Four years ago, business school professor Rita Gunther McGrath (Columbia U.) suggested in a piece for the Harvard Business Review that we are entering an “era of empathy” at work. I wasn’t sure what to make of that assertion when I first read her commentary, so I kept the article on file and told myself that I’d return to it someday. I figured this Labor Day weekend is a good time to revisit it.
According to Dr. McGrath, “we’ve seen three ‘ages’ of management since the industrial revolution, with each putting the emphasis on a different theme: execution, expertise, and empathy.”
The rise of an industrial economy prompted the era of execution, focussing on “execution of mass production, and managerial solutions such as specialization of labor, standardized processes, quality control, workflow planning, and rudimentary accounting were brought to bear.”
Then came the era of expertise, signaled by the emergence of university business schools and the establishment of journals such as the Harvard Business Review during the late 1800s and early 1900s. These developments marked “progress toward the belief that management was a discipline of growing evidence and evolving theory.”
Now, wrote McGrath, we have entered a third era, that of empathy:
Today, we are in the midst of another fundamental rethinking of what organizations are and for what purpose they exist. If organizations existed in the execution era to create scale and in the expertise era to provide advanced services, today many are looking to organizations to create complete and meaningful experiences. I would argue that management has entered a new era of empathy.
This quest for empathy extends to customers, certainly, but also changes the nature of the employment contract, and the value proposition for new employees. We are also grappling with widespread dissatisfaction with the institutions that have been built to date, many of which were designed for the business-as-machine era. They are seen as promoting inequality, pursuing profit at the expense of employees and customers, and being run for the benefit of owners of capital, rather than for a broader set of stakeholders. At this level, too, the challenge to management is to act with greater empathy.
The era of empathy hasn’t reached the workplace yet
As Dr. McGrath suggests, all the research, knowledge, and analytical tools are in place to usher in this age of empathy into the workplace: We’re aware of burgeoning income and wealth inequality. We’re aware of negative changes in employment relations, especially the demise of unions. We’re aware that bullying, mobbing, sexual harassment, and other forms of worker mistreatment continue to inflict huge individual and organizational tolls.
We’re also aware that treating employees with a baseline of dignity is a great way to grow and maintain a stable, productive, and loyal workforce.
But here’s the disconnect. Despite all this research, knowledge, and analysis, too many employers are preserving the status quo, or doing even worse. On this Labor Day weekend:
- Income and wealth inequality continue to expand, especially as measured by the widening gap between highest and lowest paid employees in organizations;
- Employers, backed by inadequate enforcement of labor laws, continue to vigorously oppose unions and collective bargaining;
- Work abuse in the forms of bullying, mobbing, and harassment continues to ignored and sometimes fueled by too many senior managers and executives.
I don’t think the era of empathy is going to become a reality without workers demanding so. While certainly there are employers who do the right thing by their employees and reap the benefits (Costco comes to mind), all too many of their counterparts operate in a much different manner. The latter includes some of the giants of our labor market (e.g., Amazon and Walmart), who set the pace for others and can do better.
Put simply, we need a revived, energetic, inclusive, and creative labor movement to usher in these needed changes. Unions will be a big part of that revival, but so will other worker advocacy, civil rights, and religious groups, as well as networks of individuals connecting in person and online. It will also require electing to office those who value the interests of everyday workers over the interests of those vested in concentrations of wealth and power.
It’s a big, challenging task. Labor Day is a good time to rededicate ourselves to it.