Market-Based Management Essay

2666 Words Aug 6th, 2010 11 Pages
Over the past twenty-five years Koch Industries, Inc. has been under careful observation for their innovative management practices. The CEO Charles G. Koch and other executives Richard Fink and Paul Brooks have worked closely with authors Dr. Wayne Gable and Dr. Jerry Ellig to put together a booklet entitled “Introduction to Market-Based Management.” This booklet unfolds the secret to managerial success in a changing economy. As the authors believe organizational success is no longer found in a command-based management but instead with a more liberating market-based structure. Changing from a hierarchal leadership structure takes hard work and an open mind but the end results is fulfilling to employees as well as management. The market …show more content…
Similar to Koch industries my employer (South Florida Educational Federal Credit Union) is somewhat the same in the area of mission systems. My company provides a service not necessarily a product so there are some differences. Within the company there is a division of labor from the bottom being a teller all the way to the CEO at the top. Almost all employees start out as tellers and as they realize your potential they cross-train you in other areas. As positions open up people apply and are hopefully promoted. There is not a set mission system including a mission statement but there is a division of labor with employees being trained in specific areas. This allows employees to be proficient in a particular area and are able to help members quickly and efficiently. All employees know that the unvoiced message is to make sure our members are taken care of. The next system is property rights, roles, and responsibilities. In any company property plays a fundamental role with three characteristics. An individual can decide how they would like their property to be used, they can use it to make money, or they can choose to sell it to another individual or firm. The ownership of property can relay several messages to a company. It allows people to put a value on the resources the property can produce. When a person trades their money

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