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Let’s Fire All the Managers. By Gary Hamel Is a visiting Professor at London Business School and the director of the Management Innovation Exchange. Number of Managers 10 Employee = 1 Manager 1,00,000 Employee = 11,111 Managers 1,111 Managers just to manage the Manager
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Let’s Fire All the Managers By Gary Hamel Is a visiting Professor at London Business School and the director of the Management Innovation Exchange
Number of Managers 10 Employee = 1 Manager 1,00,000 Employee = 11,111 Managers 1,111 Managers just to manage the Manager Salary of Manager is three or four times higher than Manager
Management hierarchy • Centralized Decision Making • As Decisions get bigger, the ranks of those able to challenge the decision maker get smaller • Powerful Managers are sometimes away from the realities • It become more dangerous when the decisions maker power is , for all purposes, uncontestable.
Multi tiered Management slow the decision making process, you need to take approval first from your manager before doing any decision • Bias is another sort of tax • It also kills the new ideas coming in employees mind
Hierarchies vs Markets • According to Ronald ( Economist) • Markets work well when the needs of each party are simple, stable and specify but they are less effective when interactions become expensive • E.g Open source software Project
E.g as a consumer you have the freedom to spend $20,000 or more on new car but as an employee you probably don’t’ have the authority to requisition a %500 office chair. Narrow an individual scope of authority you shrink the incentive to dream , Imagine and contribute
Beyond Management as Usual • It’s tough a imagine a company where… • No one has a boss • Employees negotiate responsibilities with their peers • Everyone can spend the company’s money • There are not titles and no promotions • compensation decisions are peer based • Every individual is responsible for acquiring the toots needed to do his/her work
Make the mission the boss • Let employees forge agreements • Empower one – Truly • Don’t force people into boxes • Encourage competition for impact, not for promotions • Freedom to Succeed • Clear Targets • Calculation and consultation • Conflict resolution and due process