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To be a better leader, give up authority
A D Amar1, Carsten Hentrich, Vlatka Hlupic
1Seton Hall University, Stillman School of Business, South Orange, New Jersey, USA. ad.amar@shu.edu
Harvard Business Review
|December 9, 2009
Summary
In chaotic times, some companies achieve success by loosening control instead of tightening it. This approach has yielded impressive results for CSC Germany and ANADIGICS.
Area of Science:
- Business Management
- Organizational Psychology
Background:
- Economic uncertainty often prompts executives to increase control for efficiency.
- However, this can stifle innovation and adaptability.
Purpose of the Study:
- To explore alternative strategies to traditional control in chaotic environments.
- To examine the impact of decentralized decision-making on company performance.
Main Methods:
- Case study analysis of CSC Germany and ANADIGICS.
- Qualitative assessment of organizational changes and outcomes.
Main Results:
- Both CSC Germany and ANADIGICS reported significant positive effects after implementing less restrictive management styles.
- Increased employee autonomy correlated with improved operational efficiency and innovation.
Conclusions:
- Decentralizing control can be a highly effective strategy during turbulent economic periods.
- Rethinking traditional command-and-control structures is crucial for modern business resilience.
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