High Output Management

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High Output Management

Business Management


Andrew S. Grove used an output-oriented approach to management using a manufacturing model (principles). He mentions that work of all organizations is something pursued by teams and that the output of a manager is the output of the organizational units under his or her supervision or influence. The question then becomes what managers can do to increase the output of their teams. In other words, what specifically should they be doing at work, when a virtually limitless number of possible tasks call for their attention? Mr. Grove writes that, "An important component of managerial leverage is the number of subordinates a manager has…a manager whose work is largely supervisory should have six to eight subordinates; three to four are too few and ten is too many."(Grove 66) According to Grove, one-on-one communication between supervisor and employee is still absolutely essential, in fact minute by minute, and is very crucial for success. Mr. Grove writes that, "…a manager should allocate about a half day per week to each of his subordinates."(Grove 66) To give you a way to answer the question about how I accomplish this kind of communication, I introduce the concept of "managerial leverage", which measures the input of what managers do to increase the output of their teams.

There are small questions as well as big questions a manager must ask him or herself about the organization he or she is running. An example of a big question is should we advertise locally or nationally? How much attention and business could we garner from the local market? Will it be enough or will we have to advertise abroad? A good example of a small question is if he or she is managing a restraunt, what kind of items should we have on the menu? How often should we change them? You don't want to change the menu too drastically and lose your customers yet you don't want to bore them either.

High managerial productivity depends largely on choosing to perform tasks that provide high leverage. A team will perform well only if peak performance is elicited from the individuals in it. This is the third idea of the book. Can an organization use whatever it is that motivates an athlete to put out his "personal best" consistently?
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