The Attributes That Make the Best Corporations - Essay Example

Order 143265 Topic: The Attributes that makes the Best Corporations Why some corporations are successful in the market, and some are not. I alwaystry to find answer for this question. I suppose that there are a big many of different techniques and methods, and also many elements that help a corporation to survive and to achieve results in its work. I believe that the success of a corporation depends first of all on its management and organization structure, and of course on people who are at the top of a company, i.e. managers. Let me remember who is a manager and what functions and obligations he/she has. Managers are people who get the work done through other people. Managers use their conceptual, human, and technical skills to perform four management functions of planning, organizing, leading, and controlling in all organizations - large and small, manufacturing and service, profit and non-for-profit. But not all managers' job is the same. Managers are responsible for different departments, work at different levels in the hierarchy, and meet different requirements for achieving high performance. All managers must contribute to planning, organizing, leading, and controlling in their organizations - but in different amounts and ways. The structures of corporations are different, but the most common is a vertical difference. Vertical difference An important determinant of the manager's job is hierarchical level. Three levels in the hierarchy of vertical difference are illustrated in Exhibit I. Exhibit I: Levels of Management1 Top managers are at the top of the hierarchy and are responsible for the entire organization. They have such titles as president, chairperson, executive director, chief executive officer (CEO), and executive vice-president. Top managers are responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization. They look to the long-term future and concern themselves with general environmental trends and the organization's overall success. Among the most important responsibilities for top managers are communicating a shared vision for the organization, shaping corporate culture, and nurturing an entrepreneurial spirit that can help the company keep pace with rapid change. Today more than ever before, top managers must engage the unique knowledge, skills, and capabilities of each employee. Middle managers work at middle levels of the organization and are responsible for business units and major departments. Examples of middle managers are department head, division head, manager of quality control, and director of the research lab. Middle managers typically have two or more management levels beneath them. They are responsible for implementation the overall strategies and policies defined by top managers. Middle managers are concerned with the near future, are expected to establish good relationships with peers around the organization, encourage teamwork, and resolve conflicts. Recent trends in corporate restructuring and downsizing have made the middle manager's job difficult. Many companies have become lean and efficient by laying off middle managers and by slashing middle management levels. Traditional pyramidal organization charts are flattening, allowing information to flow quickly from top to bottom and decisions to he made with the greater speed necessary in today's highly competitive global marketplace. Nowadays there is a tendency of middle management shrinking. For example, Eastman Kodak recently cut middle management by 30 percent and reduced its middle management levels from seven to three. The Medical Systems Group at General Electric cut middle management by 33 percent. These cuts have improved the efficiency and performance of many corporations via improved responsiveness to customers, speed in new product development, and increased profits. The decline in middle management and the simultaneous improvement in corporate efficiency are partly due to the increased use of project managers, or team managers. A project manager is responsible for a temporary work project that involves the participation of other people at a similar level in the organization. Project managers manage horizontally and give up their management responsibilities when the project is finished. Also, a manager of one project 'may be a team member on another project. The participation of managers in different projects and managing horizontally without adding positions to the hierarchy enable an organization to get the most from its middle management resources. First-line managers are directly responsible for the production of goods and services. They are the first or second level of management and have such titles as supervisor, line manager, section chief, and office manager. They are responsible lot groups of nonmanagement employees. Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates. The time horizon at this level is short, with the emphasis on accomplishing day-to-day goals. Another type of organization structure is horizontal. It differs from a traditional vertical one, but in a modern society it becomes more and more popular. Horizontal difference The other major difference in management jobs occurs horizontally across the organization. Functional managers are responsible for departments that perform a single functional task and have employees with similar training and skills. Functional departments include advertising, sales, finance, human resources, manufacturing, and accounting. Line managers are responsible for the manufacturing and marketing departments that make or sell the product or service. Staff managers are in charge of departments such as finance and human resources that support line departments. General managers are responsible for several departments that perform different functions. A general manager is responsible for a self-contained division, such as a Dillard's department store, and for all of the functional departments within it. Project managers also have general management responsibility, because they coordinate people across several departments to accomplish a specific project. Project management is a vital role in today's flatter, delayered organizations and enables middle managers to contribute significantly to corporate success. Companies as diverse as consumer products and aerospace firms use project managers to coordinate people from marketing, manufacturing, finance, and production when a new product is developed. As corporation continue to reduce hierarchical levels and more toward flatter, more horizontal structures, more people with project management skills will be needed. Project managers need significant human skills, because they coordinate diverse people to attain project goals. The tasks of different kinds of managers in horizontal difference can be seen in Exhibit 2. Exhibit 2: Different Types of Managers2 __Many managerial tasks must be done well for a business to earn a profit. General Managers: Plan, organize, lead and control operation of an entire organization. Financial Managers: Plan, organize, lead and control collection and payment of money and compliance with state and federal laws governing money management. Marketing Managers: Plan, organize, lead and control product research, development, advertisement and delivery. Human Resources Managers: Plan, organize, lead and control the hiring, training and compensation of employees. Operations Managers: Plan, organize, lead and control the production and delivery of products and services as needed to keep external paying customers satisfied. In small organizations one person may perform all tasks. Large organizations may have an entire department assigned to performance each task. Large or small, all of the above must be done well. So, from a managerial point of view the main concerns are ensuring effective communication and coordination. From the other point of view there are the following types of corporation structure3: Pre-bureaucratic Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. They have a very flat hierarchy and most communication is done by one on one conversations. They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority. Bureaucratic Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations. Then tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's (1961) distinction between mechanistic and organic structures. Functional Structure The organization is structured according to functional areas instead of product lines. The functional structure groups specialize in similar skills in separate units. This structure is best used when creating specific, uniform products. A functional structure is well suited to organizations which have a single or dominant core product because each subunit becomes extremely adept at performing its particular portion of the process. They are economically efficient, but lack flexibility. Communication between functional areas can be difficult. Divisional Structure Divisional structure is formed when an organization is split up into a number of self-contained business units, each of which operates as a profit center. Such a division may occur on the basis of product or market or a combination of the two with each unit tending to operate along functional or product lines, but with certain key function (eg finance, personnel, corporate planning) provided centrally, usually at company headquarters. Post-Bureaucratic The term post bureaucratic is used in two senses in the organizational literature, one generic and one much more specific (see Grey & Garsten, 2001). In the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 1980's that specifically contrast themselves with Weber's ideal type Bureaucracy. This may include Total Quality Management, Culture Management and the Matrix Organization amongst others. None of these however has left behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational legal type and the organization is still rule bound. Heckshcer, arguing along these lines, describes them as cleaned up bureaucracies (Hecksher & Donellson, 1994) rather than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech' argued that 'the essence of bureaucratic control - the formalization, codification and enforcement of rules and regulations - does not change in principle.....it shifts focus from organizational structure to the organization's culture'. Another smaller group of theorists have developed the theory of the Post-Bureaucratic Organization, (Heckscher and Donnellson, 1994 provide a detailed discussion) which attempts to describe an organization that is fundamentally not bureaucratic. Heckscher has developed an ideal type Post-Bureaucratic Organization in which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy, open at the boundaries (in direct contrast to culture management); there is an emphasis on meta-decision making rules rather than decision making rules. To my mind post-bureaucratic style of management is more effective and progressive. Although in some organization it is impossible to use more democratic structure, because they need stronger organization and management. In accordance with corporation structure and management type there are different types of desion making. I think, that there are only two main types of decision making in organizations. The first one is more authoritarian. It takes place when a chief of a company makes a decision only by himself/herself not taking into account opinions of other managers. The second one is when a decision is made as a result of discussion, examination of different point of views and choosing the best alternative. As a rule the process of decision making is the following: 1. Problem Awareness: Historical view, key trends, major issues. Start with a historical frame of reference. Track the evolution of the problem and related policy decisions. Discuss how the policy has taken shape, how the problem evolved to its present state, and how organizations have responded. 2. Stakeholders: Stakeholder views. Understand the interests of the stakeholders and their competitors; obtain an accurate view of how they have reacted to policy decisions. Consider the stakeholders' frames of reference and perspectives. Search for a shared vision of the future--identify the stakeholders' "common ground." Identify external forces and critical trends. Listen to stakeholder perspectives on the problem. Clarify stakeholder concerns and needs-no debates. Identify common concerns among stakeholders. Describe a vision for the future that addresses the common concerns and needs of the stakeholders (Weisbord 1992). 3. Assess the Situation: Frames of references, time horizon. Expert opinions. Functional considerations. Gaps and ambiguous information. Using the systems approach, reframe the problem using more frames of reference-political, structural, symbolic, human resources, economic, military, social, or religious to make sense out of the complex strategic situation. This includes not only a numerical expansion, but also a qualitative amplification of existing frames of reference. Seek all viewpoints to broaden the team's situation assessment. Even under severe time pressure, remain aware of dissenting perspectives and weigh team assessments accordingly. 4. Clarify the Problem: Confirm team goals & debate the issues. Encourage reflective debate. An open, frank, and combative dialogue on major points of difference and conflicting preferences can be constructive. However, recognize that unstructured debate carries a high cost. Do not allow extreme and strident voices to dominate and obstruct the team's process. Ensure all members have a shared understanding of the problem before proceeding. Reassess a situation when information changes. Analyze whether new information calls for modifying plans. If so, ensure the team members understand changes in the team's assessment. 5. Create Alternatives: Brainstorm & create strawmen alternatives. Start by brainstorming solutions to the problem. After everyone has given their input, group the solutions and list the various approaches to the problem. 6. Screen Alternatives: Discuss feasibility and desirability of alternatives. Request team members review and assess the alternative approaches individually according to their agency/functional perspective. Suggest a simple rating scheme such as: Workable and preferred Workable but less preferred Difficult but preferred Not executable (state rationale) Be careful not to exclude some good alternatives. The screening process enables team members to gain insight into other member perspectives and how each function would have to change to implement a decision. This step is crucial in gaining a broad perspective on how the U.S. Government works and the need for joint/interagency cooperation. 7. Develop Decision Options: Formulate choices for decision Develop a few decision options in concrete terms. Assign someone (who has a good understanding of the team's mission) to build a few strawmen. Use concrete strawman proposals to discuss, compare, modify, and to chose from. In developing options, consider various stakeholder perspectives. 8. Assess Decision Options: Compare and debate the choices Here are some important questions to answer in assessing decision options: What is the objective we hope to achieve with the decision Have we considered all means available Can or will this option achieve the objective What are the costs-according to each frame Are the desired gains and risks of failure clarified What are the value tradeoffs incumbent with the decision Will the public support the decision Will the situation be altered later What are other possible outcomes-short & long term What will it take in "political capital" to implement When assessing decision options, use a devil's advocate or "war gaming" model to search for gaps in a proposal. In war gaming, team members "play out" a decision option against probable threats or simulated opponents, with all risks properly included. During a debate or a war game, gaps become obvious. Also, a devil's advocate or war game can uncover misunderstandings in the way various members perceive a decision option. Once a misunderstanding is identified, clarify the point (Zsambok, et al, 1992). Ultimately, the team leader is responsible for resolving value conflicts that a team cannot resolve by internal debate. This responsibility is a unique task of a leader. The leader, as a sole person sitting in judgment, can better subordinate one value to another, mindful of the team's mission and its goals (George, 1980). 9. Develop a Recommendation and Required Actions Integrate policy decisions and tactics. In developing your recommendation, identify required tactical moves. If substantial political resistance exists, mold your recommendation by using an incremental approach to make a major policy change, thereby reducing the stakes in the near term. Craft a step-by-step approach in implementing your recommendation. So, I am sure that a real good manager has to follow this process of decision making. And of course the most important in every corporation is/are the first person/persons in it. I think that there are not certain types of leadership in corporations. As a rule chief executives use different techniques and approaches, and it is very difficult to classify all of them. But have examined famous and successful corporations, I came to a conclusion that the structure of every corporation must be very definite, every manager must be aware of his/her obligations and abilities in the corporation very clearly, the process of decision making must be followed, and eventually a leader must be an outstanding person with excellent professional, and communication skills, with a huge desire to achieve success. Recourses used: 1. Burns, S., & Stalker, G. M. 1961. The Management of Innovation. London: Tavistock Publications 2. Davis, J. P., Eisenhardt, K. M., & Bingham, C. B. 2006. Complexity Theory, Market Dynamism, and the Strategy of Simple Rules, Stanford Technology Ventures Program working paper 3. Grey, C & Garsten, C. 2001. Trust, control and post-bureaucracy. Oraganization Studies 4. Heckscher, C & Donnellson, A. (eds) 1994. The Post Bureaucratic Organization: new perspectives on organizational 5. Kunda, G. 1992. Engineering Culture: control and commitment in a hi tech corporation. Philadelphia, Penn. Temple University Press 6. Powell Mark. In company. Macmillan, 2005 7. Rivkin, J., W. 2000. Imitation of Complex Strategies. Management Science 8. Siggelkow, S. 2002. Evolution toward Fit. Administrative Science Quarterly 9. http://www.emc.maricopa.edu/ 10. http://www.zweigwhite.com/ 11. http://www.boothco.com/ 12. http://www3.ccps.virginia.edu/ 13. http://www.bestpricecomputers.co.uk/ 14. http://en.wikipedia.org/ 15. http://researchnews.osu.edu/archive/decis.htm 16. http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt3ch12.html 17. http://www.globaldharma.org/ Read More