Malik’s Wheel of Effectiveness. Tasks and Tools for effective Management

Term Paper, 2014

27 Pages


Table of Contents

List of Abbreviations

List of Figures

1 Introduction
1.1 Objective
1.2 Structure and methods
1.3 Short Biography of Fredmund Malik

2 Tasks of effective Management
2.1 Providing objectives
2.2 Organizing
2.3 Decision making
2.4 Monitoring
2.5 Developing people

3 Tools of effective Management
3.1 Meetings
3.2 Report and Written Communication
3.3 Job Design & Assignment Control
3.4 Personal Working Method
3.5 Budget and Budgeting
3.6 Performance Appraisal
3.7 Systematic Abandonment

4 Conclusion


List of Abbreviations

illustration not visible in this excerpt

List of Figures

Figure 1: Standard Model of Effectivness by Malik.

Figure 2: Fremund Malik

Figure 3: Core Management Tasks according Malik

Figure 4: Basic functions of a manager according to Peter Drucker

Figure 5: The decision-making process by Malik

Figure 6: Alfred P. Sloan

Figure 7: George C. Marshall

Figure 8: Benjamin Franklin

Figure 9: Jack Welch

„What is neccessary for effectivness is skill aquired through practice“

Peter F. Drucker

1 Introduction

Until the 1970s the view was widespread, management could be neither teach nor learn; it was more of an art to which one would be born. A successful manager should have special character traits and personality characteristics. In practice, this opinion has, however, not enforced. Peter F. Drucker and Fredmund Malik have introduced a new picture of effective management. Due to the fact, the basic requirements of effective management are independent of industry, country and culture they represent the perceptive that effective management can be learned by practicing and using the right tasks and tools. Therefore, Malik summarized all important elements like principles, responsibility, task and tool of effective management in one system named Standard Model of Effectiveness a.k.a. The Wheel of Effectiveness. This model serves as a guideline for manager for effective management. Figure 1 shows the Standard Model of Effectiveness by Malik.

illustration not visible in this excerpt

Figure 1: Standard Model of Effectiveness by Malik.[1]

1.1 Objective

The objective of the assignment is a deep dive into the task and tools of Malik’s Wheel of Effectiveness to answer the question if the task and tools are complete, valid and applicable in the practice.

1.2 Structure and methods

This assignment is separated into two sections. The first part is focusing on the tasks and the second part will show the tool for effective management. Both the tasks and the tool will be theoretically explained and underlined with selected examples.

For that work no primary data was gathered, the entire work is based on secondary data as the scope of this assignment does not allow for any explorative approaches, interviews or surveys. The necessary information for the work that were previously scattered published or accessible will be arranged and interpreted. The sources of secondary data are gathered form books and sources in the world-wide-web.

1.3 Short Biography of Fredmund Malik

Fredmund Malik was born on the 1st of September 1944 in Lustenau (Vorarlberg) in Austria. He studied economics, social sciences, philosophy of sciences in Innsbruck and St. Gallen, Switzerland. He earned his doctor degree in 1975 and habilitated three years later at the University of St. Gallen.[2]

He was Professor for General Corporate Management, Governance and Leadership at the University of St. Gallen from 1974 till 2004, and a Guest Professor at the Vienna University of Economics and Business from 1992 till 1998. He is Special Professor at two renowned Chinese universities. In 1984 he founded the Malik Institute in St. Gallen which he heads as Chairman and CEO.[3]

He is member of European Academy of Sciences and arts and Jury member of the “Top 100” awards, who decides about the “Innovator of the year”, the most innovative companies of the German Mittelstand.[4]

Professor Malik earned several awards for his work the most important ones are: The Cross of Honor for Science and Art of the Republic of Austria for his Wholistic Management Systems in 2009, the Heinz von Foerster-Prize for Organizational Cybernetics, German Association for Cybernetics in 2010 and 2011 Special Professorships of system-cybernetic management and governance at two Chinese Universities.[5]

Fredmund Malik is author of several books and abstracts. His book “Führen, Leisten, Leben” is the basis for the current assignment.

2 Tasks of effective Management

The wheel of effectiveness shows beside the already mentioned elements also the element of the management tasks. This element demonstrates all the relevant management tasks or functions that need to be carried out in order to become an effective manager. Mr. Henry Mintzberg discovered that a large part of the manager today spend their time with such activities or tasks which are not required as management tasks in the literature like business diners, presentations, meetings and so on.[6] When Professor Malik speaks about tasks of manager he does not mean what manager actually do the whole day, he talks about what they should do. Therefore, he represents the opinion that it is possible to categories all management tasks into two different groups the non-management tasks and the core management tasks. According to Malik the core management tasks are the same in each company, industry and even country. These are the important tasks that a manager should be focus on to become an effective and therefore a successful manager. On the other hand, we have the non-management tasks like marketing, accounting or human resources which totally depending on the firm, industry or country.[7] The by Malik identified five core management tasks providing objectives, organizing, monitoring, making decisions an developing people are illustrated in figure 3.

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Figure 3: Core Management Tasks according Malik (own graphic)

Other authors such as Henri Fayol count to the management functions especially planning, organizing, leading, coordinating and controlling. To perform these tasks management requires according to Katz[8] and Stewart certain skills that can be divided in technical skills like project planning or quality control, in social skills like motivation and communication and analytical skills like problem solving, conflict resolution. Even Peter F. Drucker, a well-known management theorist, defined quite similar basic functions as shown in figure 4.[9]

illustration not visible in this excerpt

Figure 4: Basic functions of a manager according to Peter Drucker (own graphic)

Malik and the other authors especially Peter F. Drucker agree in most manager functions, one difference is the point "Motivation / Communication". Malik sees communication in contrast to Drucker not as a task or function of management but as a medium that is required to fulfill the tasks. Motivation is according to Malik the result out of the consequent fulfillment of the tasks.[10] In addition, Katz and steward understand motivation and communication not as a task but as social skills that a manager needs to perform its tasks successfully, as above already mentioned. Another outstanding point by Malik is the task "decision making". Malik understands this point as one of the essential and typical tasks of managers whereby this point is not even mentioned by Drucker.

The next section describes the five core management tasks by Malik and illustrates it by some selected examples.

2.1 Providing objectives

According to Malik the first function of the management is it to provide objectives. Concretely he means by setting objectives the very popular technique Management by Objectives (MbO). The originator of the concept is Peter F. Drucker. He described MbO as a principle that puts the effort in common direction, allows individual initiative and responsibility, promotes teamwork and harmonized the goals of the individual with the company’s interests.[11] Using MbO, managers should derive individual goals for selected employees based on the business goals so that employees act in the interests of the company. The concerned people should always be informed about the basic intentions of the firm. In principle, the management should provide less but large targets because most people have too many, but to small tasks. The problem with too many goals is that people get lost and demotivated because often it is not possible to achieve all objectives. In order to provide objectives the management should ask “what I should not do anymore” because at the beginning it is advisable to abandon all the disturbing habits, activities and tasks. All objectives should be personalized and documented so the responsibility is regulated and misunderstandings, mistakes and communication difficulties are avoided.[12]


[1] Malik Management.

[2] Wikipedia.

[3] Malik Management.

[4] Top 100.

[5] Malik Management.

[6] Mintzberg 1991, p. 21-38.

[7] Malik 2006, pp.377-379.

[8] Katz 2009.

[9] Drucker 1993.

[10] Malik 2006, pp.263, 264.

[11] Drucker 2006.

[12] Malik 2006, pp.176-190.

Excerpt out of 27 pages


Malik’s Wheel of Effectiveness. Tasks and Tools for effective Management
University of applied sciences, Nürnberg
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Malik, Wheel, Effectiveness, Management, Tasks, Tools
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Martin Pruschkowski (Author), 2014, Malik’s Wheel of Effectiveness. Tasks and Tools for effective Management, Munich, GRIN Verlag,


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