Yitzhak Adizes argues that for the prosperity of any organization, its effective work, a combination of four main functions is important.
Yitzhak Calderon Adizes is a Macedonian and Israeli writer, an expert in the field of business efficiency.
These four features form the PAEI model:
- Producing results — the production of results, in fact, for which the organization exists;
- Administering – administration required to ensure efficiency;
- Entrepreneuring – entrepreneurship serving to manage change;
- Integrating — the integration necessary to ensure the viability of the organization in the long term by combining its elements.
Depending on the dominant function, I. Adizes distinguishes four types of leaders:
- Producer (producer) — Paei;
- Administrator — pAei;
- Entrepreneur — paEi;
- The integrator is paeI.
Uppercase letters (P,A, E, I) in the code indicate that the function is performed brilliantly, lowercase letters (p, a, e, i) indicate that the function is performed satisfactorily by the manager. Poor performance or non-performance of functions is indicated by a dash.
Producer focused, first of all, on the result, which is the satisfaction of the needs of its customers, which will be more and more, subject to the creation of sufficiently high-quality goods or the provision of services in full.
Administrator – aims to optimize and minimize the use of available resources. He must also systematize the entire process of managing the organization, streamline it, establish the so-called bureaucratic order, prescribing all functional duties, defining the rights and obligations of managers at various levels, and ensuring standardized workflow.
These two types of leaders can already ensure the successful functioning of the organization, but they will not be able to develop it, adapt to changing circumstances, the business environment.
Entrepreneur able to invent and successfully implement new things, he always has a lot of plans and ideas. Such a leader is often not only loved, but also feared, as he can completely rethink everything and offer something very creative. The presence of such ideas allows any organization not to stop there, but to go further and develop.
Integrator is not just a leader, it is a leader capable of creating common traditions, values, corporate culture of the organization. It defines a common strategic goal for all, calls for everyone to work together, thereby maintaining unity in the organization.
According to Adizes, there are a lot of variants of the PAEI code — there are as many of them as there are all people on earth. By replacing letters with numbers from 1 to 9, you can get more accurate codes. So, for example, a manager with a code of 1935 will perform best in the A-function, things will be worse with the I and E-functions, and the P-function will be the worst.
The ideal leader who can simultaneously perform all four functions, according to I. Adizes, does not exist. To be a really good leader, it is enough to be able to perform at least a minimum of each of the functions and to have a style corresponding to both the stage of the organization’s life cycle and the task facing it.