Decentralized Decision Making

Decentralized Decision Making

Using The Wall Street Journal, or another reputable news source, locate and post an article published in the last 12 months about an organization undertaking a change initiative. Answer the following questions, referring to this week’s materials in your responses.

• Describe the nature and scale of the change initiative.
• Was the change initiative undertaken with a “people first” agenda? How can you tell?
• How can HR act as a strategic partner in implementing the change initiative?
• What stage is the change at now? What wins have been secured so far, and what still needs to be done?

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APA

Answer

In a recent article from The Wall Street Journal, Bayer AG’s CEO, Bill Anderson, discussed the company’s significant organizational transformation aimed at revitalizing its management structure and enhancing operational efficiency.

Nature and Scale of the Change Initiative

Bayer’s transformation, termed “Dynamic Shared Ownership” (DSO), represents a comprehensive overhaul of its traditional hierarchical management model. The initiative seeks to empower employees by decentralizing decision-making, allowing them to make 95% of decisions independently. This shift focuses on organizing around customers and products rather than maintaining rigid hierarchical structures, aiming to foster agility and responsiveness within the company.

“People First” Agenda

The DSO model embodies a “people first” approach by entrusting employees with greater autonomy and responsibility. By increasing the span of coaching to potentially 50 employees per manager and relying on peer assessments for performance evaluations, Bayer emphasizes employee empowerment and development. This strategy indicates a commitment to valuing and leveraging the capabilities of its workforce to drive the company’s success. Decentralized Decision Making

HR as a Strategic Partner

Human Resources (HR) plays a pivotal role in implementing Bayer’s DSO initiative. HR can facilitate this transformation by:

• Developing Training Programs: Equipping employees and managers with the skills necessary for effective decision-making and peer evaluations.
• Redesigning Performance Management: Establishing systems that support peer-based assessments and…