reading list

B O O K S A N D A R T I C L E S I N B R I E F

by James W Marcum, Rachael Green, and Thomas E. Schuefer

Scott Adams The Dilbert Future: Thriving on Stupidity in the 2 I st Century New York HarperBusiness, I 997 268 pages: $25

Devotees of Scott Adams’ authority-bashing commentary will embrace this new rendition of the realities of modem organizational life. Others will find their thirst for cynicism satisfied with smaller installments.

It is a bit frightening to think that people might read 250 pages of essays and cartoons belaboring human stupidity in one sitting. What’s refreshing as an insight or a put-down of a popular fad could become misanthropic with overexposure.

Obviously, there is profit in dem- onstrating human stupidity by producing best-selling books expounding on human stupidity, especially when it is done through humor. But, it might be healthier for stressed individuals to take their medicine in smaller doses, as in daily or weekly cartoons. --JWM

Robert G. Cross Revenue Management Hard-core Tactics for Market Domination New York Broadway Books, I997 288 pages; $27.95

It is patently obvious that enhanc- ing revenue is critically important to a

business. What is less understood is precisely how to do that. Cross, an at- torney who learned, and helped define, revenue management (RM) in the air- line industry, provides valuable guidance to ease the task.

In 1985, Robert Crandall precipi- tated a crisis in the value of American Airlines stock by announcing steep cuts in fare prices. What the market failed to understand was that AA in- tended to sell only seats that otherwise were flying empty at those cut-throat prices as a strategy for containing the challenge of PeopleExpress. The strategy worked; RM utilized otherwise wasted inventory to deal a severe set- back to a dangerous rival.

Cross demonstrates the strategy at a simplistic level with a barber moving some of her surplus Saturday business to a slow weekday with discounts, while maintaining her valuable working Saturday clientele. This type of micro-marketing requires a great deal of information, a requirement made realizable with information technology.

Revenue management is a wel- come antidote to downsizing, or cost- cutting, which has done so little to improve the long-term viability of corporations. Adding to the numerator rather than reducing the denominator of the profitability fraction means keeping personnel and resources rather than trashing them. -m

Arie de Geos The Living Company Boston: Harvard Business Press, I997 240 pages; $24.95

This is a seminal book that will initiate far-ranging discussions regard- ing the nature and purpose of the company. A distinguished manager for Royal DutcWShell, de Geus played a key role in implementing scenario planning in the business world. In retirement he is eminent in European affairs and in Peter Senge’s “learning organization” movement.

De Geus argues that long-lived companies teach us that diversity, openness, tolerance, distributed power, and a long-term perspective are the key to success. He compares a “living” company to a river, constantly moving, replenishing itself, and interacting with its environment. This contrasts with the “economic” company, which he compares to a puddle, full on occa- sion but destined to be short-lived. The economic company is the traditional, tightly managed firm responding to the short-term demands of their stock- holding owners. Economic companies exhibit little community. They may enjoy great financial success and make their owners a lot of money, but they soon disappear.

The living company strives to sur- vive. It learns constantly to that end. Its “core business” will change over

* * * James W. Marcum, Ph.D., is director of library services at the J. Conrad Dunagan Library atThe University ofTexas ofthe Permian Basin (UTPB) in Odessa. Rachael Green, MLS, is a reference librarian a t Noel Memorial Library, Louisiana State University in Shreveport Thomas E. Schaefer, Ph.D., is a professor in the John Ben Shepperd Public Leadership Institute at UTPB.

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I06 James W! Mareum, Rachel Green, and Thomas E. Schaefer

the centuries. It builds community, provides room for experimentation, fos- ters “flocking” around innovators, tol- erates experimentation and failure, nurtures its capital assets, and engages seriously with its many stakeholders. Successful over the long term, living companies provide rich returns to its stockholders over generations, and even centuries, that far exceed general market growth .

Living companies can be hastily acquired and reduced to economic companies. The sad thing is that con- ventional wisdom often considers such behavior good business. -JWM

john R Dew Quality-Centered Strategic Planning: A Step-by-Step Guide New York Quality Resources, I997 238 pages; $42.50

Some will question the value of a new book incorporating quality processes with strategic planning. TQM has lost much of its luster as a cure-all for business ills. Perhaps that is just as well. Now it will require more thought and commitment to start a quality initiative rather than simply jumping on a promising bandwagon, and that will improve the success rate.

This book meets the usual high standards of Quality Resources publi- cations. Dew, an educator turned consultant, offers examples that are perhaps more relevant to public and vol- unteer organizations, such as cities and educational institutions, than to corporations. Nonetheless, the book is well- grounded in the thinking and techniques of Deming, Juran, and Crosby. The precise purpose, linking quality processes with strategic planning, is somewhat unique, but not necessarily justified in the text. Vision and mis- sion statements get full attention, but so do implementing the plan and clos- ing the gaps between current status and future goals. Valuable techniques, such as “blitz-building” a strategic plan-much like Habitat for Human- ity blitzes the construction of a home-

are spelled out. Other techniques, such as scanning, are handled less effec- tively. Basic TQM tools and techniques are treated and utilized, though the novice might need additional guidance. -m

Harold Geneen The Synergy Myth and Other Ailments of Business Today New York St. Martin’s, I997 272 pages; $24.95

One might expect an 88-year-old veteran of the “conglomerate wars” of the 1970s to offer little of value to the contemporary management dialogue. But despite an occasional diatribe against government bureaucracy or parasitic attorneys, this is a fascinat- ing book.

Since his retirement Geneen, famous for building ITT into a powerful conglomerate, has devoted his time to turning small companies around. At one point he offers a succinct philoso- phy for management success. He stresses making short-term goals, and to do that it is necessary to: spend lots of money on R&D, make acquisitions, expand markets, obtain adequate fi- nancing, hire top talent, and maintain and increase market share in each product line. And how does one go about doing all that? By means of a conglomerate.

This book should actually be en- titled “The case for conglomerates,” since Geneen repeatedly returns to the value of conglomerate management. He distinguishes such management from the cannibalistic leveraged buyout where the pieces of a company are sold off and legions of workers are laid off. Management’sjob is to make a company grow and become profit- able, and a team of managers running various enterprises provides varied skills and experiences to guide changes and improvements on the part of any company.

Geneen has a point, one that offers valuable contrarian argument to the “core competencies” focus so

much in vogue today. A company limited to one industry must neces-

sarily rise and fall with broad economic trends. A conglomerate offers deep pockets and a farther horizon that might tolerate short-term losses on behalf of long-term opportunities. A network of valuable skills, a conglomerate spreads risk and creates opportunity.

Conservative on many issues, Geneen is a harsh critic of downsizing, enormous bonuses unlinked to long- range performance, irresponsible management, and boards of trustees that fail to exercise oversight. He offers a stimulating read. -JwM

john /? Kotter Matsushita Leadenhip: Lessons From the Twentieth Century‘s Most Remarkable Entrepreneur New YorkThe Free Press, I997 290 pages; $25

John Kotter, professor of leadership at the Harvard Business School, salutes Komosuke Matsushita (“M’ hereafter) in this compelling biogra- phy. He focuses on the entrepreneur- ial achievements of a determined small businessman who became a Japanese folk hero. Founder of Matsushita Elec- tric in 1917 with savings of amere 100 yen, M’s firm would grow to the $75 billion corporation it is now. Along the way, M faced crisis after crisis in his personal life, as well as in his business dealings.

On his journey from humble be- ginnings to billionaire-idol, the hero exhibits much capacity to learn and extraordinary resiliency. Sent to work at age nine in a far-off city by an im- poverished family, M climbed from bicycle shop apprentice to middle manager in the then emerging electric utility business (Oklahoma Light), to owner-manager of his own small firm. Unimpressive physically and prone to sickness, M had a business philoso- phy that exuded a triune devotion: to employee well-being, long-range customer satisfaction, and ongoing

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product improvement. This made his company-despite several setbacks- an unbeatable competitive force. M’s paradoxical fusion of careful analysis and risk-proneness carried his growing enterprises through the devastat- ing depression of the late 1920s, the grim aftermath of World War II, and on to a 1962 Time cover story on this unassuming, diminutive man who brushed shoulders with “the great.”

Behind M’s achievements, by his own account, was his “sunao mind,” a concept similar to the famous hshin (“heart and mind”) of Confucianism, which incorporates a driving will with humility and compassion. This attitude, a constant through M s life, made him see “that one of the greatest dangers for a successful enterprise is its arrogance.”

Kotter rightly devotes much space to M’s activities after his success and notoriety. M’s practice of the sunao mind carried over from business to humanitarianism. Never a high liver, M enjoyed giving hundreds of millions of dollars to worthy charities, including the MIGM Leadership Institute, and his endowed “Japan Prize” for science, an award second only to the Nobel Prize in pay-out (about $500,000). Beyond offering a fine model of entrepreneurship, Kotter provides food for thought on the vital relationship between leadership and moral character. -TES

C. Patrick Lewis Building a Shared Vision: A Leader’s Guide to Aligning the Organization Portland: Productivity Press, I997 I69 pages; $45

In keeping with Productivity Press’s tradition of producing large- format, high-quality books comes this beautiful volume on vision building. The information could be presented in a more modest binding and format, but the overall effect of the high-quality volume communicates clearly the importance of the visioning process.

Lewis is a consultant who spe- cializes in leading vision-building

exercises for corporations. Here he provides full detail, complete with questionnaires and model overheads for visual presentation; nothing is held back to require that the organization hire him to complete the task. That is commendable.

The methodology of this guidebook-along with the format-makes it distinctive. Complete questionnaires for testing leadership and staff attitudes and assumptions, ready-to-copy high- quality visuals for presentations, and similar support tools are made avail- able, together with permission for du- plication and use in the visioning exercise. This volume offers a complete do-it-.yourself tool kit for a comprehensive group visioning process. Step-by- step guidelines for implementing the process are also included. Supplement- ing a sound, up-to-date discussion of the importance of the visioning process, these tools make this volume a bargain. -JWM

Michael 5, McMaster The htelligence Advantage: Organizing for Complexity Boston: Buttetworth-Heinemann, I996 240 pages; $17.95

As we attempt to understand the powe,r of intellectual capital, there is need for a comprehensive conceptual model. McMaster, a thoughtful Brit- ish consultant, offers such a model in this book.

It is necessary to begin with theory, the assumptions and paradigms that determine our thinking and behavior. That theory must embrace complexity, he argues, is a requirement that mechanistic models cannot meet. Then comes language. In the tradition of postmodern thinking, language struc- tures our reality; does our language embrace complexity? For example, “history” is useful for its information, not for its conclusions; conclusions are traps in the new age. Emergence, de- fined as phenomena occumng from the interplay of environmental forces with

a system, is useful to describe the development of knowledge, leadership, and learning. Leadership is an emergent response, he argues, not a matter of personality or style. Emergent learning is the tool for coping with complexity, making possible the transfor- mation required for survival amid complexity.

The argument is sometimes dense. The format of the book is a distrac- tion; the inadequate binding surrenders quartos of pages before the reader is finished; handling the book becomes a chore. Readers will not buy all the author’s conclusions or reasoning. The absence of an index is inexcusable. Despite these hindrances, this work takes the problem of conceptualizing, nurturing, and managing intelligence to a higher level. Readers who stick it out and think it through will have an advantage over those embracing knowledge management concepts founded on simpler models and mea- surement schemes. For all of its theory, this ultimately is a very practical book. -JwM

Barney Olmsted and Suzanne Smith Managing in a flexible Workplace New York AMACOM, I 997 238 pages; $24.95

From time to time, many managers feel the need to accommodate a valuable employee with shorter hours or a special work schedule. Usually these arrangements are made on a case- by-case basis, without serious investi- gation, evaluation, or established policy. With the current rise of knowledge-worker independence and port- folio self-management, it is time for firms to give serious consideration to formalizing the policies and practices of the flexible workplace.

This second book on the subject by Olmsted and Smith is a handy guidebook for establishing such an atmosphere. They address the major variations of a flexible work schedule, including flextime, the compressed work week, flex place

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(telecommuting), job sharing, phased retirement, and V-(voluntary) time off. In each case, examples are provided for writing the flextime proposal and evaluating the practice, with lists of problems and solutions faced by companies that have tried the practice, as well as issues on the minds of managers considering the adoption of such practices.

Difficulties tend to fade as one learns the pros and cons, benefits and obstacles of flextime practices. This is a clear, knowledgeable, and practical book that will facilitate the adoption of flextime practices by more and smaller companies. Given the demands for quick adaptation in a fiercely competitive market, many firms would do well to take advantage of the human resources who want to work but who may not be able to maintain the usual 9 to 5 schedule. -m

Ron Sanchez andAime Heene, eds. Strategic Learning and Knowledge Management Chichester; England: John Wiley & Sons, I997 25 I pages; $66

Several impressions emerge from reading this book: 1) the Europeans are far more advanced in applying knowledge management (KM) techniques in business than are the Americans, 2) significant progress is evident in re- searching and analyzing these practices, and 3) the spokesmen for KM practices in this country, notably Edvinsson, Sveiby, and Stewart, fail to earn a citation in this academic en- deavor. Important figures in organizational learning, such as Senge, Argyris, and Leonard-Barton, receive no more than one or two references in the entire work.

This is the second book in as many years from these editors. They labor to define knowledge as beliefs-not certainty-about causal relationships between phenomena, organizational knowledge as shared beliefs about causes, and learning as the process that

changes the state of knowledge. Other perspectives include proposing that “units of activity” better describes business work than does processes, and an intriguing model of information goods prescribing a “paradox of value,” whereby as tacit knowledge becomes codified and more valuable, it also becomes diffusable and, thereby, loses its competitive advantage.

The basic message that can be extracted from the jargon is that learning and knowledge management are insufficient in and of themselves and must be incorporated in the strategy of the firm. Several case studies demon- strate how specific companies are doing this internally, and in collaborative partnerships with other firms, to gain competitive advantage.

The price of the volume is steep, but the topic is hot and fresh material is provided here in top quality format. There is much in the eleven articles of this book to engage those who believe they have mastered the workings of knowledge management and the uses of intellectual capital. -m john Seek Brown, ed. Seeing Diferently: Insights on Innovation Boston: Harvard Business Press, I997 288 pages; $29.95

This new “Harvard Business Re- view Book” presents a collection of recent HBR articles providing assistance to managers needing help conceptualizing how they might adapt their organizations to the new realities. There are three articles on each of four concepts: link to the world, listen to the linkages, learn and reflect, and lead.

Regular HER readers will find nothing new here; indeed, the reprints do not even include the original foot- notes. But the selection is thoughtful and provides a handy resource that a manager might take along on a trip to stimulate thinking and generate fresh ideas.

Some of the articles are quite important and might have been missed. For example, Brian Arthur’s discus-

sion of “increasing returns” as charac- teristic of today’s business realities displacing the traditional acceptance of “diminishing returns” highlights the importance of innovation for a company seeking a long and healthy life. Other articles are already well-known and heavily cited, such as Gary Hamel’s call for seeking out renegades at all levels of the organization in his 1996 article, “Strategy as Revolution.”

Discussions of game theory, capital investments as “options,” and open systems infrastructure, and an argument that too much focus on today’s customer can hinder the innovation demanded by tomorrow’s customer are all useful ideas that can stimulate a fresh approach to an old problem. The volume is one more example of Harvard Business Press’s leadership in bringing the business community creative thinking on business strategy. - J W M

Herbert A. Simon Administrative Behavior A Study of Decision-Making Processes in Administrative Organizations, 4th ed. New York Free Press, I997 384 pages; $17.95, paper

Fifty years after its first publica- tion, Simon’s Administrative Behavior serves to remind us of what has changed and what remains constant in administrative decision-making. Whereas the second edition had a lengthy prefatory discussion and the third edition added chapters on information technology, this edition presents the original chapters of the book followed by discussions updating each issue. The format works, to a point.

Often considered a cornerstone for the theory of organizations and decision-making, Administrative Be- havior is more important for social science thinking than management theory. When one considers the pace of change in organizations, and in the theory of organizations, it is reassur- ing to find so much sense in a book written in the 1940s. The updates

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manage to assimilate many of the changes that have occurred, including quality circles and the impact of computers and networks.

A thinking manager seeking frames of reference on such fundamen- tal issues as authority, values, rational- ity, and human behavior will find guidance and stimulation here. There is nothing on organizational learning and little on strategy. The most quoted, and therefore presumably influential, management thinkers today, such as Por- ter, Senge, and Deming, are not considered here. -m

Thomas A. Stewart lntelleaual Capital: The New Wealth of Organizations New York Doubleday/Currency, I997 240 pages; $27

Stewart contributed significantly to business’s awakening to the importance of intellectual capital, or knowledge management, in a series of articles in Fortune magazine. In this book he pulls the trends and themes together into a cohesive treatment of the problem. His influence is heightened by the fact that he remains an analyst and observer rather than a consultant looking to make big bucks on the hot management concept of the year.

Intellectual capital (IC), the intellectual assets that can be put to use to create wealth, often can substitute for other capital. IC management is counterintuitive. In particular, traditional accounting concepts don’t “get it,” hindering the process of IC development in many ways. It’s not just the accounting profession, however, that is disoriented by the knowledge economy. Traditional management attitudes often hinder the cultivation of IC. “Communities of practice” are more important by far than the traditional organization or department.

Stewart’s view of the problem is comprehensive. He offers definitions of knowledge society, useful guidelines for knowledge companies, advice for knowledge careers, and numerous

principles for managing human capital and customer capital. -JWM

Karl Erik Sveiby The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets San Friancisco: Berrett-Koehler, I997 224 pages; $29.95

Karl Sveiby stands tall among the gurus of the hot new “intellectual capital” wave of thinking. What distinguishes his approach is the relatively comprehensive theory he develops as a frame of reference. Sveiby attempts to spell out what it all means and how it fits into the overall scheme of organizational management today.

What is knowledge? How do we learn? These questions are at least raised, if not satisfactorily answered. Knowledge is the capacity to act. Com- petence encompasses practical knowledge. Expertise is competence to a level of mastery that allows rule-break- ing. It is hard to transfer knowledge; it is impossible to transfer expertise.

This book seeks to help managers value intangible assets appropri- ately, and to manage the skilled and intelligent people who embody those assets. Teams, personal chemistry, tan- dem (professionaVoperationa1) leadership, and open-office space are management tools for facilitating the cocreation and communication of tacit knowledge within the organization.

Sveiby stresses the difference between information and knowledge. Information tends to be overabundant, making it essentially of no value; economies of scale, efficiencies, and enormous volume are required for effective strategy. Extensive technology demands are major cost factors, as are people. Knowledge-based strategies, on the other hand, are highly custom- ized to individual needs, producing no economies of scale. People, not technology, are the sources of revenue, and people require training and significant investment. This work is an important contribution to the field. -JWM

john Case “Opening the Books,” Harvard Business Review, 75:2 (March/April, 1993, I 18-27

Most management innovations, such as process reengineering and self- management teams, have only limited effects on a company’s business performance. A more direct and effective approach, known as open-book management, rests on the simple idea that companies do better when employees care not just about quality, efficiency, or any other single performance vari- able, but about the same thing that senior managers are supposed to care about: the success of the business.

If employees are to act with the organization’s business objectives in mind, senior managers must see that three conditions are met. First, information previously shared only among those in charge must be seen-and understood-by everyone in the organization. Second, managers must hold employees responsible and account- able not just for scheduling their work or hitting quality targets, but for making their unit’s budget or profit goals. Third, in addition to paying employees for their time, the compensation system must reward them for the success of the business.

Because open-book management is in many ways a cultural change-it teaches everybody in the organization new ways of thinking and acting-it also requires the ollgoing involvement of middle managers and frontline employees. It provides the why; it teaches the connection between specific performance improvements and the company’s business objectives.

Since open-book management is a system rather than a how-to program, it is not a quick fix. Implementation is long and cumbersome, particularly in a large company, and the effect of the new way of thinking on the bottom line may not be apparent for some time. The power of open- book management

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lies not in the short term but in the long term, in its ability to change how people think and act, day in and day out. -RG

Froncis M. Dufi “Keeping Our Past Before Us Like a Beacon and Calling it the Future: Why Traditional Supervision Can’t Improve Knowledge Organizations,” Central Business Review, I 6: I (Winter 1997), 5-1 I

It is known that organizations function as systems, yet managers per- sist in supervising professional employees using techniques that focus on the work of individuals. The literature on organizational improvement con- firms that this approach does not work.

Another difficulty with traditional supervision is collecting valid and reli- able performance appraisal data about difficult to measure variables such as creative thinking skills. The problem is one of managing subjectivity.

Next comes the problem of feedback. Often, feedback tells more about the observer than the observed. Then there is a core question about the usefulness of performance feedback: can feedback data really stimulate true, permanent behavior change in professionals?

A new paradigm of supervision is evolving for the purpose of improving the overall performance levels of entire knowledge organizations- Knowledge Work Supervision. KWS shifts the focus of supervision from an examination of the behavior of individuals to an examination of three sets of key variables: the work processes, the social architecture, and the organization’s relationship with its environment. It assesses the specific characteristics of an organization to determine when, where, and how to make improvements that fit. If KWS replaces traditional supervision, there should be a better fit between su- pervisory processes and the purpose, goals, and outcomes of a knowledge organization. -RG

Tim W Ferguson “Who’s Mentoring Whom?’’ Fohes, 159: I 0 (May 19, 1993,252-53

Some managers have good in- stincts and can stay in close touch with their subordinates. However, for those not endowed with these tal- ents, there may be another way-having an expert scientifically analyze their staff.

Good management of subordinates is an art. Is management something that can be reduced to scientific measures? To a surprising degree, the answer is yes, according to some academic researchers who are applying social-network analysis, a decades-old discipline, to the workplace. Survey- ing, which can be backed up by tele- phone or computer logs, shows who is dealing with whom in an organization-the “hot spots.”These signal the entrusted relationships that are critical to amassing knowledge capital and generating innovation.

A firm’s organizational chart will tell about authority. It doesn’t always show how things get done or created. For that, a map to the network is needed, something that shows the informal structure that is usually in- visible. Who are the hubs, the gate- keepers, and the pulse takers? They are pivotal, but they may not be high on the organizational chart.

This kind of shadow organizational chart makes it easier to identify the quiet wonders who make a place tick but don’t get the glory. It also acts to distinguish them from mere know- it-alls who tie up the workings of an organization. How does it manage that? By distinguishing one-way from two-way communications (the know- it-all is rarely asked for advice) or by noting where information trails seem to end.

Networking graphs won’t replace smart managers, but they will make smart managing a little easier. -RG

“Is Intellectual Capital the New Wealth or the Latest Consulting Wonk?” Forbes ASAP (April 7, 1997)

This edition of articles promotes and critiques the “intellectual capital” phenomenon in contemporary management thinking. A panoply of authors ranging from technology gurus Ray Kurzweil and George Gilder to SEC Commissioner Steven Wallman to hard- headed merchant banker John Rutledge to management wonks Tom Peters and William Davidow deliver diverse views and guidance for managers needing to cope with the phenomenon.

Four themes are developed: mea- surement, nurturing, protection, and the practical. Food for thought is distributed broadly. The enormous value of Microsoft stock compared to the tangible assets of the company is a fre- quent example used by promoters of intellectual capital management practices, but Microsoft CFO Mike Brown disparages the concept.

The bottom line? Intellectual capital initiatives are expected to cost $300,000 to $10 million for large corporations. Consulting firms are tool- ing up hard to meet the demand. Intel- ligent managers should proceed with caution. -m

Lin Grensing-Pophol “Employing the Best People - From Afar,’’ Worl<force, 73:3 (March 1997) 30-38

The idea of telecommuting has allowed firms’ workforces the option of not coming into the offce every day. Most often, telecommuting has been an effort to offer workers more flexibility in their work schedules. But more recently, the idea of distant staffing has expanded telecommuting fur- ther by giving employers the option of recruiting and hiring new employees who may rarely or never set foot in a company’s headquarters.

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The benefits of distant staffing are clear. Employees get the convenience of working from virtually anywhere, which allows them to prevent relocat- ing-a costly proposition both for new workers and for organizations that pay for relocation expenses. There are strong drivers for employers as well. For example, salespeople can live near their territories rather than having to live near company headquarters. In addition, having off-site workers can save organizations money on office equipment and space.

Once the decision is made to open up the search for candidates in faraway places, the next step is finding the right person for the job. The hiring process for remote workers isn't unlike the process used to fill any position. The difference lies in the qualities the remote worker must have: self-motivation, self-discipline, and a demonstrated ability to meet deadlines.

Today's employees are beginning to demand more flexibility in their work arrangements. Companies, in turn, are faced with fewer qualified workers and growing costs of doing business. The needs of both employees and employers can be met through distant staffing. What's required of management is a shift in thinking, a less time-driven view of employee performance and the understanding that out of sight is no longer out of mind. -RG

Marco lansiti andlonothan West "Technology Integration: Turning Great Research into Great Products," Harvard Business Review, 75:3 (May-June I997), 69-79

The United States has long pro- duced the best research findings, but for years it allowed the Japanese to bring the products to market and seize the profit that resulted. The situation has changed in recent years as U. S. corporations have selected the most promising ideas and integrated them into new products and services, regain- ing the initiative in semiconductors,

personal computers, workstations, servers, and laptops. This has hap- pened i3.S a result of forming technology integration teams enjoying broad responsibility for entire projects, including experimentation, development, and production.

This article summarizes extensive research into technology integration practices. Comparisons with conditions in Japan and Korea are outlined. Once again, this country's rich tradition of cooperation among industrial and university laboratories has provided it with a competitive edge in a brutal global market. -JwM

Robin Kamen "Psych Selection," Journal of Business Stratem, I8:2 (March/April 1997) 22-27

A growing number of companies around the country are deciding that traditional hiring methods are n o longer enough to gauge whether a person is right for the job. For a magni- fied view, they are turning to psychological testing, a rapidly expanding trend in hiring practices. Most tests try to weed out misfits by calibrating hon- esty, ability to handle stress, motivation, and aggressiveness, among other characteristics.

Test publishers and psychologists have made the process easy and afford- able, offering a broad range of tests and prices. Many human resource managers prefer true/false questionnaires. These tests generally are the cheapest to administer and require the least amount of time to take. Many employers send them home with job appli- cants, and some offer the exams over the phone. The more important the position, the more detailed the test.

But as more employers try to ex- tract the essence of a worker's personality, there is increasing unease among emplo,yees and civil rights groups that the tests will violate privacy and anti- discrimination laws. Others worry that the results will lead unfairly to firings and demotions. As a result. most test

publishers and employers make sure to steer clear of questions involving religious beliefs and sexual practices.

Choosing the right test to use can be tricky. It is most often best to by- pass off-the-shelf tests in lieu of those designed within the company. Employers that use tests improperly can create poor morale in their companies. Relying too heavily on results can cause a company to end up with cookie-cutter employees. But despite concerns about psychological tests, more and more companies believe that their benefits outweigh the drawbacks. -RG

Roberta Maynard "How to Motivate Low-Wage Workers," Notion's Business, 85:5 (May I997), 35-39

Business owners who depend on entry-level and low-wage workers share a problem: motivating employees to do their jobs better. When employees dislike their jobs or are indif- ferent toward them, their attitudes can lead to high turnover rates, theft, poor customer service, and low productivity. Some of the often-subtle signs of discontent within a workforce are: staff members rarely participating actively in meetings, workers displaying no creativity or innovation, cliques forming, workers feeling uncomfortable going to the boss's office.

In a recent survey of small busi- nesses, 63 percent said that conveying respect and value was an effective way to motivate and retain employees. Yet failure to show respect to employees is surprisingly common. A recurring complaint among low-wage workers is that their managers don't call them by name.

Along with respect, low-wage workers crave and thrive on recognition. Self-esteem tends to be a little lower and these workers want to know they're OK.

A tough issue that employers face centers on the special needs of many

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low-wage workers. Difficulties with child care, transportation, language skills, and everyday transactions are common. A final intangible that affects low-wage workers’ attitudes and performance is workplace atmosphere. Having a cheerful place to come to can offset the chaos that many endure in their homes.

Managing low-wage workers suc- cessfully requires sensitivity, common sense, and a good measure of psychol- ogy. Making the effort to understand these workers can unlock hidden po- tential that could be a company’s competitive edge. -RG

Bob Nelson “The Care of the Un-Downsized,” Training & Development 5 I :4 (April I997),40-43

According to a recent survey, only 46 percent of the companies surveyed met their expense-reduction goals after downsizing. In another study, fewer than half the firms downsized since 1988 had increased their profits after layoffs.

Downsizing, however, may not be the true culprit. The real problem is that many companies don’t plan for downsizing, they just reduce the headcount. In such cases, the most important element of downsizing is ignored-the survivors.

Ironically, survivors are perhaps the most critical factor in determining the future success of a downsized company. They are expected to assume additional workloads, work more effi- ciently, and adapt quickly to the new work environment. Managers must anticipate survivors’ reactions to

downsizing and help them grow in spite of the situation. Management must find ways to help survivors cope with concerns that they might lose their jobs, with guilt about the termination of coworkers, and with resentment and burnout because of pressure to work harder.

There are steps that can help management channel its efforts in the right direction. Managers and employees should agree on goals. In addition, management should identify the kinds of rewards and recognition that motivate employees to try to attain those goals. During the times of change, communication should be widespread. Surviving workers need to talk to management and coworkers about their guilt, anger, and concerns. A way to involve survivors in decision making is to have them help management determine how they can all work together in the leaner organization. Because survivors are likely to feel insecure, management must reassure them that it cares about them and their future with the company. -RG

Francis 1. Yarnmarino and Leanne € Atwater “Do Managers See Themselves As Others See Them? Implications of Self-Other Rating Agreement for Human Resources Management,” Organizational Dynamics, 25:4 (Spring l997), 35-44

Between 10 and 15 percent of today’s organizations use either up- ward or 360-degree feedback for developmental learning and performance evaluation. Most of these programs

obtain self-ratings from leaders or managers, as well as ratings from others with whom they interact. Determin- ing the degree of agreement between self-ratings and the other assessments is a key component of the system.

Clearly, an individual’s self-perception is linked to self-rating. Likewise, another person’s perception of the individual being rated should determine the rater’s response. Although these points may seem obvious, there are several key precursors to the formation of these per- ceptions: Biodata-various biogra- phical characteristics such as age, sex, educational level; individual characteristics-intelligence, achievement status, analytic ability; job-relevant experiences-past successes or failures; cog- nitive processes-how people gather, process, store, retrieve and use information; and context/situation-job pres- sures, political processes, prior rating experiences.

The self-other rating types and their HRM outcomes suggest several implications for training and development. First, most of the issues can be addressed by training and education progams. Second, the use of feedback in these programs to enhance self-perception accuracy and self-other agreement is likewise critical. Third, high self-other rating agreement should be a goal of all training programs that use feedback as a developmental tool. Fourth, over time, a declining self- other rating discrepancy can be used as an indicator of improved self-perception accuracy. Fifth, individuals receiving feedback that’s more nega- tive than expected may need special attention. -RG

NATIONAL PRODUCTIVITY RWIEW /Autumn I997

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