Session 3 Market Based Management Appli Essay
Nova Southeastern University
H. Wayne Huizenga School of Business and Entrepreneurship
MGT 5012 Twenty First Century Management Practices
Assignment for Course: MGT 5012 Twenty First Century Management Practices
Submitted to: Dr. Bahaudin G. Mujtaba Submitted by:
Sharon M. Rodriguez
4204 Renaissance Way, Boynton Beach, FL 33426
[email protected]
Work phone number: 561 226 7057
Home phone number: 772 332 1083
Date of Submission: 10/19/14
Title of Assignment: Market Based Management Application
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MBM is a scientific approach to management that integrates theory and practice, and
provides a framework for dealing with the ongoing challenges of growth and change
(KOCH, 2007).
Five Dimensions
The theory of MBM is rooted in the Science of Human Action and is defined by five
dimensions: (figure 1) (GP, 2014).
Until now I have never heard of or read about Market Based Management. I m
privileged to know someone who worked at Georgia Pacific where the employees
were required to take courses. They used guiding principles for reviews and
evaluations. By using these dimensions along with the guiding principles we presume
and organization will be successful both internal and external. This has been proved
successful for Koch Industries, however there are still arguments that it doesn t
apply to all business sectors. For example: Let s take the dimension Incentives. An
employee performing the day to day activities improves a process and the
accomplishments of time saving or elimination. Based on the MBM Incentive, this
should be rewarded. This will be acknowledged by direct reports but then taken up
the chain command, only to find out that it s not relevant at that level. How does
this employee get rewarded based on the guidelines? Also, a salary increase would
be an incentive for the employee to perform good work. In the MBM culture, salary
is based on the market for the area the employee works in. A