Knowledge workers are a difficult and complicated species. The bad news is that these highly educated professionals are impossible to manage using traditional rules, procedures and management information systems. Knowledge workers are too much set on their freedom to act and consider their way of working as too unique to be controlled by managers (Weggeman, 1992). Knowledge workers that are forced to work in a traditional, hierarchical organization lose their motivation and either become very ineffective or leave the company.
The good news is that knowledge workers are often highly, intrinsically motivated people that have a strong urge to be successful. Their energy, knowledge, and creativity can be the decisive factor between the success and failure of the firm.
We have seen three reasons why modern, knowledge-intensive firms need different organizing principles from traditional industrial organizations. What modern way of organizing can accommodate complexity, speed, and knowledge workers? Three concepts seem to be key in organizing knowledge workers: teams, networks, and decentralization. In most knowledge-intensive organizations the various skills and expertise required for complex tasks are brought together using teams. More and more people work in teams and often these teams are set up temporarily to address a specific problem or challenge. In some organizations people still belong to a functional department, like engineering or marketing,
but they work in teams in which these functionalities are combined. In other organizations the
functional departments no longer exist and the whole organizational structure is based on
teams.
To get the best out of knowledge workers, the teams should be self-directing or task-focusing teams, as opposed to manager-led teams. In the manager-led team, the manager acts as the team leader and is responsible for defining the goals, methods, and functioning of the team. Self-directing teams determine their own objectives and the methods by which to achieve them. Management has responsibility only for the team’s organizational context (Thompson,2003). Savage (1996) described the benefits of self-directing teams as follows: "As part of their tasks are solved, the teams shift their focus to other business opportunities and interrelated aspects. The power of the task-focusing team lies in its freedom to shift its focus as needed, to zoom in on particular aspects of an opportunity and zoom out to see the whole picture" (p. 253).