Organizational behaviour (OB) studies how individuals, groups and organizations interact to influence workplace outcomes. At its core, OB emphasizes that employee satisfaction and engagement are key drivers of success.
Yet, a debate persists: Is a top-down, bureaucratic structure with advanced technology sufficient for success or is employee empowerment essential? Sustainability traditionally refers to improving efficiency for long-term viability. For example, Southwest Airlines focuses on fuel management, using mid-sized airports and open seating to stay profitable.
However, sustainability now goes beyond efficiency. It includes shared values, a clear mission and vision, as Google demonstrates with its goal to “organize the world’s information.” Companies are increasingly held accountable by stakeholders for environmental, social, and governance (ESG) responsibilities, which include reducing carbon emissions, promoting diversity and maintaining ethical governance.
Corporate social responsibility (CSR) also pushes organizations to consider their broader impact on society, from community involvement to workplace diversity. These practices build trust, allowing companies to thrive beyond their product line. While companies adapt to these evolving responsibilities, artificial intelligence is rapidly reshaping industries.
The information sector alone is projected to spend $500 billion on AI by 2027, as per the International Data Corporation (IDC). As AI continues to automate tasks traditionally performed by humans, concerns are growing about the diminishing influence of employees in decision-making and long-term job security.
According to a report by the Brookfield Institute, 42 per cent of Canadian jobs are at high risk of being affected by automation and AI in the next two decades. CEO of Centric Consulting Larry English notes that successful AI implementation depends on a cultural shift.
Without employee buy-in, resistance can hinder AI’s potential. To maximize benefits, companies must create a supportive environment that empowers employees to engage in the transformation process, which involves reskilling and training, an adaptation of processes and open communication and collaboration to integrate AI into its operations.
The rise of short-term projects and high employee turnover adds another layer of complexity. Scheduled layoffs and contract hires are becoming more common. According to Statistics Canada, 28 per cent of adult Canadians now work in the gig economy, with a vast majority taking on remote, part-time work.
This volatility is particularly challenging for research and design departments, where high turnover among skilled professionals is costly.
According to a 2008 study on the “Turnover of highly educated R&D professionals: The role of pre-entry cognitive style, work values and career orientation,” the turnover cost of such employees can be three to six times higher than for administrative staff.
Those with strong intrinsic motivations — like autonomy, learning and growth — are often the first to leave if the organizational culture doesn’t align with their values. This is especially relevant in tech, where the pressure to adapt can create a cycle of “hyper-adaptation” that leads to attrition. Despite these challenges, companies such as Microsoft and Google thrive by embracing a more flexible, agile structure.
In contrast, International Business Machines Corporation (IBM), traditionally bogged down by bureaucracy, has struggled to stay afloat. Once a dominant force, IBM barely survived the 1980s minicomputer revolution due to competition from Microsoft in the 1990s and the rise of cloud technologies. While IBM has repeatedly reinvented itself through innovation, the company now clings to niche markets like quantum computing and IT services to maintain its position.
The company is unable to compete with today’s tech giants that prioritize modern organizational practices. IBM’s strength lies almost solely in its research division, which, while forward-looking, operates in a way that does little to change the company’s outdated and rigid framework.
Though its long-term vision has earned accolades, including multiple Nobel Prizes, these achievements haven’t translated into the innovation needed to thrive in today’s tech landscape, proving that traditional bureaucracy is no longer a sustainable business model in the fast-paced world of technology.
While bureaucracy offers structure and control, empowerment can drive creativity and engagement. By finding this balance, organizations can remain competitive while meeting the evolving needs of their employees and the market.
