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152 SNAKES IN SUITS
integrate systems and processes into their culture—such as quality
circles and participative management—that linked the most important
elements of employee satisfaction to company profits.
Normal Change
During the normal course of business operations changes occur regularly,
although not always as predictably as one would like. Change
was relatively slow but steady during this period and technological
changes could be effectively met with management and employee education
and training. For example, financial changes, measured in
terms of fluctuations in profit and loss, might lead to educating employees
on cost structures, and then initiating cost containment,
reengineering, and gain-sharing programs to address unfavorable
(negative) variances from budget. The financial impact of other
changes was more difficult to quantify, especially those affecting the
structure of the organization, such as “centralization” or “decentralization”
of functions, changes in reporting relationships, the size of
staff, and the mix of talents required to keep the business profitable.
The processes used to create and sell products also changed as technological
innovations took the form of new or upgraded equipment
emerging from advances in science and engineering. The employees
who comprised the organization routinely changed, although not
dramatically—3 to 5 percent turnover was considered normal—due
to attrition, hiring, and retirement. Major business changes sometimes
required replacing employees with those better educated in the
latest technology, but given enough lead time and supporting programs
(such as retraining and outplacement assistance), the transitions
could be made smoothly.
Despite much of the change during this early period, many organizations
and most people were able to adapt quite effectively, and
the psychological contract, although stretched, helped in this effort.