books and articles in brief

James U? Marcum

BOOKS Managing witb Dual Strategies: Mastering tbe Present, Preempting tbe Future by Derek F. Abell. New York: Free Press, 1993. 292 pages; $29.95.

Abell makes a point that is fre- quently overlooked: Managing the op- erations of a company for the present is very different from changing the organization for the future. Focusing on the one can cause major problems for the other, yet both are essential. How are leading companies addressing this problem?

Abell's examples come from Eu- rope, where he teaches and heads research for a management development institute. He focuses on market- ing (where customer orientation reigns) and on cost structures, arguing that superior analysis of one's industry and the capabilities of both the company and its competitors will shape and articulate the options available for the present and the future.

Available prescriptions include project management and matrix management structures. Organizations must become market-driven, entrepreneur- ial, participative, flat, quick, and inter- nationally integrated. His proposals sound trite, but Abell brings extensive experience and a fresh perspective that will be valuable to strategists, planners, -

JameSw. Mmm, p h . D * p and general managers. This- is much is director Oflibra9' services more than a book from a consultant at Magak Library, Cente- nary college of Louisiana in trying to attract attention and custom- Shreveport. ers; Abell brings together research,

theory, and practice to crystallize crucial strategic issues and offer possible solutions.

Tbe New American Workplace: Transforming Work Systems in tbe United States by Eileen Appelbaum and Rosemary Batt. Ithaca, NY: ILR Press, 1994. 289 pages; $45, hard- cover; $18.95, paper.

This is a thoughtful study looking at the broad picture of the changing U.S. workplace as a sociological and policy issue rather than at the narrower economic or management perspective. The authors argue that the workplace must change because the learning- curve advantage accruing to traditional mass production no longer is competitive.

The authors compare alternative models tried in various parts of the world: Swedish sociotechnical work teams, Japanese lean production, Ital- ian flexible specialization, and German diversified quality production. No single best way emerges.

Results of an extensive survey of changes in the U.S. workplace over the past decade are reported, as are examples of experimentation over the past 20 years. (A third of this book is devoted to appendices reporting these data.) The survey finds a common failing: Much U.S. experimentation is done piecemeal and without comprehensive understanding and planning. There is much information here to warrant the attention of economists,

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strategists, and others seeking a macro view of the U.S. workplace.

Tbe Wbiz Kids: Ten Founding Fa- tbers of American Business+nd tbe Legacy Tbey Lefl Us by John A. Byrne. New York DoubledayKus- rency, 1993.581 pages; $27.50.

It is now common to denigrate “finance men” who focus so much on costs that they lose sight of the business’s real purpose, as happened at Ford as the Japanese auto invasion built up momentum. The “takeover” of corporations by finance departments spread from Ford to GM to many leading companies in the 1960s and 1970s, sacrificing engineering and larger corporate strategy before the altar of the bottom line.

How did such a misguided management trend happen? Many writers lay the blame on the Whiz Kids, ten young turks who joined Ford right after World War I1 and gradually won control. The group included Bob McNamara of Vietnam “body count” fame, Tex Thornton, who fast-talked Litton In- dustries into the stratosphere of con- glomerate glory only to see it collapse, and Jack Reith, whose Mercury Turn- pike Cruiser is forgotten only because the Edsel was an even noisier debacle.

Byrne, an excellent business writer, explains how Tex Thornton imple- mented Stat Control, bringing order, control, and predictability out of the chaos of the Army Air Corps at the start of World War 11. He did this by recruit- ing McNamara, Arjay Miller, and other top minds, giving them a dose of Harvard MBA training, and then send- ing them around the globe to imple- ment control. In late 1945, he led a band of them to Henry Ford I1 who was

looking for management talent to help him escape granddad’s huge shadow. The rest is history, but Byrne makes the group human and even tragic as he recounts the spectacular achievements and shortcomings of a very human group of guys. Byrne goes beyond typical business history to explore the minds and social backgrounds of these fellows whose ambition drove them to follies grander than their notable ac- complishments.

This is a fine read, stimulating and sobering at the same time.

Tbe 02 Principle: 6i?tting Resu&s tbrougb Individual and Organiza- tional Accountability by Roger Conners, Tom Smith, and Craig Hickman. New York Prentice-Hall, 1994. 256 pages; $21.95.

The “02 Principle” alludes to the human tendency to look to wizards to provide us with the brains, heart, or courage needed to become complete. But the crucial problem addressed by the authors is the victimology that is being nurtured by our litigious society and the resulting loss of personal responsibility and accountability. Although the authors do not document this “trend” beyond a few books and an article or two in Time magazine, we can all acknowledge its existence.

In making the case for individual and organizational accountability, the authors suggest, again without documentation, that accountability is the goal of the quality management movement, assuming that an entire industry is seeking the same goals they are promoting.

The message is simple but useful: Both individuals and organizations can take stock of their behavior and think-

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ing (with the help of handy checklists popularization is still required to get thoughtfully provided) and determine the media and the public to pay atten- whether they are operating above or tion. A good bibliography adds to the below “the line.” Then they can go value of the work; the absence of an through the problem-solving steps of index detracts substantially. “seeing it,” “owning it,” “solving it,” and “doing it.” Tbe Diversity Advantage: How

There is little new here. But it is American Business Can Out-Per- well written, timely, and could be use- form Japanese amdEuropeun Com- fill to concerned people at many levels panies in tbe GIoliaZ Marketpkce of an organization. by John P. Fernandez with Mary

Barr. New York Lexington, 1993. Statistics for tbe 21st Century: Pro- 340 pages; $24.95. posaLs for Improving Statistics for Better &cision Making by Joseph The world is racially, ethnically, W. Duncan and Andrew C. Gross. and culturally diverse. Doing business New York: DUM and Bradstreet, successfully in that world will be easier 1993.266 pages; $14.95, paper. for people who are racially, ethnically,

and culturally tolerant. The United States The distinction is subtle, but this almost has a clear advantage in this

book is not about statistical methods as regard if we can improve our under- such, but rather about the standardiza- standing of and appreciation forwomen tion of recordkeeping, or “statistics” and minorities. writ large. The authors argue that the Femandez portrays the Japanese U.S. government, other governments as chauvinistic, xenophobic racists. (state, local, and foreign), international Their preeminence in the global mar- agencies, and economists generally use ket will slip beginning in this decade, statistical measures that are inconsis- partly for that reason. The Europeans tent with one another and inadequate are more diverse, he adds, but likewise for current needs. are racists and subject women and

When gathered and disseminated, immigrants to more discrimination than data, records, and statistics create us- they encounter in the United States. ers. Users want improved access and U.S. immigration policy, ethnic more frequent updating. The differ- group relationships, and gender equal- ences in utility between print, online, ity are far from ideal, but they still give and electronic databases are outlined. us a potential edge for the global Examples of the problem of usable marketplace. The author proposes the statistics are provided, most extensively management of diversity, with a good through a case study of the health care dose of training, as a proactive strategy industry. designed to allow US. corporations to

The authors, a business professor turn that potential advantage into a real and a corporate economist-statistician, one. hope to open a dialogue on this topic that will raise the issue onto the policy Management of Quality: Strategies agenda. In that effort they may meet to Improve Quality and tbe Bottom some success, although considerable Line by Jack Hagan. Milwaukee:

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ASQC Quality Press/Business One Irwin, 1994.163 pages; $25

All usable books on quality talk about serving the customer and know- ing their needs; one cannot help but wonder when publishers of books on quality will heed that advice. The number of general introductions to quality management is becoming overwhelm- ing. Significant contributions to the literature are becoming difficult to find.

A search for fresh ideas in this little book, which was written by a quality management consultant, leads to a chapter emphasizing the importance of human relations skills (a subject only implicitly addressed in many TQM books) and an emphasis on personal responsibility for quality-along with guidelines for implementing same.

Customer-FocusedQuaUty.’ Wbat to Do on Monday Morning by Tom Hinton and Wini Schaeffer. Englewood Cliffs, New Jersey: Prentice-Hall, 1993. 273 pages; $19.95.

This is a guidebook on quality management designed to get an entire organization to listen to customers, measure their satisfaction, focus on their needs, and keep them as customers. The authors combine the skills of a consultant and a practitioner, and their arguments are sound and persuasive. There are chapters on assessing a company’s customer-focused processes, training staff to provide excellent customer service, and addressing a company’s reputation for quality.

The work is readable, clear, and current. If you are looking for a general book on quality that emphasizes focusing on the customer, this one will work.

Reengineering: Leveraging tbe Power of Integrated hductDeve1- opment by V. Daniel Hunt. Essex Junction, Vermont,: Omneo/Oliver Wight, 1993.270 pages; $25.

Studies of the reengineering process rarely enjoy both the technical expertise and the macro-management perspective to serve both line and ex- ecutive requirements for sound guidance. This book appears to bridge that chasm.

Hunt uses the concept of reengineering as shorthand for integrated product development (IPD), and there- fore treats it both as a broad technique encompassing TQM and as a component of TQM. For example, the “essen- tials” of IPD include, he says, TQM, multifunctional teams, computer aided tools (CADKAEKAM), data standards, and systems engineering. A chapter on tools and techniques for IPD includes some items not commonly found in this type of management literature: design for experiment, design for assembly, group technology, simulation, flexible systems, and configuration management.

Reengineering is potentially very powerful, Hunt says. It can double quality and product life, reduce scrap and failure rate by 60 to 75 percent, and shorten development time by a third to one-half. But not all companies are good candidates. Those just one jump ahead of creditors lack the time; those following management trends for fash- ion lack the commitment. But, for leading companies, IPD can add to their competitiveness and advantage. Man- agers will appreciate the author’s clear organization and direct, jargon-free style.

Frontline Teamwork: One Com- pany’s Story of Success by Louis W.

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Joy 111 and Jo A. Joy. Burr Ridge, IL: Business One Irwin/APICS, 1994. 273 pages; $20.

This little book is not up to Busi- ness One Irwin’s usual standard. It portends to be an account of “one company’s” successful use of teams. The company is not named and the alert corporate CEO “Roger Honlinks” does not exist. So, is this a disguised story of a real company, or a composite drawn by the consultantdauthors from various companies in their experience? We can only guess.

The authors attempt to use this “experience” to deal with the arguments and skepticism that usually con- front experimentation. The reader sits through various meetings and strategy sessions as the program unfolds, hear- ing the arguments and experiencing the frustrations and successes. The genre is not new, but it will be useful to only a few of its intended audience. Only brief discussion questions at the end of each chapter and an appendix on “production sequencing” offer concrete guidance.

The lack of bibliography and in- dexing limit the utility of this work, which is intended for supervisors and team leaders. The authors champion the inclusion of real workers in the quality-improvement exercise, but the method used in this book does that cause little justice.

Country Competitiveness: Tecbnol- ogy and tbe Organizing of Work, edited by Bruce Kogut. New York: oxford University Press, 1993.270 pages; $39.95.

This collection of papers by U.S. and European academics presented at

a conference in Brussels in 1990 is a sobering work. The findings are that work is organized around national patterns that are deeply ingrained, historic, and exceedingly difficult to change. Around this theme are spun variable accounts of work practices in France, Germany, Britain, Japan, and the United States. The authors feel that there have been three major cycles of work organization, beginning with the British, shifting to the United States around the start of this century, and more recently shifting to Japan.

There are deep-seated reasons why the United States cannot regain its leadership role. Our system of education and worker training, the absence of apprenticeship programs, low worker qualifications, and our insistence on keeping occupational distinctions suggest that we cannot obtain the standards of highly skilled workers with relative autonomy over a wide variety of tasks that are required attributes for the future.

Business cannot address this problem alone. Significant collaboration with public and educational institutions is required because deeply held social attitudes and behaviors would have to change before competitiveness can be regained. And that kind of public- private collaboration faces ingrained, historic behavior patterns that are exceedingly difficult to change.

Quantum Quality: Quality Improve- ment tbrougb Innovation, Learn- ing, and Creativity by William C. Miller. New York: Quality Re- sources, 1993. 208 pages; $19.95, paper*

This little study purports to bring the dialogue and practice of quality

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management to a new level, quantum quality, composed of a breakthrough in work processes, a leap in stake- holder benefit, and an escalation in personal and team commitment. The keys to success in creating this “new paradigm” are learning, values, creativity, and sustainability.

Actually, Miller has something to say about learning and creativity, in particular, but he scatters his arguments through eight different chapters, diminishing their effect. He also scores on the point that quality programs must reflect the values of the people for them to be successful. He may be on the money about quantum quality being a level above TQM, but the book lacks the scholarly support to convert the reader.

The author seems uncertain of his audience. His view is sweeping and appropriate for the CEO, but his illus- trations are from line and staff people with a more limited perspective. This book has a promising title and useful insights, but muddled organization and overall disappointment are the bottom lines here.

Breaktbrougb Partnering: Creat- ing a Collective Enterprise Advan- tage by Patricia A. Moody. Essex Junction, Vermonk Omneo/Oliver Wight, 1993.269 pages; $25.

Just as teams unleash the power of cooperation and get the benefit of the thoughts and experience of everyone in the team, so corporate partnering, or networking, should create new syn- ergy and, it is hoped, greater productivity. So runs a line of thinking in the management world, well represented by this timely study.

Big corporations have tended to

make themselves more competitive by “leveraging” (read extorting) their suppliers to provide better terms and cheaper prices. This strategy can have occasional, limited impact. But quality producers must have quality suppliers, and communication, trust, and cooperation to achieve mutual goals can have a greater ongoing impact.

A consultant and a leader in the Association for Manufacturing Excel- lence, Moody offers insights and tools for developing trust and cooperation at various levels of the cooperation to create new “enterprises,” as the results of such partnering might be consid- ered. The style of leadership, as well as the people systems and control systems required, is discussed. Several customer evaluation forms, a competitive management diagnostic, and a partnership diagnostic form are included in the appendices. Individual managers and companies must determine for themselves whether this potentially powerful new approach can be of use.

Partnering witb Employees: A Prac- tical System for Building Empow- e r e d R e W m b i p s by Duke Nielsen.

pages; $25.95. S~UIFGNW~SC& Joss~Y-B~~s, 1993.145

Employee empowerment is a hot buzzword for the 193Os, but the literature for accomplishing that level of commitment is less than overwhelm- ing. Most approaches to the subject rely on team-building to accomplish the desired goal. “Partnering” offers a slightly different strategy.

Nielsen argues that various programs designed to empower employees, such as communication improvement, job enrichment, leadership development, and team building are actu-

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Books and Articks m Bricf

ally more likely to achieve results if combined with written partnering agree- ments and “leader-direct report” relationships. These factors enable an employee (a term to be abolished) to experience a greater sense of self-control. Partnering evaluations are pro- posed as an alternative to performance appraisals.

The book is a bit light-lacking documentation beyond a bibliography listing a score of references-to serve as a foundation for an entirely fresh personnel program, but it serves to stimulate thought and give starting directions for someone interested in this approach.

Competitive Advantage tbrougb People: Unleashing tbe Power of tbe Work Force by Jeffrey Pfeffer. Boston: Harvard Business School Press, 1994.288 pages; $24.95.

Most readers will agree that how a workforce is managed is a key to future success. The company with the highest return on its stock from 1972 to 1992 (at 21,775 percent) was Southwest Air- lines, a company facing many hurdles in just getting off the ground, and whose only competitive advantage came from a motivated, unionized workforce.

Pfeffer, a business professor at Stanford, spells out the legal, cultural, and historical forces hindering substan- tive change in empowering a workforce. He asks, What is it that successful firms do with their people? The answers include employment security, high wages, wage compression, employee ownership, information sharing, sym- bolic egalitarianism, training, training, and more training. He discusses the promise of the quality movement at length, but cautions that the promise is

not always realized. He dispassion- ately discusses the role of unions and employee organizations, suggesting that their actual function is more positive than management lore would admit.

This is an important work, suggesting strategic directions that workforce managers might consider. Solutions in this complex arena are long-term and require fresh thinking. The author’s examples of company success through employee productivity bring workforce management back to the center of corporate strategic thinking.

Recreating tbe Workplace: Tbe Patbway to Higb Performance Work Systems by Steven R Rayner. &sex Junction, Vermont: Oliver Wight, 1993.279 pages; $25.

Teams and workplace transforma- tions are well-worked themes in the literature of quality and productivity, but Rayner has found a niche and made a contribution. Although not obvious from the title, the theme of this highly readable book is how middle-management people can influence their organization to move in the direction of continuous improvement.

Rayner argues that, although CEOs often take credit for a quality transformation of their company, in most cases the process was well under way before they jumped out in front of the parade. Most high performance work systems come about because of middle-management influence and effort.

Rayner is working beyond either teams or TQM, per se. His “transformation pathway” involves leadership from a champion, commitment, communication, redesign, reinforcement, and renewal. There’s nothing terribly original here, but he packages ideas and

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presents them without jargon or other eccentricities. Along the way he points out the inadequacies of various techniques, ranging from suggestion systems to reengineering.

This is solid work, with a foot planted in both the theory and practice of organizational transformation. Middle managers in particular can find inspira- tion here instead of waiting for the powers that be to catch on and give them their marching orders.

Tbe Seruice Quality Handbook, edited by Eberhard E. Scheuing and William F. Christopher. New York: AMACOM, 1993.550 pages; $75.

At first look, this book appears to be a bit unfocused and rather pricey for a “handbook” on service quality. The organization of the sections and chapters does not always lead quickly to the desired information, a problem only partially corrected by a good index. This is not a book one sits down with and reads straight through; it will come in handy for managers and personnel directors of service organizations, and many will want it on their bookshelves.

The contributors are a mix of con- sultants, professors, and company ex- ecutives. The editors’ style is to bring together several case studies to address an issue, and the examples are real. For example, the section on the role of employees offers USAA’s selection and training practices, Marriott’s use of development practices to motivate, several examples of empowerment, and Florida Power & Light’s employee suggestion system. In another example, the implementation of service quality is illustrated with accounts of GTE’s employee and management education program, MetLife’s fostering of per-

sonal quality, and Coming’s use of partnership teams.

There is much of value here, and diligent effort will reap rewards.

V a n a g e r : A Practical Guide for Manugdng in a Total Qualiv Orga- nixation by Warre!n H. Schmidt and Jerome P. F i n n i p . San Francisco: JOSS~Y-B~SS, 1993.196 pages; $24.95.

Just when you think it impossible to find an original short book on quality management, one appears. Schmidt and Finnigan, who wrote an influential book about the TQM movement and its economic and policy issues, 7%e Race With- out a Finish Line, now offer a guidebook for managers needing to get up to speed on the subject quickly. Their combination of professorial vision and managerial expertise has produced another winner.

With succinct, readable, conversa- tional writing, the authors state the need for TQM and how individual managers can assess their personal style and elicit feedback from peers and employees. The five key competencies in this process are developing open and trust- ing relationships, building cooperation and teamwork, managing (deciding) by fact, supporting results with recogni- tion and rewards, and creating a learning and continuously improving organization. One might quarrel with a component of the plan, such as the authors’ heavy reliance on rewards, but the program is comprehensive and workable. Guidelines for personal plans to carry through on the five competencies and a glossary of terms add to the utility of this nifty work. Middle managers are most likely to find it useful, especially those with limited backgrounds on the subject.

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Boob and Atticks in Brief

Tbe Emerging Leader: Ways to a Stronger Team by Dean Tjosvold and Mary M. Tjosvold. New York: Lexington, 1993.150 pages; $22.95.

This book is designed to guide professionals who are stepping into leadership or supervisory positions. The authors are well regarded and the subject is promising, but the book is disap- pointing.

The Tjosvolds rely too much on a dialogue-driven narrative of a doctor developing leadership skills in his new management position in a hospital. They digress, however, from time to time to discussions of theory and research findings about leaders and organizations. The digressions are not obvious and are sometimes confusing. The main theme is the promotion of cooperation theory (as opposed to competition) and how skills in promoting cooperation can be developed. If it were available as an inexpen- sive paperback, the book could be useful in a workshop on supervision skills in a team environment.

ARTICLES Terry L. Besser, “The Commitment of Japanese Workers and U.S. Work- ers: A Reassessment of the Utera- ture,” American Sociological Re- view, 58:6 (December 1993), 873- 881.

The literature of management and personnel is so extensive that many practitioners must despair of keeping up. This literature is often limited in approach and too little based on research findings to make up an ad- equate “universe.” An example of that can be found in this piece, lodged among four articles on behavior in organizations in this one issue of ASR.

Besser argues that, although the literature of commitment among Japa- nese workers is persuasive, it is too much dependent on the behavior of those workers, with low turnover, ab- senteeism, tardiness, and militancy. U.S. workers, on the other hand, show less disciplined behavior, but express higher commitment to their jobs. The cultural differences between the two societies can explain these apparent differences. Work group and family pressures of Japanese society must be factored in if we are to escape comparisons of apples and oranges. A little research expertise and discipline can help dispel common impressions that are simply not valid.

Three other sociologists critique Besser’s analysis in a note immediately following the article. Drawing useful information from scholarly research is not a simple task.

Genevieve Capowski, “Anatomy of a Leader: Where are the Leaders of Tomorrow?” Management Review (March 1994), 10-17.

Leadership does not rouse the same reflex respect that it used to, what with numerous corporate heads still rolling around unattached. The problem, of course, is that the old skills do not serve so well in a multicultural, borderless environment where the troops have little confidence in the commanders. Change makers rather than administra- tors appear to be the order of the day. Could Bill Gates of Microsoft be the new model?

A Management Review survey suggests the attributes of vision, integrity, trust, selflessness, commitment, cre- ative ability, toughness, communication, risk taking, and visibility. Creating good relationships with customers and

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employees, affirming shared values, serving a larger purpose, and fostering hope are one author’s suggestions. Chomping cigars, yelling, and drawing down huge salaries and bonuses don’t show up anywhere here.

The Economist, “Between Two Worlds: A Survey of Manufacturing Technology,” T b e BconomCst, 350:7853 (5 March 1994), 64f.

This report is worth a close read by any manager who needs to get a handle on today’s manufacturing environment. The focus is on the ever-changing frontier where humans and machines interact, a frontier that is not ultimately about quality, flexibility, or time, but about information.

Some of what we think of as con- temporary, such as computerized control, is actually just a more powerful rendering of numeric control, which dates from the punched cards of the Jacquard loom nearly two centuries ago (1804). Many popular myths are clari- fied or laid to rest here. Manufacturing employment is below the 1970 level, but production is up 200 percent; over half the cost of a product life cycle rests in its early conceptualization; robots are having less effect than expected.

Flexible manufacturing systems are the goal, but flexibility comes in many models, including production, process- ing, design, and subcontracting. Agility is the aim, but machines cannot get there. The human factor cannot be escaped. The machine metaphor must give way to the biological. “A machine is more than the sum of its parts; but a living organism is far, far more.” The bottom line is that the leading manufacturers of tomorrow won’t get there with machines, but with people.

Richard Edwards, “Reshaping Em- ployee Protections for a Global Economy,” CbaUenge, 37:l oanuary/February 1994),34-39.

The author argues that our present chaotic melange of workers’ protections are ineffective for both employer and employee, and ultimately too costly for the employer. Unions play only a small role here, representing only one worker in eight, with no sign of immi- nent improvement in their function.

The absence of basic protections means that workers turn to litigation to protect them. They win over half their cases, with awards averaging more than $500,000, and employers pay an aver- age of $83,000 in legal fees to defend themselves whether they win or lose!

Most employers promise fair treat- ment in their company handbooks, encompassing job rights and due process. Edwards proposes a system of employee handbooks, with a default book kicking into effect if a company fails to provide one. But companies, together with their workers, can custom-design their book so that employees can “choose” a mix of rights most appropriate to their situation. To reduce litigation, an automatic mecha- nism triggering independent arbitration should also become a part of the system. This article offers interesting food for thought on dealing with a policy issue that adds uncertainty to every business plan.

Steve Gessner, et A, “Using Elec- tronic Meeting Systems for collaborative Planning at IBM Rochester,” Phnning Review, 22:l oanuary/Feb- mar^ 19941, 34-39.

There are a lot of problems with

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meetings: Wasted time, the dangers of contradicting the boss, and overlook- ing a poorly presented good idea are just a few. Electronic meeting systems (EMS) offer possible solutions to those problems by allowing anonymous voting, getting everyone’s ideas on the agenda, and fostering collaborative planning.

There are two classes of EMS. Simple keypad systems involve one PC, an overhead display, and voting keypads. These are user-friendly and very mo- bile. Wireless keypad systems are now becoming available, enabling even greater flexibility. Workstation systems consist of a network of PCs, allowing more powerful brainstorming and decision making, at greater expense and reduced portability.

The advantages of EMS include greater participation, a wider range of alternatives, and complete documentation of the meeting. These advantages are particularly important for strategic planning exercises.

This article stops just short of a commercial for IBM, but the concise description of this technology is highly useful.

Robert M. Grant, et al., “TQM’s Chal- lenge to Management Theory and Practice,” Sloan Management Re- view, 352 (Winter 1994), 25-35.

The authors, management professors at Georgetown and Cal Tech, argue that TQM cannot be grafted onto the existing management practices of the corporation. TQM requires transformation and that cannot be accom- plished without top management relin- quishing “control.” This explains the frequent failure of TQM initiatives in many companies.

The incompatibilities are major. Tra- ditional management theory emphasizes profit and the shareholder; TQM stresses the convergence of the long- term interests of the employee, the shareholder, and the customer. Infor- mation in the former model is geared to the needs of hierarchical levels; in the latter it is open, timely, and geared to foster horizontal cooperation.

The authors neither promote TQM nor dismiss it. But their point in high- lighting the incompatibility of TQM and the economic model of the corporation is important and should be factored into any decisions to undertake, modify, or abandon TQM initiatives.

Jay Hall, “Americans Know How to be Productive if Managers Will Let Them,” Organizational Dynamics, 2 2 3 (Winter 1994), 33-46.

U.S. productivity growth is at a crawl and U.S. quality of life is drop- ping out, of the top ten of the world’s industrialized nations. A survey asked 10,000 U S . workers what could be done to correct the situation.

The workers responded that the system is suppressing their competence. Management is authoritarian, distrustful, and wasteful of employee abilities, depriving them of the social and emotional support needed to improve productivity.

Hall offers a scale of attributes needed for workers to be productive. His method is known as Quality Poten- tial Assessment, formerly known as the Competence Process. Workers need 70 percent of those conditions; management is providing about 25 percent. Companies that can bridge that dis- crepancy, such as Ford did in the late 1980s, can turn themselves around.


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Richard C. Kearney and Steven W. Hays, “Labor-Management Relations and Participative Decision Making: TowardaNewP~gm,”P!Pu&- lic Administration Review, 54:l (January-February 1994), 44-51.

Employee involvement, or participative decision making (PDM), is widely discussed and practiced today. The impact of PDM on unions and union activities has received much less attention, partly because PDM has been embraced by many as an antidote to unionism. On their side, unions have developed strong opposition to management initiatives generally for the sake of retaining worker perspectives.

The authors fall short of offering a new “paradigm,” but they do get the discussion started. They suggest that unions not dismiss PDM initiatives out of hand. Indeed, the job of the union is to express the voices of those they represent, and that should include organizational matters. Methods that can facilitate a move toward PDM involv- ing the unions include consultation, team-building exercises, and quality- of-work life techniques.

An extensive bibliography offers guidance for anyone interested in pur- suing this topic.

Michael Rothschild, “Why 75 Per- cent of Quality Programs inAmerica Fail,” Critical Intelligence, 2:3 (1994),14-15.

The reason why so many quality initiatives fail, this author suggests, is because of the prevalence of the engine or mechanical model of the organization, as exemplified by such language as “overhaul,” “fine-tune,” and “reengineer.” But, although engines can be over-

hauled, they cannot learn and they have poor adaptability skills. The language of our day must become biological in its culture; terms like agility, responsive- ness, learning, food chain, niche, cooperation, communication, and intelligence should dominate the dialogue of business and organizational change.

Most of all, the agenda should become communication. His illustration of a higher number of functioning neu- rons as distinguishing the human brain from much simpler organisms is a powerful argument for the power and cen- trality of communication. Better communication is the heart of the learning organization process as hierarchy is broken up and previously isolated sec- tors of the organization start communi- cating with one another. This leads to breakthroughs and successful business process redesign.

Ricardo Semler, “Why My Former Employees Still Work for Me,” Harvard Business Review, 72:l uanuary-February 1994), 64-74.

Semler is primary owner of Semco, an unorthodox Brazilian manufacturer of equipment for food service and other industries. He presides over a mess. Factory floors are full of employees, ex- employees, part-timers, and people unaffiliated with Semco but who work with Semco’s equipment. He calls it “unsupervised, in-house, company-sup- ported satellite production of goods and services for sale to Semco itself and other ....” customers. It is chaos, in a land where nearly a third of the top manufacturers have gone out of business since 1990 and where industrial production has fallen by about 10 percent a year for the last three years.

The idea is simple: Treat all em-

458 National Productivity Rariew/Summer 1994

Books and Articks in Brig

ployees as responsible adults. But do it by providing the self-control, profit sharing, and information to let them know what to do and why.

The moment of truth came in 1990 following drastic cash controls imposed by the government. The shop floor agreed to pay cuts in return for higher profit share, management pay cuts, and union reps co-signing all checks. After

this strategy got Semco past the crisis, a longer-term solution to the demand for leanness emerged: Give contracts to employees to work for the company as satellites. Human resource staff, ac- countants, and programmers were the first to take the plunge, quickly fol- lowed by some skilled workers. There is no control at Semco, but there is a vital business. 0


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