Manage Men Tun Control Systems Final 10

8/8/2019 Manage Men Tun Control Systems Final 10

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Emergent Management Control

Systems

Demystifying the recent trends of

management uncontrol system


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Lets simplify

things


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System

Group of elements, working together, in an

integrated, interdependent and co-

ordinated manner so as to achievesynergy

No longer so disorganized


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Control

Measurement of performance against

predetermined goals

Identification of deviations from these goals Initiating course corrective actions to rectify

deviations


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Management

Amplify and aggregate human effort

Tayloristic model The hierarchy

To reduce transaction costs Cascading Accountability

Responsibility for control and coordination

should be located one level above where thework is actually performed


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Gary Hamels Hierarchy of Human CapabilityGary Hamels Hierarchy of Human Capability

curious case

otivation


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The Old Vs The New


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Sphere of Business Stake Holder

management


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Non Market Alternatives Vs Markets

Machine

learning/Statistics

Historical data

Past and future are

related

Hard to incorporate

recent new information Identifying experts can

be difficult

Prediction Markets

No need for data

No assumption on pastand future

Immediately

incorporate new

information Real Time

Monetary incentive


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Resource Allocation

What can we learn from the financial markets? Markets are effcient mostly.

The price of the financial assets reflects all publicly availableinformation about the fundamental value of the assets ( with no

insider information) Intuitively designed for information aggregation and prediction

Payoffs of the traded item is associated with outcomes of futureevents.

Difficult to manipulate the markets

Harnessing the Wisdom of the Crowds Will sales value exceed `15,00,000 in October?

Will (Should) Microsoft and Yahoo merge?


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Prediction Markets

A prediction market is a financial market that

is designed for information aggregation and

prediction.

Payoffs of the traded item is associated with

outcomes of future events.

Turn an uncertain event of interest into a random

variable Create a financial contract, payoff = value of the

random variable

Open a market in the financial contract and attract

traders to wa er and s eculate


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Semco

Founded in 1953 by Antionio Curt Semler

Recession came to Brasil in the early 80s.

Ricardo Semlar joined the company at age 19 Fire two-thirds of the top management, many

of whom were his father's friends.


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Pre requisites of a Management

Control System

Plans

Clear- cut organizational structure

Top management involvement Employee motivation

Effective communication

Supporting Accounting and InformationSystems


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Plans

Teams of employees working on a project come upwith their own plans, with a control system for thatgroup.

Every six months, Semco shuts down and starts up all

over again. Through a rigorous budgeting andplanning process, every businesses must justify itscontinued existence.

If this business didn't exist today would it belaunched? If it is closed down, would importantcustomers be alienated? If the answers are no, thenthe money, resources, and talent is movedelsewhere.


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Clear- cut organizational structure

No organizational chartsjob titles

personal assistants

Employees set their own salaries

set their own schedules

share in the profits.

Handle multiple job duties Come up with new procedures that saved time and

money

Autonomous groups formed in the various

businesses of the group


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Organizational Circle

Counsellors

Partners

Employees


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Top management involvement

Great rapport with the employees and the groups

they are in because they know every employee isequal.

Rotate CEO every six months

this gives equal opportunity for status gain in thecompany.

Puts a lot of weight on leaders because then canno longer simply protect themselves with symbolsof power like closed offices or special parkingplaces.

They have to rely exclusively on their ability togenerate respect.


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Employee motivation

Rather than force people to expand business

beyond its natural limits, encourage starting new

businesses.

Give people the freedom to do what they want,

and over the long haul their successes will

outnumber their failures.

At every board meeting, two seats are reserved foremployees on a first-come, first-served basis.


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Supporting Accounting and

Information Systems

6 monthly budget. So however unpleasant a decision might be, it has

to be taken soon and cant be postponed to the3rd or 4th quarter.

Information is available to all persons and not justto the top levels.

400 cost centers were pared down to 50.

All financial information is publicly available.

The company works on the 3 values of democracy,profit sharing, and information which work in acomplicated circle, each dependent on the othertwo.


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W.L. GORE

Founded by William Gore by 1958, after a 17yr career in DuPont

Today it has approximately 9000 employees,

called associates Located in 30 countries

Annual revenue is $2.5 billion

Four divisions: fabrics, electronics, medicaland industrial.


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Plan

No predetermined goals.

Every team can form their own plans but

remain committed to it Most of their products are individual projects.


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Top management involvement

Free to choose anyone as CEO

Top management have to prove themselves

else they will be kicked out by thesubordinates

Compensation decided by fellow subordinates

and not by superiors

Cant get things done just because one is

perched higher up in the leader


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Effective Communication

Informal communication between employees

Anonymous feedback of employees

No hidden information


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Google Inc

Founded in 1996 by Larry Page and Sergey Brin.

Want to help people find anything on web.

This Stanford duos algorithm of ranking web pages

caught up success.

Search based advertising turned searches into

cash.

Vision to evolve faster than web itself.

Tomorrows profitability depends on todays evolvability


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Plans

Organize Worlds Information to democratizeknowledge to change the way people learn.

70-20-10 policy for innovation.

Innovation is everyones responsibility

Launch early, Launch often and launch fast


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Clear-Cut Organizational structure

Wafer thin hierarchy based on web centric principle:peer to peer

Highly democratic, tightly connected, open, flat,

nonhierarchical and decentralized. A host of nimble, independent teams which are loosely

linked with multifaceted development approach.

Each team rotates members with other teams with no

dependency on manager

When highly motivated and eminently capable people share a

common vision, they dont need to be micromanaged


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Effective communication

Each newcomer is allotted a sponsor

Lines of communication are direct- person to

person and team to team. Information flow in all directions, unfiltered by

intermediary


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Top Management Involvement

Breakthrough comes from questioning assumptions

and smashing paradigms.

Recruit truly exceptional people by a grueling

process which takes several weeks.

Regular discussion with Innovators to convert their

ideas into business models.

Experienced Managers may not be the best management innovators


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Employee Motivation

Just Try it culture emphasize on test and learnthan plan and execute.

Employees empowered to change the World

20 percent of time can be spend on own project

Outsized rewards for outsized ideas: Founders

award

More standard Deviation than industry fromaverage salary.

Half of Google products are result of this 20 percent projects


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Effective Communication

A dense network of lateral communication.

Message Oriented Middleware application.

Snippets for weekly accomplishments.

TGIF for meeting with Brin and Page.

Any decision is made in reverse order: Customers,

dozens of googlers, senior management

Its easy to run flat organization when everyone is doing same thing,

only thing to be communicated to this collective genius is

entrepreneurial ship


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Documents

Manage Men Tun Control Systems Final 10