Can a Boss Hurt His Own Business?When an organizational structure is steeply vertical, the management style and decision-making model is entirely centralized and the communication channels are one-way, and that is downward.No one takes initiatives because they do not know whether their actions will be viewed positively or negatively, so they adopt the course of least resistance. 'maintaining the status quo'.Those close to the CEO know how to use their proximity to facilitate the execution of their wishes by pretending to have access to privileged information.The future outlook for this business is extremely poor should the conditions that allowed them to thrive in the first place ever change radically.PROFILE OF THE BOSS AND HIS BUSINESS.Adolf Papanasis, CEO of National Industries, is responsible for no less than 800 employees.National Industries brings in profit margins of at least 38%.His industry is protected by government regulations, so competition is very limited.Adolf is actively involved in every decision, regardless of its magnitude.(So you can imagine what a busy man he must be.) He is often the first to arrive and the last to leave the office.That is, when he is present in the country.You see, this is a man who travels extensively for purposes of purchasing raw materials, looking at the latest technology in his industry, attending trade fairs, and taking a few days off here and there to relieve the pressures of his high stress job.PROFILE OF THE EMPLOYEES IN THE BUSINESS.With the exception of 'the chosen few', meaning those who are close to Papanasis, the majority of the employees in National Industries feel that they are really insignificant.They know that their fate lies in the hands of Adolf and his close associates.Some have never even seen Adolf in real life.The prevailing philosophy is 'let sleeping dogs lie'.Do your job the way the boss(es) want it and go home as soon as time is up.When asked how they feel or what they think, they will either tell you what they think you want to hear or decline to comment or pretend to be ignorant.These people want to survive and they know how limited their opportunities for alternative employment is.They also know that they speak to deaf ears.THE MANAGEMENT STYLE AT NATIONAL INDUSTRIES.Management offices for the CEO and the chosen few are magnificently situated and decorated.They are made to IMPRESS.As far as practical use is concerned though, the offices are not at all functional.In brief the organizational structure is steeply vertical, the management style and decision-making model is entirely centralized and the communication channels are one-way, and that is downward.The attitude transmitted with every move is 'lucky you' to be working for us.REALITIES.This company is very fortunate for a number of reasons. it is protected by government regulations; there are only a few local competitors; mobility of the employees is limited as most of them do not have documented credentials; others have relatives working in the same company and are afraid that if they leave, it could impact on their kin.No one takes initiatives because they do not know whether their actions will be viewed positively or negatively, so they adopt the course of least resistance. 'maintaining the status quo'.The safest thing is to do nothing because then you run the lowest risk of getting 'blacklisted'.The 'chosen few' who are close to management tend to be smooth talking to the CEO, but very aggressive to the 'underlings'.They also know how to use their proximity to the CEO to facilitate the execution of their wishes by pretending to have access to privileged information.The employees who know very little about what might be happening 'behind those impressive closed doors' follow obediently like a flock of the most docile little lambs.THE FUTURE OUTLOOK FOR NATIONAL INDUSTRIES.May the 'gods of business' help them if they lose the umbrella of government protection.Why?• They have sustained a management style that kills leadership and initiative.• They have not encouraged anyone besides top management to feel responsible for the success and profitability or failure of the company.• Management has taken on the role of fully responsible 'fat cow' provider.• Employees have gladly accepted the role of docile dependent on the company as their 'cash cow'.• With such a business culture, the ability of this company to respond to competition will be like a dinosaur trying to outrun a jet plane.• The high profit margins have been insufficiently analysed with regard to the true reasons for such high percentages, and so it has given top management a false sense of security and achievement.HOW CAN VALUES AFFECT PROFIT MARGINS?A definition of values. the frame of reference we use to judge our self-worth and the importance of our accomplishments.Values are the drivers behind individual motivation and are closely linked to needs, because our values determine the means we select to satisfy our needs.HOW DO VALUES EXPRESSED IN MANAGEMENT STYLE AFFECT PROFIT MARGINS?The values expressed in the management style described here are wholly paternalistic.This style encourages dependency and power-plays.Such businesses survive very well in a culture where there is scope for manoeuvre behind the scenes and where government pursues protectionist policies.In the open market-place, however, such businesses emerge as very vulnerable dwarfs or come crashing down like a 'house of cards'.Are you running such an enterprise? It is a question worth answering, to yourself, at least.
Tuesday, August 28, 2012
Management Style, Values and the Means We Choose to Achieve Our Goals
Can a Boss Hurt His Own Business?When an organizational structure is steeply vertical, the management style and decision-making model is entirely centralized and the communication channels are one-way, and that is downward.No one takes initiatives because they do not know whether their actions will be viewed positively or negatively, so they adopt the course of least resistance. 'maintaining the status quo'.Those close to the CEO know how to use their proximity to facilitate the execution of their wishes by pretending to have access to privileged information.The future outlook for this business is extremely poor should the conditions that allowed them to thrive in the first place ever change radically.PROFILE OF THE BOSS AND HIS BUSINESS.Adolf Papanasis, CEO of National Industries, is responsible for no less than 800 employees.National Industries brings in profit margins of at least 38%.His industry is protected by government regulations, so competition is very limited.Adolf is actively involved in every decision, regardless of its magnitude.(So you can imagine what a busy man he must be.) He is often the first to arrive and the last to leave the office.That is, when he is present in the country.You see, this is a man who travels extensively for purposes of purchasing raw materials, looking at the latest technology in his industry, attending trade fairs, and taking a few days off here and there to relieve the pressures of his high stress job.PROFILE OF THE EMPLOYEES IN THE BUSINESS.With the exception of 'the chosen few', meaning those who are close to Papanasis, the majority of the employees in National Industries feel that they are really insignificant.They know that their fate lies in the hands of Adolf and his close associates.Some have never even seen Adolf in real life.The prevailing philosophy is 'let sleeping dogs lie'.Do your job the way the boss(es) want it and go home as soon as time is up.When asked how they feel or what they think, they will either tell you what they think you want to hear or decline to comment or pretend to be ignorant.These people want to survive and they know how limited their opportunities for alternative employment is.They also know that they speak to deaf ears.THE MANAGEMENT STYLE AT NATIONAL INDUSTRIES.Management offices for the CEO and the chosen few are magnificently situated and decorated.They are made to IMPRESS.As far as practical use is concerned though, the offices are not at all functional.In brief the organizational structure is steeply vertical, the management style and decision-making model is entirely centralized and the communication channels are one-way, and that is downward.The attitude transmitted with every move is 'lucky you' to be working for us.REALITIES.This company is very fortunate for a number of reasons. it is protected by government regulations; there are only a few local competitors; mobility of the employees is limited as most of them do not have documented credentials; others have relatives working in the same company and are afraid that if they leave, it could impact on their kin.No one takes initiatives because they do not know whether their actions will be viewed positively or negatively, so they adopt the course of least resistance. 'maintaining the status quo'.The safest thing is to do nothing because then you run the lowest risk of getting 'blacklisted'.The 'chosen few' who are close to management tend to be smooth talking to the CEO, but very aggressive to the 'underlings'.They also know how to use their proximity to the CEO to facilitate the execution of their wishes by pretending to have access to privileged information.The employees who know very little about what might be happening 'behind those impressive closed doors' follow obediently like a flock of the most docile little lambs.THE FUTURE OUTLOOK FOR NATIONAL INDUSTRIES.May the 'gods of business' help them if they lose the umbrella of government protection.Why?• They have sustained a management style that kills leadership and initiative.• They have not encouraged anyone besides top management to feel responsible for the success and profitability or failure of the company.• Management has taken on the role of fully responsible 'fat cow' provider.• Employees have gladly accepted the role of docile dependent on the company as their 'cash cow'.• With such a business culture, the ability of this company to respond to competition will be like a dinosaur trying to outrun a jet plane.• The high profit margins have been insufficiently analysed with regard to the true reasons for such high percentages, and so it has given top management a false sense of security and achievement.HOW CAN VALUES AFFECT PROFIT MARGINS?A definition of values. the frame of reference we use to judge our self-worth and the importance of our accomplishments.Values are the drivers behind individual motivation and are closely linked to needs, because our values determine the means we select to satisfy our needs.HOW DO VALUES EXPRESSED IN MANAGEMENT STYLE AFFECT PROFIT MARGINS?The values expressed in the management style described here are wholly paternalistic.This style encourages dependency and power-plays.Such businesses survive very well in a culture where there is scope for manoeuvre behind the scenes and where government pursues protectionist policies.In the open market-place, however, such businesses emerge as very vulnerable dwarfs or come crashing down like a 'house of cards'.Are you running such an enterprise? It is a question worth answering, to yourself, at least.
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