management fads planning
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Management FadsEmergence, Evolution, and Implications for Managers
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Outline• Review management fads dating back to the
1950s• How the fads develop and their life cycles
• Evaluate the management implications• In class simulation• Class questions/comments
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About the Authors• Both are professors in Florida• They do research in management styles
Dr. Jane W. Gibson Dr. Dana V. Tesone
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Ettorre’s Typical Management Fad Life Cycle• Discovery• Early Literature
• Wild Acceptance• Many firms adopt the fad
• Digestion• Critics suggest fad is not perfect
• Disillusionment• Widespread recognition of problems within the fad
• Hard Core• Staunch supporters remain loyal
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History of Management Fads
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Management by Objectives• Process of Goal Setting
and Self-Control• Wildly Popular in the
early ‘90s• 1992—80% of Fortune 500 businesses used MBO
• By 1996, no longer considered a fad• Problems with MBO• Managers often focused on
financial goals
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Sensitivity Training• Sessions of interpersonal and emotional training• Place strangers in a group of people in a room (T-groups)• Undirected discussion aimed at improving awareness of
emotions• Idea: Business focuses on facts, but ignores emotions
in decisions
• Problems with Sensitivity Training• Poorly trained facilitators• Groups with people who know each other• Little proof that T-groups worked to improve business
functions
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Quality Circles• Structure: Employees volunteer into groups to
consider ways to improve quality of product or service • Meet on company time
• Initial success yielded improved employee attitudes and participation
• Failure in some businesses the result of unclear objectives and top-level management
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Total Quality Management• Total Quality Management (TQM) is a
management approach to long-term success through customer satisfaction.
• In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work.
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Cost of Quality
Phil Crosby—Quality is Free
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TQM Drawbacks• Initial introduction costs• Training workers and disrupting current production while
being implemented
• Benefits may not be seen for several years • Workers may be resistant to change • May feel less secure in jobs
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Self-Managed Teams (SMT)• "a group of employees who have day-to-day
responsibility for managing themselves and the work they do. Members of self-directed teams typically handle job assignments, plan and schedule work, make production-related decisions, and take action on problems. Members of self-directed teams work with a minimum of direct supervision. As such, the teams are not quality circles or cross-functional task groups. ... [T]hese teams are characterized by:
Face-to-face interaction in natural work groups;Responsibility for producing a definable product;Responsibility for a set of interdependent tasks; andControl over managing and executing tasks.“
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SMT Drawbacks • Self-managing teams are difficult to implement,
and they risk failure when used in inappropriate situations or without sufficient leadership and support
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Can we keep it? Should it be adopted?
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Is the fad adoptable?
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Group simulation