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Management Principal and Practice Within AMEC Plc
It can be seen then, that AMEC has made some attempts to overcome some of the difficulties and assumptions related to decentralisation - in the form of formalised policy frameworks, financial parameters and information technology. However, it is unclear what efforts have gone into the internalisation and socialisation of shared values, tolerance of risk, leadership ability, horizontal coordination and interdependence of business units.
If AMEC wants its business managers to become entrepreneurs then there will need to be enough support provided in relation to these difficulties, to make sure that they have the ability, motivation and time to act in this way. The company cannot simply assume that after restructuring managers will instinctively be able to run successful profit centres. As discussed there will be many hurdles to overcome.
In reiteration of the metaphor suggested by Ghoshal & Nohria (1993), any company has an anatomy (structure) but there is also a physiology (management process) and a psychology (manager's mind-sets). AMEC will not be successful if they only consider the organisations anatomy. The physiology and psychology are also prerequisites to organisational capability.
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