Bad management

THE ECONOMIC and Social Research Institute (ESRI) has confirmed what has been suspected for years: the main inhibitors of success…

THE ECONOMIC and Social Research Institute (ESRI) has confirmed what has been suspected for years: the main inhibitors of success in public and private organisations lie in sclerotic organisational and hierarchical structures; in failure to promote training, upskilling and learning in the workplace and in a centralisation of resources and industrial relations. Until these problems are addressed, the Croke Park deal will not deliver on its potential and private sector employment will not be created on the scale required.

Surveys of managers and employees in the public and private sectors, taken before and after the economic crash, have shown that the determination to recreate a vibrant economy is there, but that inherited obstacles have to be overcome. A major problem involves inadequate consultation. One in five private sector workers “hardly ever” receives advance information on planned changes or the financial prospects of their companies. It is worse in the public sector where nearly half those questioned were rarely told about the organisation’s financial status. Advance notice concerning changes to services and work practices was also withheld. Improved communications invariably means increased productivity, so what have managers to lose?

If unemployment is to be successfully tackled, the goodwill and co-operation of managers, workers and trade unions is vital. Employees have shown a commendable willingness to accept new work practices and take on fresh responsibilities, but have not been provided with the necessary training and educational supports. Unless government, employers and trade unions address this weakness, opportunities will be lost.

The likely success of any organisation can be gauged by the levels of flexibility, innovation and communication within it. All three aspects require consistent two-way traffic between managers and workers if lasting benefit is to be secured. It is not rocket science.

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The shortcomings and strengths identified by the ESRI survey should inform the Government’s ambitious proposal to expand employment by 300,000 over the next five years. The creation of such opportunities is desperately needed. But without radical reform of organisational and hierarchical structures and ongoing training and education within the workforce, these jobs are unlikely to appear. The message is clear: the workforce is prepared to work hard and willing to innovate. It is up to management to ensure those abilities and ambitions are realised.