Why cant i hold all these2/18/2023 Morning Star’s self-management model has two cornerstones: the personal mission statement, and the Colleague Letter of Understanding, or CLOU. And if staffers find themselves overloaded or spot a new role that needs filling, they simply go ahead and initiate the hiring process. Compensation decisions are handled by local committees elected by the employees, and pay reflects the contributions that people make-not their status. Workers negotiate responsibilities with their peers, anyone can issue a purchase order, and each individual is responsible for acquiring the tools needed to do his or her work. Its employees essentially manage themselves. That’s right-no bosses, no titles, no promotions. Morning Star, which has seen double-digit growth for the past 20 years, has no managers. Is there any way to get the flexibility of a market system and the discipline of a tightly knit hierarchy-without a management superstructure? Morning Star, the global market leader in tomato processing, proves that there is. Yet it’s clear that market mechanisms alone can’t provide the degree of coordination and control that many companies require. In fact, management may be the least efficient activity in any company. Executives don’t realize it, but a hierarchy of managers exacts a hefty tax on any organization: Managers are expensive, increase the risk of bad decisions, disenfranchise employees, and slow progress.
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