NEW PARADIGMS

1. NEW PARADIGMS The Culture-Excellent Approach

2. Learning Objectives • Understand the reasons for emergence of new organizational paradigms • Describe the key features of the Culture-Excellence approach • List the core advantages and disadvantages of Culture-Excellence approach

3. New Paradigms From his book “ The structure of Scientific Revolutions”, he defined a paradigm as a universally recognized scientific achievement. New paradigm was born in 1970s and 1980s, because western woke up to the Japanese challenge. A new techno-economic rationale is emerging.

4. This new rationale has 3 main features : • A shift towards information-intensive rather than energy • A change from dedicated mass production toward more flexible systems • A move towards the greater integration of process and systems within companies, suppliers, and customers. This developments have been given variety of names, in 1990s, they call “postmodernism”

5. The Culture-Excellent Approach This approach is attempting to predict and promote the way firms should operate in the future.

6. Search for Excellence Features : Tom Peters and Robert Waterman Book : In Search of Excellence : Lesson from America’s Best Run Companies (1982) They determine 4 ‘soft’ Ss which held the key to business success : • Staff • Style • Shared values • skills

7. There are 8 key attributes that organizations need to achieve excellence : • A bias for action • Close to the customer • Autonomy and entrepreneurship • Productivity through people • Hands-on, value driven • Stick to the knitting • Simple form, lean staff • Simultaneous loose – tight properties

8. Post-entrepreneurial Model Features : Rosabeth Moss Kanter Book : When Giants Learn To Dance : Mastering the Challenges of Strategy, Management and Careers in the 1990s She said : winning it requires faster action, creative maneuvering, flexibility, and closer partnerships with employees and customers.

9. She sees post-entrepreneurial organizations pursuing 3 main strategies : • Restructuring to find synergies • Opening boundaries to form strategic alliances • Creating new ventures from encouraging innovation and entrepreneurship The consequences of the post-entrepreneurial model will have a major impact on employees for : • Rewards systems • Career paths and job security • Lifestyle

10. Emerging Future Organizations Features : Charles Handy Book : Understanding Organizations (1976) He believes the new organizations will need to treat people as assets to be developed and motivated Handy identifies 3 types of organizations : • The Shamrock organizations • The federal organizations • The Triple I organizations

11. The Shamrock Organizations Composed of 3 distinct groups : • The core workers • The contractual fringe • The flexible labor force The Federal Organization A organizations as network of individual organizations allied together under a common flag with some shape identity

12. The Triple I Organization Triple I based on Intelligence, Information and Ideas In future, the equation organizations will be Triple I = AV (Added Value) and have • Invest in smart machines to remain competitive and effective • Recruit skilled and smart people to control the machines • Ensure that this group of skilled people is rewarded equitably

13. Summary • Organizations entering new age, where familiar themes are taking on different meanings and expressed in new language • The important in the new is brain power • The ability to make intelligent use of information to create ideas that add value and sustain competitiveness