Let’s Fire All the Managers By Gary Hamel Is a visiting Professor at London Business School and the director of the Management Innovation Exchange

Number of Managers 10 Employee = 1 Manager 1,00,000 Employee = 11,111 Managers 1,111 Managers just to manage the Manager Salary of Manager is three or four times higher than Manager

Management hierarchy Centralized Decision Making – As Decisions get bigger, the ranks of those able to challenge the decision maker get smaller Powerful Managers are sometimes away from the realities – It become more dangerous when the decisions maker power is, for all purposes, uncontestable.

Multi tiered Management slow the decision making process, you need to take approval first from your manager before doing any decision Bias is another sort of tax It also kills the new ideas coming in employees mind

Hierarchies vs Markets According to Ronald ( Economist) – Markets work well when the needs of each party are simple, stable and specify but they are less effective when interactions become expensive – E.g Open source software Project

E.g as a consumer you have the freedom to spend $20,000 or more on new car but as an employee you probably don’t’ have the authority to requisition a %500 office chair. Narrow an individual scope of authority you shrink the incentive to dream, Imagine and contribute

Beyond Management as Usual It’s tough a imagine a company where… – No one has a boss – Employees negotiate responsibilities with their peers – Everyone can spend the company’s money – There are not titles and no promotions – compensation decisions are peer based – Every individual is responsible for acquiring the toots needed to do his/her work

Morning Star Tomato Processing Firm

Make the mission the boss Let employees forge agreements Empower one – Truly Don’t force people into boxes Encourage competition for impact, not for promotions Freedom to Succeed – Clear Targets – Calculation and consultation – Conflict resolution and due process