According to Natasha Hamilton-Hart, Professor in the Department of Management and International Business at the University of Auckland Business School, rules may turn detrimental when they hinder one’s ability to perform effectively. Even though they are supposed to regulate power and provide control, rules do not always lead to people being accountable for their actions. Therefore, Natasha claims that the solution is to have more authority within the organisation, which enables individuals to make decisions, and delete those rules that are unnecessary. Too many rules are an issue in many organisations as they prevent them from making progress and hamper leaders’ actions. With no authority, it is even harder for leaders to work with people and evaluate their performance.

Professor Natasha Hamilton-Hart has extensively published on governance systems in Southeast Asia, focusing on state institutions and property rights. Her current research explores the relationship between the economics-security nexus in East Asia, as well as the role of hierarchy, which she wrote about extensively in her recently released book ’Stupid Rules: Reducing Red Tape and Making Organisations More Effective and Accountable’ (Agenda Publishing). Natasha earned her PhD from Cornell University and has previously held positions at the Australian National University and the National University of Singapore.

In an exclusive interview with International Finance, Professor Natasha Hamilton-Hart discusses the negative impact of too many rules on organisational effectiveness, claiming that accountability is better achieved through proper delegation of authority. She stresses how rules-based organisations tend to discourage decision-making, inhibit leadership, and impede progress, accentuating the importance of hierarchical empowerment, which allows people to make decisions and remove bureaucratic barriers.

In your book ’Stupid Rules: Reducing Red Tape and Making Organisations More Effective and Accountable’, you argue that some rules reduce productivity. What led you to question rule-heavy systems in the first place?

I returned to New Zealand after many years working in Singapore, and found processes surprisingly cumbersome. I had far less control over several aspects of my work, and the rule book was much longer. I then noticed that much of the country seemed to be ’stuck’, unable to deliver public infrastructure efficiently, bogged down in litigation, and many people were fearful of action in case they broke the rules.

In what ways does authority make people more responsible for their decisions?

It is perhaps paradoxical, but if someone has clearly defined authority, meaning they can make decisions based on discretionary judgement, then they can be held to account for those decisions. In contrast, if a manager is reduced to only following and enforcing rules, he or she is not really accountable when things go wrong despite rule-following.

Organisations often introduce new rules after mistakes occur. Why does this response fail to address the underlying issue?

In some cases, a new rule may fix the problem, if the situation really does call for a non-discretionary rule. We can consider a few examples where this might apply, such as speed limits for driving or the requirement to file expense claims within a certain number of days. But often, the problem is a ’mistake’ that is unlikely to be fixed with a simple rule. That could be because the person who made the ’mistake’ has bad judgement, or is a bully, or something like that. In that scenario, a longer, more detailed rule book on its own won’t fix the problem. It just means everyone, including high-functioning personnel, is tied down by red tape, and you still have the incompetent or abusive person to deal with. In other situations, it may be that sometimes mistakes are inevitable, and it does not necessarily signal that the person is incompetent. There are simply situations where the correct decision is not obvious. It is a classic insight originally put forward by Frank Knight, that management in a hierarchy is there to make decisions under uncertainty. Sometimes, the decision may turn out to be the wrong one. It is up to the organisation’s more senior levels to figure out whether the manager is not up to the job, or whether the decision was in fact a reasonable one in the circumstances.

Having studied governance systems in Southeast Asia for more than two decades, how did that research shape your views on authority and bureaucracy?

Southeast Asia showcases a huge variety of bureaucratic systems, both in government and business. Some systems are very informal in practice, meaning that a person’s actual authority may not correspond to their position on the organisation’s chart. Other systems can deliver in a purposeful and disciplined manner. What I noticed was that these more purposeful organisations were not actually rule-bound: decision-makers had quite wide latitude to make choices. But they were still constrained to pursue organisational purpose (rather than their own whims or private interests) by the hierarchy above them.

Some people worry that giving more authority could lead to abuse of power, so how can organisations balance authority with democratic accountability?

Accountability mechanisms are definitely important. But not every organisation needs to be a democracy. Inside the organisation, the primary accountability mechanism should be a well-functioning hierarchy, with oversight and understanding systems that hold managers responsible for detecting and dealing with bad behaviour, such as fraud or harassment. But then, organisations themselves need to be held accountable to ensure their purpose is aligned with what society accepts. My view is that this alignment is best ensured by democratic mechanisms for making and enforcing laws, which may include delegating authority to regulatory agencies or the police, but which ultimately places the decisions about what is or is not acceptable in the hands of the voting public. But other mechanisms might serve the same functions. In some theories, the threat of war or rebellion creates incentives for good government. But this obviously does not always work.

Modern organisations frequently give leaders responsibility without real authority. How does this gap influence decision-making and performance?

Responsibility without authority is a terrible mix. There is a quote in the book from Edmund Burke, who detected this problem in the aftermath of the French Revolution. If you have responsibility but lack the authority to execute, you will either get nothing done or be forced to deliver by taking shortcuts that can have disastrous consequences. It results in poor quality outputs and places undue pressure on staff, ultimately leading to low morale and burnout.

People sometimes resist decision-making authority even while complaining about too many rules. Why do individuals feel uncomfortable with that responsibility?

Well, it probably depends a bit on cultural habits. In societies like New Zealand’s, which is quite egalitarian and conflict-averse, people often find it uncomfortable to tell others what to do, or to point out that their work was not up to standard. So, they prefer to be able to point to a rule book or set of independent, supposedly objective standards, as a kind of backup. And of course, if you don’t exercise personal discretion, you are less to blame if things go badly.

If organisations or governments want to reduce “stupid rules,” what practical steps should they take first?

The first place to look is probably the areas where rules (including standards) or procedural requirements have grown lengthy and complex. The ten-page dress code that General Motors used to have is a light-hearted example. It was reduced to two words: ’dress appropriately’. A simple rule, but it needs a dose of authority as a backstop. In technical areas, there could well be a need for complexity and detail. But if detailed standards and procedures appear to be trying to specify and standardise things that are really context-specific or uncertain, then rule proliferation or increasingly detailed formalised standards could well be replaced with something much simpler: a basic statement of purpose. That allows people the discretion to exercise their professional judgement and skill at all levels in the hierarchy.

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The above task is not so an easy one. In fact, it requires a broad range of abilities and characteristics like assurance, compassion, and fortitude, when it comes to leading the teams. The best way a manager can ensure top-notch market success for his/her organisation is by fostering a contented and productive team that can overcome obstacles, accomplish their objectives, and prosper across various challenging landscapes.

In this article, we will discuss some of the non-negotiable traits which a manager must possess.

Strong Communication Skills

A manager with excellent communication skills is an asset for any company, since he/she can clearly express the company’s goals to the team, instil confidence, and promote an atmosphere of candid discussion on the targets and projects. Poor communication leads to misconceptions, confusion, and division among team members, which is a big no-no in any corporate set-up.

While some managers come with gifted communication skills, some may not and that’s not an issue in the tech-dominated 21st century where specialised online courses are there to help someone’s communication capabilities. Upskilling can do wonders here, as all a company wants at the end of the day, is a transparent and constructive feedback culture.

Emotional Intelligence And Empathy

Empathy is the link that holds team members together, promoting a sense of understanding and belonging. Managers with high emotional intelligence can navigate complicated interpersonal dynamics, settle disputes, and foster collective trust.

A lack of empathy can lead to discontent, lack of trust, low morale, and high employee turnover, creating a negative atmosphere and harming the company. Active listening and engaging in empathy-building activities, such as team lunches and outings, should be prioritised to address these issues.

Promote empathy in the workplace by organising team-building activities, holding emotional intelligence-focused leadership courses, and engaging in frequent self-reflection activities to understand the perspectives of others.

Flexibility And Adaptability

Managers need to bear the burden of responsibility daily as they guide their teams through challenges with agility and resilience. Adaptability is a highly prized quality in these fast-paced work environments because it helps team leaders by allowing them to adjust to rapid work developments. This, in turn, fosters creativity and innovation among managers and their team members.

The fundamental rule is that every task brings its own unique set of challenges, which cannot be addressed with rigid, outdated practices. Managers should encourage a culture of experimentation and provide opportunities for skill development.

Be Decisive And Accountable

A decisive and proactive team leader serves as a compass, guiding teams towards their goals by promoting clarity and confidence, regardless of the challenges they may be encountering. These types of managers make timely, well-informed decisions that empower the staff to act with certainty and intention.

On the other hand, being unsure of oneself and the hesitancy to act can cause delays and lead to loss of trust among the team members on their managers. Even if a manager is not decisive to some extent, he/she can overcome the huddles by asking team members for their opinions on solving the challenges that come while executing the tasks.

The whole process will create an atmosphere that will value accountability, apart from improving the team leaders’ decision-making abilities. Making decisions after democratic discussions is also a good leadership skill at the end of the day.

Good managers promote clarity and confidence among their team members by making prompt, well-informed judgements. They accept responsibility for results, while holding others and themselves accountable, apart from proactively dealing with the problems.

Creating a decision-making framework that provides managers the freedom to take measured risks; apart from setting forth explicit guidelines for responsibility at all organisational levels is what makes a company a well-oiled profit-making machine.

Be Forward Thinking

What sets an excellent manager different from ordinary ones is his/her capability to energise the team by presenting a future vision. A team, united by a common objective and guided by crystal clear role clarities, can not only achieve its goals seamlessly, but also contribute massively to enhancing the company’s overall productivity.

Visionary leaders set a clear course of action, which encourages creativity, allowing team members the freedom to make significant contributions. Managers who lack a clear vision may find it difficult to motivate their staff and align their efforts to a common goal. Progress is hampered by a lack of direction due to disengagement and a lack of focus.

Managers should engage in vision-building, regularly seek feedback from their teams while implementing the roadmap, and consistently set an example by acting in line with the company’s values.

Stress Management And Resilience

A manager’s true test of resilience comes from facing difficulties head-on and instilling stability and confidence in their teams. An excellent manager will always encourage a culture of well-being by emphasising self-care for themselves and the team members, and providing examples of healthy strategies to cope with workplace stress. Giving in to stress leads to burnout and toxic team dynamics, which in turn hurts the company’s overall productivity.

Managers can help employees develop resilience by offering stress-reduction tools, encouraging work-life balance, and creating an atmosphere where everyone feels appreciated and supported.

Also, it is equally important that the manager remains stress-free. Otherwise, the person will behave erratically and make bad decisions, which will end up harming the team’s morale and performance.

Delegation And Empowerment

A successful team consists of empowered individuals and promotes a climate of independence, accountability, and creativity. Such teams are led by managers who practice effective task delegation while trusting their team members to take initiative and contribute significantly to the company’s cause.

When it comes to managing a team, can a leader practice micromanagement? While some may argue that this method helps the team complete its tasks seamlessly, the opposing view suggests that micromanagement undermines trust and stifles innovation, which is detrimental to both teamwork and personal development.

The post Want to become a good team leader? Here are the tips appeared first on International Finance.

Vision

Effective leaders have a clear vision for the future and can articulate it to their teams. They establish goals and objectives that are challenging yet attainable, inspiring their team members to strive for excellence. By sharing a compelling vision, leaders create a sense of purpose and direction, motivating individuals to work together towards a common goal.

Integrity

Integrity is a fundamental quality of effective leadership. Leaders with integrity consistently demonstrate honesty, transparency, and ethical behaviour. They earn the trust and respect of their team members by aligning their words and actions, and they hold themselves accountable for their decisions. By embodying integrity, leaders create a culture of trust, which fosters loyalty, collaboration, and high performance.

Communication

Strong communication skills are essential for effective leadership. Leaders must be able to convey their thoughts and ideas clearly and concisely. They actively listen to their team members, value their input, and encourage open and honest communication. Effective leaders provide feedback in a constructive manner, offer recognition and appreciation, and ensure that information flows freely across all levels of the organization.

Adaptability

In today’s rapidly changing world, leaders must be adaptable to navigate challenges and capitalize on new opportunities. They embrace change and encourage their team members to do the same. Effective leaders are flexible and open-minded, willing to adjust strategies and plans as needed. They stay informed about industry trends, technological advancements, and market shifts, enabling them to make informed decisions and guide their team through uncertainty.

Empowerment

Effective leaders empower their team members by providing them with the autonomy, authority, and resources they need to succeed. They delegate tasks and responsibilities, recognizing and leveraging the unique skills and talents of each individual. Leaders foster a culture of growth and development, offering opportunities for learning and advancement. By empowering their team members, leaders create a sense of ownership, boost morale, and encourage innovation and creativity.

Accountability

Leaders take responsibility for their actions and hold themselves and their team members accountable for their performance. They set clear expectations and establish metrics for success. Effective leaders provide regular feedback and support, helping their team members to improve and grow. They address performance issues promptly and constructively, ensuring that everyone is aligned with organizational goals and standards.

Emotional Intelligence

Emotional intelligence refers to the ability to understand and manage one’s emotions and the emotions of others. Effective leaders possess empathy, which allows them to connect with their team members on a deeper level. They show genuine concern for their well-being, create a supportive and inclusive environment, and foster positive relationships. Leaders with emotional intelligence can navigate conflicts and difficult situations with empathy and maintain a calm and composed demeanour, which inspires confidence and trust in their team.

By embodying these seven key principles, leaders can create a positive work culture, inspire their team members, and drive long-term success. These principles contribute to effective communication, collaboration, and motivation within the organization, fostering an environment where individuals can thrive and achieve their full potential.

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