Market Based Management
Nova Southeastern University
H. Wayne Huizenga School of Business and Entrepreneurship
MGT 5012- Twenty First Century Management Practices
Assignment for Course: MGT 5012 Twenty First Century Management Practices
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Submitted by: Date of Submission:
Title of Assignment:
January 27, 2013
Market Based Management
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I have added quotes whenever I used more than three consecutive words from another writer. I also certify that this paper was prepared by me specifically for this course. Student's Signature: _
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Introduction
The Market-Based Management philosophy was developed by Charles Koch 25 years ago while working in Koch Industries. The basic idea of the Market Based Management rely in improve organizational performance and profitability by applying free market principles by allowing employees to act on their own knowledge. Also, MBM allows organizations to evaluate the tools of total quality management and other ideas in order to mobilize the knowledge dispersed within all the employees in any organization. (Ellig, 1996)
The principal theme of this paper is to understand the advantages for corporations to apply Market Based Management. Also, to get a better idea of the MBM principles that indicates that organizations in order to succeed need to decentralize decision-making throughout all the employees rather to move knowledge up. The concept that will be discussed in this paper will be Organization’s Culture and Values. The concepts of Values and Culture must work together in organizations to reach the necessary harmony between employees (at
H. Wayne Huizenga School of Business and Entrepreneurship
MGT 5012- Twenty First Century Management Practices
Assignment for Course: MGT 5012 Twenty First Century Management Practices
Submitted to:
Submitted by: Date of Submission:
Title of Assignment:
January 27, 2013
Market Based Management
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I have added quotes whenever I used more than three consecutive words from another writer. I also certify that this paper was prepared by me specifically for this course. Student's Signature: _
Instructor's Grade on Assignment:
Instructor's Comments:
Introduction
The Market-Based Management philosophy was developed by Charles Koch 25 years ago while working in Koch Industries. The basic idea of the Market Based Management rely in improve organizational performance and profitability by applying free market principles by allowing employees to act on their own knowledge. Also, MBM allows organizations to evaluate the tools of total quality management and other ideas in order to mobilize the knowledge dispersed within all the employees in any organization. (Ellig, 1996)
The principal theme of this paper is to understand the advantages for corporations to apply Market Based Management. Also, to get a better idea of the MBM principles that indicates that organizations in order to succeed need to decentralize decision-making throughout all the employees rather to move knowledge up. The concept that will be discussed in this paper will be Organization’s Culture and Values. The concepts of Values and Culture must work together in organizations to reach the necessary harmony between employees (at
References: * Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational culture. Reading: Addison-Wesley. * De Klerk, Johan (2012) , Market-Based Management. * Ellig J. (1995) From Austrian economics to the Market Based Management. The Journal of private enterprise. * Ellig, J. (1996) Organizational Economics and the Market Based Management Framework: Toward a common research agenda. The Journal of private enterprise. * Koch C.G (2007). The science of success: How market-based management built the world’s largest private company. Hoboken: John Wiley and Sons. * Kotter, J. P., & Heskett, J. L. (1992). Corporate culture and performance. New York: The Free Press. * Marasco, Joe (2003). The Software Development Edge * Schein, E. H. (1992). Organizational culture and leadership (2nd Ed.). San Francisco: Jossey- Bass. * Woodlief, Tony (2009). Market Based Management Explained (Interview) Online link: http://www.carolinajournal.com/exclusives/display_exclusive.html?id=5322