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.
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
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.
Make maximum use of the federal principle.
The New Society.
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:
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
"Dealing with customers takes knowledge, time,
and patience ñ 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
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
NICK NOLTE, American actor.
"People are resources, not your products or
equipment. Taking care of people's need is the key to
ROGER MEADE, American information system developer
and CEO of Scitor Corp.
"Where there is no desire, there will be no
JOHN LOCKE, British Philosopher.