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meant that companies could
address each of the above functions as discrete activities which:
- involved relatively few people
directly (usually limited to senior management)
- were seen as fundamentally
different from their normal duties, with little direct impact
on those duties
- took place at scheduled intervals
(training, motivation, performance review, budgeting) or when
dictated by pressing needs (recruitment and selection, discipline
and discharge).
Today, companies
face a far different set of realities that mean this approach
is no longer functional:
- companies have had to switch
from hierarchical, top-down, pyramidal organization structures
to ones that are "flattened,"
circular,
or even
spherical because they both need to empower everyone in the
organization, because much of middle management was eliminated
in the 1990s by "downsizing, and because e-mail and other
technologies such as intranets destabilize hierarchies by allowing
individuals within the company to communicate directly
- competition is now global, and
companies must constantly change their strategies in response
to changing external conditions
- in leaner organizations it is
no longer feasible to delegate responsibilities solely to specific
individuals: everyone must share in these duties.
- relentless pressure to cut budgets
mean that companies need to pursue strategies that can achieve
multiple objectives with fewer initiatives and lower cost.
The goal is the "learning organization."
"Peter Senge defined a learning organization
as dynamical systems (as defined in Systemics) that are in a state of continuous adaptation
and improvement. That is, organizations
that are adapted for maximum organizational learning and that
build feedback
loops deliberately to maximize their own learning."
"Learning Organizations," Wikipedia
Benefits of the learning organization
strategy:
- synergies between various
management responsibilities:
pursuing a single responsibility (recruiting, training, etc.)
can also benefit other areas. For example, recruiting better
applicants can reduce disciplinary problems with unqualified
and/or rogue employees
- lower operating costs:
costs can often be reduced for each activity because they are
positively affected by other ones
- managers don't have to spend
as much time on each of these activities, especially at the expense
of their daily routines:
for example, instead of dropping their normal responsibilities
for an annual budgeting exercise, this may be done on a continual
basis throughout the year, in the context of overall management
responsibilities.
- the organization is better
able to respond rapidly to external challenges and opportunities:
managers are continually monitoring these changes and because
their workforces are more flexible.
- employees are happier and
more motivated:
they are better trained, given more responsibility and more opportunity
for growth, as well as being better paid and feeling they are
working for an organization of which they can be proud. With
a diverse and empowered workforce, the company can profit from
a wider range of backgrounds and perspectives.
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