Challenging Management Structure

By | September 28, 2014

financeEach person tends to underestimate the management structure. We all worked in the corporate structure, and we tend to think of all the things we can change, this is the structure that can not be shaken.

Most of the organizational structure seems so old-fashioned; a pyramid with the leader at the top, “management” in the middle, and “workers” at the bottom. Leaders can challenge these structures and experimenting with new organizational models.

Founder Kongzhong (Chinese mobile internet company), Nick Yang, create a management system based senate were copied from the system of government by the board in Switzerland.

“I have 40 people working for me. Actually I have a very innovative way of management. We have what is called the Senate. I told the company that we are running a constitutional monarchy. There are certain things that can only be decided by the Senate. The Senate is the representative of the teams. Every 10 people has one senator. Senate to decide on matters such as budgeting, payroll, and compensation. Some problems such as, ‘Where are we going to go for spring break?’ or ‘How do we spend our team building budget?’ decided by the entire board employees. People are very involved and happy that they have that kind of empowerment. “

Zhang Ruimin is chairman and CEO of Haier Group, China’s leading manufacturer of the goods in which each department is facing their own clients.

“Our first step is to rearrange the organization of a triangle with its top facing up to the triangle that ends facing down. You put the client at the top and then line manager, employee, and then the important leaders on the bottom. Each department should take care of their own clients and become what we call “autonomous units”. The teams have ownership of their own income targets and incentive to generate additional revenue. There are three advantages to be gained from this method. The first is that the market does not respond to the request takes a long time. Line managers can make their own decisions without having to wait for feedback from superiors. Second, this method solves the problems of internal game. Each person has their own target market and they have to adjust their interest with the target to achieve the results that are equally beneficial to all parties. “

Management system “command and control” which is based on the traditional military model and adopted by major industrial companies in the world’s first since more than a century ago is almost certainly not a system that will bring success in the 21st century idea of modern management supports management models which is the delegate and empower managers and colleagues, and give them ownership of their own budgets. You are the leader. There is no rule that says you have to preserve the old-fashioned management structure. Be creative. Make sure that the organization as a fanatical focus on its customers. Try to give as much freedom as possible colleagues. Let the important decisions are taken as close as possible to the customers. Think about ways to be able to directly provide award.