Market-Based Management Institute

Market-Based Management Institute
Market-Based Management Institute
MBMI.jpg
Founder(s) Charles G. Koch
Type Professional Organization
Founded 2005
Location Wichita, KS
Key people

Tony Woodlief, Research Fellow
Abel Winn, Director of Experimental Economics
Alastair Walling, Research Fellow
Ben Pratt, Senior Fellow

Becky Gray, Office Manager
Area served Worldwide
Focus Management strategy
Method Education, Industry benchmarking, Conferences and Seminars
Website http://www.mbminstitute.org

The Market-Based Management Institute (MBM) is a non-profit organization that researches management strategies, and utilizes their expertise to educate students, educators, community leaders, non-profit organizations, and government leaders in the concepts and methods of management that their research has developed.

Contents

History

The MBM Institute was founded in 2005 under the impetus of Charles G. Koch, Chairman and CEO of Koch Industries, and author of The Science of Success, in which he introduces his concept of "Market-Based Management." Koch developed his idea of MBM after some study into the nature of free market economies,[1] likely influenced, in part, by his father's experiences.

His father (and co-founder of Koch Industries), Fred C. Koch, had spent time developing petroleum cracking units in the Soviet Union under Joseph Stalin's regime between 1929 and 1932, and came back with a deep disdain for the communist regime's totalitarianism. He described the nation as "a land of hunger, misery, and terror,"[2] and later, lamented the fact that many of the engineers he had worked with there had been purged by Stalin's regime, along with a great many other "intellectuals".

The Kochs saw the necessity of freedom to the success of societies, and translated that into their business practices—this is the basis of Market-Based Management; the implementation of which was a major factor in allowing Koch Industries to grow to become the largest privately-held company in the United States.[1]

Market-Based Management approach

MBM challenges traditional American business practices, and encourages a relatively flat hierarchical structure, with the free flow of ideas between all levels of an organization.[3] Employees are encouraged to approach their work from an entrepreneurial perspective, and be rewarded based on the value that they bring to the company, rather than only the amount of time that they spend at work. This encourages workers to use their own deductive powers to overcome obstacles and be creative in their decision-making, rather than waiting for orders from higher-ups. Problem solving, the theory contends, is best carried out by those closet to the problem - the workers. This, they say, is the best way to utilize the "collective brainpower" of the entire organization, rather than just that of the few top decision-makers.[4] Research fellow Tony Woodlief explains:

At the biggest level, essentially what we’re talking about is helping the owner or the manager transition from being somebody who makes all the decisions and has to deal with all the problems, into being a coach and a leader on a team of people who can use their own brains. And that, I think, not only leads to a more successful company because you’ve got more brains involved, but it also allows the manager to be the person that he probably envisioned being when he first got into management, instead of a prison warden or a babysitter or somebody who has to solve problems that common sense ought to be able to solve. [4]

Woodlief goes on to note, however, that this is not always the best system for organizations to implement immediately, as it puts a lot of responsibility on individual employees to make decisions on their own, and consequently be held accountable for them, and it can also be difficult for managers to adjust to their role to "coach and lead" employees rather than the broad decision-making roles they are more accustomed to.[4]

Operations of the MBM Institute

Training

The MBM Institute has conducted training and consultation for businesses and other organizations in the implementation of Marked-Based Management. Among them are several other non-profit organizations such as the Youth Entrepreneurs of Kansas, the Bill of Rights Institute, and the Wichita Non-profit Chamber.[5] They have also supported through teaching and mentoring the Charles G. Koch Charitable Foundation's Associate Program, a year-long program for college graduates to learn how to apply market-based management.[5]

Research

Through a partnership with Wichita State University(WSU), in 2007, the MBM Institute opened an experimental economics laboratory based in the university's W. Frank Barton School of Business, the first of its kind in the nation. The laboratory uses human participants who respond to sets of experimental situations in ways to maximize their efficiency. Their success is rewarded with cash awards that vary based on their success, creating a more realistic experimental environment in which to test new ideas. The efficient concepts learned can then be applied in real-world situations to measure their efficacy.

Teaching

Staff from the institute teach classes at the W. Frank Barton School of Business, also through their partnership with WSU. The classes are in experimental economics, as well as a course called "Economic Thinking Inside an Organization," a multidisciplinary survey of how MBM is implemented and its real-world applications.

References


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Management development — is best described as the process from which managers learn and improve their skills not only to benefit themselves but also their employing organizations.[1] In organisational development (OD), the effectiveness of management is recognised as one …   Wikipedia

  • Institute of Business Consulting — The [http://www.ibconsulting.org.uk Institute of Business Consulting] (IBC)is a professional association of Management consultants in the United Kingdom. The institute was created following mergers between Institute of Management Consultancy and… …   Wikipedia

  • Management Development Institute — Motto Yogah Karmasu Kaushalam (Sanskrit) from the Gita 2:50 Motto in English Pefection in action is Yoga An act becomes perfect when you do it with all joy and without expecting anything in return …   Wikipedia

  • Management consulting — indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement. Organizations hire the services of management …   Wikipedia

  • Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… …   Wikipedia

  • Institute of Engineering and Rural Technology — is an esteemed Engineering Institution of Allahabad. It is affiliated to U.P. Technical University, Lucknow, U.P., India. Admissions to the college are based upon the merit of the student in the State Entrance Exam (SEE) conducted by U.P.… …   Wikipedia

  • Market information systems — (otherwise known as market intelligence systems, market information services, or MIS, and not to be confused with management information systems) are information systems used in gathering, analyzing and disseminating information about prices and… …   Wikipedia

  • Institute for International Research — Institute for International Research, Inc. provides business information solutions in North America. It offers its solutions to senior business executives through conferences, events, and Web seminars on various fields, including customer service …   Wikipedia

  • Management accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Institute of Management Studies (IMS) — Infobox University name = IMS,DAVV established = 1969 type = Public campus = Urban city = Indore state = Madhya Pradesh country = India affiliations = UGC AICTE free label = Other Names free = Institute Of Management Studies, DAVV website = [http …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”