Premji states that companies must “..foster environments in which workers feel safe taking risks, even when they fail.”

Go to the following website and read the interview:

http://www.gsb.stanford.edu/news/headlines/vftt_premji.shtml

Premji states that companies must “..foster environments in which workers feel safe taking risks, even when they fail.” What do you think of this? Would an environment that allows for risk taking and possible failure be possible in your workplace?

MODEL ANSWER

Risk-taking in an organization requires a great interest to commit significant organizational resources to investments that will market for opportunities with a high risk of failure. Premji refers to it as an organizations ability to make substantial and unreliable investments and having the ability to absorb possible letdowns from the investments. These risks occur in varied extents extending from simple to challenging. The ability of a company to strategize and manage risk enhances its competitive advantage as well as provide an environment that allows for risk-taking and possible failure. According to Maladzhi (2015), for an organization gain a competitive advantage, an inventive management with a high desire of taking premeditated risks is essential. The desire of any administration to take strategic risks creates an environment that also allows employees to take risks and accept possible failures. When the organization leaders embrace risk-taking, they develop a culture that allows for a steady flow of concepts to take place in the company (McGing and Brown, 2014). The innovative ideas disseminate throughout the organization from the management level to the staff level and motivate employees to formulate problem-solving ideas. According to Neves and Eisenberger (2014), workforce risk-taking characterizes the preparedness to tolerate and endure uncertainties. These uncertainties include…