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