管理学专业英语教程（第四版）

ModernManagementMovement管理学专业英语教程（第四版·上）

FudanUniversityOutlines

——approachestomodernmanagement123456Processapproach

Systemapproach

Contingencyapproach

Strategicmanagementapproach

Japanesestylemanagementapproach

Excellenceapproach

FudanUniversityOutlines

——frameworkofthemodernmanagementmovement123ClassicaltheoryBehavioraltheoryQuantitativetheory4systemsandcontingencymanagementtheoryFudanUniversityHarodKoontz

ManagementjungletheoryVariances

intheprocessapproachFudanUniversityProcessApproach

FudanUniversityProcessApproach

PlanningOrganizingLeadingControllingDefininggoalsestablishingstrategy,anddevelopingplanstocoordinateactivitiesDeterminingwhatneedstobedone,howitwillbedone,andwhoistodoitMotivating,leading,andanyotheractionsinvolvedindealingwithpeopleMonitoringactivitiestoensurethattheyareaccomplishedasplanned

LeadtoAchievingtheorganization’sstatedpurposesProcessapproachproposedbyFayol

FudanUniversitySystemApproach

Twobasictypes——focusonproductionandefficiency※Closedsystem

notinfluencedbyanddonotinteractwiththeirenvironment

e.g.Taylor’sscientificmanagement,Weber’sbureaucratictheory,etc.※

Opensystemrecognizeandrespondtotheirenvironmente.g.humanrelationsschool,organizationaldevelopment,etc.FudanUniversitySystemApproach

VonBertalanffy“system”

connectedpartsjoinedtoformawholeinwhichthecoordinatedandcombinedeffectofthesubsystemscreatessynergyInternalbehavior

peopleinsideorganizationsperformtheirindividualandgrouptasksExternalbehavior

integratesorganizationaltransactionswithotherorganizationsandinstitutions

FudanUniversitySystemApproach

DistinctpurposeDeliberatestructurePeople

organizationClosedsystemroutinetaskstaskspecializationclassspecificationchainofcommandformalhierarchy1864512Spanof8Employees=512Managers(level1-3)=73FudanUniversitySystemApproach

systemenvironmentenvironmentOpensystem★non-routinetaskperformance

★interactionbetweenstaffandemployeesbothverticallyandhorizontally

★prestigeisexternalized(reputation,knowledge)Theorganizationtakesresources(inputs)fromthelargersystem(environment),andreturnsthemtotheenvironmentinchangedform(outputs)FudanUniversityContingencyApproach

SimplisticprinciplesareincompleteContingencyapproachisproposedbyorganizationaltheorists(Lawrence,LorschandSchein)Contingencymanagementstressestheneedforappraisalandanalysisoftheentiremanagerialenvironmentwithintheorganization.ContingencyapproachpromotesorganizationaleffectivenessItsetscentersonthebestcontingencyplayThereisanappropriatepatternforrelationshipswhichexistsfororganizationsAgreementexistsbetweenorganizationsandtheirinternalandexternalenvironments,andbetweenthemanagementsystemanditsvariouscomponents.FudanUniversityContingencyApproach

ThreePrincipleSetsStrategicmanagementisconcernedprimarilywiththedecision-makingprocessandactionswhichdetermineanorganization’slong-runperformanceItemphasizesmonitoringandevaluatingexternalandinternalenvironmentalopportunitiesandcontrolsinviewofanorganization’sstrengthsandweaknesses(case1:SWOT)FudanUniversityStrategicmanagementApproach

FudanUniversity

InternalExternalUtilizeImproveOpportunitiesCSRawarenessFavorablepoliciesandenvironmentTechnologicaladvantageAdvantageinmarketingchannelsCompatibilityabilityLong-establishedcompanywithsignificantexperienceinmarketingandgoodrelationshipwithmanufacturers.HavenotyetfullytakenthelargeimmatureemergingAsianmarket.Cross-industryadvantageGovernmentpriceceilingsSynergyWeakregionalportabilityExpansionbarrierMonitorEliminateThreats100%oftheshareholdersin3EuropeancountriesandmajoritiesinotherEuropeancountries.Lowfeesforcallsmadeoutsidethehomecountry）voiceusage.EarningrateofprimarybusinesstoohighEffectofinternationalfinancialcrisisCompetitionpressureIncompatibilitywithlocalcommunicationstandardsHardtodifferentiatedifferentfirmsStrengthWeakness

CASE1:SWOT

analysisonDIZZcompanyFudanUniversityStrategicmanagementApproach

Strategicmanagementinvolvesfourbasiccomponents:(1)environmentalscanning;(2)strategyformulation;(3)strategyimplementation;(4)evaluationand

control.e.g.Porter’s5competitiveforcesanalysisFudanUniversityStrategicmanagementApproach

VonNeumannand

Morgensterntheydefinedstrategyasaseriesofactionstakenbyacorporationwhicharedecidedonaccordingtotheparticularsituation

DruckerdescribesstrategyasameansofanalyzingthepresentsituationandchangingitifnecessaryChandlerstrategyisthatitdeterminesthebasiclong-termgoalsofacorporationAnsoffexaminedstrategy,fromaprogrammaticandanalyticapproachHoferandSchendelMintzbergstrategyasamediatingforcebetweenanorganizationanditsenvironmentStrategicmanagementApproach

Deming,1950,introducedacomprehensivemanagementsystemwhichisthemodelforJapanese-stylemanagement,ortotalqualitymanagement(TQM)TQMusesstatisticstoanalysesvariabilityinproductionprocessesinordertoimprovetheproductqualitycontinuouslyFudanUniversitystructuredannualimprovements1majortrainingprograms2uppermanagementleadership3FudanUniversityStrategicmanagementApproach

Juranthefirsttodealwiththebroadmanagementfeaturesofquality,whichdistinguisheshimfromthosewhoadvocatespecifictechniques,statisticalorotherwise.Heincludedthreebasicstepstoprogress:StrategicmanagementApproach

Crosby

conceptofzerodefects

qualityisconformancetorequirementsanditcanonlybemeasuredbythecostofnon-conformance

threecomponentsthancanbeusedbyorgznizationstopreventnon-conformances---determination,educationandimplementation.OuchiTheoryZcorporationsgeneratedcloserelationshipswiththeiremployeesandevenmadelong-termemploymentcommitmentstothenewhiresTheyalsodevelopedtheiremployees’talentsandfocusedonteamworkthroughlateraljobrotationsandcollectivedecisionmaking.FudanUniversityFudanUniversityExcellenceApproach

PetersandWatermanThemajorfocusofexcellencemanagementisimprovingmanagementinordertogainormaintainexcellencewithinacorporation.effectiveorganizationscontinuetostriveforimprovement.FudanUniversityReferences

Management

（9thedition）,StephenP.Robbins&MaryCoulterPracticeofManagement,Drucker1954TheArtofJapaneseManagement,Pascale&Athos,1981InSearchofExcellence,Peters&WatermanTwoDimensionofOrganizations管理学专业英语教程（第四版·上）

FudanUniversityOutlines

——twobasicdimensionsoforganizations112212TheHorizontalDimensionDivisionofLaborDepartmentalizationTheVerticalDimensionUnityofCommandAuthority-responsibilityequationFudanUniversityHorizontalDimensionVerticalDimensionDivisionofLaborDepartmentalizationIntegrationbetweenorganizationallevels发挥优势迎接OrganizationalStructureOutlines

——twobasicdimensionsoforganizationsCoordinationbetweenorganizationallevelsOrganizationateachspecificlevelHorizontalDimension1DivisionofLaborFudanUniversityindividualsspecializeindoingpartofanactivityratherthantheentireactivity

Assembly-lineproductionFast-foodcompaniesHorizontalDimension1DivisionofLaborFudanUniversityPros&ConsofDivisionofLabormakesefficientuseofthediversityofskillsandcapabilitiesthatemployeeshave——anunendingsourceofincreasedproductivityduringearlytimesLeadstoboredom,jobstress,lowproductivity,poorquality,increasedabsenteeism,andhighturnover

HorizontalDimension2DepartmentalizationFudanUniversitygroupingindividualsintoseparateunitsordepartmentstofacilitatetheaccomplishmentoforganizationalgoalsHorizontalDimension2DepartmentalizationFudanUniversity123functionaldepartmentalizationcustomerdepartmentalizationgeographicdepartmentalization3processdepartmentalizationHorizontalDimensionFudanUniversity1functionaldepartmentalizationEngineeringDept.AccountingDept.ManufacturingDept.PurchasingDept.HRDept.AManufacturingPlantProduct-relatedHorizontalDimensionFudanUniversity1functionaldepartmentalizationTaxDept.ConsultingDept.AuditingDept.AnAccountingFirmService-relatedHorizontalDimensionFudanUniversity2CustomerdepartmentalizationcustomersineachdepartmenthaveacommonsetofproblemsandneedsthatcanbestbemetbyhavingspecialistsforeachHorizontalDimensionFudanUniversity2CustomerdepartmentalizationRetailingDept.WholesalingDept.Gov.Dept.AnOfficeSupplyFirmHorizontalDimensionFudanUniversity2CustomerdepartmentalizationDeptforindividualclientsDeptforcorporateclientsALawOfficeHorizontalDimensionFudanUniversity3GeographicdepartmentalizationCoca-Colain1990sWesternDept.MidwesternDept.EasternDept.SouthernDept.HorizontalDimensionFudanUniversity4ProcessdepartmentalizationPressDept.

CastDept.InspectDept.PackDept.

ShipDept.An

AluminiumPlantHorizontalDimension2DepartmentalizationFudanUniversityNewTrends:

IncreasedcustomerdepartmentalizationCross-functionalteams3

MatrixDepartmentalizationHorizontalDimension2DepartmentalizationFudanUniversityCross-functionalteamstheybringtogetheradiversityofexpertswhomightnevercrosspathsinatraditionalorganizationalthoughtheirworkmightbehighlyinterdependent3

MatrixDepartmentalizationHorizontalDimensionFudanUniversitycopewiththedemandsofefficientlyandeffectivelymanaginganumberofconcurrentprojectsanorganizingapproachthatassignsspecialistsfromdifferentfunctionaldepartmentstoworkononeormoreprojectsthatareledbyaprojectmanager3

MatrixDepartmentalizationHorizontalDimensionFudanUniversity3

MatrixDepartmentalizationVerticalDimensionFudanUniversity12UnityofCommandAuthority-responsibilityequationHowtodeterminethetypesandamountsofanauthorityandresponsibilitythatorganizationalmemberswillhaveAddresseswhoaworkerreportstoVerticalDimensionFudanUniversity1UnityofCommandOneincommandConflictingdemandsPrioritiesfromseveralmgrsVerticalDimensionFudanUniversity2Authority-responsibilityequationAuthorityCouldbedelegated

Relatestoone’spositionwithinanorganizationandignoresthepersonalcharacteristicsoftheindividualmanagerVerticalDimensionFudanUniversity2Authority-responsibilityequationAuthorityTwoForms:LineAuthorityStaffAuthorityTosupport,assist,advice,reduceinformationalburdensofLineAuthorityCreatesVerticalDimensionFudanUniversity2Authority-responsibilityequationResponsibilityCouldnotbedelegatedTwoForms:OperatingResponsibilitiesUltimateResponsibilities

TheCasefor

ContingentGovernance

管理学专业英语教程（第四版·上）

FudanUniversityOutlines123Thereasonsforcontingentgovernance

TwobroadstreamsofcommentaryandresearchFocusedversusbroadgovernanceFudanUniversityEvolvingconditionsGovernancehastocontinuallyadapttochangingconditionsbecauseacompany,itsmanagementandbusinessenvironmentareforeverevolving.Asaresult,corporateboardsmustadopttherightrolestoreflectandshapethosegovernanceconditions.ThereasonforcontingentgovernanceFudanUniversityThereasonforcontingentgovernanceImperfectmarketsInanidealworldcomprisingcompetitivemarketsandtransparentinformation,thelegalsystemandmarketprocesseswould,bythemselves,provideperfectlyadequatecorporategovernance.Therealworld,however,isfarfromideal.Thus,governanceisnecessarytodealwiththethingsthatfalloutsidemarketsaswellasthepeoplewhowouldmanipulatedecisionsintheirowninterests.FudanUniversityTwobroadstreamsofcommentaryandresearch

ExternalityAgencyproblemsFudanUniversityTwobroadstreamsofcommentaryandresearch

ExternalityMarketsalonedonotcapturethefullimpactofcompanies;inparticular,theydonotpricecertaininputsandoutputsofthebusiness,so-calledexternalities,suchastheeffectofanorganization’sactivitiesonsocietyatlarge.Payattention:Therightroleoftheboarddependsontheimportanceoftheexternalities,whichcanvaryfromcountrytocountryandfrommarkettomarketoverthelifeofthecompany.FudanUniversityAgencyproblemsRegulationisrarelyoptimal,marketsarenotefficient,andinformationcanneverbefullytransparent.InsideanorganizationOutsideanorganizationTwobroadstreamsofcommentaryandresearchFudanUniversityPayattention:Therightroleoftheboarddependsontheimportanceoftheagencyproblems,thedifficultyofgettingmanagerstoactintheowner’sinterests,whichcanvaryoverthelifeofthecompany,andthetenureofeachCEO.TwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsAuditingOversightmechanismsCompanypoliciesCompensationincentivesSuccessionplanningFudanUniversityTwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsThedrivinggovernanceroleBoardsmustemphasizeaparticularsubsetofactivitiesindecisionmakingandresourceallocation.Thedominantsubsetofthoseactivitiesiscalledthedrivinggovernancerole.TherolemustchangeItmustchangewithshiftsintheimportanceandnatureoftheexternalitiesthatshapetheagendasofshareholderscreatedbydysfunctionalmanagerialpower.FudanUniversityFocusedversusbroadgovernanceMarketwithinsignificantexternalitiesAuditingBoardsalwayshavetheresponsibilityofauditingAfocusedviewofgovernancerestrictedtotheauditingroleisappropriateinmarketswithinsignificantexternalities.FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesSuccessfulcompaniesareaddressingoftheirownaccordbybroadeningthescopeoftheiroversightandpolicies.Theseinclude:emergingeconomiesmarketsintransitionmarketswithinfluentialNGOsFudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesEmergingeconomiesValuecreationinemergingmarketsrequiresawiderrangeofcompanyactivitiesthaninthedevelopedworld.Manyessentialinputsmightbemissingorofsubstandardquality.Theboardsofcompaniesactiveinemergingeconomieshavetotakeanevenbroaderviewoftheiroversightandpolicyresponsibility.Examples:NikeInc.Wal-MartStoresInc.

FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesMarketsintransitionItalsorequireabroadergovernanceperspectivethanthatdictatedbyshort-termmarketforces.Examples:EnronCorp.ElectricitymarketintheUnitedStatesTheprivaterailwaycompaniesinU.K.FudanUniversityFocusedversusbroadgovernanceMarketwithexternalitiesMarketswithinfluentialNGOsInfluentialNGOsoftenemergeinresponsetoexternalitieswithnegativesocietalimpactsthatareeitherunpricedbythemarketorareperceivedtobeinadequatelyregulated.Examples:RalphNaderFudanUniversityOutline-TheCaseforContingentGovernance(2)1MonitoringVersusInvolvedGovernance2FourMainRolesFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerApplication:GMCEOs’MonopolyFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpoweriseffectiveTheboardcanrestrictitsactivitytomonitoringthevalue-creatingperformanceofthecompanyanddevelopingpolicytogovernthedistributionofvaluetoshareholdersandotherstakeholders.WhenmanagerialpowerisdysfunctionalTheboardhastobecomemoreinvolved.Examples:performanceispooreitherfinanciallyorindealingwithexternalitiestheCEOmakesmajorstrategicmovesunilaterallyethicalortransparencystandardsarebreachedtheCEOasksforexcessivecompensationthatisnotlinkedtoperformsFudanUniversityMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpowerisdysfunctionalthepowerbalancebetweentheCEOandtheboardChangingthisbalanceofpsychologicalculturalandpoliticalforcesandmovingfromamonitoringroletoamoreinvolvedroleisoneoftheboard’sbiggestchallenges.FudanUniversityMonitoringVersusInvolvedGovernanceApplication:GMStatus:AsGMincreaseditsrevenuesandfinancialmarketvaluethroughWorldWarIIandbeyond,topmanagementbecamesopowerfulthattheonlyrealroleleftfortheboardwasoneofauditing.FudanUniversityMonitoringVersusInvolvedGovernanceApplication:GMResults:Ittook10yearsbeforeGMrespondedtosafetyandpollutionexternalitieswithtwonewcommittees.GMfailedtorespondagainwhentheJapanesebeganmakingseriousinroadsintotheU.S,marketaftertheoilcrisisoftheearly1970s.Theboarddidnothingtopreventmanagement’sdrivetospend$90billiononnewhightechnologyandacquisitions.FudanUniversityMonitoringVersusInvolvedGovernanceCEOs’MonopolyCEOsaretemptedtotakepersonaladvantageoftheirmonopolyoncertainkindsofinformation,contactsandresource.Examples:KennethLayGaryWinnickFudanUniversityFourMainRolesTwomaindifferencesinboardcultureAuditingRoleSupervisingRoleCoachingRoleSteeringRoleFudanUniversityFourMainRolesTwomaindifferencesinboardcultureBoardscanbeconcernedmainlywithshareholderinterests,ortheycanalsotakeintoaccounttheinterestsofotherstakeholderstodealwithimportantexternalities.Boards

canrestricttheiractivitiestomonitoring,ortheycanbeinvolvedintheconductoftheorganizationatthetoptodealwithineffectivemanagement.FudanUniversityFourMainRolesAuditingRolePoint:Thedominantactivityhereisthefundamentalfiduciaryresponsibilityofmonitoringcompanyperformanceintheinterestsoftheshareholders.Situation:Anauditingroleisappropriateinstablebusinessenvironmentsthatdonotrequirelargeinvestmentsorbigmoveswithhighexternalimpact.FudanUniversityFourMainRolesSupervisingRolePoint:Theperspectiveoftheboardhastogowellbeyonditsfiduciaryresponsibilitytoincorporateoversightandpolicyforthestrategic,societalandriskeffectsoftheexternalities.Thedecision-makingcriteriahavetoincludemultipleobjectives.FudanUniversityFourMainRolesSupervisingRoleSituation:Asupervisingroleisappropriatewhenalarge,powerfulcompanywitheffectivemanagementmakesstrategicmovesthatcreatevalueoverthelongrunbuthavesignificantrisksorhaveanimpactonsocietyoutsidethecompany’smarkets.FudanUniversityFourMainRolesCoachingRolePoint:TheboardhastochangethepowerbalanceandestablishitsindependencefromtheCEOwiththeindependentleadershipofoutsidedirectorsorbysplittingtherolesofCEOandchairmanoftheboard.Situation:ItisappropriatewhentheCEOandothertopexecutivesareineffectiveincreatingvalueorwhentheymanipulatevaluedistributiontotheiradvantage,

theboardhastomovefrommonitoringroletomoreactiveinvolvement.FudanUniversityFourMainRolesSteeringRolePoint:Theboardtakesthereinsindealingwithexternalities.Ultimately,theboardmightalsohavetoensuretheimplementationofthecompany’sagreementswiththosestakeholders.Situation:Whenmanagementisineffectiveandthebusinessisaffectedbyanumberofnonmarketfactors,theboardhastogobeyondeithercoachingorsupervisingandbecomeactivelyinvolvedinexecutionwithabroad,long-termperspective.FudanUniversityWhatIsStrategy?管理学专业英语教程（第四版·上）

FudanUniversity1245FudanUniversityOutlinesBackgroundIntroduction

OperationalEffectiveness

OperationEffectivenessVSStrategicPositioningStrategyRestsonUniqueActivities3

ProductivityFrontier

Foralmosttwodecades,managershavebeenlearningtoplaybyanewsetofrules:Companiesmustbeflexibletorespondrapidlytocompetitiveandmarketchanges.Theymustbenchmarkcontinuouslytoachievebestpractice.

Theymustoutsourceaggressivelytogainefficiencies.

Theymustnurtureafewcorecompetenciesintheracetostayaheadofrivals.FudanUniversityBackgroundIntroduction

FudanUniversityBackgroundIntroduction

BarriersCopymarketpositionGlobalizationPositioning---oncetheheartofstrategy---isrejectedastoostaticfortoday’sdynamicmarketsandchangingtechnologies.Accordingtothenewdogma,rivalscanquicklycopyanymarketposition,andcompetitiveadvantageis,atbest,temporary.Somebarrierstocompetitionarefallingasregulationeasesandmarketsbecomeglobal.Companieshaveproperlyinvestedenergyinbecomingleanerandmorenimble.FudanUniversityBackgroundIntroduction

Butthosebeliefsaredangeroushalf-truths,andtheyareleadingmoreandmorecompaniesdownthepathofmutuallydestructivecompetition.Inmanyindustries,however,whatsomecallhyper-competitionisaself-inflictedwound,nottheinevitableoutcomeofachangingparadigmofcompetition.Therootoftheproblemisthefailuretodistinguishbetweenoperationaleffectivenessandstrategy.OperationalEffectivenessStrategy≠Why?FudanUniversityTheprobableanswer：Thequestforproductivity,quality,andspeedhasspawnedaremarkablenumberofmanagementtoolsandtechniques:totalqualitymanagement,benchmarking,time-basedcompetition,outsourcing,partnering,reengineering,changemanagement.Althoughtheresultingoperationalimprovementshaveoftenbeendramatic,manycompanieshavebeenfrustratedbytheirinabilitytotranslatethosegainsintosustainableprofitability.

Andbitbybit,almostimperceptibly,managementtoolshavetakentheplaceofstrategy.Asmanagerspushtoimproveonallfronts,theymovefartherawayfromviablecompetitivepositions.BackgroundIntroduction

FudanUniversityOperationalEffectivenessOperationalEffectiveness(OE)andstrategyarebothessentialtosuperiorperformance,whichafterall,istheprimarygoalofanyenterprise.Buttheyworkinverydifferentways.chargehigheraverageunitpricesgreaterefficiencyresultsinloweraverageunitcostsFudanUniversityOperationalEffectivenessUltimately,alldifferencesbetweencompaniesincostorpricederivefromthehundredsofactivities(e.g.therightchart)Costisgeneratedbyperformingactivities,andcostadvantagearisesfromperformingparticularactivitiesmoreefficientlythancompetitors.

Similarly,differentiationarisesfromboththechoiceofactivitiesandhowtheyareperformed.Activities,then,arethebasicunitsofcompetitiveadvantage.

Overalladvantageordisadvantageresultsfromallacompany’sactivities,notonlyafew.DifferencesinOEamongcompaniesarepervasiveSuchdifferencesinOEareanimportantsourceofdifferencesinprofitabilityamongcompetitorsbecausetheydirectlyaffectrelativecostpositionsandlevelsofdifferentiation.OperationalEffectivenessFudanUniversityeliminatewastedeffortemploymoreadvancedtechnologymotivateemployeesbetterhavegreaterinsightintomanagingparticularactivitiesorsetsofactivitiesImagineforamomentaproductivityfrontierthatconstitutesthesumofallexistingbestpracticesatanygiventime.Thinkofitasthemaximumvaluethatacompanydeliveringaparticularproductorservicecancreateatagivencost,usingthebestavailabletechnologies,skills,managementtechniques,andpurchasedinputs.Theproductivityfrontiercanapplytoindividualactivities,togroupsoflinkedactivitiessuchasorderprocessingandmanufacturing,andtoanentirecompany’sactivities.WhenacompanyimprovesitsOE,itmovestowardthefrontier.Doingsomayrequirecapitalinvestment,differentpersonnel,orsimplynewwaysofmanaging.ProductivityFrontierFudanUniversitythree-dimensionalproductivityfrontierplanarproductivityfrontierTheproductivityfrontierisconstantlyshiftingoutwardasnewtechnologiesandmanagementapproachesaredevelopedandasnewinputsbecomeavailable.Laptopcomputers,mobilecommunications,theInternet,andsoftwarehaveredefinedtheproductivityfrontierforsales-forceoperationsandcreatedrichpossibilitiesforlinkingsaleswithsuchactivitiesasorderprocessingandafter-salessupport.Similarly,leanproduction,whichinvolvesafamilyofactivities,hasallowedsubstantialimprovementsinmanufacturingproductivityandassetutilization.FudanUniversity*WecanuseMatlabtodrawmultidimensionalsituations*WealsocanusemultidimensionallinearregressiontocalculatedifferentinfluencesfromdifferentfactorsProductivityFrontierForatleastthepastdecade,managershavebeenpreoccupiedwithimprovingOE.Learningorganization:Hopingtokeepupwithshiftsintheproductivityfrontier,managershaveembracedcontinuousimprovement,empowerment,changemanagement.Thepopularityofoutsourcingandthevirtualcorporation:reflectthegrowingrecognitionthatitisdifficulttoperformallactivitiesasproductivelyasspecialists.Ascompaniesmovetothefrontier,theycanoftenimproveonmultipledimensionsofperformanceatthesametime.Forexample,manufacturersthatadoptedtheJapanesepracticeofrapidchangeoversinthe1980swereabletolowercostandimprovedifferentiationsimultaneously.FudanUniversityProductivityFrontierConstantimprovementinOEisnecessarytoachievesuperiorprofitability.However,itisnotusuallysufficient.FewcompanieshavecompetedsuccessfullyonthebasisofOEoveranextendedperiod,andstayingaheadofrivalsgetshard