HENLEY ALUMNI ASSOCIATION – MALTA NEWSLETTER – 29 May 2010 Issue No: 224 A fortnightly newsletter to keep Henley Alumni Association – Malta (HAAM) members informed with latest management practices and with news and activities of HAAM. The contents of this edition are: Introduction Management Concepts Shamrock Organization Leading Management Thinkers Herbert Simon Members Section News from Henley Business School News from HAAM Sunday Walk in Gozo - 16th May Next Acitivity AGM – 7th July Introduction This e-Newsletter is designed as a Web page so as to facilitate navigating through its pages. Using Word for Microsoft 97 or later versions, you should be able to browse through this document by clicking on the underlined links. These will take you to the relevant sections of this newsletter and also to Internet resources. To achieve the latter you would have to be connected to the Internet. Your feedback and contribution (for example sending relevant research papers, Internet sites of interest to Alumni) would be appreciated. E-mail your feedback or request for further information to the following address: [email protected] Back to Main Page Management Concepts This section contains an article on some essential business idea/s. Remind yourself and get to grips with key management concepts in a language that's easy to understand. Shamrock Organization The organizational structure most appropriate for the future has been widely discussed in recent years. Irish academic and management guru Charles Handy has been one of the most considered participants in this debate. He anticipated that certain models of organization would become dominant. These were the types of organization most readily associated with service industries. First, and most famously, was Handy’s shamrock organization. The concept describes a type of organizational structure with three parts, or leaves: “A form of organization based around a core of essential executives and workers supported by outside contractors and part-time help.” The consequence of such an organizational form was that companies in the future were likely to resemble consultancy firms, advertising agencies, and professional partnerships in their structure. This model, or variations of it, is often used to explain the move to outsourcing noncore functions. In Handy’s analogy, the first leaf of the shamrock represents the core staff of the organization. These people are likely to be highly trained professionals who make up the senior management. The second leaf consists of the contractual fringe—either individuals or other organizations—and may include people who once worked for the organization but now provide it with services. These individuals operate within the broad framework set down by the core but have a high level of discretionary decision-making power to complete projects or deliver contacts. The third leaf includes the flexible labor force. More than simply hired hands, in Handy’s model, these workers have to be sufficiently close to the organization to feel a sense of commitment that ensures that their work—although part-time or intermittent—is carried out to a high standard. The second emergent structure identified by Handy was the “federal organization,” which is not, he emphasized, a synonym for decentralization. He provided a blueprint for federal organizations in which the organizational center coordinates, influences, advises, and suggests. It does not dictate terms or make short-term decisions. The center is, however, concerned with long-term strategy. It is “at the middle of things and is not a polite word for the top or even for head office.” The third type of organization Handy anticipated is what he called “the triple I”— information, intelligence, and ideas. In such organizations, the demands on personnel management are large. Handy explained, “The wise organization already knows that its smart people are not to be easily defined as workers or as managers but as individuals, as specialists, as professional or executives, or as leaders (the older terms of manager and worker are dropping out of use), and that they and it need also to be obsessed with the pursuit of learning if they are going to keep up with the pace of change.” More recently, Handy has suggested that successful organizations of the future will be what he calls “membership communities.” His logic is that in order to hold people to organizations that can no longer promise them jobs for life, companies have to offer some other form of continuity and sense of belonging. To do this, he suggests, companies have to imbue members with certain rights. Under Handy’s membership community model, the center is kept small and its primary purpose is to be “in charge of the future.” Only if the organization is severely threatened does decision-making power revert to the center. This allows a company to react quickly in a crisis. The rest of the time, decision-making is highly decentralized. Key Reading Charles Handy. The Age of Unreason. Business Books, 1989 Charles Handy. The Hungry Spirit. Random House, 1997 Back to Main Page Leading Management Thinkers This page gives a short profile and backgrounder on the leading management thinkers, past and present __________________________________ Herbert Simon Herbert Simon (1916-2001) was a cognitive scientist and economist who won the Nobel prize for economics in 1978. In a management context, he is known particularly for his work on problem solving and decision making. ‘The secret of problem solving is that there is no secret. It is accomplished through complex structures of familiar simple elements,’ he says. ‘Intuition is not a process that operates independently of analysis. It is a fallacy to contrast “analytic” and “intuitive” styles of management. Intuition and judgment – at least good judgment – are simply analyses frozen into habit and into the capacity for rapid response through recognition.’ While it is difficult to see intuition and judgment as ‘analysis frozen into habit’ Simon’s point that problem-solving methods co-exist is accurate. His books include Administrative Behavior (fourth edition, 1997), Human Problem Solving (with A Newell, 1972) and The New Science of Management Decision (1977). Simon taught for many years at Carnegie-Mellon University where he was Professor of Computer Science and Psychology. ======================================= Back to Main Page MEMBERS SECTION This page is dedicated to the contribution of our members. Members are invited to contribute to this page by submitting e.g. their own profiles, research studies, job opportunities, product/service advertisements, etc. All contributions must be in Word 97 format and not greater than 200K Bytes so as to facilitate distribution through this Newsletter. --------------------------------------------- News from Henley Business School The latest Henley newsletter – AlumniNews, has just been published and is being distributed by post to all our alumni without an email address. An electronic version of this publication can be found on http://www.henley.com/alumni/publications/. If you would prefer a printed copy, I would be more than happy to post one to you - please just email me a valid postal address. This alumni publication brings you the latest news from Henley Business School and updates on forthcoming events. Bookings for our annual Members’ Day event on Sunday 4th July are now being taken. Please visit our website for more details and to book. www.henley.com/alumni/membersday2010 I hope you enjoy reading our alumni publication and I look forward to hopefully seeing you on Members’ Day. Please do not hesitate to contact me if I can be of any further help. Irina Woodford Alumni Services Co-ordinator [email protected] Back to Main Page NEWS FROM HAAM Latest news, appointments, events can be found in this page. ---------------------------------Sunday Walk Gozo 16th May 2010 Below is a sample of photos taken during the last networking event organised by HAAM in Gozo. This was attended by 15 members and their partners who enjoyed the Walk and lunch whilst catching up with each others happenings in their lives. ---------------------------------- Next event will be the Annual General Meeting of HAAM. This is being planned for 7th July 2010 at The Palace, Sliema. AGM notices will be issued in the near future. If interested to form part of the new committee to be elected, please contact the undersigned. ============== Your comments are appreciated – e-mail them to: [email protected] Back to Main Page
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