Value-Directed Management: Organizations, Customers, and Quality

By Bernard Arogyaswamy; Ron P. Simmons | Go to book overview

strengthening the product's and customer's interfaces with the organization is essential to unceasing value enhancement.

Building a value-maximizing organization is not only particularly instrumental in executing the strategy formulated and articulated, it could provide the energy for future strategy. This is possible not only in the sense of providing a distinctive competence for the firm in the value dimensions in which it excels, but also in terms of creating an employee base that is more receptive to new ideas, to value shifts matching customer preference changes, and to value sharing between divisions of the same firm.

Regardless of whether the organization be in the steel, electronics, airlines, recreation or any other industry, if the employees are to be totally wrapped up in the welfare of the firm through the medium of its PC linkage, power relationships must be addressed first. As displayed in Figure 6.4, the realization that power dependence eats away at the very fiber of initiative and enthusiasm is an essential starting point. Any value attained, without involvement, therefore, will not be self-sustaining. Steps to switch off the power orientation by establishing the low-voltage or even no- voltage firm include the elimination of multilayering, encouragement of communication downward (including "sensitive" information) and the dissemination of techniques for better task analysis and performance. Strategies of value can originate from totally involved employees in a bottom-up reversal of the typical strategy process. However, to make the enhancement of value an intimate mingling of voluntary, internal efforts and external needs, a culture of value has to arise. We turn our attention next to the nature and building of such a culture.


NOTES
1.
Jonathan Hughes, The Vital Few ( New York: Oxford University Press, 1986). The book offers a fascinating portrait of the evolution of American entrepreneurship. Carnegie's handling of the Homestead strike, Ford's paternalism, and Morgan's impersonal restructuring of various businesses are striking illustrations of profits being far and away more important than people.
2.
Ford's Five Dollar Day was a radical shift in wage policy and levels. While his motives may not have been altruistic, since productivity and purchasing power rose, workers were better off than before (Ibid. pp. 302-4).
3.
Richard Cyert and Kenneth Moe Grimmon, "Organizations," in Gardner Lindzey and Elliot Aronson, eds., Handbook of Social Psychology ( Reading, MA: Addison-Wesley, 1968, 2nd ed., Vol. 1), p. 575.
4.
Warren Bennis and Burt Nanus, Leaders ( New York: Harper & Row, 1985), pp. 92-93.
5.
D. Kipnis, The Powerholders ( Chicago: University of Chicago Press, 1976.)
6.
For a synopsis of Xerox's efforts and successes in competitive bench-

-122-

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Value-Directed Management: Organizations, Customers, and Quality
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Figures xi
  • Preface xiii
  • Acknowledgements xvii
  • 1 - Foul Play or Fair Game? 1
  • Notes 11
  • 2 - The Many Faces of Value 15
  • Notes 33
  • 3 - A Strategy and Vision of Value 37
  • Notes 53
  • 4 - Interdependence: Eliminating Insulation 57
  • Notes 76
  • 5 - Integration: Creating a Shared Vision of Value 79
  • Notes 99
  • 6 - Involvement: Power Out, Value In 103
  • Notes 122
  • 7 - In Graining: Practical Ideals 125
  • Notes 159
  • Notes 177
  • 9 - Indicators: Evaluating the Ins 179
  • Notes 205
  • 10 209
  • Notes 214
  • Selected Bibliography 217
  • Index 223
  • About the Authors 231
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