Description
1. Provide the name of the article?
2. Where did you find the article?
3. What are the main points of the article?
4. Do you agree/disagree with what is being shared in the article? Explain your answer.
5. Did you learn something new?
** Please note: A hard copy of the article must be submitted to me or you can attach me the articles that you find.
Explanation & Answer
Attached.
Running head: EXCESS MANAGEMENT IS COSTING THE U.S $3 TRILLION PER YEAR 1
Excess Management costing the U.S $3 trillion per year
Student’s name:
Institutional affiliation:
EXCESS MANAGEMENT IS COSTING THE U.S $3 TRILLION PER YEAR
2
This article titled “Excess Management is costing the U.S $3 trillion per year,” has been
sourced from the Harvard Business Review website. The article was written by Gary Hamel and
Michele Zanini in September 2016. It mainly points out the impact of excess bureaucracy in the
United States Economy and poor management of government resources. As a result, it has cost
the U.S government more than $3 trillion economic output annually that translates to 17% of
Gross Domestic Product (GDP) (Hamel & Hazini, 2016).
Consequently, the article suggests that the U.S government is making a terrible mistake
by hiring too many managers and administrators in the U.S workforce when it is much cheaper
to employ smaller and productive workforce. The article gives an example of vanguard
organizations such as Svenska Handelsbanken in Stockholm, Sweden (Hamel & Hazini, 2016).
The organization has doubled its number of workers to managers with a ratio of 10:1 hence
beating cost-to-income and receiving more profits than U.S based organizations with a 4.7:1
ratio. Therefore, if the U.S government embraces these management approaches, it would save
more than 50% of its economic output (Hamel & Hazini, 2016).
Additionally, the article indicates how the U.S government can successfully boost its
GDP by redeploying excess workers into more value-creating activities. Since managers are well
equipped with more knowledge and skills, reassigning them to more producti...