Chapter 2: Adapative Order Systems (Pages 74-83)

Personal take-aways:

Although decentralization is a concept that might lead to better management and effectiveness in companies, it will also lead to “expert” thinking due to the possible specialization of tasks. This needs to be taken into consideration, as usually expert knowledge might lead to certain paradigms of thought and thus to stagnation in the overall innovation process. Thus, decentralization might need to be accompanied by a higher degree of diversity as to minimize people thinking into the same direction.

 

 

Notes:

• Restoring Steering Ability and competitiveness
  • in the past the whole human knowledge could be mastered by particular gifted individuals
    • electronic media are making the access of knowledge open to an extend thought impossible in the past
  • people want to participate in the community
  • the managerial’s staff excessive workload indicated that their work style has not kept pace with the increasing demands on them
    • this problem cannot be solved by more personal effort
      • on the contrary: this would reduce the organization’s ability to quickly change course as necessary
    • possible solution: division of labor together coupled with decentralization of management responsiblity
      • decentralized functions offer greater efficiency through specialization and improved sector-specific expertise
        • drawbacks: specialists tend to consider themselves particular important and to give one-sided advice that might not lead to an actual solution
          • BUT: the task of management is to request and use the contributions of their staff in the right manner -> responsiblity for coordinating the contribution is a management technique
          • coordination is best handled by superiors due to their big picture understanding
  • even a sophisticated and well-functioning reposting system cannot replace confidence in an employee
  • company rules: all individuals should contribute as best as they can to the welfare of the community
  • in business: possibilities of progress by means of competition are almost unlimited
• Performace-oriented leadership
  • politicians are not ideal figures -> react humanly, which means in their own interest and to the advantage of their party
    • reports would detail the target and actual results of politicians’ actions
      • these reports would reveal mistakes and successes and permit appropriate corrective action
        • public discussion on quarterly results achieved by local authorities (like major stock companies) would lead to clear information
          • increase scope of idea by consider results achieved by municipalities to judge the performance of their local politicians
            • –> this performance oriented leadership technique would trigger competition with the aid of performance comparison