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Reinventing the Management Wheel

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More than two thousand years ago the ancient Romans coined the phrase, “Nihil novi sub sole”  -- There is nothing new under the sun.  The actual author is unknown but he might have been a manager considering the latest concept for use in the ancient workplace.

Science has moved technology into new worlds, but when it comes to management planning we continue repeating the past.  We rediscover old ways of doing things, but we give them new names and celebrate them with books, videos and speeches.

During a consulting career of nearly thirty years, this writer has witnessed a parade of “new business solutions.”  Only, the so-called new solutions are some form of variation of old solutions with their new names.  Moreover, these so called new concepts tend to run into the same problems which doomed many of the original ideas during their previous cycles.  Those who reintroduce the ideas may not consider the reasons the original faded; that’s why the concepts continue to come and go.

When Frederick Taylor developed the concept of industrial engineering and Frank Gilbraith, who many consider the first management consultant, (his life was portrayed by the late actor, Clifton Webb, in the amusing movie, “Cheaper By the Dozen,”) they never could have foreseen that their pioneering attempts to bring efficiency in the workplace would eventually be repackaged.  Industrial engineering is archaic, re-engineering is the current buzz word.  There are differences; but just as sure, there are similarities in the difficulties organizations are having in installing Re-engineering; namely, employee understanding, support and acceptance.

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Other examples of how management continues to reinvent the wheel abound.  Prior to Henry Ford’s development of the assembly line, employees crafted entire finished products.  Individual workers taught skills and they possessed a versatility which enabled them to carry out a wide range of assignments.  The assembly line speeded up production by limiting workers to a few simple functions which reduced training time and turned workers from craftsmen to human automatons.  This practice revolutionized factory operations and was hailed as a great management innovation.

Now the pendulum has begun its return swing.  During the 1950s, concepts such as “Job Enlargement,” and “Job Rotation” were introduced to reduce employee boredom (and consequential lower quality).  Most recently, management everywhere have become infatuated by a “novel new” concept called “Multi-Skilling.”  Why not train employees to learn additional tasks rather than limit them to only a few functions.  The assembly line mentality is passé, back to the craftsmen in office and factory.

At the beginning of the 20th century, prior to the assembly line, manufacturers produced goods without the necessity of maintaining inventories.  Parts were made as needed.  One can only imagine the excitement among managers when the idea of building inventories in order to prevent shortages was first introduced.  “How clever,” they must have thought, “now there will be available parts when you need them.”  Industrialists must have blessed the idea that should there be a defective part, they could sustain production because of the inventory of stored parts.  Our thinking has changed again.  In our current business mode, inventories are expensive and wasteful of space.  The answer:  Just In Time Systems.  Who needs to inventory parts?  They can be made to arrive when needed.  “JIT”--what a novel innovation!

Even our current efforts to raise quality of goods and probably the whole quality assurance movement is a response to the reduced standards which became acceptable to business.  Quality was sacrificed for greater quantity.  One of the reasons we refer to how well made were the products of past generations, was that old time craftsmen made things correctly the first time.  Quality work was the norm; QA inspectors came later.  Pride in work was each worker’s badge of honor.

A recent innovation in management semantics relates to how we view surplus employees. As long as there has been business, there have been business down turns and the concept of laying off employees was accepted as part of business routine.  Recently our social conscience reached a point which required new terminology.  The term “layoff” evolved into “down-sizing,” “right-sizing,” and “correct-sizing.”  We don’t go through layoffs, we initiate “reductions in force.”  One can be certain effected workers of past centuries experienced the same reactions as their modern counterparts.

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Quality Circles, which the Post WWII Japanese used so successfully, actually was a process which helped America defeat the Japanese.  It was a practice employed extensively in American defense factories as a way to get workers to share ideas and to improve what and how they were doing things.  There was no resistance because nobody was worried about losing a job.  After the war Edward Deming was instrumental in the Japanese becoming so proficient in the concept of what we call quality management only because he couldn’t get American manufacturers to use the formal process of Quality Circles.  American business was bathing in post-war profits and quality was winked at.  As business became competitive with foreign markets, Americans then gave credit to the Japanese for learning how to build quality products.

Management by Objectives (MBO) has had a great ride and currently is being somewhat revived as part of what we now call Performance Management.  And, speaking of MBO, the reason for the difficulties many organizations had succeeding with it portends why Performance Management may founder.  Managers learned that the principle problem with MBO was not the concept, but rather the lack of motivation by those involved.  Measuring performance by assessing how well stated, and agreed upon, objectives are accomplished frequently became little more than a ritual.  Those involved felt little inspiration to follow through properly.  Rewarding managers for results as Performance Management dictates is diluted by poorly defined standards and the willingness to pardon low performers rather than enforce high standards.

Similarly, managers are finding that the concept of “Participative Management,” requires more than getting employees “involved.”  They require more than inclusion; techniques to motivate must be inherent if the approach is to be successful.

Starting in the post WWII business era, “psychological testing” became a popular tool in the recruitment process.  This was followed by another application of “psychological management”--Sensitivity Training.  The latter proved too hot to handle and the negative results led to its abandonment.  In fact, some organizations still are reeling from its negative effects.  Psychological testing in its purer form has been maintained on a reduced scale but it’s now undergoing an (expected) revival as managements are turning to “assessment centers” as part of the process of succession planning and management development strategies.  And, while sensitivity training itself may have failed, there is a slight revival as many organizations have found value in permitting employees to rate their bosses.  The results of this effort has not yet been determined.

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An amusing phenomenon which has resulted from pressures on organizations to reduce payroll has been “flattening the organization.”  But, flattening to what?  The flattening has returned organizations to what they were during earlier decades.  When C. Northcote Parkinson stated his “Parkinson’s Laws” in the 1920s, he accurately described the growing pyramid organization.  In the “olden days” when someone built a company, nearly everyone reported to the top.  Decision making was rapid and insulation between the top and bottom was not a problem.  As companies grew, this structure was replaced by layers of managers, each supporting a higher layer.  Now that organizations are streamlining and reducing the unnecessary hierarchy, many managers express surprise that such steps hadn’t been thought of previously.  When organizations already were flat there was no need to “think of it.”

And, so it goes.  The swing between decentralization and centralization resembles a yo-yo, it repeats often.  Matrix organizations are coming back into vogue, though, there are may be some modifications and, perhaps, new names.  management’s infatuation with “sure fire” concepts continues.

Let there be no mistake, this review is not intended as a condemnation of management’s search for better ways of doing things, but rather as an earnest plea to managers to learn more about what they are doing and to do things correctly.  One of Murphy’s laws, “nothing is ever as simple as it seems,” applies to management.  When managers get on the band wagon to adopt the newest “great new ideas,” they should also remember that nothing is so simple that it requires little effort.  Every process and concept can be a valuable weapon in management’s arsenal--but only when applied properly.  The problem in managers’ impatience to get too rapid results.

A fitting close to this brief reflection is to quote from the introduction of a widely used U.S. government publication:  “It is more economical and more expedient to spending---minutes in properly placing a new worker that it is to spend---days in trying to replace him.”

“It is becoming increasingly difficult to supply skilled workers to meet the nation’s demands for adequate production.---Production is in large measure determined by the extent to which workers are satisfied with their jobs- for a well-satisfied employee will not only stay at his job, but he will work at it with all his strength.”

“In order, therefore, to maintain the production necessary---the most careful thought must be given to the selection, placement and methods of retaining a competent and loyal force of workers.  To accomplish this, every applicant for work should be carefully examined as to his qualifications, in order that he may be placed in the job where his special abilities will not only best serve production, but will also permit him, as an individual, to grow and develop.  It means, furthermore, that the company should maintain a contact with each employee that will be of mutual benefit and will make the worker realize that the company is sincerely interested in his welfare.”

“The methods and processes outlined and suggested are those that have been found successful in some of the largest---corporations in the United States.”

Published:  Philadelphia, 1918.

The more things change; the more they stay the same.  Nihil novi sub sole.

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Last modified on: 03/31/98