The changing paradigm of management (Cont)

The three major perspectives on management that have evolved since the late 1800s are the classical perspective, the humanistic perspective, and the management science perspective. Recent extensions include the contingency view and TQM “Total Quality management”. The most recent thinking about organizations has been brought about by today’s turbulent times and the shift to a new workplace.

Many managers are redesigning their companies toward the learning organization, which fully engages all employees in identifying and solving problems. A team-based structure, empowered employees, and open information characterize the learning organization. The learning organization represents a substantial departure from the traditional management hierarchy.

The shift to learning organization goes hand-in-hand with today’s transition to a technology-driven workplace. Ideas, information and relationships are becoming more important than production machinery and physical assets, which requires new approaches to management. E-business is burgeoning as more economic activity takes place over digital computer networks rather than in physical space. Two specific management tools that support the digital workplace are ERP and knowledge management. Both require managers to think in new ways about the role of employees in the organization. Managers value employees for their ability to think, build relationships, and share knowledge, which is different from the scientific management perspective.

An excellent example of a leader during turbulent times is Michael Deal, CEO of Dell computers, dell is off the critical list for now, but Michael dell knows it can happen again if the company does not remaining vigilant.

How dell and Kevin Rollins handled the negative feedback says a lot about the company’s style. While many CEOs would have shrugged off the stinging information, blaming selfish employees, Dell and Rollins met with the top 20 managers and dealt with the gripes, each offering their own frank and honest self-critique. Dell admitted to being shy and his pulling away sometimes could be seen as aloof and condescending. The company did not stop there but went out to all the company managers, several thousand people, and showed them the videotape of that intense meeting with top management. Dell and Rollins got desktop props to remind them of needed behavior changes: Dell’s plastic bulldozer helped him remember not to ram ideas through without consulting others, and Rollin’s Curious George doll cautioned him to listen to team members before making a decision. Did the strategy work? Dell’s stock is now valued to 40, more than Microsoft, GE, or Wal-mart. Listening was only the first part. They had to institute changes on order-taking, logistics, and information management. But without listening, some of those changes would never have surfaced as ideas. Michael Dell has learned that sustained success cannot come without the top leaders facing themselves and to change, often with great pain. And when success does come, it is greeted with a few seconds of praise and five hours of analysis on what could have been done better.