Today, 74% of working people consider that the managerial strategy has an impact on innovation and plays on well-being at work. Among them, 20% consider it essential that management be open to innovation and communication.
Fundamental changes such as technological developments, the growing rise of artificial intelligence or even cultural upheavals are pushing business leaders to rethink the content of their managerial strategy.
Today, establishing a strategic management approach is necessary for companies because it clearly influences many factors. A structure with an effective management knows a better satisfaction of the employees, a real collective pleasure of the latter as well as a better rate of productivity. Ultimately, the company plays on its competitive advantage by consolidating its managerial strategy.
How is the management of human resources a crucial issue for the economic health of a company?
The benefits of a good management strategy
We can understand the managerial strategy as the social strategy of the organization within a company. It is then a matter of making choices in terms of resource allocation so that the company can establish its long-term objectives. In concrete terms, the managerial strategy makes it possible to maximize economic performance by coordinating all human resources.
In fact, the management of human resources is inherent to thegood economic health of a company, without the human dimension, the company cannot function since it is the human being who drives the activity. Today, managers are faced with various economic, social and well-being issues. The rise of Startups has made it possible to place theentrepreneurial fiberin the foreground and influenced many of the new managerial codes.
Economically speaking, resource management is necessary. In fact, in France today,69% of employees are disinvested, which directly influences the company’s financial decisions. Managers are therefore obliged to review their way of approaching the management of employees because we are anchored in a period of upheavals in socio-economic models. Thus, one of the benefits of a good managerial strategy iscontrolled growth, thanks toefficient and motivated employees to work. The goal of today’s managers is to legitimize their company and its status, but above all toshare this desire to excelto improve the business.
From a point of viewsocial and relational, the success of a company is felt through teamwork. Human capital is, as said before, at the heart of a company’s success. It has always been considered that the sanction and the reward were the only sources of motivation. However, with the development of the School of Human Relations, we see that it is more effective to create an environment conducive to change than to push employees to change their way of working. Improving relations between employees and their working conditions (environment, support, satisfaction, etc.), whatever they may be, is beneficial for the company because it will increase theproductivityinitially and then eventually, thegrowth.
Participatory management promotes innovation
In 2020, it is no longer considered profitable to set up a so-called pyramid management. The latter assumes that those at the top of the pyramid decide when those at the bottom execute. However, since entering the fourth industrial revolution, companies have been totally transformed by incorporating various digital tools. Digitization has made it possible to save time, to innovate and above all to relaunch creativity. The major task of managers today is therefore to find a managerial strategy that takes these elements into account.
Thus, participatory management proves to be the most profitable for the company today, making it possible to improve both the economic situation of the company and the relations between employees and well-being at work. The general idea of participatory management is to set up local management , ie to promote interaction between all employees. This is done by including employees in the decision-making process and by involving them more in innovative projects.
In addition, good management also translates intotransparencybetween management, managers and employees. In fact, it reinforces thetrustbut also well-being at work. In this, the manager has a very specific role. It must promote innovation by listening, leaving room for error and establishing a spirit of cooperation. He must establish failure as a component of success.
We remind you that innovation is permitted thanks to a stable and trustworthy environment. It is in this context that startups have imposed themselves.
We have therefore seen that it was necessary to promote thetrust, thereaccountabilityas well as thepleasureand thewelfare. Some companies have implemented innovative strategies that promote these latter issues.
This is the case of the Fiat plant in Brazil, which has set up amood board: employees indicate their mood every morning according to a color code:Green(motivated),orange(moderately motivated) andred(if he encounters a problem). If the red color is activated, the employee is invited to discuss with a manager to solve the problem as soon as possible.
In the same way, but with a strategic aim and to improve the company, Air France has set up a “valuation of error”. The latter offers employees the opportunity to talk about the mistakes they have made, the difficulties and dysfunctions they have faced. Published anonymously, this does not penalize errors but improves the technical and organizational functioning of Air France.
ESCadrille can assist you in the development of this strategy
ESCadrille Toulouse Junior Conseil is a Student Consulting Firm that specializes in various fields.
With 42 years of experience, we have developed a human resources service that aims to overcome the problems of resource management within a company. To limit the risk of disruption, we can intervene by setting up a social climate audit aimed at detecting the positive and negative points of your managerial strategy. In this, we can also help you find viable working solutions.
Discover our solutions.