Rapidly changing markets, changing customer preferences, shorter product cycle, rapid technological change, immense competition and low employee retention; these are but a few challenges being faced by a company in today’s ever changing market environment. So, how can these threats can be addressed? Can these obstacles be converted into opportunities? The answer is yes.
The best way to do this is to give up certain managerial power. What I am proposing is to lead by serving employees – by creating a flat, democratic and autonomous team-based organic structure. Although, this might seem a bit crazy as well as daunting at first; the rewards for a company are enormous.
Let us consider an employee’s point of view. As an employee what are the things you value and want the most. Is it high salary, learning new skills or is it autonomy at work – the power to do what you want, when you want? I am sure you would love to have all of these and more. You want to work where working is fun and you can’t wait to go to work.
Well, having a team based structure will give each employee a higher degree of autonomy and liberty. Along with freedom comes responsibility and shouldering this responsibility will enhance an employee’s cognitive abilities. A more knowledgeable workforce will be created. These skilled employees will not just increase outputs, but will dramatically improve outcomes as well. The quality of work being performed will be better and result will be an efficient and effective organization.
Employees should also be allowed to participate in internal decision-making – from marketing to human resources and from developing company’s strategic plans to finalizing work incentives. This will dramatically reduce employee resistance and conflict – making the organization extremely flexible.
Employees in the front can accurately detect changes in customer preferences and can convey this message or even come up with potential changes in the product offering during the decision making process. Hence, creativity and innovation will be fostered.
On top of that, having a dynamic work environment will lead to high employee morale. Satisfied employees will be highly motivated. When these motivated and energetic employees interact with a customer, they will portray a positive corporate image and will be willing to go out of their way to help a customer. This enhanced customer care will improve customer loyalty and retention.
A high level of employee participation will make an organization truly transparent. Employees will be loyal to the organization. They will also understand that their performance is linked to the organization’s success and the organization’s success will in turn lead to better work incentives. As a result, they will be willing to do more for the organization.
Now, does this seem too good to be true? Well, you would be surprised to know that quite a few companies have already embraced this radical organization structure and are reaping the benefits. Google, Microsoft, Yahoo and Electronic Arts are examples of such companies. These organizations are highly profitable and are in fact, market leaders.
It is important to note that this organic structure is popular not just in the technology related organizations, but, in organizations of all shapes and sizes. Simco, a manufacturing company, based in Brazil has fully accepted this flat structure. At Simco, every employee is seen as equal and all the decisions are made collectively including who will be paid what amount. It is amazing to know that there are over 3000 employees and each of these employee is involved in the decision making process.
The most important thing to remember is that in times of uncertainty and rapid changes, you need to be flexible – you should be able to sense when a change is coming and where it is coming from. You should be able to thrive in this rapidly changing environment by transforming yourself. To do this, you have to embrace an organic structure. You need to follow a management style, which is of the employees, by the employees and for the employees.
The best way to do this is to give up certain managerial power. What I am proposing is to lead by serving employees – by creating a flat, democratic and autonomous team-based organic structure. Although, this might seem a bit crazy as well as daunting at first; the rewards for a company are enormous.
Let us consider an employee’s point of view. As an employee what are the things you value and want the most. Is it high salary, learning new skills or is it autonomy at work – the power to do what you want, when you want? I am sure you would love to have all of these and more. You want to work where working is fun and you can’t wait to go to work.
Well, having a team based structure will give each employee a higher degree of autonomy and liberty. Along with freedom comes responsibility and shouldering this responsibility will enhance an employee’s cognitive abilities. A more knowledgeable workforce will be created. These skilled employees will not just increase outputs, but will dramatically improve outcomes as well. The quality of work being performed will be better and result will be an efficient and effective organization.
Employees should also be allowed to participate in internal decision-making – from marketing to human resources and from developing company’s strategic plans to finalizing work incentives. This will dramatically reduce employee resistance and conflict – making the organization extremely flexible.
Employees in the front can accurately detect changes in customer preferences and can convey this message or even come up with potential changes in the product offering during the decision making process. Hence, creativity and innovation will be fostered.
On top of that, having a dynamic work environment will lead to high employee morale. Satisfied employees will be highly motivated. When these motivated and energetic employees interact with a customer, they will portray a positive corporate image and will be willing to go out of their way to help a customer. This enhanced customer care will improve customer loyalty and retention.
A high level of employee participation will make an organization truly transparent. Employees will be loyal to the organization. They will also understand that their performance is linked to the organization’s success and the organization’s success will in turn lead to better work incentives. As a result, they will be willing to do more for the organization.
Now, does this seem too good to be true? Well, you would be surprised to know that quite a few companies have already embraced this radical organization structure and are reaping the benefits. Google, Microsoft, Yahoo and Electronic Arts are examples of such companies. These organizations are highly profitable and are in fact, market leaders.
It is important to note that this organic structure is popular not just in the technology related organizations, but, in organizations of all shapes and sizes. Simco, a manufacturing company, based in Brazil has fully accepted this flat structure. At Simco, every employee is seen as equal and all the decisions are made collectively including who will be paid what amount. It is amazing to know that there are over 3000 employees and each of these employee is involved in the decision making process.
The most important thing to remember is that in times of uncertainty and rapid changes, you need to be flexible – you should be able to sense when a change is coming and where it is coming from. You should be able to thrive in this rapidly changing environment by transforming yourself. To do this, you have to embrace an organic structure. You need to follow a management style, which is of the employees, by the employees and for the employees.
