How Techno-Managed Companies Could Stay Effective?

Many modern companies are currently ruled by both business bureaucrats and technocrats. They have set up rigid rules to “eliminate negative human factors”. They believe that technology, processes and systems can work together to improve productivity and prevent workers from messing up. A dead giveaway for such system is nearly inflexible system that is strengthened by the use of technology.

Workers could work like drones and there are talks about cross training to improve productivity. When people talk about this, they tend to do it with straight faces and the nodded affirmatively to any command produced by such a system.

There are usually internal auditing teams that are intended to fix inefficiencies and problem in business process and its implementation. The organization becomes segmented and they are separated to different divisions and functions. The mixture of bureaucracy and technology in a business isn’t always a bad thing, because workers can be trained effectively to improve their personal gains.

Many people are able to pull through and find success. The organization is able to be compatible with the market and things can be managed much more easily. There are goals that can be achieved more easily.

This system can be successful only the top management has clear views on the correct perspectives and needs. Managers are the brains of the business and workers are their limbs. They need a predictable system that allows them to work properly. They should have cross-functional skills and the ability to perform problem solving capability.

This system could also be quite ruthless, because it will seek to remove inefficiencies. They will try to “trim the fat” and this could mean that some ineffective employees are re-trained and relocated; or removed entirely from the system.

Technocrats often use the technology to detect where inefficiencies may occur inside the company. They could have different system to detect things that can slash and burn the business success. This can cause reduced motivation among workers. They may think that they are not treated us people; but only as tools.

The organization can become demoralized and weakened if the technology inside the company fails to “humanize” workers. So, although the system may seem to ensure high efficiency, effects of other negative things may creep up, negating the overall benefits.

In order to prevent this problem, techno-managed companies should consider less tangible factors that can’t be detected by normal systems. Each decision produced by the system should also consider effects on employee morale. Poor motivation will actually result in reduced productivity and high turn-over of highly skilled workers.

It means that technology needs a proper human touch and each recommendation produced should be assessed by qualified personnel, preferably experts from human resources department who understand how each decision could affect employees. We should make sure that there are less bad effects of the system. Each company may need to find the ideal “sweet spots” and compromises to improve real efficiency, especially because rigid system will actually degrade productivity and efficiency inside the company.

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