myth of managment
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The answer usually given is that the president has information about many different aspects of the world and has ability to put these aspect together in a way that no analysis could possibly do. In other words, he has a vision of the whole system and can relate the effectiveness of the parts to the parts effectiveness of the whole. The hidden secret of the great manger, so goes the myth, is the ability to solve the puzzling problems of whole systems that we have been discussing so far.
This answer is myth, because it is totally unsatisfactory to reasoning of intellectually curious person. Are ‘great’ managers fantastically high speed-data processors? Do great managerial minds outstrip any machinery now on the market or contemplated for decades to come? From what we know of the brain and its capabilities, the answer seems to be no. Indeed, it is doubtful whweter the great manager in reaching decisions uses very much of the information he has received from various sources. It is also doubtful wheter the manager scans many of the alternatives open to him.... We describe how the scientist, when he comes to grips with the problems of decision making, discovers that they can only be reperesented by fairly complicated mathematical models. Even in fairly simple decision-making situations we have come to learn how complicated is the problem of developing a sensible way of using available information. It seems incredible that the so-called succesful managers really have inbuilt models that are rich and complicated enough to include the subtleties of large-scale systems.
Suppose for the moment we descend from the lofty heights of the decision makers in Independence Hall and the White House and begin to describe a very mundane and easily recognized managerial problem cencerning the nember of tellers that should be available to customers in a bank. All of us have experienced the annoyance of going into a bank in a hurry and spending a leisurely but frustrating half hour behind the wrong line. How should the manager decide on the allocation of tellers at various times of the day?
This is fairly simple managerial problem amd its like is encountered by thousands of middle managers every day. Furthermore, this problem has been studied quite extensively in operation research and its
“solution” is often found in the elementary texts. The texts say that the scientist should try to answer the managerial question by considering both the inconvenience of the customers who wait in the lines and the possible idle time of the tellers who wait at their stations when no customers. Thus the “succesful” manager can be identified in an objective way, and we need not take a poll of greatness or lack thereof to ascertain wheter the manager has performed well. The succesful manager will be someone who has properly balanced the two costs of the operation of servicing customers in a bank: the cost of waiting customers and the cost of idle tellers. He will insist that the cost of a nimute`s waiting of a customer in a line must be compared to a minute`s idle time of the teller. On the basis of this comparison, together with suitable evidence conserning the arrival rate of customers and the time service each customer, the succesful manager will determine the policy concerning allocation of tellers to varios stations during the day. Perhaps no one will feel inclined to write the biography of so ordinary a man as the manager of a branch of a local bank, but in any case if this manager decides according to the rational methods just outlined, his biographer may at least be honest about his
“greatness”.
Nevertheless, the analysis just outlined leaves much unanswered. For example, an idle teller need not be idle while waiting at a station where are no customers. Instead he may be occupied with other routine matters requiring attention in the administration of the bank.
Consequently, if the manager can design the entire operation of his bank’s many function properly, he may be able to decrease the cost of idle time of professional who are servicing customers. If we look on the othwer side of the picture, that is, the inconvenience to a customer, we may find that in fact waiting in line is not an inconvience at all if the customer happens to meet an acquaintance there. Perhaps the manager should serve coffe and doughnuts to waiting customers. Furthermore, if the manager could somehow or other hope to control the behavior of his customers, he might be able to recognize their arrivals in such a way that inconvenience costs are vastly reduced. Add to these considerations other innovations that might be introduced: For example, in many cases banks set up Express Windows to handle customers who would normally have very low servoce times. Hence, an overall average waiting time may not make senese if there are different types of service tailored to the various needs of the customers.
But then another, broader consideration occurs to us: Handling the public’s financial matters by branch banking methods may be completely wrong. Modern technology may of developing financial servicing methods far cheaper for both bank and customer. After all, handling cash and checks is an extremly awkward way for a person to acquire goods at a price. With adequately designed information centers, the retail markets need only input information about a customer purchase, and the customer’s employers need only inputinformation about his income. Thus every purchase would become simply a matter of centralized information processing as woulod a man’s weekly or monthly paycheck. There would therefore be no real need for any of us to carry money about and no need to go to a bank and stand patintly in line. But this idea of automated purchasing and income recording is followed by another thought. We realize that any such automated finacial sysytem would probably end in eliminating a number of clearical and managerial jobs.
Consequently we must examine the social problems of displaced personnel and the need for retraining, otherwise total social costs of automated banking might be far greater than the convenience gained by introducing new technology.
Before we can decide whweter the manager of the branch bank is performing “satisfactorily”, we must decide a much broader issue-wheter the particular system that the manger operates is an appropriate one.
This question leads to deeper consideration concerning the potential of modern technology and their inplications with respect to automation, job training, and the future economics of many lives.
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