The change styles of John Howie and Craig Lockhart
The management styles adopted by John Howie and Craig Lockhart have differences in structure and management –workers relationship. While, John was able to succeed with the aid and support of the Naval Commodore who is inclined to change, he adopted downsizing of workforce as a strategy to reduce operational cost. He was able to downsize and reduced the operational layers from seven to four. John’s management strategy was focused on cost reduction. In this scenario, John was able to reduce cost and saved £14million against a target of £3 million. However, such strategy is not workers friendly; motivation for workers in such organization will be very low.
The management style Craig introduced is more workers friendly and very transparent. In other words, Craig adopted the strategic human resource management (SHRM) style. In this case, all levels of workers in the Babcock Marine are effectively involved in the strategic planning for the organisation. “They were tasked to generate their own team, their own departmental business plans,” (Pg. 497). SHRM is defined by Chaturvedi (2005) as existing connection between human resources with the organisation’s strategic objectives and goals. This is targeted towards attaining improved business performance and build up culture in the organisation. The developed culture is aimed at fostering innovation and flexibility. Similarly, Poole & Warner (1998), argue that the SHRM concept pertains to management strategies and decisions that shape the nature of employment relationships.
Also, Craig’s SHRM style has established a transparent organisation where all workers have a sense of belonging and there is effective communication from top –to bottom. With this type of management style subordinates would be motivated and strive to accomplish targets and goals when they are involved in the formulation process. This management style has help Craig to transform Faslane into the biggest submarines fleet base in UK.
Assessing the effectiveness of the change programme
The strength of John’s management style is that it effectively met the short term objective of the MOD to reduce the running cost of Faslane. In this case, using a downsizing strategy John was able to save billions of Pounds for the Ministry of Defence, and cut down annual running costs by over 20 percent within five years, his achievement was effective in meeting short term operational objectives of the Naval Base Clyde.
The observable weakness in the above strategy is that it was not workers’ friendly and would not motivate workers to be productive. Where job security is not guaranteed for workers, lackadaisical and redundant workforce would emanate.
Craig’s management strategy strength lies in the ability to operate a transparent organisation; where motivation for workers is very high. Involving workers to partake in strategic planning and implementation, gives them the extra push to attain set targets. This is seen in Faslane transforming into UK’s hub centre for nuclear submarine and submarine fleet, within four years that Craig took over from John (i.e. from 2006 to 2010).
Another observable strength in the change programme from John to Craig management style is that, under Craig leadership communication in the organisation was very effective. It was carried out from top-to-bottom. Subordinates were adequately aware of every stage the organisation was operating in and would be able to contribute in delivering higher productivity. An organisation with well informed staff will have unity of purpose where all energies are directed to attaining set goals. This has aided Craig’s management team in revamping and moving Faslane to the thriving state it attained in 2010.
One weakness with Craig’s changed management is that it may end up bloating the workforce that John’s downsizing strategy had reduced. Craig’s management is looking towards increasing workforce by 2,000 in 2014. This practice would lead to increase in running cost, if not properly managed; and may return Faslane back to the state where John had salvaged it.
References:
Chaturved, Siddharth (2005), “Strategic Human Resource Management” http://www.humanlinks.com/manres/articles/shrm.htm (13/08/ 2005)
Gerry, Johnson. Richard, Whittington. Kevan, Scholes (2011). Exploring Strategy: Text and Cases, 9th edition. England: Harlow. Pages 495 – 497.
Grundy, T. (1997), “Human Resource Management: A Strategic Approach” Long Range Planning Vol. 30 No. 4, Pp 507-517.
Henry and Pettigrew, (1992) Model of strategic change and human resource management in ‘Patterns of strategic change in the development of Human Resource management’ in British Journal of Management p.139
Hussey, D. (1995), “Human Resources: Strategic Audit” In International Review of Strategic Management Vol. 6 Pp 157-195
Poole, M. and Warner M. (eds) (1998). The Handbook, Human Resource Management. London: International Thomson Business Press.
