Opponents of quantitative risk management models believe these models are counterproductive: they inhibit companies from taking calculated chances without preventing major mistakes (see the 2008 economic crisis). A new study of seven successful companies shows that when complemented by rigorous qualitative risk management practices and expanded roles for risk managers, quantitative models enhance rather than inhibit a company’s innovation and initiative.
Shoppers bringing their own bags help reduce the adverse environmental impact of plastic bags. New research shows, however, that the environment is not the only winner. Environmentally conscious shoppers are inspired to buy more expensive organic products, and reward themselves with unplanned indulgent purchases — a boon to grocery stores.
Do you encourage a culture of competition in your organization in order to motivate your employees? This Idea shows that doing so may also promote corruption and unethical behaviour. In the face of local competition, firms operating in the New York air-pollution testing industry were found to be more likely to behave unethically. Read on to find out the implications of this finding for your organization.
Popular process management activities such as total quality management (TQM) facilitate incremental innovation but impede exploratory innovation. If a firm’s capacity for innovation is rooted in its ability to explore new areas – perhaps making groundbreaking discoveries – as well as exploiting existing capabilities, then process management activities must be separated from efforts to generate completely new ideas.
We all know that bad weather often leads to a bad mood, and therefore it must also lead to bad productivity, right? Not so, according to this Idea which suggests that bad weather actually increases productivity. Through a field study and laboratory experiment, researchers show that when the weather is rainy, there is low visibility and extreme temperatures, workers seem to be more, not less, productive.
The size and structure of C-Suites has changed significantly over the past few decades. An examination of these changes reveals a number of shifts, including one towards more product-focused (or front-end) functional managers in organizations with closely-related business units, and an increase in administrative positions where organizations invest more in IT. These findings also have an impact on general managers’ salaries. Here’s why executives should pay attention to these shifts when structuring their top teams.
When an organization is ‘flat’ employees report directly to senior managers; but as management layers increase, so too does the hierarchical gap between employees the CEO and the C-suite, leading to decision-making being focused at the top of the organization. So should firms eliminate these layers in order to shift more decision-making powers downwards? Well, this Idea shows that this may in fact achieve the opposite. Flattening can lead to more control at the top.
