Management Models

A holistic management model is able to focus on the strategic direction of impact and long-term success and the company's continuance as a going concern

Management models (also referred to as management concepts and management principles) are statement systems which contain theoretical and instrumental statements about the structure and function of target-oriented design and decision processes. Management models make statements about how the practice of leadership is to be implemented in the company. It is expected that the leadership behaviour will affect productivity as well as employee satisfaction and thus represents a competitive factor. The formulation and implementation of a management model should produce consistent leadership and decision making behaviour in the company. Management models frequently discussed in literature include the Harzburg management model, the St. Gallen management model and the so-called "management by xx-models" (management by objectives, exception, delegation, etc.). The practical design of the models is up to each company itself, since only a few recommendations for action result from theoretical discussion and since these are limited mostly to what potential difficulties might emerge in designing the ideal type of leadership models. The starting points and the need for support for the practice are evident.


Reinforced by the international financial and economic crisis, dynamic market and competitive market conditions require continuous change and adaptation on the part of the company. With the establishment of stable, transparent leadership and decision-making processes, it is possible to implement the necessary step to ensure long-term success and continuance of the company. Frequently, however, the starting point for the formulation of general and group-wide management and decision processes accepted and pursued by all parties is missing. With the conception of an integrated and holistic management model, such a starting point is created, ensuring that the strategic direction of impact is focused on. Implications for the structural and organizational design and adjustment of corporate management align themselves directly with this and complete the flexible realignment according to current industry and competitive requirements.


A holistic management model forms the reference point for all leadership and decision making within the company and provides insight about the management approach of the decision makers. Thus, uncertainty within the company is reduced and its focus on the strategic direction of impact in sharpened. In addition to the codified orientation of the company, methods and processes within a chosen management model are described (e.g. delegation principles, escalation principles, interaction and communication principles, etc.). Explicit requirements and conditions are described for the organizational structure and operational organization as well as for the control model and create planning and designing security for the company. Formulated as a statement system, a management model offers sufficient flexibility necessary to respond to changing environmental and business changes and to make minor adjustments. The benefit for the company lies particularly in the long-term perspective of a management model and the associated sustainability of secondary measures of organizational adjustments and procedural changes. 


The design of a new management model starts with the analysis of the existing guidance and management approach and, if present, of the old leadership model. Structured interviews, in particular, with the board and key decision makers in the company provide a source of information for future strategic direction of impact. In addition to the expectations of decision makers, the specific form of the holding company serves as another indicator of the requirements for leadership and decision making processes. Systematically derived statements, for example, "Xy-AG is a strategic management holding company and the board is currently concentrating on growth initiatives," serve as the basis for fine tuning discussions with decision makers. The merging of separate statements into a system of statements or continuous text allows the implications for leadership and decision making processes to be derived. Consistent tracking of the implications for structure and process organization and control as well as for the control model should already be prepared prior and agreed to by responsible persons in the company. The publication of the new management model is the first step in company-wide establishment and implementation.


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