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The Old Way |
The New Way |
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Employees require supervision to ensure they work efficiently. |
Employees require autonomy so they can work effectively. |
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Objective |
To achieve organizational efficiency by monitoring individual employees to ensure that they do what they are supposed to do (to satisfy supervisors). |
To achieve organizational effectiveness by requiring employees to collaborate together to do whatever it takes to satisfy customers. |
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Method |
Supervisors watch and otherwise track individual employees to make sure they are busy. |
The responsibility for making sound decisions is vested in cross-functional work teams that contain all of the contributors necessary to act effectively. |
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Perspective |
Employees have to be watched to make sure they do not slack-off. "I just work here. I’m going to do the bare minimum needed to satisfy my boss." |
Employees have to be challenged by their work and fulfilled through it. "I am going to live up to my coworker’s and my customer’s expectations, because I matter here." |
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Internal Systems |
Coordination is achieved through formal communications between superiors and subordinates. The "chains of command" determine each individual’s area of responsibility. Employees must satisfy their bosses. |
Coordination is achieved through informal communications between peers. Team memberships determine one’s areas of responsibility, which is shared among teammates. Employees must work together to satisfy their customers. |
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Market Outcome |
The focus on efficiency is a component of the strategy of competing in terms of price. If this strategy is followed through, this company’s products and services may become the cheapest, but never the best. Market share will erode. |
The focus on effectiveness is a component of the strategy of competing in terms of quality. If this strategy is followed through, this company’s products and services will be the best, and their market share and wallet share will grow. |
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Results |
Supervisory management leads to adversarial relations within companies. The results may include low employee morale, absenteeism, turnover, labour strife, and even unionization. (Labour Unions)
To be sure, this company is under performing. |
When companies use the combined freedom and responsibility of employee autonomy in carefully designed work systems that build competencies while providing intrinsic motivation, there are no limits to what can be accomplished. |
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