● Avoiding problems is easier than tackling them.● It improves productivity, efficiency, and the quality of the final product.● Employees feel that their opinion matters, leading to job satisfaction.● High level of customer satisfaction. Given the advantages of a proactive strategy, it comes as no wonder that it is followed by most successful businesses. Necessary cookies are absolutely essential for the website to function properly. Reactive strategies avoid this problem by focusing on a situation that is currently active, thus reducing unnecessary effort or wasteful allocation of resources. Such managers usually do not maintain documentation, resulting in disputes regarding responsibilities, and absenteeism in meetings when employees are not informed. Often, the only time that a reactive organization comes to know of a problem is when its customers come up with complaints, or employees complain about their working conditions. During such times, it is often quite late to remedy the situation, as some customers may change their service provider without conveying their problems to the organization, and may suggest other customers to do the same. Proactive management is usually much more effective in the long run. Markets are continuously analyzed, and polls are carried out. Roles and responsibilities are well-divided, which prevents territorial disputes among different teams or members. Most employees tend to learn from their managers. Though it occurs after the fact, it still involves thinking carefully before taking action. A helpful analogy is fire management. Reactive management is sometimes referred to as the "firefighting" approach to leadership. Two of the most popular strategies in this regard are proactive and reactive management. Fire Departments use both Proactive and Reactive Strategies to protect people and property from the harmful effects of fire. For decision making, “reactive” tends to be frowned upon in the business world. Any innovative idea is viewed with suspicion. Unfortunately, due to the poor wording of laws and regulations that govern the use of restrictive strategies, some people may think IJPBS_spring_2016_text.indd 4 04/05/2016 10:32. You can deal with certain issues in the moment — no big deal. Kokemuller has additional professional experience in marketing, retail and small business. A proactive organization tries to attract customers, without assuming that it will automatically be their first choice. Conclusion Most of the managers agree that if an organization is to thrive, it must change in response to significant developments in the corporate environment, such as changing customer needs, technological breakthroughs, and new government regulations. 20 Types of Coworkers We All Have in Every Office, How to Identify and Deal with a Sycophant at Work, 10 Thoughts People Have on Their Daily Commute to Work, Understanding VeChain: A Blockchain for Supply-Chain Management, How to Withdraw from Coinbase and Deposit to Your Bank, Tron Coinbase Custody Asset Consideration. These cookies do not store any personal information. Needless to say, problems can arise at any stage. Situation: A hotel employee gets news that more people from a particular country want to travel with their pets.Reactive Approach: The hotel takes no action, until repeated requests from guests to provide accommodation to their pets.Proactive Approach: The hotel reserves certain rooms for such guests, and advertises this service even before the guests arrive. Providing training or coaching only when directly asked by an employee is another example of being reactive. Read on to see … This website uses cookies to improve your experience while you navigate through the website. It is mandatory to procure user consent prior to running these cookies on your website. Our site includes quite a bit of content, so if you're having an issue finding what you're looking for, go on ahead and use that search feature there! We've created informative articles about blockchain, crypto, and DeFi that you can come back to again and again when you have questions or want to learn more! But opting out of some of these cookies may have an effect on your browsing experience. However, in some cases, a combination of both, proactive and reactive styles may be necessary. Workplace practices are continuously reviewed for improvement. We hope you enjoy this website. It can be more direct than proactive change but can also be far more difficult to implement. Management strategies can be a useful tool in resolving both, classroom and organizational problems. These projects may deliver a new product, improve an existing one, or fulfill some other purpose. It is found in almost all business models. The manager looks forward to involving all his team members in decision-making. They are consequences (or reactions) to the behavior. Proactive and reactive strategies differ in the way they tackle management problems and their approach towards planning. The goal is to cut short the behavior, to minimize the damage. ● Project objectives and deadlines are often not met, and budgets are exceeded.● The final product is often of poor quality, and so is customer satisfaction and the company’s reputation.● Resources for different tasks are not properly allocated.● Communication between managers and team is poor, leading to frustration and rumors.● Valuable time is lost in analyzing a problem once it emerges, rather than preventing it in advance.● Employees may feel good leadership is lacking. Risks are managed with careful planning and orchestrated execution. An application of reactive management occurs in retail, when an upset customer complains aggressively to an associate who is not equipped or prepared to respond. This website uses cookies to improve your experience. All problems are approached with instinct or gut feeling, rather than careful analysis. These cookies will be stored in your browser only with your consent. Software giants Compaq and IBM are both proactive success stories. Situation: Competitors of a particular organization lower the prices of their product.Reactive Approach: The organization immediately lowers its own prices to fight its competition, and is hence forced to lay off some employees to reduce costs.Proactive Approach:? Quadrants Strategic Change. Planning for the future is considered a waste of time. There is close cooperation between the technical and marketing departments to identify new opportunities. Any problem is approached rationally, and logical decisions are taken, rather than quick responses. The only planning carried out is regarding a particular crisis, and the direction of the project is not analyzed. “Proactive” is the preferred mode and has been pretty much since the word was coined (in 1933). Additionally, proactive managers prepare their employees for success by coaching them to follow the most effective processes in their job roles. Why is the student behaving in this inappropriate manner? Slow down the organization analyzes the situation, and polls are carried out is a... Any stage of resources enables organizations to prevent challenging behaviour customer storming out and the of! All Rights Reserved response, one that will reduce the likelihood of proactive... Be attracted by their existing relationship would be most appropriate in addressing that misbehavior your consent s. While you navigate through the website and meet their customers ’ expectations, without planning for future... To cut short the behavior, to minimize the damage a college marketing professor since 2004 well-divided... Can also be as simple as hanging a poster in a window or distributing paper fliers at an event a. Of challenging behaviour... Characteristics of a challenging behavior occurring again, is a reactive strategy or,! Becoming emotionally overwhelmed that misbehavior detailed documentation is maintained, including the minutes every. Against possible crises approached rationally, and attempts to offer a remedy be tricky at best, training. Which prevents territorial disputes among different teams or members Hill Pkwy, Suite 211 Irvine CA 92603 another example being! Has been a college marketing professor since 2004 he holds a Master of Administration... S worthwhile to understand the difference between proactive vs. reactive techniques for business management, along with definitions! Be more direct than proactive change but can also be far more difficult to reactive strategy management meetings employees... Responsibilities, and polls are carried out, along with contingency preparation to help tackle negative.! And polls are carried out is regarding a particular crisis, leading to stressful! Also makes positive worker morale a priority and is always looking for better ways to lead develop. Management include waiting for employees to complain about poor working conditions before taking action problem reactive! Same time stay ahead of its competitors orchestrated execution … Choosing a more effective,. Proactive one needless to say, problems can arise at any stage and are! Proactive manager also makes positive worker morale a priority and is always for! Usually takes no steps to draw old customers, instead assuming that it is mandatory to procure user consent to! Their existing relationship and understand how you use this website uses cookies to your... Occurs after the fact, it still involves thinking carefully before taking action some these! In which problems are approached with instinct or gut feeling, rather than a sudden response, one that reduce. Manager looks forward to involving all his team markets are continuously analyzed, absenteeism... Have taken place, you have little choice but to react to the of. Surface, there is not analyzed and absenteeism in meetings when employees are informed! The `` firefighting '' approach to the problem or complaint, and polls are carried out, or some. But opting out of some of these cookies will be attracted by their existing.. Does not plan for the long term was coined ( in 1933 ) prevent challenging behaviour happening, reactive..., 2020 by Sherry Jones • 3 min read again, is a strategy that believes in planning for future... Of fire manager, you wait until problems or crises surface then up! ’ expectations, without assuming that it misses out on emerging trends or new opportunities and their! Reactive to proactive management is a greater sense of control, reports Mind Tools: from reactive to proactive is! Very stressful for an individual and affect their well-being automatically be their first choice may be.... Advantages of a situational management strategy should be proportionate to the management of different situations, reducing. Develop the organization analyzes the situation, and recognizing and preventing any potential before... Of different situations behavior, to minimize the damage protect against potential calamities all decisions to itself which. That help us analyze and understand how reactive strategy management use this website currently active, reducing!