Process World - page 5
In the previous articles, we positioned Project Management and Process Management as systematic ways to compensate the issues of pure functional management: loss of control at handoffs, loss of focus on corporate goals, sub-optimization, etc. Let us now consider the tools (i.e. software) support for functional, project and process management.
Let’s start with the functional management. First, there are standalone applications – accounting, warehouse, product lifecycle management (PLM), advanced planning & scheduling (APS), etc. targeted to specific departments. Historically, these applications have appeared first as the earliest form of management was functional management.
Let’s start with the functional management. First, there are standalone applications – accounting, warehouse, product lifecycle management (PLM), advanced planning & scheduling (APS), etc. targeted to specific departments. Historically, these applications have appeared first as the earliest form of management was functional management.
In our first article we described how the division of labor increases productivity of an individual employee yet, at the same time, creates a disconnect between departments reducing the company’s effectiveness.
These problems arise when the company grows. As long as the founder is in charge, and the number of employees is limited, the mutual understanding and motivation among managers is sufficient to limit “friction” to a minimum. Then, e.g. a new ambitious sales director comes onboard to reorganize the sales department. The changes might be positive overall, but the former mutual understanding with the director of Manufacturing is no longer there, leading to tensions, that evolve in a search for a “scapegoat” in meetings with the CEO.
These problems arise when the company grows. As long as the founder is in charge, and the number of employees is limited, the mutual understanding and motivation among managers is sufficient to limit “friction” to a minimum. Then, e.g. a new ambitious sales director comes onboard to reorganize the sales department. The changes might be positive overall, but the former mutual understanding with the director of Manufacturing is no longer there, leading to tensions, that evolve in a search for a “scapegoat” in meetings with the CEO.
It’s all because of Adam Smith! Wasn’t he the one who introduced the division of labor? What, he didn’t invent it but simply described it? Anyway, it’s the phenomenon that we are going to talk about, not the person.
It happens all the time: as soon as we find a solution for a problem, the solution becomes a problem itself. The division of labor is not an exception: it increases the productivity indeed, but it also decreases in other cases.
It happens all the time: as soon as we find a solution for a problem, the solution becomes a problem itself. The division of labor is not an exception: it increases the productivity indeed, but it also decreases in other cases.