In: Operations Management
Question 1
The time is ripe for fresh ideas by Lynda Gratton Forget business workshops and case studies –recessions provide real-time opportunities for executive learning as old myths are brought into question and management innovations emerge. Historically a downturn has been a time when business models, organisational structures, labour markets and employee contracts come under immense strain. Accepted wisdoms are challenged and this break in thinking can result in the adoption of new practices and the adoption of new habits and skills. There are two points of tension emerging in this recession that may allow for innovation in management practices. Wider distribution of leadership This recession has brought into stark perspective the role of the leader. Up to this point, the dominant norm has been the ‘command and control’ leadership style. In this model, the organisation is viewed as a hierarchy in which decisions are escalated to the top, where a CEO makes the decisions. But many people are now questioning the wisdom of placing so much power in the hands of so few. At the same time, insights from research in decision sciences and technological advances have shown that often the best decisions are made by an ‘intelligent crowd’, rather than one all-powerful individual. Senior leadership cadres have traditionally been essentially homogeneous – middle-aged men with similar backgrounds. Research on innovative teams has shown that such groups are likely to be less competent in decision-making than diverse teams. With the dominant model under question, this is a good time to bring diversity back on to the agenda. Creating flexible virtual teams Past recessions have often served to accelerate the adoption of management practices and processes that already had some popularity pre-recession. The same is true of virtual working. Assembling teams to work on projects and task forces has become more viable in the past decade, often hastened by the pressures of globalisation. Yet while virtual working is emerging as a trend, there is still an assumption that face-to-face working trumps virtual working. As a result, every Sunday night thousands of executives board aircraft and trains to get to Monday Page 3 of 3 morning meetings. With many companies freezing travel budgets, this is likely to change and many executives will have to do more work virtually. At the same time, the entry and exit roads of the world’s big cities are clogged from early dawn with commuters hurrying to and from work. This movement of people has been based on two assumptions: that people need to meet every day to get their work done; and that when at home, they are likely to slack and need the discipline of an office to ensure they perform. Both assumptions are wrong. First, people do not need to meet every day to get their work done. Research has shown that virtual teams – where members rarely meet – can be highly productive. What is important in these teams is that they are all inspired by a meaningful task, fascinating question or compelling vision. The second assumption – that people need the discipline of an office to ensure they perform – is also a myth. Much research has shown that when people have the opportunity to work on engaging, well-planned tasks at home they are significantly more productive and committed than those who toil through the commuter traffic every day.
a. With reference to Lewin’s model of change management, suggest the steps that would need to be taken by an organisation to introduce the two innovatory management practices advocated by Gratton.
b. Crainer suggests that managers are themselves often the source of resistance to change. Using the information on resistance to change as the basis for your analysis, explain why managers might resist such changes.
c. What steps would you take to overcome these types of resistance?
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a. Steps that would need to be taken by the organization to introduce that to innovatively management practices advocated by Gratton:
1. Unfreezing: It includes telling the employees about the current scenario where the change is required. Employees need to understand the situation and its demand and urgency. Firstly, they will be made to understand the reason behind the changes to avoid resistance. Moreover, they will be made understood how the change will benefit the organization and to them personally also.
2. Change: This is the step where change will actually happen, i.e., those innovatory management practices will be adopted by the organization. In other words, it includes the implementation of the new plan or the change.
3. Refreezing: Now that the change has been implemented, these changes are needed to be frozen or stabilized, so that the employees do not think of going back to their old practices.
b. Why managers might resist such changes:
There are chances that managers do not have enough knowledge and skills that are required to adapt to changes, and this can act as a threat to their position or status. This can be a reason why the managers resist change. On the other hand, their arrogance regarding their status on knowledge can also be another reason.
c. Steps I would take to overcome these type of resistance:
Firstly, I would try to communicate and build a trust and understanding relationship with the manager. Then I would try to motivate and encourage him to adapt changes. I would also tell him about the positive aspect of the changes, how it will be helpful for us in the long term.