The Transformation Of The Neoclassical Model To Flatter Management

1656 Words 7 Pages
The advance of the post-bureaucratic approach has brought about a shift in corporate culture, in particular the change from the bureaucratic hierarchical structure to a flatter management, supported by Fredrickson’s idea of the increasing attention on group needs and human relationships. It is through this advance that contributes to the management of a business’ sustainability, particularly through the transformation of the neoclassical model to the sustainability business model of firms as emphasized by Stubbs and Cocklin (2008).The significance of leaders is drawn upon Wray-Bliss (2007) influencing their role in managing the sustainability of the business in accordance with the internal and external stakeholders, while sustaining a corporate …show more content…
The transformation from the neoclassical model to the SBM of a firm involves the shift of the organizational leaders firm’s perspective on the management of internal and external factors, especially impacting the environmental and social concepts associated with the organization. This is because the SBM can shape the driving force of the firm and its decision making, and organizational leaders must manage the organization on the idea that their prime obligations is no longer profit maximization, but rather the main business approach is towards ensuring sustainability (Stubbs & Cocklin, 2008). This is further enforced by the interpretation of ‘sustainability’ popularly known by Elkington’s idea of the ‘triple bottom line’; the view where companies should complement their attention to the financial bottom line with consideration of the social and environmental bottom lines (Sommer 2012). In particular to this managers should recognize that profits are the outcomes and implementers of socially and environmentally responsible activities, and a greater importance is place on environmental goals instead of the financial and economic value. In order for organizational leaders to effectively manage the sustainability of the business and thus support the transformation of the …show more content…
The change in the culture and mindset of employees, as well as the commitment of the leadership and management are some of the internal factors which drive the transformation of the neoclassical model evident within post bureaucracy (Stubbs & Cocklin, 2008). It is through this transformation which allows organizations to be sustainable, by prioritizing the management of social and environmental issues within a business. The significance of the role of managers and their prioritization of decisions are emphasized through the ideas of corporate social responsibility, as being the greater intentions of business’ in creating practices and policies that go greater beyond the idea of just generating profit (Wray-Bliss 2007). The role of managers is further supported by the evolution of management structures from a bureaucratic hierarchical structure to a flatter management alternative, more often portrayed as a clan or adhocracy culture (Schein 1990). This change of managerial characteristics include a subtle form of communication, domination and control (Simpson 2016) assisting in the transformation of the neo-classical model to the SBM, as managers act on the same level with its employees. Fredrickson (2003) draws upon this idea that managers have the ability to uphold positive

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