the future of management-scott thor

8/14/2019 The Future of Management-Scott Thor

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Future of Management1Scott Thor BUSG 707 Executive Level Management

The Future of Management: Creating Employee Engagement

Scott Thor

George Fox University

Doctor of Management

BUSG 707 Executive Level Management

January 5, 2010


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by innovating the activity of management, resulting in strategic advantages that are

difficult to mimic by competitors.

This paper begins with a description of management innovation and how it can

create strategic advantages for organizations. The paper also describes some of the

biggest challenges facing managers of the future, and provides guidance on areas in

which managers need to innovate in order to truly capture the capability of their

workforce to ensure the future success of their organization.

Management Innovation

What is management innovation? Hamel and Breen (2007) describe

management innovation as anything that changes what managers do that enhances the

performance of an organization. Hargrave and Van de Ven (2006) add to the definition

by including the caveat that the change be novel or an unprecedented departure from

the past.

When thinking about innovation most people tend to visualize some type of

technological advancement such as the personal computer or cellular telephone.

Management and innovation have not been viewed as a combination that naturally go

together, which provides some insight into why managers traditionally do not view their

role within organizations to be innovators. Hamel and Breen (2007) also argue that most

managers view their role as the activity of doing and not dreaming.

In a world of rapid change and the availability of technological resources,

operational, product, and strategic advantages no longer provide a long-term

competitive position. Any organization with the financial resources can quickly duplicate

and/or improve upon a competitors operations, product, and strategy. What are difficult


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to copy are the unique combinations of management innovation utilized within the

organization, which create a long-term advantage (Hamel & Breen, 2007).

Challenges for the Future of Management

Managers in the 21st century face a number of challenges. Hamel and Breen

(2007) suggest that the three most formidable challenges facing organizations in the

21st century include:

1. Dramatically accelerating the pace of strategic renewal in organizations large and

small.

2. Making innovation everyones job, every day.

3. Creating a highly engaging work environment that inspires employees to give the

very best of themselves (p. 40-41).

Change is a constant in the modern business environment. Hamel and Breen

(2007) suggest asking the question, Are we changing as fast as the world around us?

(p. 42). If not, an organization may not be changing fast enough to stay ahead of

competitors and meet the needs of customers. Hamel and Breen believe the goal for

organizations must be trauma-free renewal (p. 43).

In a world where competitive forces are much higher than in the past, a second

challenge is capturing the creativity of the workforce to be constantly looking for a better

way to stay ahead of competitors. An argument can be made that both change and

innovativeness will be difficult in an environment where employees are not engaged in

their work, which is perhaps the most significant opportunity for managers to innovate.


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Employee Engagement

What is an engaged employee? How does one define engagement? No single

definition of engagement exists, but several authors, researchers, and consulting

organizations have offered definitions to describe engagement.

Harter, Schmidt, and Hayes (2002) define employee engagement as, the

individuals involvement and satisfaction with as well as enthusiasm for work

(p. 269).

Wellins and Concelman (2004) describe employee engagement as, the illusive

force that motivates employees to higher levels of performance (p. 1).

Towers and Perrin (2003) define engagement as, employees willingness and

ability to contribute to company success (p. 2).

No matter how you define it, engaged employees care about the organization

and are driven to perform. The challenge facing the future of management is creating an

environment that fosters engagement, and recruiting employees who have a high

probability of becoming engaged in the organizations environment.

Engaged Employees Lead to Results

Research conducted by Gallup Consulting (2008) and Towers Perrin (2003,

2007) came to similar conclusions in measuring employee engagement. Gallup

research data suggest that only 30 percent of employees are engaged, 50 percent are

not engaged, and 20 percent are disengaged in their work. Towers Perrin survey data

suggest that 20 percent of workers are highly engaged, 60 percent are moderately

engaged, and 20 percent are disengaged. What is blatantly evident from both studies is


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What leads to engagement?

Towers Perrin (2007) believes that engaged employees are not born, but made

(p. 2). The environment an employee works in has a significant influence on creating

engagement, according to their research. Some of the critical elements found to

improve employee engagement include senior management taking a sincere interest in

employees well-being, being given the opportunity to improve skills and capabilities

over the past 12 months, input into decision making, career advancement opportunities,

and a good relationship with the employees direct supervisor.

Wagner and Harter (2006), in their review of Gallups research, came to similar

conclusions that include having a valued opinion, working for a supervisor who cares

about the employee, and having the opportunity to learn and grow. What is clear from

both research groups data is that managers have the ability to create an environment

that stimulates engagement.

Creating Engagement: An Opportunity to Innovate

The data on employee engagement overwhelmingly points to a significant

opportunity for managers to innovate. The traditional methods of management clearly

focus on getting things done and not on the people doing them. In some respects these

results should come as no surprise. Business as we know it has focused more on the

results of organizations and not on the individuals who they are made up of. To truly

become management innovators we will need to focus on the individuals within the

organization to tap into their adaptability, resiliency, and innovativeness that can not

only contribute to the goals of the organization, but also, and maybe more importantly,


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to the sense of fulfillment of individuals within the organization who come to work each

day striving to make a difference.

There is no simple algorithm that equates to increasing engagement, but data

from the study of employee engagement over the last decade provides areas in which

managers can focus their innovation efforts (Towers Perrin, 2003, 2007; Wagner &

Harter, 2006; Gallup Consulting, 2008). To begin the initiative managers should ask the

following questions to better understand opportunities to increase engagement through

innovative solutions:

How can the organization ensure all employees know what is expected of them?

How can the organization provide employees with the opportunity to do what they

do best every day?

How can the organization provide recognition and praise to employees?

How can the organization encourage the development of employees and provide

career advancement opportunities?

How can the organization make employees feel that their opinion counts, and

provide opportunities to make decisions that affect their work environment?

How can the organization ensure employees feel a connection with the mission

of the organization?

How can the organization do a better job of talking to employees about their

performance?

How can the organization provide challenging work to employees and provide

opportunities to learn and grow?


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Discovering the answers to these questions can come in the form of a survey or

focus groups. The answers to these questions will provide an organizations leaders

with insight into how to increase employee engagement. Traditional management

techniques are not likely to be linked to the answers of these questions. To create an

engaging environment will require innovative solutions to these challenging problems

found in most organizations.

Conclusion

People make up organizations, and when given the opportunity and the

resources they can make great things happen, so it is surprising how little attention has

really been given to them throughout the history of business. If one looks back on the

history of business theory most of the focus is on processes and not people. Few

innovations are likely to be found in these processes so the time has come to focus on

the people utilizing the processes. The 21st century manager has to make a paradigm

shift from just doing to dreaming and doing. The future of management lies in

developing innovative solutions that capture the full potential of employees.


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References

Fayol, H. (1930). Industrial and general administration. Geneva: International

Management Institute.

Gallup Consulting (2008). Employee engagement: Whats your employee engagement

ratio. Retrieved November 26, 2009, from

http://www.gallup.com/consulting/File/121535/Employee_Engagement_Overview

_Brochure.pdf

Hamel, G. & Breen, B. (2007). The future of management. Boston, MA: Harvard

Business School Publishing.

Hargrave, T. & Van de Ven, A. (2006). A collective action model of institutional

innovation.Academy of Management Review, 31, 864-888.

Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship

between employee satisfaction, employee engagement, and business outcomes:

A meta-analysis. Journal of Applied Psychology, 87(2), 268-279.

Towers Perrin HR Services (2003). Working today: Understanding what drive employee

engagement. Retrieved November 10, 2009, from http://tinyurl.com/ybmyx78 Towers Perrin HR Services (2007). Closing the engagement gap: A road map for driving

superior business performance. Retrieved November 20, 2009, from

http://tinyurl.com/y9mhhtj Wagner, R. & Harter, J. K. (2006). 12: The elements of great managing. New York:

Gallup Press.


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Wellins, R. & Concelman, J. (2005). Creating a culture for engagement. Workforce

performance solutions. Retrieved November 26, 2009, from

http://tinyurl.com/ydm5ek7

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