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Management article
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Reference no. 95409
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1995

Abstract

In the mid-twentieth century, global organizations began to promise employees economic security, personal fulfillment, and respect in return for performing clearly delineated activities. Employees were willing to make sacrifices, and employers were willing to invest in training in the mutual expectation of future reward. But now, intense competition and rapid change are destroying predictability. Virtual organizations and many current managerial practices, such as reengineering, continuous improvement, matrix management, and "rightsizing," ignore this human need. As a result, employees keep their resumes up to date and their commitments to a minimum. The best way to approach organizational change is with the realization that dire predictions are better than no predictions at all or positive predictions that no one believes. Managers must make few promises and keep those they do make. The more managers make clear to employees which courses of action will improve their lives, the more employees can focus on creating value.

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Abstract

In the mid-twentieth century, global organizations began to promise employees economic security, personal fulfillment, and respect in return for performing clearly delineated activities. Employees were willing to make sacrifices, and employers were willing to invest in training in the mutual expectation of future reward. But now, intense competition and rapid change are destroying predictability. Virtual organizations and many current managerial practices, such as reengineering, continuous improvement, matrix management, and "rightsizing," ignore this human need. As a result, employees keep their resumes up to date and their commitments to a minimum. The best way to approach organizational change is with the realization that dire predictions are better than no predictions at all or positive predictions that no one believes. Managers must make few promises and keep those they do make. The more managers make clear to employees which courses of action will improve their lives, the more employees can focus on creating value.

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