2.1.4. A shift in management philosophy in times of change

Knut Bleicher argues in his latest edition of “The Concept of Integrated Management”⁶ that we live in an era of highly complex change which calls into question all previous forms of management.

The complexity of change and its increasing speed make it much more difficult to “manage” in the traditional sense by applying causal analytical thinking in a linear manner. A shift in established management paradigms is taking place. Two opposing versions of management philosophy can be compared with different views on human nature, leadership, structures and employee relations.⁷ In times of radical and complex change, adaptations in structure, processes and systems alone are not sufficient. Rather than analysing smaller parts in a reductionist view, a holistic world view is necessary.

Management Philosophies" class="wp-image-10555 size-full" height="622" src="https://sgbs.ch/wp-content/uploads/Table-3-Different-Management-Philosophies.jpg" width="569"> Table 3: Different Management Philosophies

Of particular interest are the underlying views on employees and the understanding of leadership.

For organisations to remain successful in times of complex and radical change, they need to recognize that the individual employee and his motivation are at the core of implementing the corporate vision and missions. His knowledge and capacity for learning and critical reflection become key elements for the success of an organisation. This requires a much more intensive consideration of human and personal factors. Motivation, understanding the driving factors behind the individual ’ s behaviour, and providing sense and fulfilment at work become new notions of management.

It changes the character of management tasks: “hard” factors of management focusing on structures and processes will lose importance while “soft” factors focusing on behaviour will gain. Managers should consider motivation and mechanisms of their own personality, the personality of staff members as well as the behaviour of their teams. High importance is given to understanding emotions and values of staff.

Acknowledging the role of the individual makes leadership not easier but more difficult. It implies a completely different management philosophy on staff as partners with relevant experience and access to valuable information. It also means that managers do not need to do and decide everything themselves. In situations of complex change, solutions cannot be found and directed by a few but need the expertise and the agreement by many. Directive management gives way to a moderating/facilitating role of management which treats staff at an equal basis.

Change can only be successful if it is accompanied by changing reflection patterns, values and attitudes towards staff which goes far beyond increasing efficiency and effectiveness.

⁶ See Bleicher, K.: Das Konzept Integriertes Management. Vi sionen-Missionen-Programme. 8th Edition, Frankfurt/New York 2011, pp 31
⁷ See Bleicher, K.: Das Konzept Integriertes Management. Visionen-Missionen-Programme. 8th Edition Frankfurt/New York 2011, pp 584