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ModernManagementMovement管理學(xué)專業(yè)英語教材
FudanUniversityOutlines——approachestomodernmanagement123456Processapproach
Systemapproach
Contingencyapproach
Strategicmanagementapproach
Japanesestylemanagementapproach
Excellenceapproach
FudanUniversityOutlines
——frameworkofthemodernmanagementmovement123ClassicaltheoryBehavioraltheoryQuantitativetheory4systemsandcontingencymanagementtheoryFudanUniversityHarodKoontz
ManagementjungletheoryVariances
intheprocessapproachFudanUniversityProcessApproach
FudanUniversityProcessApproach
PlanningOrganizingLeadingControllingDefininggoalsestablishingstrategy,anddevelopingplanstocoordinateactivitiesDeterminingwhatneedstobedone,howitwillbedone,andwhoistodoitMotivating,leading,andanyotheractionsinvolvedindealingwithpeopleMonitoringactivitiestoensurethattheyareaccomplishedasplanned
LeadtoAchievingtheorganization’sstatedpurposesProcessapproachproposedbyFayol
FudanUniversitySystemApproach
Twobasictypes——focusonproductionandefficiency※Closedsystem
notinfluencedbyanddonotinteractwiththeirenvironment
e.g.Taylor’sscientificmanagement,Weber’sbureaucratictheory,etc.※
Opensystemrecognizeandrespondtotheirenvironmente.g.humanrelationsschool,organizationaldevelopment,etc.FudanUniversitySystemApproach
VonBertalanffy“system”
connectedpartsjoinedtoformawholeinwhichthecoordinatedandcombinedeffectofthesubsystemscreatessynergyInternalbehavior
peopleinsideorganizationsperformtheirindividualandgrouptasksExternalbehavior
integratesorganizationaltransactionswithotherorganizationsandinstitutions
FudanUniversitySystemApproach
DistinctpurposeDeliberatestructurePeople
organizationClosedsystem
routinetaskstaskspecializationclassspecificationchainofcommandformalhierarchySpanof8Employees=512Managers(level1-3)=73FudanUniversitySystemApproach
systemenvironmentenvironmentOpensystem★non-routinetaskperformance
★interactionbetweenstaffandemployeesbothverticallyandhorizontally
★prestigeisexternalized(reputation,knowledge)Theorganizationtakesresources(inputs)fromthelargersystem(environment),andreturnsthemtotheenvironmentinchangedform(outputs)FudanUniversityContingencyApproach
SimplisticprinciplesareincompleteContingencyapproachisproposedbyorganizationaltheorists(Lawrence,LorschandSchein)Contingencymanagementstressestheneedforappraisalandanalysisoftheentiremanagerialenvironmentwithintheorganization.ContingencyapproachpromotesorganizationaleffectivenessItsetscentersonthebestcontingencyplayThereisanappropriatepatternforrelationshipswhichexistsfororganizationsAgreementexistsbetweenorganizationsandtheirinternalandexternalenvironments,andbetweenthemanagementsystemanditsvariouscomponents.FudanUniversityContingencyApproach
ThreePrincipleSetsStrategicmanagementisconcernedprimarilywiththedecision-makingprocessandactionswhichdetermineanorganization’slong-runperformanceItemphasizesmonitoringandevaluatingexternalandinternalenvironmentalopportunitiesandcontrolsinviewofanorganization’sstrengthsandweaknesses(case1:SWOT)FudanUniversityStrategicmanagementApproach
FudanUniversity
InternalExternalUtilizeImproveOpportunitiesCSRawarenessFavorablepoliciesandenvironmentTechnologicaladvantageAdvantageinmarketingchannelsCompatibilityabilityLong-establishedcompanywithsignificantexperienceinmarketingandgoodrelationshipwithmanufacturers.HavenotyetfullytakenthelargeimmatureemergingAsianmarket.Cross-industryadvantageGovernmentpriceceilingsSynergyWeakregionalportabilityExpansionbarrierMonitorEliminateThreats100%oftheshareholdersin3EuropeancountriesandmajoritiesinotherEuropeancountries.Lowfeesforcallsmadeoutsidethehomecountry)voiceusage.EarningrateofprimarybusinesstoohighEffectofinternationalfinancialcrisisCompetitionpressureIncompatibilitywithlocalcommunicationstandardsHardtodifferentiatedifferentfirmsStrengthWeakness
CASE1:SWOT
analysisonDIZZcompanyFudanUniversityStrategicmanagementApproach
Strategicmanagementinvolvesfourbasiccomponents:(1)environmentalscanning;(2)strategyformulation;(3)strategyimplementation;(4)evaluationand
control.e.g.Porter’s5competitiveforcesanalysisFudanUniversityStrategicmanagementApproach
VonNeumannand
MorgensterntheydefinedstrategyasaseriesofactionstakenbyacorporationwhicharedecidedonaccordingtotheparticularsituationDruckerdescribesstrategyasameansofanalyzingthepresentsituationandchangingitifnecessaryChandlerstrategyisthatitdeterminesthebasiclong-termgoalsofacorporationAnsoffexaminedstrategy,fromaprogrammaticandanalyticapproachHoferandSchendelMintzbergstrategyasamediatingforcebetweenanorganizationanditsenvironmentStrategicmanagementApproach
Deming,1950,introducedacomprehensivemanagementsystemwhichisthemodelforJapanese-stylemanagement,ortotalqualitymanagement(TQM)TQMusesstatisticstoanalysesvariabilityinproductionprocessesinordertoimprovetheproductqualitycontinuouslyFudanUniversitystructuredannualimprovements1majortrainingprograms2uppermanagementleadership3FudanUniversityStrategicmanagementApproach
Juranthefirsttodealwiththebroadmanagementfeaturesofquality,whichdistinguisheshimfromthosewhoadvocatespecifictechniques,statisticalorotherwise.Heincludedthreebasicstepstoprogress:StrategicmanagementApproach
Crosby
conceptofzerodefects
qualityisconformancetorequirementsanditcanonlybemeasuredbythecostofnon-conformance
threecomponentsthancanbeusedbyorgznizationstopreventnon-conformances---determination,educationandimplementation.OuchiTheoryZcorporationsgeneratedcloserelationshipswiththeiremployeesandevenmadelong-termemploymentcommitmentstothenewhiresTheyalsodevelopedtheiremployees’talentsandfocusedonteamworkthroughlateraljobrotationsandcollectivedecisionmaking.FudanUniversityFudanUniversityExcellenceApproach
PetersandWatermanThemajorfocusofexcellencemanagementisimprovingmanagementinordertogainormaintainexcellencewithinacorporation.effectiveorganizationscontinuetostriveforimprovement.FudanUniversityReferences
Management
(9thedition),StephenP.Robbins&MaryCoulterPracticeofManagement,Drucker1954TheArtofJapaneseManagement,Pascale&Athos,1981InSearchofExcellence,Peters&WatermanTwoDimensionofOrganizations管理學(xué)專業(yè)英語教材
FudanUniversityOutlines——twobasicdimensionsoforganizations112212TheHorizontalDimensionDivisionofLaborDepartmentalizationTheVerticalDimensionUnityofCommandAuthority-responsibilityequationFudanUniversityHorizontalDimensionVerticalDimensionDivisionofLaborDepartmentalizationIntegrationbetweenorganizationallevels發(fā)揮優(yōu)勢(shì)迎接OrganizationalStructureOutlines——twobasicdimensionsoforganizationsCoordinationbetweenorganizationallevelsOrganizationateachspecificlevelHorizontalDimension1DivisionofLaborFudanUniversityindividualsspecializeindoingpartofanactivityratherthantheentireactivity
Assembly-lineproductionFast-foodcompaniesHorizontalDimension1DivisionofLaborFudanUniversityPros&ConsofDivisionofLabormakesefficientuseofthediversityofskillsandcapabilitiesthatemployeeshave——anunendingsourceofincreasedproductivityduringearlytimesLeadstoboredom,jobstress,lowproductivity,poorquality,increasedabsenteeism,andhighturnover
HorizontalDimension2DepartmentalizationFudanUniversitygroupingindividualsintoseparateunitsordepartmentstofacilitatetheaccomplishmentoforganizationalgoalsHorizontalDimension2DepartmentalizationFudanUniversity123functionaldepartmentalizationcustomerdepartmentalizationgeographicdepartmentalization3processdepartmentalizationHorizontalDimensionFudanUniversity1functionaldepartmentalizationEngineeringDept.AccountingDept.ManufacturingDept.PurchasingDept.HRDept.AManufacturingPlantProduct-relatedHorizontalDimensionFudanUniversity1functionaldepartmentalizationTaxDept.ConsultingDept.AuditingDept.AnAccountingFirmService-relatedHorizontalDimensionFudanUniversity2CustomerdepartmentalizationcustomersineachdepartmenthaveacommonsetofproblemsandneedsthatcanbestbemetbyhavingspecialistsforeachHorizontalDimensionFudanUniversity2CustomerdepartmentalizationRetailingDept.WholesalingDept.Gov.Dept.AnOfficeSupplyFirmHorizontalDimensionFudanUniversity2CustomerdepartmentalizationDeptforindividualclientsDeptforcorporateclientsALawOfficeHorizontalDimensionFudanUniversity3GeographicdepartmentalizationCoca-Colain1990sWesternDept.MidwesternDept.EasternDept.SouthernDept.HorizontalDimensionFudanUniversity4ProcessdepartmentalizationPressDept.
CastDept.InspectDept.PackDept.
ShipDept.An
AluminiumPlantHorizontalDimension2DepartmentalizationFudanUniversityNewTrends:
IncreasedcustomerdepartmentalizationCross-functionalteams3
MatrixDepartmentalizationHorizontalDimension2DepartmentalizationFudanUniversityCross-functionalteamstheybringtogetheradiversityofexpertswhomightnevercrosspathsinatraditionalorganizationalthoughtheirworkmightbehighlyinterdependent3
MatrixDepartmentalizationHorizontalDimensionFudanUniversitycopewiththedemandsofefficientlyandeffectivelymanaginganumberofconcurrentprojectsanorganizingapproachthatassignsspecialistsfromdifferentfunctionaldepartmentstoworkononeormoreprojectsthatareledbyaprojectmanager3
MatrixDepartmentalizationHorizontalDimensionFudanUniversity3
MatrixDepartmentalizationVerticalDimensionFudanUniversity12UnityofCommandAuthority-responsibilityequationHowtodeterminethetypesandamountsofanauthorityandresponsibilitythatorganizationalmemberswillhaveAddresseswhoaworkerreportstoVerticalDimensionFudanUniversity1UnityofCommandOneincommandConflictingdemandsPrioritiesfromseveralmgrsVerticalDimensionFudanUniversity2Authority-responsibilityequationAuthorityCouldbedelegated
Relatestoone’spositionwithinanorganizationandignoresthepersonalcharacteristicsoftheindividualmanagerVerticalDimensionFudanUniversity2Authority-responsibilityequationAuthorityTwoForms:LineAuthorityStaffAuthorityTosupport,assist,advice,reduceinformationalburdensofLineAuthorityCreatesVerticalDimensionFudanUniversity2Authority-responsibilityequationResponsibilityCouldnotbedelegatedTwoForms:OperatingResponsibilitiesUltimateResponsibilities
TheCasefor
ContingentGovernance
管理學(xué)專業(yè)英語教材
FudanUniversityOutlines123Thereasonsforcontingentgovernance
TwobroadstreamsofcommentaryandresearchFocusedversusbroadgovernanceFudanUniversityEvolvingconditionsGovernancehastocontinuallyadapttochangingconditionsbecauseacompany,itsmanagementandbusinessenvironmentareforeverevolving.Asaresult,corporateboardsmustadopttherightrolestoreflectandshapethosegovernanceconditions.ThereasonforcontingentgovernanceFudanUniversityThereasonforcontingentgovernanceImperfectmarketsInanidealworldcomprisingcompetitivemarketsandtransparentinformation,thelegalsystemandmarketprocesseswould,bythemselves,provideperfectlyadequatecorporategovernance.Therealworld,however,isfarfromideal.Thus,governanceisnecessarytodealwiththethingsthatfalloutsidemarketsaswellasthepeoplewhowouldmanipulatedecisionsintheirowninterests.FudanUniversityTwobroadstreamsofcommentaryandresearch
ExternalityAgencyproblemsFudanUniversityTwobroadstreamsofcommentaryandresearch
ExternalityMarketsalonedonotcapturethefullimpactofcompanies;inparticular,theydonotpricecertaininputsandoutputsofthebusiness,so-calledexternalities,suchastheeffectofanorganization’sactivitiesonsocietyatlarge.Payattention:Therightroleoftheboarddependsontheimportanceoftheexternalities,whichcanvaryfromcountrytocountryandfrommarkettomarketoverthelifeofthecompany.FudanUniversityAgencyproblemsRegulationisrarelyoptimal,marketsarenotefficient,andinformationcanneverbefullytransparent.InsideanorganizationOutsideanorganizationTwobroadstreamsofcommentaryandresearchFudanUniversityPayattention:Therightroleoftheboarddependsontheimportanceoftheagencyproblems,thedifficultyofgettingmanagerstoactintheowner’sinterests,whichcanvaryoverthelifeofthecompany,andthetenureofeachCEO.TwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsAuditingOversightmechanismsCompanypoliciesCompensationincentivesSuccessionplanningFudanUniversityTwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsThedrivinggovernanceroleBoardsmustemphasizeaparticularsubsetofactivitiesindecisionmakingandresourceallocation.Thedominantsubsetofthoseactivitiesiscalledthedrivinggovernancerole.TherolemustchangeItmustchangewithshiftsintheimportanceandnatureoftheexternalitiesthatshapetheagendasofshareholderscreatedbydysfunctionalmanagerialpower.FudanUniversityFocusedversusbroadgovernanceMarketwithinsignificantexternalitiesAuditingBoardsalwayshavetheresponsibilityofauditingAfocusedviewofgovernancerestrictedtotheauditingroleisappropriateinmarketswithinsignificantexternalities.FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesSuccessfulcompaniesareaddressingoftheirownaccordbybroadeningthescopeoftheiroversightandpolicies.Theseinclude:emergingeconomiesmarketsintransitionmarketswithinfluentialNGOsFudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesEmergingeconomiesValuecreationinemergingmarketsrequiresawiderrangeofcompanyactivitiesthaninthedevelopedworld.Manyessentialinputsmightbemissingorofsubstandardquality.Theboardsofcompaniesactiveinemergingeconomieshavetotakeanevenbroaderviewoftheiroversightandpolicyresponsibility.Examples:NikeInc.Wal-MartStoresInc.
FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesMarketsintransitionItalsorequireabroadergovernanceperspectivethanthatdictatedbyshort-termmarketforces.Examples:EnronCorp.ElectricitymarketintheUnitedStatesTheprivaterailwaycompaniesinU.K.FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesMarketswithinfluentialNGOsInfluentialNGOsoftenemergeinresponsetoexternalitieswithnegativesocietalimpactsthatareeitherunpricedbythemarketorareperceivedtobeinadequatelyregulated.Examples:RalphNaderFudanUniversityOutline-TheCaseforContingentGovernance(2)1MonitoringVersusInvolvedGovernance2FourMainRolesFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerApplication:GMCEOs’MonopolyFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpoweriseffectiveTheboardcanrestrictitsactivitytomonitoringthevalue-creatingperformanceofthecompanyanddevelopingpolicytogovernthedistributionofvaluetoshareholdersandotherstakeholders.WhenmanagerialpowerisdysfunctionalTheboardhastobecomemoreinvolved.Examples:performanceispooreitherfinanciallyorindealingwithexternalitiestheCEOmakesmajorstrategicmovesunilaterallyethicalortransparencystandardsarebreachedtheCEOasksforexcessivecompensationthatisnotlinkedtoperformsFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpowerisdysfunctionalthepowerbalancebetweentheCEOandtheboardChangingthisbalanceofpsychologicalculturalandpoliticalforcesandmovingfromamonitoringroletoamoreinvolvedroleisoneoftheboard’sbiggestchallenges.FudanUniversityMonitoringVersusInvolvedGovernanceApplication:GMStatus:AsGMincreaseditsrevenuesandfinancialmarketvaluethroughWorldWarIIandbeyond,topmanagementbecamesopowerfulthattheonlyrealroleleftfortheboardwasoneofauditing.FudanUniversityMonitoringVersusInvolvedGovernanceApplication:GMResults:Ittook10yearsbeforeGMrespondedtosafetyandpollutionexternalitieswithtwonewcommittees.GMfailedtorespondagainwhentheJapanesebeganmakingseriousinroadsintotheU.S,marketaftertheoilcrisisoftheearly1970s.Theboarddidnothingtopreventmanagement’sdrivetospend$90billiononnewhightechnologyandacquisitions.FudanUniversityMonitoringVersusInvolvedGovernanceCEOs’MonopolyCEOsaretemptedtotakepersonaladvantageoftheirmonopolyoncertainkindsofinformation,contactsandresource.Examples:KennethLayGaryWinnickFudanUniversityFourMainRolesTwomaindifferencesinboardcultureAuditingRoleSupervisingRoleCoachingRoleSteeringRoleFudanUniversityFourMainRolesTwomaindifferencesinboardcultureBoardscanbeconcernedmainlywithshareholderinterests,ortheycanalsotakeintoaccounttheinterestsofotherstakeholderstodealwithimportantexternalities.Boards
canrestricttheiractivitiestomonitoring,ortheycanbeinvolvedintheconductoftheorganizationatthetoptodealwithineffectivemanagement.FudanUniversityFourMainRolesAuditingRolePoint:Thedominantactivityhereisthefundamentalfiduciaryresponsibilityofmonitoringcompanyperformanceintheinterestsoftheshareholders.Situation:Anauditingroleisappropriateinstablebusinessenvironmentsthatdonotrequirelargeinvestmentsorbigmoveswithhighexternalimpact.FudanUniversityFourMainRolesSupervisingRolePoint:Theperspectiveoftheboardhastogowellbeyonditsfiduciaryresponsibilitytoincorporateoversightandpolicyforthestrategic,societalandriskeffectsoftheexternalities.Thedecision-makingcriteriahavetoincludemultipleobjectives.FudanUniversityFourMainRolesSupervisingRoleSituation:Asupervisingroleisappropriatewhenalarge,powerfulcompanywitheffectivemanagementmakesstrategicmovesthatcreatevalueoverthelongrunbuthavesignificantrisksorhaveanimpactonsocietyoutsidethecompany’smarkets.FudanUniversityFourMainRolesCoachingRolePoint:TheboardhastochangethepowerbalanceandestablishitsindependencefromtheCEOwiththeindependentleadershipofoutsidedirectorsorbysplittingtherolesofCEOandchairmanoftheboard.Situation:ItisappropriatewhentheCEOandothertopexecutivesareineffectiveincreatingvalueorwhentheymanipulatevaluedistributiontotheiradvantage,
theboardhastomovefrommonitoringroletomoreactiveinvolvement.FudanUniversityFourMainRolesSteeringRolePoint:Theboardtakesthereinsindealingwithexternalities.Ultimately,theboardmightalsohavetoensuretheimplementationofthecompany’sagreementswiththosestakeholders.Situation:Whenmanagementisineffectiveandthebusinessisaffectedbyanumberofnonmarketfactors,theboardhastogobeyondeithercoachingorsupervisingandbecomeactivelyinvolvedinexecutionwithabroad,long-termperspective.FudanUniversityWhatIsStrategy?管理學(xué)專業(yè)英語教材
FudanUniversity1245FudanUniversityOutlinesBackgroundIntroduction
OperationalEffectiveness
OperationEffectivenessVSStrategicPositioningStrategyRestsonUniqueActivities3
ProductivityFrontier
Foralmosttwodecades,managershavebeenlearningtoplaybyanewsetofrules:Companiesmustbeflexibletorespondrapidlytocompetitiveandmarketchanges.Theymustbenchmarkcontinuouslytoachievebestpractice.
Theymustoutsourceaggressivelytogainefficiencies.
Theymustnurtureafewcorecompetenciesintheracetostayaheadofrivals.FudanUniversityBackgroundIntroduction
FudanUniversityBackgroundIntroduction
BarriersCopymarketpositionGlobalizationPositioning---oncetheheartofstrategy---isrejectedastoostaticfortoday’sdynamicmarketsandchangingtechnologies.Accordingtothenewdogma,rivalscanquicklycopyanymarketposition,andcompetitiveadvantageis,atbest,temporary.Somebarrierstocompetitionarefallingasregulationeasesandmarketsbecomeglobal.Companieshaveproperlyinvestedenergyinbecomingleanerandmorenimble.FudanUniversityBackgroundIntroduction
Butthosebeliefsaredangeroushalf-truths,andtheyareleadingmoreandmorecompaniesdownthepathofmutuallydestructivecompetition.Inmanyindustries,however,whatsomecallhyper-competitionisaself-inflictedwound,nottheinevitableoutcomeofachangingparadigmofcompetition.Therootoftheproblemisthefailuretodistinguishbetweenoperationaleffectivenessandstrategy.OperationalEffectivenessStrategy≠Why?FudanUniversityTheprobableanswer:Thequestforproductivity,quality,andspeedhasspawnedaremarkablenumberofmanagementtoolsandtechniques:totalqualitymanagement,benchmarking,time-basedcompetition,outsourcing,partnering,reengineering,changemanagement.Althoughtheresultingoperationalimprovementshaveoftenbeendramatic,manycompanieshavebeenfrustratedbytheirinabilitytotranslatethosegainsintosustainableprofitability.
Andbitbybit,almostimperceptibly,managementtoolshavetakentheplaceofstrategy.Asmanagerspushtoimproveonallfronts,theymovefartherawayfromviablecompetitivepositions.BackgroundIntroduction
FudanUniversityOperationalEffectivenessOperationalEffectiveness(OE)andstrategyarebothessentialtosuperiorperformance,whichafterall,istheprimarygoalofanyenterprise.Buttheyworkinverydifferentways.chargehigheraverageunitpricesgreaterefficiencyresultsinloweraverageunitcostsFudanUniversityOperationalEffectivenessUltimately,alldifferencesbetweencompaniesincostorpricederivefromthehundredsofactivities(e.g.therightchart)Costisgeneratedbyperformingactivities,andcostadvantagearisesfromperformingparticularactivitiesmoreefficientlythancompetitors.
Similarly,differentiationarisesfromboththechoiceofactivitiesandhowtheyareperformed.Activities,then,arethebasicunitsofcompetitiveadvantage.
Overalladvantageordisadvantageresultsfromallacompany’sactivities,notonlyafew.DifferencesinOEamongcompaniesarepervasiveSuchdifferencesinOEareanimportantsourceofdifferencesinprofitabilityamongcompetitorsbecausetheydirectlyaffectrelativecostpositionsandlevelsofdifferentiation.OperationalEffectivenessFudanUniversityeliminatewastedeffortemploymoreadvancedtechnologymotivateemployeesbetterhavegreaterinsightintomanagingparticularactivitiesorsetsofactivitiesImagineforamomentaproductivityfrontierthatconstitutesthesumofallexistingbestpracticesatanygiventime.Thinkofitasthemaximumvaluethatacompanydeliveringaparticularproductorservicecancreateatagivencost,usingthebestavailabletechnologies,skills,managementtechniques,andpurchasedinputs.Theproductivityfrontiercanapplytoindividualactivities,togroupsoflinkedactivitiessuchasorderprocessingandmanufacturing,andtoanentirecompany’sactivities.WhenacompanyimprovesitsOE,itmovestowardthefrontier.Doingsomayrequirecapitalinvestment,differentpersonnel,orsimplynewwaysofmanaging.ProductivityFrontierFudanUniversitythree-dimensionalproductivityfrontierplanarproductivityfrontierTheproductivityfrontierisconstantlyshiftingoutwardasnewtechnologiesandmanagementapproachesaredevelopedandasnewinputsbecomeavailable.Laptopcomputers,mobilecommunications,theInternet,andsoftwarehaveredefinedtheproductivityfrontierforsales-forceoperationsandcreatedrichpossibilitiesforlinkingsaleswithsuchactivitiesasorderprocessingandafter-salessupport.Similarly,leanproduction,whichinvolvesafamilyofactivities,hasallowedsubstantialimprovementsinmanufacturingproductivityandassetutilization.FudanUniversity*WecanuseMatlabtodrawmultidimensionalsituations*WealsocanusemultidimensionallinearregressiontocalculatedifferentinfluencesfromdifferentfactorsProductivityFrontierForatleastthepastdecade,managershavebeenpreoccupiedwithimprovingOE.Learningorganization:Hopingtokeepupwithshiftsintheproductivityfrontier,managershaveembracedcontinuousimprovement,empowerment,changemanagement.Thepopularityofoutsourcingandthevirtualcorporation:reflectthegrowingrecognitionthatitisdifficulttoperformallactivitiesasproductivelyasspecialists.Ascompaniesmovetothefrontier,theycanoftenimproveonmultipledimensionsofperformanceatthesametime.Forexample,manufacturersthatadoptedtheJapanesepracticeofrapidchangeoversinthe1980swereabletolowercostandimprovedifferentiationsimultaneously.FudanUniversityProductivityFrontierConstantimprovementinOEisnecessarytoachievesuperiorprofitability.However,itisnotusuallysufficient.FewcompanieshavecompetedsuccessfullyonthebasisofOEoveranextendedperiod,andstayingaheadofrivalsgetshardereveryday.Themostobviousreasonfortha
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