From MIS (Management Information Systems) to MBC (Management by Commitment): An Investigation Into Why One Corporation Eliminated Its Computer-Based Management Information Systems.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OHIO SCHOOL OF ENGINEERING
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The early management of the Aerojet-General Corporation was technically oriented. As the corporation grew in size, the technically-oriented managers slowly drifted from a collegial style of management toward a more centralized style of management. As a result of the diminishing military market, the corporation began to seek new markets while becoming increasingly more standardized in management procedures and while increasing its use of computer-based management systems. By 1969 the corporation was spending approximately 10 million annually on computer support, while corporate sales and profit plummeted downward. In November 1969, a new management structure was established within the corporation. The new structure centers around a decentralized approach to management, based on the concept of management by objectives. Since 1969 the financial performance of the corporation has improved dramatically. There are important lessons to be learned from an analysis of the experiences of the Aerojet-General Corporation. These lessons relate to management perspectives on the role of computers in decision-making, MIS design, the need for a periodic management audit of a corporation and the practice of management by objectives. Modified author abstract
- Administration and Management