Change management might become the downfall of a company that is not prepared for such a challenge. The old top-down planning model is not recommended for a company that strives for innovative ideas and aims to compete on a global scale. Tang (2019) states that “top-down control tends to work well for simple, well-understood and stable tasks,” and none of these descriptions is the indicator of an innovative company that H2o strives to be (p. 39). There is little feedback intended to be received under such a structure, putting the company at a disadvantage due to the disregard for new ideas that its employees might have. Moreover, vertical hierarchy is linked with a partial loss of an intended message as it travels to the top of the chain of command (Tang, 2019). The research and development department is clearly one of the largest parts of H2o Solutions, which would struggle to operate normally under such a model.
I would recommend the decentralized approach to managing the company’s employees. It gives the highest potential for meaningful input from all available resources, creating a shared vision of the future of H2o Solutions. It relies on the employees’ skills that the company’s employees already possess and complements the long-term objectives of the firm. Moreover, high emotional intelligence is a huge benefit for such a structure. The case study mentions that H2o Solutions has hired people who possess high levels of emotional intelligence, with is an advantage that must be put to use. It allows employees to act independently yet in harmony with others by giving proper evaluation to the actions of their peers. Being one of the critical skills for a manager, this skill enables each team to keep themselves motivated, autonomous, and open to cooperation with others (Lauer, 2021). Therefore, switching to this planning model will be ideal for H2o Solutions.
The positive changes from switching models will show in the competitive advantage from employees’ freedom of input. The decentralized goal-setting model supports teams that perform complex tasks that involve analytical skills and a constant need to make decisions (Harrington, 2018). Instead of direct reports moving upwards and potentially losing their relevancy or essence, discussions within the company will be more fruitful in terms of listening to each employee’s ideas and proposals. The managerial staff must understand that knowledge is not concentrated in a single person, and each employee adds a new perspective on an issue that might become a part of a groundbreaking solution. Without such an upgrade, the company is more likely to fail to deliver the innovative solutions that gave it the competitive advantage in the first place.
The continuous change in the market requires companies to adopt the most viable strategies. This approach would allow workers with the skills and knowledge required for a particular breakthrough to take the spotlight and assist their company with keeping an innovative edge over its competitors. The shortened path for communication, both with managers and other teams, will boost H2o Solutions’ efficiency as it continues to grow. Firms must adjust to the new obstacles on the way to their success at the highest possible rate, and this process starts with managers. Harrington (2018) argues that managers’ jobs progress towards “a larger span of support and new, more demanding challenges” that will require fewer technical decisions (p. 53). Managers will be able to lead by example and assist others through constructive feedback. They will help establish a new organizational culture that is based on mutual trust, openness, and the pursuit of common objectives (Harrington, 2018). Rapid adaptation stemming from increased flexibility is a key function for modern companies, especially the ones that rely on technological progress more than anything else.
The new organizational culture in H2o Solutions would promote constructive criticism, giving every employee a chance to express their recommendations and concerns. A significantly higher number of collected feedback with meaningful responses is the first step towards a decentralized approach. It would indicate that employees feel safe to express their thoughts freely under such a model. The competitive analysis of the company’s performance can serve as a benchmark as well, although it is essential to understand that the goal is not to copy others’ models but to expand on their concepts (Harrington, 2018). Surveys on the critical components of the decentralized model, such as autonomy, communication, and participation in decision-making processes, will present the complete picture of the impact of new changes.
The old managerial approach might be troublesome to eliminate entirely due to the employees’ habits. Managerial staff must be comfortable with giving up a significant portion of decision-making processes (Harrington, 2018). Successful management of a company with such a structure would require taking higher risks, more complex evaluation and feedback systems, and improved communication (Harrington, 2018). Another issue might come from employees who are used to having less responsibility and require fewer analytical skills than under the decentralized model. Their input will be more highly valued, yet their assessment will be more strict, putting them under stress.
References
Harrington, H. J. (2018). Innovative change management (ICM): Preparing your organization for the new innovative culture. CRC Press.
Lauer, T. (2021). Change management: Fundamentals and success factors (3rd ed.). Springer.
Tang, K. N. (2019). Leadership and change management. Springer.