Stock Ownership


One of the best incentives a boss can offer is a fraction of the action in the form of performance-based monetary rewards, or, better yet, options to participate in a company stock ownership. One of Ross Perot’s greatest pleasures was to make some of his managers into multimillionaires through stock participation. They all repaid him with generated enthusiasm, renewed energy, and, ultimately, more corporate profits than any of them had ever imagined. Stock participation can be one of the best ways to transfer the spirit of entrepreneurship into any company. By spreading out the risk-reward net to include more of the staff, the good boss uses shared stress to encourage group excellence.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Hypergrowth in Companies


Hypergrowth is not just a feature of private companies with a profit motive. The public sector can also undergo hypergrowth, often providing growth opportunities for private companies. In the main, however, the days of big government appear to be over. Current trends for the state to be less of an actual provider of services and more a facilitator and purchaser of them from the private sector.

Companies and corporations welcome hypergrowth because of the perception that they will make more profit and thus be more attractive to investors. This is a reasonable perception provided that the hypergrowth is managed efficiently. If, however, it is poorly managed the company may well end up in trouble despite rapid growth.

It is also true that the larger an organization is the more power it can wield and the more it can dictate to its suppliers in order to obtain the discounts the economies of scale can offer. If a company buys 9 percent of one supplier’s product, the company is highly dependent on that supplier to deliver on time. If it buys 90 percent, it can dictate the terms because of it withdraws its business then the supplier will have a major problem. Many suppliers often express delight at gaining a huge contract with a large corporation only to be dismayed later on as that corporation begins to drive down the price. No organization should ever be completely dependent on another.

Just occasionally there are companies that do not want to grow – their owners are happy with them as they are. The danger is not growing, however, is being a target for acquisition by those who are. Hypergrowth is normally presented as a positive thing. For the individual who has not considered its implications it can be threatening. In a hypergrowth situation, change can occur rapidly and change is often uncomfortable. Senior managers should be aware that hypergrowth may produce fear in employees as well as pleasure and pride.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Behavior of Committees


Committees are formally constituted bodies characterized by periodic, intermittent, or temporary rather than continuous functioning. Purposes for conducting a committee meeting almost always include an objective of gaining or maintaining inter-group coordination and/or cooperation. Staff or subgroup meetings have analogous purposes on the group level of analysis.

 

Committees integrate organizational behavior vertically in the authority hierarchy and/or horizontally across group boundaries. Committees may function primarily as a formal communications medium for one-way dissemination of information from above at one extreme all the way to omni-directional informational sharing (e.g., new projects, problems, etc.) at the other. Two other common committee functions are problem solving (e.g., performing a technical design, cost and schedule feasibility assessment) or decision making (e.g., adjusting and approving departmental overhead budgets for the upcoming three months).

 

There are both advantages and disadvantages to employing committees for any, or any combination, of these functions. The net effectiveness is emergent and is no doubt influenced by the nature of the tasks to be performed, the time available, the people involved, and primary task groups represented as well as other situational factors.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight