Soren Nymark -
Value-based management in learning organizations through 'hard' and
'soft' managerial approaches: The case of Hewlett-Packard is about 'Learning
organizations' enabling companies to remove hierarchical levels and to
introduce a flatter organizational structure, which can lead to reduced
costs and increased productivity.
A recent Danish study
has proved coherence between a flat, integrative organizational structure
and an increased productivity. This enables a kind of management in which
the managerial form is not as direct as it is in more traditional structured
management is advanced as a possible answer to the question of which
managerial form that is appropriate for these kind of companies.
In the article,
value-based management is described as well as the underlying factors
that are affected by such a managerial form in learning organizations.
can fundamentally be seen as an indirect managerial style. It is
concerned with making the employees carry out the correct work assignments
own initiative without ordering them directly to do so. In learning
organizations / knowledge based companies the circumstance also
exists that the management does not know what the employees specifically are
supposed to do, and the management is not expected to know. The
managementís role is to define, create, and communicate the conditions in
which knowledge workers can work. Conditions about what is acceptable
behavior, and which actions are appropriate in relation to the managementís
vision and company values. By this information from the management the
employees deduct their understanding of conditions and direction in the
company. Value-based management is thus a managerial form that is
concerned with making a group of people work together towards a mutual goal
without explicit managerial pressure and use of power.
elements in relation to value-based management are advanced.
Hewlett-Packard are used to illustrate both the use of value-based
management in practice and the underlying factors.