Simple contexts, properly assessed, require
straightforward management and monitoring.
Here, leaders sense, categorize, and respond.
That is, they assess the facts of the situation,
categorize them, and then base their response
on established practice. Heavily processoriented
situations, such as loan payment
processing, are often simple contexts. If something
goes awry, an employee can usually
identify the problem (when, say, a borrower
pays less than is required), categorize it
(review the loan documents to see how partial
payments must be processed), and respond
appropriately (either not accept the payment
or apply the funds according to the terms
of the note). Since both managers and employees
have access to the information necessary
for dealing with the situation in this domain,
a command-and-control style for setting
parameters works best. Directives are straightforward,
decisions can be easily delegated,
and functions are automated. Adhering to
best practices or process reengineering makes
sense. Exhaustive communication among
managers and employees is not usually required
because disagreement about what
needs to be done is rare.
Simple contexts, properly assessed, requirestraightforward management and monitoring.Here, leaders sense, categorize, and respond.That is, they assess the facts of the situation,categorize them, and then base their responseon established practice. Heavily processorientedsituations, such as loan paymentprocessing, are often simple contexts. If somethinggoes awry, an employee can usuallyidentify the problem (when, say, a borrowerpays less than is required), categorize it(review the loan documents to see how partialpayments must be processed), and respondappropriately (either not accept the paymentor apply the funds according to the termsof the note). Since both managers and employeeshave access to the information necessaryfor dealing with the situation in this domain,a command-and-control style for settingparameters works best. Directives are straightforward,decisions can be easily delegated,and functions are automated. Adhering tobest practices or process reengineering makessense. Exhaustive communication amongmanagers and employees is not usually requiredbecause disagreement about whatneeds to be done is rare.
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