LEADERSHIP & MANAGEMENT.

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Selected by Zeeshan Ahmed Khan

Aug 22 - 28, 2005
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HIERARCHY AND EQUALITY

 

 

One hears a great deal today about "the end of hierarchy". That is blatant nonsense.

To attack industrial society, as would the sentimental equalitarian, because it is based on subordination instead of on formal equality is a misunderstanding of the nature of both industry and society. Like every other institution that coordinates human efforts to a social end, the corporation must be organized on hierarchical lines. But, also, everybody from the boss to the sweeper must be seen as equally necessary to the success of the common enterprise. At the same time, the large corporation must offer equal opportunities for advancement. This is simply the traditional demand for justice, a consequence of the Christian concept of human dignity.

The demand for equal opportunities is not, as is often mistakenly assumed, a demand for absolute equality of rewards. On the contrary, equal opportunities automatically assume an inequality of rewards. For the very concept of justice implies rewards graduated according to unequal performance and unequal responsibility.

ACTION POINT: Does your organization value the contribution of the boss and sweeper, or just the boss?

Concept of the corporation

Management challenges for the 21st century.

A functioning Society.

THE FEDERAL PRINCIPLE

"Federalism relieves top management from operating duties and sets it free to devote itself to its proper function."

What the enterprise needs is a principle that gives both the center and the parts genuine managerial functions and powers. This principle is federalism, in which the whole of the enterprise is conceived as made p of autonomous units. The federal enterprise and all its units are in the same business. The same economic factors determine the future the future of the whole as well as of all units; the same basic decisions have to be made for all of them; the same kind and type of executive is needed. Hence the whole requires a unified management in charge of the basic functions: the decision what business the enterprise is in, the organization of human resources, and the selection, training, and testing of future leaders.

At the same time, each unit is a business by itself. It produces its own products for a distinct market. Each unit must, therefore, have wide autonomy within limits set by the general decisions of the management of the whole. Each unit has to have its own management. The local management will be primarily an operating management; it will be concerned mainly with the present and immediate future rather than with basic policy. But within a limited scope it will have also to discharge real top-management functions.

ACTION POINT: Make maximum use of the federal principle.

The New Society.

BUSINESS WISDOM

Today's workers understand the principle that the only true job security comes from satisfied customers.

NOEL M. TICHY, American journalist and author

When you boil it all down, your customers and clients use three criteria to measure you:

1) Communication

2) Service

3) Added Value

How well you handle these three items is a reliable indicator of how long you'll keep your clients.

MARK M. McCORMACK, American sports marketing consultant.

 

 

"Dealing with customers takes knowledge, time, and patience after all, if salespeople don't have that, they should look for another line of work."

LEE IACOCCA, American automotive industry leader, former CEO of Chrysler Motors.

"Like a house of cards, customers satisfaction can be difficult to build, but very easy to destroy. That's because there is a customer care chain. The nature of the chain varies industry by industry, organization by organization. But even though the chain that applies to one will not apply to another, it only takes one weak link for any chain to be broken, for customer care failure to occur."

STEPHEN DANDO-COLLINS, Australian author and editor.

"We need a new economic order for the 21st century. This new economic order must be geared to the real needs of people and the earth. It must be both enabling and conserving. It must restore to the word "wealth" its original meaning of wellbeing. It must harmonize economy with ecology, in accordance with the proper meanings of these words- as the management and the science of our earthly home. It must accept that the era of "the wealth of nations" is past, and treat the 21st century economy as a multi-level one-world economy."

JAMES ROBERTSON, British economist and author.

"One doesn't discover new lands without consenting to lose sight of the shore for a very long time."

ANDRE GIDE, French novelist, editor, critic, translator and essayist.

There are two ways to approach problems. You can sit down and say, "Oh my God, I can't face this, it will destroy me". Or you can stand up and look beyond it to see how it can make you grow.

NICK NOLTE, American actor.

"People are resources, not your products or equipment. Taking care of people's need is the key to productivity."

ROGER MEADE, American information system developer and CEO of Scitor Corp.

"Where there is no desire, there will be no industry."

JOHN LOCKE, British Philosopher.