The Failure of Hierarchical Management Structures - Case Study Example

Introduction Hierarchical management is a leadership programme that describes who reports to whom and is associated with the span of control (Agarwal, 1982). The number of people reporting to the supervisor determines the number of levels that will constitute a hierarchy. Management can be classified into two; the tall and the flat management structures. According to Daft and Marcic (2011), “a tall structure has an overall narrow span with more hierarchical levels” (p. 230). The tall structure has many levels and many people that are answerable to supervisors. The hierarchy is big such that there is loss of information during communication from the top down and vice versa through the structure. The advantage associated with this is the increase in coordination. Leaning on the background of economic change, many of the traditional approaches to management can no longer be applicable. Higher positions are not given to someone simply because of their hierarchy. Thomas suggests that currently, knowledge and expertise are prioritized (2007). Rao and Krishna define a flat management structure as a “structure characterised by an overall broad span of control and relatively few hierarchical levels” (2002, p. 357). In recent years, flat structures have been adopted in “response to the downsizing of businesses in order to increase efficiency and profitability” (Bowyer and Martinelli, 2004, p. 62). Communication takes a smaller route; the messages do not have to travel through larger levels and hence limits the chances of being distorted. Hierarchical management is associated with many disadvantages; as listed by Meehan (2013), communication across departments tends to be less effective, multiple layers increase the salaries at different layers of management, the organization speed is hindered and clients may take longer time before they are attended to, and there could be possibilities of rivalry between departments due to competition. Despite the disadvantages, there are advantages associated with it, but in overall, the disadvantages “far outweigh the actual and alleged advantages” (Diefenbach, 2013, p. 4). Hierarchical management structures need to be abolished in favour of the more modern management that accommodates creativity and innovation in workforce (Hinks, 2013). This is because the hierarchical management structures and the processes that it implements fail to properly handle change (Kotter, 2011). Case study The case study covers a story of innovation of masking tape as explained by Dawson and Andriopoulos (2009), There was researcher by the name Dick Drew in Minnesota working for a company called 3M which was dealing in sandpaper, one time while he was sent to a body repair shop to do some research on the new release of sandpaper, he found the workers being troubled by a bungled paint work, the workers were working with an auto body and thus they were applying one colour after another while covering the other surfaces with a butcher paper. The problem arose with the use of a very intense adhesive tape which would erase some of the paint job when removing it; this gave an idea to Drew, as noted down by Dawson and Andriopoulos (2009), Drew is suspected to have regarded this event as an ordeal, but went on with his sandpaper testing. After feeling the customers burden, he thought of having one that would be peeled off without affecting the paint so when he went back to his work at 3M, he started the project at their laboratory, the project did not pick up well and the company management directed him to go on with his normal duty while leaving the project, he did not give up rather he decided to keep working underground., It reached a point whereby the manager noticed that Drew was not complying to his orders but he did not summon him, the fortunate thing was that Drew was closing in on an innovation that was going to put the company on high profile. After some time, the project resulted in the invention of a masking tape; it went on to yield a lot of revenue to the company and the adhesive business expounded, thanks to Drew’s persistent quest. As a result the manager was highly impressed and ended up developing management style that encouraged innovation and creativity among employees (Dawson and Andriopoulos , 2009). Dawson and Andriopoulos (2009). This case study provides a platform to have a reason for embracing innovation and creativity by adopting a management style that allows it. Changes and Shifts in the Global Economy During the past decades, the world economy has experienced mixed variations in its activities and changes. According to Dickens “the unparalleled growth of the long boom lasting from the early 1950’s to the mid 1970’s has been followed by periods of rapid growth interspersed with recession, stagnation, and some deep and unanticipated traumas” (2010, p. 525). Underlying these critical downturns are efforts to overturn them. Given the global economic crisis and the lessons learnt through the economic recession, different parts of the world have responded differently with most applauds given to the countries from East Asia, for their great efforts of resurgence. The most recent economic crisis of 2008-2009 has led to the shift in market approach, as well as planning and management of businesses (United Nations, 2010). The world is registering new markets with increasing multi polar character. Mukherjee observes that human effort, skill, and talent run alongside resources and other prolific factors to improve economic goods (2002). This economic resurgence is referred by the World Bank as sweeping changes that are happening in the global economy (2011). Though significant changes in economy may be accredited to this latest financial growth, the seed of resurgence may have been planted some years earlier (World Bank, 2011). The evidence can be attributed to the emergence of world economies that have made powerful forces in international production, trades, and in the sector of finance. The race for economic development has not been left to the developed nations alone; the developing nations have also been the forces to beat. According to the World Bank report, the market share of the developing nations in the market registered a growth from 30 per cent in 1995, to 45 per cent in 2010; aside from their market share, they have also increased their financial holdings and wealth (2011). The dominance of the developing nations in the world economies are indication of economic resurgence, as well as the changes in business management. As told by Yadav (1999), economic development had to be fostered by reforms and economical planning. Planning began with a five year deal in 1951 and beginning from this period, India began to register a tremendous growth and expansion of economical structure. It is not a secret anymore that the world is up for surprises with regard to economic revolutions. There are many countries that are ready to scale up the heights of economy; China is an example of this. For a long time, the United States has dominated the financial markets, tightening their concerns with regard to monetary policy. As reported by Yao and Wheatley (2013), the first phase of Chinese industrialization created a panic throughout the world, as their high appetite for natural resources geared their efforts. China’s products provided job opportunities to many nations and while it enabled these countries curb inflation, it made many affordable products available to many average and poor people in the society. As it stands, china is more likely to remain within the range of the most powerful nations steering the global economic growth. It’s even more interesting to note that china is yet to foster its growth by avoiding the dependence on investment and exports alone; it would rather diversify its sectors of economy (Yao and Wheatley, 2013). As it stands, the global economy is already experiencing what Harding is terming it as “transition on an epic scale” (2013). New Dimensions of Management Management is arguably considered to begin with man; this builds good personality. In turn, good personality is developed by an individual through self-development just as in the case study, Dick Drew was very determined as he demonstrated his professionalism through perseverance. A fully self developed person exhibits good qualities and this develops the professionalism in the working environment. In order to harness ideas among employees as well as improve the products and services, it is essential to ensure that the organization embraces professionals with perception, conception, and proper conduct. Managers would do well if they invest their management strategy in the current techniques, skills, and dynamic business principles. Usually, managers learn a lot of things at personal levels through experience, thus they are needed to posses’ strong physique, as well as a strong mental ability so as to withstand heavy and challenging work schedules. Factors to be considered for Modern Management Developing Strategies Good management has a long term planning hereby regarded as strategic management. Without proper vision, the employees would be blinded and won’t have the knowledge of where they are heading to. Strategic management involves having vision and mission and this would ease the work and procedure of achieving the organizational goals. Saxena provides the tools that are important for consideration in order to develop good strategy; these are “affinity technique, force field analysis, and strategic analysis” (2009, p.2). This argument is also supported by Daft, who also argues that the nature of management is to adapt to the diverse challenges (2008). He also puts it straight that managers need to keep at pace with the dynamic technology (2008). Motivation One of the best ways to manage people is through motivation, thus people can perform to their best of their abilities and in the best interest of the organization. The best elements necessary for providing motivation to people include good leadership, good organization, and rewards based on workers performance. Techniques involved are the ones that would enable effective management and provide ways to solve conflicts. Ellis is in full support of this idea; his observations are that as the organization becomes more linear while making information available to all and the old management style will be eliminated (2005). To enhance motivation of employees, performance management needs to be practised because it includes motivational tools capable of obtaining quality performance of employees (Kandula, 2006). Organization Organization is the art of arranging things in a given manner. For something to be considered organized, it has to be in the correct order of placement. In an organization, it involves assignments of tasks, tasks are then grouped into departments; the organisation and the authority are then allocated resources (Saxena, 2009). A well organized company has all its tools in order and all the talents available are nurtured well. Through the scheme of organization, all the departments will be able to plan their duties and have everyone being responsible for what he/she has been assigned to. The team will require limited control and monitoring because everything is in order. One of the most difficult things in management is handling a disorderly workforce. Just like disarranged house whereby untidiness and unworthy mess are encouraged, so is unorganized management. The current crop of professionals has extensive ideas with each individual gifted to handle certain situations. This makes the role of manager simpler. Change management Some say that change is rest and change is inevitable. Paton and McCalman says that “change will not disappear or dissipate” (2008, p.5). The two further assert that what is bound to accelerate is technology, creativity, and civilization (Paton and McCalman, 2008). Change will act as the bench mark, whereby the performance of managers will be based upon; the biggest challenge goes to the current crop of managers having fallen in the 21st century, where they face the ever decreasing time scales. The speed with which change has been occurring is so much tremendous and all this can be attributed to the fast spinning mankind. It remains clear that wonders are yet to be seen, and humans’ creative nature is yet to perform. This the biggest challenge faced by the current managers; they face the pressure of making their employees creative and efficient. However, despite the fact that they are facing this pressure, the style of management is what would determine the most. The fundamental nature of change management as described by Reiss is to create a favourable platform for all change processes, and while Reiss compares change management to quality management as well as performance management, it remains to be the pillar of long term management activities (2012). While change is embraced all the core processes are considered, for they are the building blocks to competitive performance. Abrudan-Pop and Novac (2006) give the warning that however strong an organization could be, there is need to embrace change. The good thing with change management is that it not only mitigates business risks, but also eradicates them entirely. Some managers do not appreciate their role until they are too late and when resistance affects the success of their change (Hiatt and Creasey, 2003). While giving weight to change management, a manager needs not to forget to manage the people’s side of change. As given by Hiatt and Creasey (2003), most studies show that the most common obstacle to success is lack of change management and that most managers fall short when handling people’s side of change management. Change management can not only eradicate business risks that may occur during project implementation, but also provides the opportunity to mitigate any risk entirely. Many managers believe that the responsibility to manage change in people does not belong to them, but someone else; the result of this has been failure in projects. Therefore, change management is arguably a concrete pillar to handle any changes and steer the business entity to greater heights of success. 3M manager demonstrated the adaptation to change in management by allowing Drew to carry on his innovation and encouraged the rest to follow suit Dawson and Andriopoulos (2009). Management of people Wellington (2011) argues that for a manager to achieve the right balance of delivering desired results, as well as integrating well with others and at the same time achieving productivity, efficiency, effectiveness, and financial estimates, the key layer is “people”. Good leadership is one that is serious in handling people, with the objective of moving and heading for a fruitful future. This means that good management involves leading people by providing direction with a purpose. Great management is the one that identifies not only the skill, but also natural talent (Harvard Management Update, 2008). The effectiveness of people in an organization is solely dependent on the ability to manage them. Though individual competence can play part coaching is essential for motivation and development. Thomas argues that “ultimately, our leadership effectiveness is determined by our ability to develop strong working relationships, and achieve high performance results through them” (2007, p. 4). He further argues that the success of a business entity is majorly laid on people and the influence impacted on them (Thomas, 2007). Wellington (2011) puts forth a summarizing statement that if all managers yield to inspiring and motivating while listening, making wise decisions and delegating, centralizing business units by using locally decentralized responsibilities, being decisive and playing a forefront role in encouraging participation, and getting work done and maintaining a balanced work-life, then the business unit is due to succeed regardless of the challenges that come with change. 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Effective People Management: Improve Performance, Delegate More Effectively, Handle Poor Performance, and Manage Conflict. London: Kogan Page Publishers. World Bank, 2011. A Changing World Economy. [online] Available at: [Accessed 4 December 2013]. Yadav, A. K., 1999. Structural Changes in Indian economy. New Delhi: Northern Book Centre. Yao, K. and Wheatley, A., 2013. Insight: Changing China set to Shake World Economy, again. [online] Available at: [Accessed 4 December 2013]. Read More