All entries for Tuesday 22 October 2013

October 22, 2013

Transaction?

In the seminar yesterday, we learnt about Result Only Work Environment (ROWE). One of the arguments was that ROWE might not be suitable to be used in just any organisation. For example, it may not work for large manufacturing firms. The adoption of ROWE is revolutionary. The process not only requires courage and willpower of an organisation, but also excellent leadership, and the wisdom and vision of the management team. To adopt ROWE and abandon the old classic system where your work is constantly being monitored and supervised, an organisation is asked to change its culture and management approach completely and re-education of its employees.

We have talked a lot about ROWE in class, but little discussion was laid on the transaction process from one management system to another. In my opinion, trying to change an organisation sometimes can be harder than building an organisation from scratch. This is probably because once human beings are used to their environments and surroundings, they are reluctant to jump out of their community and comfort zone, and this phenomenon, if I remember correctly, is explained through an economic term known as ‘stickiness’.

And is switching management systems actually a good idea? I think, or managers, who originally hold the power within the organisation, may not be happy if such power is taken away from them. This, as a result, may lead to negative emotion and working attitude flowing into the organisation, they feel de-motivated. Employees on the other hand, switching from a high-pressure working environment to a relatively relaxing one all in a sudden, will need time, maybe training too, to re-learn how to work in the new system efficiently. It means re-educating employees, re-building company culture which they were formerly used to. These means that the organisation finance will be under great pressure as these requires large spending over time/years. There are many other side effects that may come with the transaction.

I am actually interested in knowing if any organisation has gone through this transaction process successfully and how it handled the reform and the pressure comes with it. I shall do some research on this later when I have time.


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