Minding other people's business

Article Abstract:

Venture capital companies are enjoying a healthy demand for small-business financing services through management buy-ins (MBIs) as a growing number of ambitious managers seek business independence. The popularity of MBIs is evident in the fact that they account for 17% of all acquisitions of private businesses in 1991. MBIs have been primarily been used for family enterprises that lack the presence of a definite successor to the position of chief executive, businesses that have outgrown their founders, and financially ailing firms that have a pressing need for new resources and a change of management. In providing the necessary financing for MBIs, venture capital companies, like 3i Group PLC, look out for managers who have had sufficient experience in managing small and medium-sized businesses. The high risks associated with MBIs has resulted in the emergence of management buyout-MBI hybrids known as 'Bimbos.'

Investors, not elsewhere classified, Management, Services, Small business, Venture capital companies, Business enterprises, 3i Group PLC

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Power to the people who want it

Article Abstract:

Advocates of employee empowerment believe that the success of Japanese personnel management can be replicated if some aspects of the Japanese model are adapted in the context of the western corporate environment. These advocates claim that Japanese levels of employee commitment can be attained if employees are made fully aware of a company's strategic goals and the role employees play in the attainment of these goals. They further assert that if employee commitment increases, higher productivity and improved customer service naturally follow. This view, however, is contested by critics who point out that while strong productivity gains have been recorded at a number of technologically-oriented US firms, empowerment programs are unlikely to have the same effect in professional organizations, such as accounting firms, where work procedures tend to be less flexible.

Methods, Organizational change, Participatory management

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Too much round the middle

Article Abstract:

The middle management layer is gradually disappearing from many organizational structures. An increasing number of companies have been shifting from the sharp-pointed pyramidal structure to one with less layers as they strive to lessen costs, hasten the decision-making process, increase the responsiveness of the organization and take advantage of the benefits of new technology. The growing popularity of employee empowerment is also helping to make middle managers redundant. De-layering has been gaining wide acceptance in the UK with some of the biggest firms, including British Petroleum, British Telecom, the Post Office and IBM, dispensing with their middle managers. However, there are those who worry that cutting out the middle management level will have detrimental effects on organizations. One of these is the loss of a training ground for top managers.

Downsizing (Management), Middle managers

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