

9 Discussion I. 귀사 에서는 Core Organization Process 를 실천하고 있습니까 ? II.3 개의 Process 중에 어떤 Process 가 제일 중요하다고 생각하십니까 ? III. 귀사에서는 위 Processes 를 실천하는데 제일 큰 장애요소는 어떤 것입니까 ? I. 귀사 에서는 Core Organization Process 를 실천하고 있습니까 ? II.3 개의 Process 중에 어떤 Process 가 제일 중요하다고 생각하십니까 ? III. 귀사에서는 위 Processes 를 실천하는데 제일 큰 장애요소는 어떤 것입니까 ?

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