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News Release from: Chartered Management Institute
Edited by the Processingtalk Editorial
Team on 24 March 2006
Fear of failure produces corporate
caution
Senior managers in the engineering sector are blaming an atmosphere of 'corporate caution' for the obstructions they face when it comes to making decisions
Senior managers in the engineering sector are blaming an atmosphere of 'corporate caution' for the obstructions they face when it comes to making decisions According to the results of surveys by the Chartered Management Institute, managers are not afraid of decision-making, but they are battling against a culture of suspicion and fear
This article was originally published on Processingtalk on 13 Dec 2007 at 8.00am (UK)
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The findings, which are taken from research projects conducted over the past 16 months, show that 66 per cent of managers in the engineering sector believe their organisation culture has an impact on decision-making.
Asked to identify the dominant culture in their organisation, one quarter (24 per cent) spoke of workplace environments dominated by secrecy and suspicion.
Only a minority suggested they have the freedom to make decisions, with 10 per cent referring to an 'entrepreneurial' culture.
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With only 9 per cent of engineering managers saying that making decisions at work is difficult, it is clear they are not afraid to make choices.
However, the research studies highlight cultural barriers can hinder the decision-making process.
Key findings include.
* Fear of failure: 26 per cent of engineering managers say their organisation's culture is 'risk averse'.
Asked about decisions that have been made against their better judgement, 12 per cent said it was the result of bureaucratic processes.
* Lack of trust: Only 15 per cent of managers say their organisation exhibits a trusting culture and less than 1 in 10 (8 per cent) are given 'sign off' responsibility.
* Reactive not responsive: one third (33 per cent) of managers in the engineering sector claim their organisation's culture is reactive and 10 per cent are wary of the 'suspicious' nature of employers.
With these views in mind it is no wonder 32 per cent suggest their organisation responds to change in an ad hoc, haphazard, fashion.
According to the results, the sector's managers also care deeply about the impact their decisions have on others.
14 per cent admit to reflecting on decisions, after they have been made.
The majority (59 per cent) are more concerned about the impact their decisions have on their employer, with only a tiny minority (1 per cent) admitting their primary concern is their own career.
Demonstrating that they understand the effect decisions can have on others, many managers also expressed a desire to be answerable for the choices they make.
29 per cent suggested that 'accountability' is a vital element of decision-making and 14 per cent cited 'responsibility'.
Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: "In contrast to populist stereotypes, managers are passionate about the impact their decisions have on others.
However, they appear to be working in environments where decision-making is regarded with an element of fear.
No one is suggesting that caution should be thrown to the wind, but if morale, performance and productivity are to be improved organisations need to create a culture where decisions can be reached based on empowerment and entrepreneurial spirit".
Reacting to the findings, the Chartered Management Institute has created a resource for managers to help them make decisions.
A series of management checklists, diagnostic tools and general advice is freely available via the website.
From 30 March the micro-site will also host answers to decision-making dilemmas, with advice provided by Sir Michael Bichard, Terry Corby (Accenture), Philip Dewhurst (BNFL) and Andrew Summers (Brandsmiths).
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