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The Individualized Corporation: A Fundamentally New Approach to Management
 
 
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The Individualized Corporation: A Fundamentally New Approach to Management [Hardcover]

Sumantra Ghoshal (Author), Christopher A. Bartlett (Author)
4.0 out of 5 stars  See all reviews (9 customer reviews)


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Book Description

September 1997
Whyte's Organization Man is dead. Chandler's Strategy and Structure no longer provides managerial solutions to today's business problems. Companies still clinging to Alfred Sloan's industrial model of management, instituted in the 1920s, remain in deep trouble. For the 90s and beyond, Ghoshal and Bartlett present a radical new management model based on embedding and leading rich corporate cultures, not on controlling and retooling corporate machines. Emerging in the wake of reengineering, this new paradigm argues that companies shouldn't be seen as engines but as social institutions: They are made up of people, not cogs.

Using diverse and compelling examples, The Individualized Corporation explains how business leaders must recast the role of managers. A manager's role, they assert, is to transform how their employees behave, not reengineer what they do. They must look beyond strategy, structure, and systems to embrace corporate purpose, process, and people. Discussing such critical areas as redefining competencies, value-added managing, entrepreneurial environments, and moral contracting, Bartlett and Ghoshal describe in practical detail the look, feel, and "smell of the place" that constitutes the new-sprung corporation and displaces traditional leadership.

A crucial book for all businesspeople who hope to guide their companies into the 21st century, The Individualized Corporation is one of the most important books since Sloan's defining work.


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Editorial Reviews

From Library Journal

Ghoshal (London Business Sch.) and Bartlett (Harvard Business Sch.), who coauthored Transnational Management (Irwin, 1995), claim that a new model in which companies are managed as social institutions is replacing prior management models. The authors effectively argue that managers are now becoming responsible for transforming how employees behave?not merely reengineering what they do. The "individualized corporation" that results has the "ability to inspire individual creativity and initiative in all its people" and to "link and leverage pockets of entrepreneurial activity and individual expertise." The authors describe the management implications of these new tenets through the use of actual corporate examples, including 3M, McKinsey and Company, and Philips. Their work nicely complements other recent books on employee empowerment, such as Warren Bennis and Robert Townsend's Reinventing Leadership (Morrow, 1995). Strongly recommended for all business collections.?Kathy Shimpock, Muchmore & Wallwork Lib., Phoenix
Copyright 1997 Reed Business Information, Inc.

From Booklist

It is rare for an article in a scholarly journal to attract attention outside academic circles, but a three-part series entitled "Changing the Role of Top Management" that appeared in the Harvard Business Review in late 1994 and early 1995 has created a buzz in the popular business press and spawned a new catchphrase. Now its authors elaborate on the concept of the "individualized corporation," which they unveiled. Ghoshal is chair of strategic leadership at the London Business School and has been identified as one of a handful of cutting-edge management thinkers based in Europe. Bartlett is a professor at the Harvard Business School. Although some of what the two propose sounds a lot like empowerment and organizational learning, theirs is a new, fully elaborated model that calls for a restructuring of the organization and a redefinition of management. The authors challenge top management to emphasize purpose and process, not strategy and structure, and to move beyond direction and control to create an environment that makes the most of each individual's knowledge and skills. Sure to be in demand in the business collection. David Rouse

Product Details

  • Hardcover: 368 pages
  • Publisher: Harperbusiness; First Edition edition (September 1997)
  • Language: English
  • ISBN-10: 0887308066
  • ISBN-13: 978-0887308062
  • Product Dimensions: 9.3 x 6.2 x 1.4 inches
  • Shipping Weight: 1.6 pounds
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (9 customer reviews)
  • Amazon Best Sellers Rank: #2,782,259 in Books (See Top 100 in Books)

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Customer Reviews

9 Reviews
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Average Customer Review
4.0 out of 5 stars (9 customer reviews)
 
 
 
 
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6 of 6 people found the following review helpful:
4.0 out of 5 stars The rationale for 'people-centred organisation', December 7, 1999
By 
Bill Godfrey (Mt Stuart, TAS Australia) - See all my reviews
(REAL NAME)   
This is a sound and thorough description of the principles and practices underlying a shift from the hierarchical, bureaucratic mode of managing to one based on recognition of the talents of the people within the organisation, which seeks to enhance and release those talents for shared ends.

Having said that, it is a bit difficult to see why the book has been given such extravagant praise. Nearly everything in it was anticipated by the Pinchots in 1993 and the themes covered are very well established (and were already established when it was first published in 1997). Although it is not new, the principles are still not widely followed, so any additional material that may serve to spread the message is welcome.

The material is good. The reliance on a lot of examples makes it very discursive, but the sub-heads through the text are useful. There is a slightly breathless air of 'discovery' through the book that would be acceptable if the ideas and prescriptions were in fact new.

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8 of 9 people found the following review helpful:
5.0 out of 5 stars New management roles and tasks of the new model, November 7, 2001
By 
"In 1682, English astronomer Sir Edmund Halley had the good fortune to be at the right place at the right time. His observations on the spectacular comet that now bears his name helped earn him the prestigious title of Astronomer Royal.More important to this professional scientist was the fact that this fortuitous opportunity inspired a flurry of other research activity that led to new and important discoveries about the nature of our universe." Sumantra Ghoshal and Christopher A. Bartlett write, "While hardly on the same grand scale as Sir Edmund, we, too, have been fortunate to have had a front-row seat at a once-in-a-lifetime event- the collapse of an outmoded corporate form and the emergence of a new management model that we believe will propel today's companies well into the twenty-first century. At the heart of the emerging model lie not only some very different organizational practices and processes but also a fundamentally different management philosophy. In this book, we describe this new management model and illustrate how some of the pioneers of this new approach have implemented it in their companies" (from the Introduction).

They divide their book into four parts. In the first part, they present the concept of the Individualized Corporation. In the second part, they describe the organizational characteristics required to develop three core capabilities that distinguish the Individualized Corporation. In the third part, they explore the managerial implications of these new organizational characteristics and focus on how companies can go about building and managing the Individualized Corporation. Finally, in the fourth part, they step back from the details of defining the characteristics of the Individualized Corporation and describing how to build and manage it, to examine the more profound issues of a new managerial philosophy that underlies this new corporate model.

In this context, in the third part, after introducing the new corporate model, they examine new management roles and tasks of this new model that are radically different from the classic ones:

1. Operating-Level Managers

* Changing role: From operational implementers to aggressive entrepreneurs.

* Primary value added: Driving business performance by focusing on productivity, innovation, and growth within frontline units.

* Key activities and tasks: Creating and pursuing new growth opportunities for the business. Attracting and developing resources and competencies. Managing continuous performance improvement within the unit.

2. Senior-Level Managers

* Changing role: From administrative controllers to supportive coaches.

* Primary value added: Providing the support and coordination to bring large-company advantage to the independent frontline units.

* Key activities and tasks: Developing individuals and supporting their activities. Linking dispersed knowledge, skills, and best practices across units. Managing the tension between short-term performance and long-term ambition.

3. Top-Level Managers

* Changing role: From resource allocators to institutional leaders.

* Primary value added: Creating and embedding a sense of direction, commitment, and challenge to people throughout the organization.

* Key activities and tasks: Challenging embedded assumptions while establishing a stretching opportunity horizon and performance standards. Institutionalizing a set of norms and values to support cooperation and trust. Creating an overarching corporate purpose and ambition.

Finally, they say that "Halley's comet will return to our corner of the solar system in the year 2062. When it does, we believe our successors will look back at the Individualized Corporation as the revolutionary new model that brought business organizations into the postindustrial, information-intensive age of knowledge."

Highly recommended.

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5 of 5 people found the following review helpful:
3.0 out of 5 stars From economic organization to individualized corporation, April 20, 2004
By 
Gerard Kroese (The Netherlands) - See all my reviews
(REAL NAME)   
This review is from: The Individualized Corporation: A Fundamentally New Approach to Management (Hardcover)
Sumantra Ghoshal is Professor of Strategy and International Management at the London Business School, UK. Previously he was Professor of Public Policy at French business school INSEAD. Christopher A. Bartlett is Professor of Business Administration at Harvard Business School. They are both prominent authors of numerous management books and articles. This book won the 1997 Igor Ansoff Award. The book is split up in four parts, each consisting of 2-to-4 chapters.

Part I - Birth of a New Corporate Model serves as an introduction, describing "the most profound change in management in a lifetime": the move from organization man to individualized corporation. "In this book, we will describe this management model and illustrate how some of the pioneers of this new approach have implemented it in their own companies." The first chapter, The Rediscovery of Management, frames the historical context and describes the authors' research motivation. The second chapter, Rebirth of an Organization Man, provides an example of how the transformational changes at one company affected the activities, motivation, and performance of a "classic organization man." In Part II - From Organization Man to Individualized Corporation, the authors describe the organizational characteristics required to develop the three core capabilities that distinguish the 'individualized corporation'. The first core capability is its ability to inspire individual creativity and initiative in all its people, built on a fundamental faith in individuals. The second core characteristic is the ability to link and leverage pockets of entrepreneurial activity and individual expertise by building an integrated process of organizational learning. The third core feature is its ability to continuously renew itself. Each core capability is discussed in detail. The third part of the book - Building and Managing the Individualized Corporation - explores the managerial implications fo above mentioned characteristics and on how companies can go about building and managing the individualized corporation. The authors use the final chapter of this part to discuss the transformation process that has taken at various companies, such as Philips Electronics, ABB, ISS, 3M, McKinsey & Co., and General Electric. In the fourth and final part - Toward A New Corporate Era - the authors examine the new managerial philosophy behind this new corporate model. By using the case of Swedish company IKEA, they explain the redefinition of "the role of corporate management away from its classic focus on strategy, structure, and systems to one built around purpose, process, and people". This redefinition is really the main message of the book.

I have a mixed feeling about this book. Yes, I believe that the authors are right in the sense that we have now entered the era of individualized corporations. But my main feeling is that I either read this book too late or that it was published too late. Some other great management thinkers, such as Peter F. Drucker, Charles Handy and Henri Mintzberg, have covered this subject/trend several decades before. Also, the book does not provide us with enough tips and checklist to enable us to manage these (new) types of organization. The book is also rather long and I recommend other readers to go for the three authors' Harvard Business Review-articles covering this book, starting with "Changing the Role of Top Management: Beyond Strategy to Purpose" (1994).

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First Sentence:
In 1682, the English astronomer Sir Edmund Halley had the good fortune to be at the right place at the right time. Read the first page
Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
divisionalized hierarchy, frontline entrepreneurs, new moral contract, satisfactory underperformance, relays business, individualized corporation, new corporate model, frontline companies, frontline managers, different management philosophy, semiconductor division, behavioral context, entrepreneurial process, shared ambition, frontline units, engagement manager, corporate renewal, doll model, radical decentralization
Key Phrases - Capitalized Phrases (CAPs): (learn more)
United States, Don Jans, Percy Barnevik, Andersen Consulting, Jack Welch, Andy Grove, Jan Carendi, Ulf Gundemark, General Electric, Goran Lindahl, Alfred Sloan, Andy Wong, Ingvar Kamprad, Kao Corporation, New York, Joe Baker, North American, Robert Kirby, John Neill, Neutron Jack, Paul Guehler, The Body Shop, Asea Brown Boveri, Coral Springs, Gordon Moore
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