Knowledge, Innovation and Cultural Change - SPC&D - Case Study Example

Knowledge, Innovation and Cultural Change Student’s Name: Course: Tutor’s Name: Date: From the case study, the executive management, on a return from a retreat where possible solutions to challenges facing SPC&D were discussed, called a meeting where they outlined the company goals for the next three to five years to the senior management. This means that the executive managers did not consider the perceptions or opinions of the senior managers when formulating the goals to be followed in the company. In most organisations, senior managers are in a better position to understand and even formulate solutions to the problems facing a company since they are closer to the employees than the executive managers are. The lack of consultation therefore suggests that the executive managers lack an appreciation of the hierarchical structures in SPC&D. According to Ekaterini (2011, p. 563), the ability to think strategically, champion change, and foster innovation sits at the core of middle level managers’ competencies. By ignoring the lower-level managers’ contribution to goal formulation, the executive managers at SPC&D would be creating an environment where lower-level managers would just be working with an aim of accomplishing set goals, without having a sense of association or ownership with the organisation. For managers to work towards enhanced personal effectiveness or performance, Ekaterini (2011, p. 563) observes that they would need to know the organisation they work in, establish plans, use sound judgements, and have the capacity to influence others and therefore drive results. In cases where dictatorial-like goals are issued by the executive management without due consideration being paid to the opinions or input of other lower-ranked managers, their sense of owning the same goals is eroded and therefore their motivation towards achieving the same goals may not be optimal. By calling a meeting where the organisational goals were issued, the executive management in SPC&D demonstrates the authoritarian type of leadership. The domineering leadership style is further reinforced by the fact that the executive management made it clear that the senior management were to ensure that the outlined goals were achieved within a span of three to five years. Gauging the organisation’s performance so far, one can confidently state that the autocratic style of leadership has not brought about the results that the executive management desires to see. For example, the case study indicates that the “management found it odd that problems continued at the usual rate , as they had structured the organisation in order to provide strong project control from the top, checking on and directing staff according to the timeline for each stage of the project” (Case study, p. 474). Such an observation should have served to alert the executive management of the need to consider other leadership style, especially when handling lower-level managers. The autocratic style of leadership may hinder the achievement of goals stated by SPC&D executive managers especially considering that the goals required the senior managers and other level managers to work towards attaining goals that would have significant effect on the company, without receiving rewards or recognition for the same. For example, the first goal is targeted towards establishing an industry-specific relationship that can help SPC&D become a preferred provider of facilities worldwide. Such a goal is not only enormous for any manager charged with ensuring it is realised, but it would also have a huge impact on the organisation’s profitability. Unfortunately, attaining such a goal would require a lot of strategic thinking, planning and execution. Additionally, the manager charged with such an enormous responsibility would need to consult with the executive management and other people within the organisation. As such, the autocratic style of leadership would not befit such a scenario where consultation between the executive and senior management is not considered a vital part of decision-making. As Oshagbemi and Ocholi (2006, p. 756) note, the direct uncaring attitude adopted by autocratic leaders does not sit well with the enlightened workforce in contemporary workplaces. This means that perhaps the organisation needs to change its management approach if at all it will attain it goal relating to enhancing staff retention. The autocratic leadership style also seems to ignore the motivating factors that affect the willingness of senior managers to comply with set goals. For example, the senior managers’ remuneration could be one such factor. Instead of devising innovative remuneration methods however, the executive management is convinced that the 10 percent above-industry average pay rates were sufficient. Looking at the goals however, it is notable that the company seeks to increase its performance and profitability in big proportions. This is indicative of the fact that managers responsible for driving changes that would eventually lead to the realisation of the goals, would need more than the ordinary pay rates. For that reason, considering other innovative remuneration methods seems like a viable option. Recommendations for performance review and reward practices As Zakaria et al. (2011) note, the reward practice adopted by an organisation acts as an incentive motivator to all employees (including managers) towards achieving set goals. Ideally, employees who perform well expect that someone within the organisation will recognise and appreciate their exceptional contributions and hence reward them for the same. Notably, recognition and rewards creates goodwill among employees and boosts their morale (Zakaria et al., 2011, p. 142). Senior managers in SPC&D are no exception; their morale and goodwill would largely depend on how the executive management handles their remuneration, rewards, and other human resource issues. It is worth noting that the case study indicates that the executive management dismissed bonuses and other remuneration plans as inappropriate citing the short-term contracts in the company. However, one can also argue that even employees working on short contracts need to feel that the management appreciates or recognises their efforts and achievements towards meeting set goals. As such, this essay suggests that the executive management at SPC&D needs to consider implementing a reward system that is based on a performance review that has a clear stipulated criterion that senior managers and their departments should meet in order to receive the rewards. Since the senior management needs ordinary employees to meet set goals, the executive management should also consider incentives that should be provided to all employees whose contribution leads to the successful meeting of goals. In order to act as an incentive towards good performance, reward schemes must be perceive as transparent and fair. As Zakaria et al. (2011, p. 143) observe, “...those managers who perceive the effort-reward fairness perform better than managers who perceive they are unfairly awarded.” Additionally, SPC&D should devise a reward system that is consistent with its strategy of retaining skilful and knowledgeable employees and those who possess the abilities needed to realise its goals. As noted in its final goal, the organisation seeks to reduce the rate of staff turnover. Specifically, the goal seeks to retain quality employees “who have worked on the most successful projects”. In a world where competition among market players is rife, it is hard to visualise a situation where SPC&D is able to retain skilful employees without engaging is innovative reward systems. A failure to embrace such a scheme would mean that better rewarding employers, can easily lure high-performing employees. If such a thing were to happen, then the organisation’s ability to meet the set goal would be in jeopardy. Other changes that SPC&D should consider if they are to achieve set goals Among the most notable things in the case study is that the same problems have been occurring in SPC&D despite their identification and record in the company’s database. The failure by managers to identify the problems is evidence that communication processes in the organisation are ineffective. Additionally, the common problems are indicative that the company lacks an oversight body that should keep track of all successes and failures for future references. To this end, this essay recommends that SPC&D needs to do a better job at monitoring past performances for purposes of learning lessons that will be useful in the future. The requirement that prevents project managers from discussing performance with their team members also needs to be changed. If employees in SPC&D will accept and pursue the goals set by the executive management enthusiastically, then there is need for the same employees to be appraised and informed about their performance ratings. According to McAfee & Champagne (1993), some employees can only improve on their performance if they are dissatisfied with their current ratings. Besides, discussing employee performance may give SPC&D insight into the skill gaps that exist within the organisation. Additionally, discussing employee performance allows the managers or supervisors understand some of the challenges that the employee encounters in the work environment. Using such information would help the management to clear some of the hindrances that may limit the achievement of set goals (McAfee & Champagne, 1993). The knowledge gained regarding the skills gap would on the other hand help recruiters target hiring people with specific skills in future in view of ensuring that the company has all the necessary expertise required in order to attain the set goals. Finally, this essay recommends that SPC&D should embrace a leadership style that encourages and supports employees (in either the managerial or the other levels) to not only contribute their skills and expertise, but to have a sense of career ownership. As Homer (2001) observes, organisations need not be seen as using human resources for their own selfish ends, but the employees need to perceive the organisation as caring towards their career development paths. References Ekaterini, G (2011), ‘A qualitative approach to middle managers’ competences,’ Management Research Review, Vol. 34, No. 5, pp. 553-575. Homer M (2001), ‘Skills and competency management’, Industrial and Commercial Training, Vol. 33, no. 2, pp.59 – 62. McAfee, R.B. & Champagne, P.J (1993), ‘Performance Management: a strategy for improving employee performance and productivity’, Journal of Managerial Psychology, Vol. 8 no. 5, pp.24 – 32. Oshagbemi, T., & Ocholi, S (2006), ‘Leadership styles and behaviour profiles of managers’, Journal of Management Development, vol. 25, no. 8,pp. 748-762. Zakaria, Z., Hussin, Z., Noordin, N., Sawal, M., & Zakaria, Z (2011), ‘The relationship between reward practice and employees performance: An empirical study’, International Journal of Modelling and Optimization, vol. 6, pp. 142-155. Read More