The shake-up of organisational cultures based on survival and control, and the transition to organisations based on personal greatness.
We are living through times of frequent seismic attacks on the organisational world. Alongside the obvious financial earthquake, there is an invisible earthquake, taking place at an individual level. When it reaches a critical mass, it will erupt and the full force of its power will be evident.
Since the industrial revolution, many organisations have been established throughout the world with the sole aim of maximising profit for their owners and shareholders. In order to maximise profit for one side of the equation, various methods have been developed over the years that together created organisations based on survival and control. These include:
- Ongoing focus on the bottom line
- Raising performance standards while reducing resources ('doing more with less')
- Continual change and restructuring (e.g. mergers and acquisitions, outsourcing, etc.)
- 'Carrot and stick' methods for reward and punishment
- The threat of redundancy
- Organisational politics based on 'survival of the fittest'
- Persecution of those who reveal corruption
- Longer working hours, or higher expectations over availability
In such organisational climates, the dominating elements are survival, fear and control. These may be implicit rather than openly referred to, yet they are present. The underlying expectation is: "do what you are told to, fit in, or you will lose your job, your permanency or at least your chances for promotion".
The result is people often working fourteen to sixteen hours a day because 'it is the norm'. People are hooked up to their mobile phones, email and the internet for twenty four hours a day with the expectation that they are available continuously.
Why employees tolerate 'survival & control' cultures
Why do people seem so willing to comply with a 'survival & control' culture in their organisations?
The answer can be found in the basic motivators of security and tenure. Both of these motivators have been particularly important for the older generation, raised in the aftermath of the world wars in the last century, with a concern for human and economic survival. They were passed on to the next generation as part of its basic education.
We're all familiar with adages such as 'get a profession that will ensure you a stable living', 'it's important to find a good job', 'security and tenure in your role are paramount'.
Such fear-based perceptions, all relating to fear of survival are hard to break through. Many of the structures, dynamics and relationships between employers and employees have been unconsciously and informally built around these fears.
As a result, many employees will not voice their dissatisfaction with the status quo out of fear of harming their promotion prospects or bonuses. Instead, people suffer quietly from bad managers and incapable leaders, which in turn creates mini-earthquakes affecting morale and retention in parts if not whole organisations. These phenomena are recorded in Kay Gilley's excellent book: "The Alchemy of Fear".
The cracks appearing in 'survival & control' cultures
It is now apparent that, in this once-stable world of organisations and employment, a world based on control and survival, there are now increasing seismic cracks.
Firstly, the psychological contract of security at work between employer and employee has collapsed. Thousands of people have been made redundant, thrown out or replaced in the process of workforce restructures or reductions.
Secondly, independent and talented employees have found themselves feeling trapped in such organisations. After suffering this feeling for a number of years, many of these excellent employees have mustered up the courage to break free from the organisation and become independent workers, freelancers or outsourced consultants (some of them even continuing their previous occupation within the same company under this new status).
Entire groups of "knowledge workers" whose main assets are their ability to communicate, research, analyse and creatively problem solve around issues within an area of expertise, are not willing to march to the orders of incompetent managers.
Thirdly, more and more people want to be involved, to have influence, to take responsibility for their future and most importantly to fulfil their potential and talents. This is particularly evident in 'Generation Y' (those born after c.1980).
These phenomena and others are the cause for a trend that is becoming increasingly evident, whereby outstanding and excellent employees in many organisations move to more independent employment frameworks or become "freelancers'. According to a UK study (conducted by Kingston University and PCG, published in November 2011), one in twenty workers in the UK are now freelance, a 12% increase on figures at the start of the recession in 2008 (during which time unemployment has risen markedly). In some areas of the U.S.A., thirty percent of the work force has freelancer status, and in some western countries, it stands at about ten percent.
If this is so, are we going to see the loss of key talent within mediocre organisations elsewhere in the world? Will these organisations have to move to an employment model based principally on contracting out for key talent? Indeed, what chances of survival do such organisations have over the coming years?
Greatness and human development as the alternative
There are still precious few organisational models that are based on an alternative structure to survival, control and fear. One alternative model may be an organisational structure based on the greatness and growth of people, over one dominated by fear relating to basic survival needs. The tenets of such an alternative model are found in the organisation's pursuit of personal development and excellence as a key focus of its activity.
This requires a flexible model that allows people to grow, to develop their careers, to influence and reach a higher level of contribution. In order to establish this kind of organisation, investment in training and development will not suffice. Rather, what is needed is a paradigm shift to a new win-win models that enhance the success of both individuals and organisations.
The foundation of such models is the understanding that the aim of the organisation is to create optimal value for each stakeholder (employees, managers, owners, customers, suppliers and the community) as well as shareholders and/or owners - as opposed to creating value for shareholders alone. These are models with a much larger scope of responsibility, including social and environmental responsibility.
This paradigm creates a dramatic change in self-perception, perception of the organisation and of work. Until there is a greater take-up and development of such models, companies will suffer from a spiralling earthquake effect. Each earthquake will be accompanied by the retirement or disconnection of key talent from the organisation. An increasing frustration will also be felt in such organisations when 'carrot and the stick' methods of motivation will no longer be sufficient.
Currently, the first organisations of the future based on personal development and fulfilling the greatness of their employees are emerging. These are usually small organisations, or autonomic divisions within larger ones, usually led by courageous and aware HR, Talent and Organisational Development departments who have recognised the need to focus their talent retention efforts around on how to develop, support and truly empower employees.
Adapted by Daniel Stane (Director of Learning & Performance Improvement, The Acumen Company), from an original article by Aviad Goz, Chief Visionary Officer of (our partners) N.E.W.S. Training & Coaching.
