The current situation
Management’s job is one of the most difficult while at the same time having some very high responsibility as their decisions affect society as a whole.
Often management is faced with challenges that are the result of a cultural environment, teachings and paradigms, which influence the effectiveness of their decisions. The future of their organizations depend on their degree of success, but to succeed and do the right things, they need to have the right “knowledge”. Hard work and best efforts will not by themselves help.
The current crisis is a clear indication that something is amiss. Apart from both financial and Industrial causes, decisions made by the management boards seem to lack a proper scientific and technical base. The high responsibility that lies on them requires more robust decisions’ tools.
Today it is generally accepted that the way the enterprise organizations are managed needs a new approach. In a 2010 study by IBM “Capitalizing on Complexity”, which interviewed 1,541 senior executives, they concluded that as the complexity of the different forms of interaction within and outside organizations increases, managers must acquire new skills and knowledge.
W. Edwards Deming, arguably the most influential thinker on management, already pointed out these and other findings in his book “Out of the Crisis.” Furthermore, errors and problems of management continue to be the same as listed in his work. Deming’s accuracy was uncanny as he is the only thinker of management, as far as I know, who anticipated the current crisis based on “… the failure of top management in its mission to manage.”
Some of the errors and diseases of management pointed out by Dr. Deming: emphasis on short-term profits, cost reduction policies, management by use only of visible economical figures, evaluation of performance, merit rating, etc.
The purpose of any organization is to get results; they represent its aim and the common purpose of its members. In a business organization that purpose is, among other benefits, but also its continuity.
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