Heart of Management

Tag: Leadership

  • Who Are Our True Stakeholders?

    Post 1 of 6 in the Series About My Stakeholders:

    Recently, I received some interesting comments.

    People told me: “You write a lot about management, but ultimately, who really influences our actions as managers is our manager.” And this made me think… Right! Our manager is one of a group of people and factors that influence us daily, and each of them has their own interests. Maybe our manager is the most influential, but there are others.

    So I decided to write a series of posts about all those stakeholders who influence us as managers, and one of the most important among them is truly your manager.

    So who are these stakeholders?

    A stakeholder is anyone who can be affected by your decisions and actions. This might sound a bit complex at first, but it’s simpler than it seems. Think about it: this includes your manager, your employees, customers, suppliers, competitors, and even regulatory bodies. Each of them has their own goals, and each can impact your success. Correctly identifying all these stakeholders will help you understand what each of them wants or needs, and thus you can manage more intelligently.

    So why is this so important?

    Because as managers, we don’t operate alone. Every action of ours touches many people around us, and if we don’t understand what each person wants from us, we might miss the point. When we correctly identify stakeholders, we can improve communication, collaborate more effectively, and achieve better results – for ourselves and for them.

    In the next post, we’ll talk about your manager – the central stakeholder who influences you and how you can build a good relationship that will help you succeed in your role.

  • Post 4 out of 5: The Impact of Organizational Culture on Performance – When Does Organizational Culture Actually Harm?

    In previous posts, we discussed how strong organizational culture can lead to success. However, there are cases where culture can actually hinder the organization and even damage it.

    What does a “negative” organizational culture look like?

    1. Poor Communication and Information Hiding

    Communication is key to a healthy culture. But when there’s a lack of transparency, or when things go through organizational politics “filters” – that’s a bad sign. A McKinsey study showed that poor communication hurts the ability to handle changes and improve performance.

    2. Culture of Blame and Fear of Failure

    In places where failure is seen as “dangerous,” there’s less room for creativity and experimentation. A “blame-finding” culture stifles initiatives. An example of this is Kodak, which was a market leader but feared the transition to digital – something that led to its collapse.

    3. Work Overload and Poor Balance

    An “always working” culture leads to burnout. A WHO study showed that long working hours are harmful to employee health. Organizations that foster healthy balance gain more satisfied and productive employees.

    4. Lack of Transparency and Absence of Engagement

    When employees feel they have no idea what’s happening in the organization, alienation develops.

    5. Inflexibility and Resistance to Change

    A culture that’s not open to changes leads to a stagnant organization. When managers make change difficult, the organization might fall behind and fail to progress.

    6. Over-involvement in Decision Making

    Team involvement in decision-making sounds good on paper, but sometimes it leads to slowness and delays. When every team member needs to voice their opinion on every decision, processes can take too long and the organization loses its ability to respond quickly. The key is finding balance – knowing when to involve others, and when to make decisions and act fast.

    Summary

    Not every good intention creates a good outcome. In the next post, we’ll discuss how to build a healthy organizational culture that leads to real success.

  • Post 3 out of 5: The Impact of Organizational Culture on Performance – Strong Culture = High Performance? How Does It Really Work?

    In previous posts, we discussed what organizational culture is and the hidden factors that shape it. Now, let’s dive a bit deeper – how can a strong and healthy organizational culture improve your organization’s actual performance?

    1. Employee Motivation and Engagement

    A positive organizational culture not only makes employees feel good at work, but it also increases their motivation. Why? When employees feel part of something bigger, when their work has real meaning – they give their maximum. A Gallup study shows that highly engaged employees tend to be more productive, and their engagement improves their sense of belonging and commitment to the organization. This means they’re also less likely to look for another job.

    2. Collaboration and Strengthening Community Feeling

    When there’s a culture that promotes collaboration, employees feel there’s room for real dialogue. In such organizations, there’s more openness to ask questions, share ideas, and receive feedback – leading to better performance. A good example is Spotify – one of the most successful companies in the digital music world. Their culture is based on “squads” – small teams composed of diverse individuals who support each other to achieve quick successes.

    3. Creativity and Innovation

    In an organization with a culture that values creativity and openness, employees feel comfortable raising innovative and unconventional ideas. This culture creates a space where new things can be tried, even if they don’t always succeed. Steve Jobs often said that Apple’s success stems from employees’ ability to feel free to initiate, think outside the box, and be creative.

    4. Ability to Cope with Changes and Challenges

    A strong organizational culture contributes to the organization’s ability to deal with challenges and changes. When there are clear values and good communication, it’s easier to mobilize teams to work together to handle unexpected situations. Especially in an era like ours, where changes happen faster than ever, such a culture can be the organization’s competitive advantage.

    5. Increasing Employee Loyalty

    A healthy organizational culture encourages loyalty and satisfaction. The more employees feel valued, understand the organization’s goals, and belong to a strong community – the more likely they are to stay with the company long-term. And it pays off: according to a LinkedIn study, companies with a strong organizational culture experience lower employee turnover, leading to significant savings in recruitment and training costs for new employees.

    Examples from the World

    An excellent example is HubSpot. This company emphasizes values like “being change makers” and “collaboration”. The result? Employees are more engaged, satisfied, and loyal, and the company enjoys excellent performance and amazing business results.

    In the next post, we’ll talk about the less positive side of organizational culture – when organizational culture can actually be harmful, and how to identify the early signs of this.

    Sources:

    1. Gallup’s State of the Global Workplace report – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2021-report.aspx

    2. HubSpot Culture Code – https://www.hubspot.com/culture

  • Post 2 of 5: The Impact of Organizational Culture on Performance – The Hidden Factors that Shape Organizational Culture

    In the previous post, we discussed what organizational culture is and why it’s so important. But wait, have you ever stopped to think about what really influences organizational culture? Sometimes there are hidden factors, ones that we might not consciously notice, that significantly shape the culture in an organization.

    What are the hidden factors in organizational culture?

    There are several factors that we sometimes forget about, but they are an integral part of how our organization operates:

    1. Management’s perceptions and beliefs

    The way senior managers view the organization directly affects the culture. If managers believe in promoting innovation and giving freedom to employees, it’s likely that employees will feel more comfortable coming up with new ideas and acting independently. On the other hand, if management focuses only on results and the bottom line – this will affect the pressure and cause employees to work in a more tense manner.

    2. Communication patterns

    How do people talk to each other in the organization? Is communication open and flowing or does it go through many “filters” and bureaucratic processes? Research from the Journal of Business Communication shows that open and directed communication allows employees to be more involved, and ultimately improves organizational performance.

    3. Daily behavior

    It can be easy to miss the impact of daily actions on organizational culture, but they are an integral part of it. From how we deal with failure to how we praise successes – all of these affect employees’ feelings and values. An interesting example is Amazon, which maintains a culture of constant striving for improvement, bringing employees to always think about how processes can be improved.

    4. Hidden assumptions

    Hidden assumptions are those ideas and perceptions that have become so deeply ingrained that they’ve become almost invisible. This can be anything from a perception of “how a good employee should behave” to certain ideas about “what success is”. Once these assumptions are understood, it’s possible to start implementing changes that affect the entire culture.

    Why does it matter?

    Understanding these hidden factors is critical. Since organizational culture is more than just nice words or slogans, these are the factors that actually shape it and influence how everything operates in the organization – and ultimately business performance as well.

    In the next post, we’ll delve deeper into how a positive organizational culture can improve performance, and how you can identify and influence these hidden factors in your organization.

    Sources:

    1. Journal of Business Communication – Articles on the impact of communication on employee engagement.

    2. Amazon Leadership Principles – Amazon’s organizational culture and values: Amazon’s Leadership Principles

  • Post 1 of 5: The Impact of Organizational Culture on Performance – What is Organizational Culture and Why is it So Important?

    So what’s the deal with organizational culture? It’s a topic that’s talked about a lot, but how does it really affect your organization? Organizational culture isn’t just nice phrases on office walls or on the company website. It’s about what happens day-to-day – how we communicate with each other, how decisions are made, and how we generally conduct ourselves.

    So what exactly is organizational culture?

    In simple terms, organizational culture is all the values, behaviors, and norms that guide our organization. It sets the tone of the organization, from how we welcome new employees to the way we handle challenges.

    Edgar Schein, one of the leading researchers in organizational culture, says that organizational culture consists of three layers:

    1. Visible level – This is the part we can see, like office design, dress code, and symbols.

    2. Hidden level – Social norms and behaviors that we don’t always see, but we all feel.

    3. Basic underlying assumptions – Our deepest perceptions, which are quite difficult to pinpoint, but dictate much of our conduct.

    Why is it so important?

    When we have a healthy and supportive organizational culture, employees feel they belong and are more connected to their work. They feel they have a place to come up with ideas and express themselves without fear. In fact, a Gallup study found that employees who feel connected to their organizational culture show higher engagement at work, and such engagement increases productivity by about 17%! So yes, it’s quite important.

    Examples from the field

    Many companies have succeeded thanks to a strong organizational culture. One of them is Netflix, known for its work culture that allows freedom and personal responsibility. Netflix manages to create an atmosphere that leads to excellent results because employees feel they have autonomy and influence.

    In the next post in the series, we’ll talk about the hidden factors that shape organizational culture – and how they affect organizational performance.

    Sources:

    1. Gallup’s State of the Global Workplace report – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2021-report.aspx

    2. Netflix Culture Deck – https://jobs.netflix.com/culture

  • Fourth and final post in the series on Industry X.0: A Journey Through era’s in the industry and a Perspective on the Future

    The journey through Industries 1.0 to 6.0 reveals how much industry has developed and impacted the world. Each industrial revolution changed not only the way we produce, but also how we live, communicate, work, and use resources. These revolutions not only produced more efficient products, but also reshaped the economy, culture, and society itself.

    Looking Back on Industries 1.0 to 6.0

    Industry 1.0 brought mechanization and factory revolution to the world, ushering in the era of mass production, freeing humans from manual production, and enabling production on a scale previously impossible.

    Industry 2.0 continued the change with electricity and production lines, making products available to the wider public and making the world more connected.

    Industry 3.0 introduced computing and automation, making production more precise and effective.

    Industry 4.0 brought a new era where every machine and product can communicate with each other in real-time. These digital technologies sparked another revolution, especially in the field of data and connectivity.

    Industry 5.0 focuses on collaboration between humans and machines, not as a replacement for humanity but as a complement to it. Sustainability is a central pillar, with production focusing not only on efficiency but also on reducing environmental impacts and improving social conditions.

    Industry 6.0, as it appears now, is a forecast for the future that includes innovative technologies such as quantum computing and advanced artificial intelligence, which are still in research and development stages.

    Personal Perspective on Industrial Development

    In my personal opinion, future historians might view Industries 3.0, 4.0, and 5.0 as part of the same broad industrial revolution encompassing automation, computing, and artificial intelligence. Over the years, these technologies have only improved – becoming more efficient, more precise, and more available. The main refinement is not necessarily in new inventions, but in the wider use of existing technologies and making them accessible to all.

    What might be considered the “next industrial revolution” will occur, in my opinion, when we reach full integration between humans and machines. This is a state where humans and machines will work together in such deep collaboration that we won’t be able to distinguish where human thought ends and artificial intelligence begins. This is a vision that evokes excitement and also concern, as it brings with it deep ethical questions about the role of humans in such an industrial future. However, I am not a futurist, and it seems only time will tell how things will actually develop.

    For more interesting posts, follow the Heart of Management page.​​​​​​​​​​​​​​​​

  • Third post in the series on Industry X.0: Industry 5.0 and 6.0 – Collaboration between Humans and Technology.

    Industry 5.0 and 6.0 bring us to a new era where technology and humanity join forces to create innovative solutions and promote sustainability.

    Industry 5.0 – Humans and Machines Collaborate.

    Industry 5.0 focuses on close collaboration between humans and machines, with the goal not only of more efficient production but also an emphasis on environmental and social sustainability. Artificial intelligence and automated technologies function as partners that assist humanity in creating personalized products while considering minimal resources and recycling. An example of this is the Nike By You project (https://www.nike.com/nike-by-you), which allows Mass Customization – personalized production on a large scale while maintaining production efficiency.

    Industry 5.0 aims to create resource-efficient processes, using systems that minimize energy and material use, and incorporate recycling as an integral part of the process. In this generation of industry, which we are only at the beginning of, attempts are also being made to reduce overall environmental impact, while integrating renewable energy and reducing pollutant emissions. Additionally, Industry 5.0 promotes social sustainability, creating a healthier work environment for employees and improving connections with the communities in which it operates.

    Industry 6.0 – Predictions for the Future (Science Fiction).

    Industry 6.0 is still in the realm of futuristic predictions, and forecasts include technologies such as quantum computing, biotechnology, and advanced artificial intelligence, intended to address global challenges such as climate change and resource scarcity. Industry 6.0 aims for a deeper integration between humans, machines, and the environment, but for now, these are just predictions for the future.

    Space Manufacturing – Another Future Vision

    Another interesting direction for Industry 6.0 is space manufacturing. Thanks to unique conditions of low gravity and the ability to utilize external resources such as asteroids and the moon, it’s possible that in the future we’ll be able to produce advanced materials in space that cannot be produced on Earth. Companies like SpaceX and NASA are already conducting experiments on this topic at the International Space Station, aiming to examine these possibilities for manufacturing in different conditions.

    In the next post, I’ll summarize the topic of Industry x.0 and also add my opinion 😊.

    Did you like it? I’d love to hear your feedback.

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  • Second post in the series on Industry X.0: Industry 3.0 and 4.0 – The Digital Revolution and Smart Contract Manufacturing.

    Computers and robots are changing the face of industry.

    Industry 3.0 – Computing and Automation Enter Industry

    Industry 3.0, which began in the 1970s, transformed industrial production through computers and robots. An example of this is the Fiat Uno Fire, where robots produced the car engines, marking the beginning of the transition to wider automation. The use of robots allowed for the production of high-quality products on a large scale, while reducing human errors and improving accuracy.

    This revolution also changed the job market. With the need for new technological skills to operate computerized systems and robots, there was a demand for workers skilled in these areas. However, there was a decrease in demand for traditional manual labor.

    Industry 4.0 – Smart and Connected Manufacturing

    Industry 4.0, which developed in the early 2000s, brings the world of manufacturing to a new level with the integration of advanced technologies such as the Internet of Things (IoT) and artificial intelligence. Tesla’s smart production line is a prominent example of this: Tesla vehicles are connected to a system that analyzes data in real-time and enables improvement of production processes and reduction of malfunctions.

    Additionally, Industry 4.0 focuses on “smart factories” where computerized systems operate in full synchronization, make automatic decisions, and improve efficiency. This change has improved production capabilities, reduced costs, and increased flexibility to adapt products to changing needs. This impact has also increased the demand for workers with high technological expertise to maintain and develop these systems.

    In the next post, we’ll talk about Industry 5.0 and the forecast for Industry 6.0.

    Did you like it? I’d love to hear your feedback.

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  • Final post (6) in the series on motivation, where we find the common denominators among all theories.

    These are things that, if we do them, will undoubtedly increase the motivation of the employees we manage.

    After examining five central motivation theories, we can identify several shared principles that interconnect and complement each other. Understanding the common ground between these theories can help managers create effective management strategies that promote motivation, satisfaction, and a sense of meaning in employees’ work.

    Meaning and Self-Actualization

    All theories emphasize the importance of meaning and self-actualization at work:

    • Viktor Frankl: Searching for meaning as a central component of motivation.

    • Maslow: Self-actualization as the highest need in the hierarchy of needs.

    • Herzberg: Motivators such as achievements and recognition that lead to satisfaction.

    • Deci and Ryan: Autonomy, competence, and relatedness as promoters of intrinsic motivation.

    • Schein: Behaviors that create a supportive and meaningful organizational culture.

    Personal Development and Growth

    The need for personal development and learning recurs in all theories:

    • Maslow: The need for self-actualization includes growth and development.

    • Herzberg: Personal development as an important motivator.

    • Deci and Ryan: Sense of competence and opportunities for professional growth.

    • Schein: Creating an organizational culture that promotes continuous learning and development.

    Human Connections and Belonging

    A sense of belonging and meaningful human connections are central components:

    • Maslow: The need for belonging and love.

    • Deci and Ryan: Relatedness as a basic need for intrinsic motivation.

    • Schein: Creating an organizational culture that promotes connections and collaboration.

    Working Conditions

    Creating proper and healthy working conditions:

    • Maslow: Satisfying physiological needs and safety.

    • Herzberg: Hygiene factors such as working conditions and adequate pay.

    • Schein: Behaviors that promote a supportive and safe work culture.

    Implementing the Common Ground in Management

    To create a work environment that promotes motivation and satisfaction, managers should integrate the various insights:

    1. Meaning and self-actualization: Provide employees with interesting and challenging work and help them find meaning in their work.

    2. Personal development: Encourage continuous learning and professional development, and offer training and advancement opportunities.

    3. Human connections and belonging: Create a positive and supportive organizational culture, and encourage collaboration and open communication.

    4. Proper working conditions: Ensure safe and comfortable working conditions, provide adequate pay, and maintain good relationships between all levels of the organization.

    Summary

    Finding the common ground among leading theories of work motivation offers a broad and comprehensive management framework. By combining these insights, managers can create a work environment that promotes motivation, satisfaction, and a sense of meaning. Understanding the different theories and implementing them in a balanced way allows managers to lead teams more successfully and efficiently.

    If you have questions or would like to hear more about ways to improve management and lead your teams, contact us. We are here to help you find meaning in your work and lead your organization to success.

  • Post 5 in the series on motivation:

    Edgar Schein’s Organizational

    Culture – Behavior Creates Culture

    Edgar Schein, an American organizational psychologist, developed the three-layer model of organizational culture, describing how individuals’ behaviors in an organization influence the overall culture of the organization. Organizational culture is a combination of values, beliefs, norms, and behaviors that shape how people in an organization communicate, work, and make decisions. Understanding Schein’s model can help managers create a positive organizational culture that promotes motivation and satisfaction.

    Three Layers of Organizational Culture

    1. Artifacts: The visible and obvious things like office design, employee dress code, and organizational rituals. These are the external signs of organizational culture.

    2. Values: The principles and standards that guide behavior in the organization. These values represent what the organization sees as important and central.

    3. Basic Assumptions: The deep-seated beliefs and perceptions that are taken for granted within the organization and are not easily discernible. These are the deepest foundations of organizational culture.

    How Behavior Creates Culture

    Schein suggests that the visible behaviors of managers and employees directly influence the organization’s basic assumptions, and ultimately create the organizational culture. These behaviors include:

    • Transparency: Managers who share decisions and developments with employees convey trust and inspire trust. This creates a culture of openness.

    • Listening: Managers who dedicate time to listen to their employees’ needs and suggestions promote a culture of collaboration.

    • Mutual Respect: Managers who treat every employee with respect and equality contribute to a culture of mutual respect and appreciation.

    Creating a Positive Organizational Culture

    To create a positive organizational culture that promotes motivation and satisfaction, managers should focus on the following points:

    1. Personal Example: Managers need to set a personal example and act according to the values they want to see in the organization. Managers’ behavior will directly influence employee behavior.

    2. Effective Communication: Encourage open and transparent communication at all levels of the organization. When communication is open, employees feel more connected to the organization’s goals and their sense of belonging strengthens.

    3. Team Development: Create opportunities for professional and personal development of employees. Workshops, courses, and training can improve employees’ abilities and increase their sense of competence.

    4. Recognition and Appreciation: Regularly recognize employees’ contributions and achievements. Recognition and appreciation not only improve satisfaction but also increase motivation.

    5. Fostering Empathy and Respect: Ensure respectful and empathetic treatment towards every employee. Empathy and respect are foundations for a positive organizational culture that contributes to satisfaction and a sense of meaning.

    Summary

    Edgar Schein offers us a deep understanding of how behavior creates culture in an organization. By creating a positive organizational culture that promotes values such as transparency, listening, and mutual respect, managers can increase employee motivation and satisfaction. Understanding and implementing Schein’s insights can improve leadership and contribute to the organization’s success.

    If you have questions or would like to hear more about ways to improve management and lead your teams, contact us. We are here to help you find meaning in your work and lead your organization to success.