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Profit-oriented management was the source of the crisis

Publicat la 04.03.2009, 22:00:00

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Profit-oriented management was the source of the crisis


“This business model, which places profit above any social and economic mission of the company, puts pressure on employees, creating overly competitive and rigid environments, while at present, companies should focus on flexibility, creativity, and people,” said the official of the research and consultancy company specializing in organizational culture.

Romanian enterprises should replace their aggressive-defensive organizational culture, dominated by a formal hierarchy, with a constructive culture focusing on human capital, adaptability, and innovation.

Some 90 percent of the world’s companies have a lower level of competitiveness than Romanian enterprises, indicated a study conducted by Human Synergistics.

The effects of changing the organizational culture become visible six months after the process begins. “Even if they are lower in times of crisis, human resource budgets must be channeled towards those elements which will make a difference. In Romanian companies, efforts to invest in employees are not articulated in an organizational philosophy, and this is why they have no results,” Stanciu added.

Consultancy for changing the organizational culture costs some €15,000 for the initial diagnosis and prognosis stage, while the cost of implementation will reach €200 per employee, according to Human Synergistics.


 

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