Plessey´s evolving management philosophy

The paper is a brief case study of the transition of a long-established business from `manufacturing company¿¿ to `marketing company¿¿, accompanied by improvements in productivityand profitability. The earlier bureaucratic pyramid structure is replaced with a `parent and subsidiary¿¿ relationship of trading companies, linked to expansion internationally. The change in philosophy had a dramatic effect on the managers of the individual business units, who now have greater authority and personal identification, leading to a higher quality of management and improved motivation and performance. The Chief Executive Office includes four Deputy CE´s, each with a portfolio of reporting companies, and performance is reviewed monthly. New management skills and attitudes were needed and must be secured both by management development, and by raising the quality of the intake from schools and universities.