A management model
constitutes of the choices
made by the management regarding how they
define objectives, motivate people, coordinate activities and
allocate resources. In other words, how they define the work of
management. Many companies are now discovering that a
distinctive management model can aid substantially by creating
superior competitive advantages, which can result in renewal and revitalization.
The `how' dimension refers to the nature of the involvement of
the corporate and the type and degree of intervention that the
top managers make in the operations of the organization. This is
precisely what a management model seeks to deliver and when interpreted
in terms of core issues, it boils down to how directions are set,
how decisions are made, how people are rewarded and resources
are allocated. It basically tries to answer the questions of the means and
ends that the management seeks to undertake its task. Thus, the
nature of corporate involvement/intervention speaks of
the management model.
Similarly, the `what' dimension seeks to find out what is the
source of competitive advantage of a firm. By justifying a firm's value
creation logic in two ways—either it somehow reduces the total costs
of the company in terms of economies of scale or scope or concentrates
on new knowledge creation or it does something that adds more value
to the group than outweighs the costs. |
