CHAPTER 5 DISCUSSION QUESTIONS1) Fill in the blanks from the Drucker quote at the beginning of page 157. "Management is about _________. Its task is to makepeople capable of ___________, to make their strengths _____________ and their weaknesses ________________.2) What 3 questions should everyone in an organization be able to answer "yes" to?3) How did Alcoa put Druckers ideas about putting people (employees) first into practice?4) Between 1987 & 2000:A) Alcoas lost workday rate fell from 1.87 to how many days per 100 workers?B) Productivity went up by a factor of what?C) Quality issues fell by a factor of what?5) By the end of 2000, Alcoa increased market value by what %?6) In 2005 Alcoas lost work-day rate was down to what?7) What term did Drucker coin in the late 1950s?8) What did Drucker use the above term to mean?9) What is the difference between efficiency & effectiveness?10) Today, knowledge & service workers together constitute just over what % of the US workforce?11) What is Whole Foods method for successfully finding the right people?12) Fill in the blank. "A mission statement should fit on your ___________________."13) What is FPUs mission statement?14) What is the mission statement of your favorite organization?15) Fill in the blanks. "Especially for knowledge workers, Drucker was a strong advocate for ________________ rather than____________________.16) There is no better motivation for working hard than what?17) What did the PARC scientists refer to Xerox officials as?18) Who is the worlds largest producer of appliances?19) What general category of people & knowledge strategies typically involves the highest investment in knowledge?20) What general category of people & knowledge strategies has a smaller knowledge component in its offering?21) What general category of people & knowledge strategies is all about low price?22) What general category of people & knowledge strategies has a high knowledge content within its offerings & needs fewpeople to operate?
“MANAGEMENT IS ABOUT HUMAN BEINGS. ITS TASK IS TOMAKE PEOPLE CAPABLE OF JOINT PERFORMANCE, TO MAKE THEIR STRENGTHS EFFECTIVE & THEIR WEAKNESSES IRRELEVANT.”
WHAT DO EMPLOYEES EXPECT FROM THEIR MANAGERS?-EVERY PERSON IN AN ORGANIZATION SHOULD BE ABLE TO ANSWER YES TO 3 QUESTIONS:1) ARE YOU TREATED EVERY DAY WITH DIGNITY & RESPECT BY EVERYONE YOU ENCOUNTER?2) ARE YOU GIVEN THE THINGS THAT YOU NEED (EDUCATION, TRAINING, ENCOURAGEMENT, SUPPORT) SO THAT YOU CAN MAKE A CONTRIBUTION?3) DO PEOPLE NOTICE THAT YOU DID IT?
HOW DID ALCOA PUT DRUCKER’S IDEAS ABOUT “PUTTING PEOPLE FIRST” INTO PRACTICE? -MADE A CONNECTION BETWEEN HUMAN VALUES, EMPLOYEE SAFETY, & FINANCIAL SUCCESS.-SOUGHT OUT TO BE THE FIRST 100% INJURY FREE WORK PLACE.
WHAT IS THE DIFFERENCE BETWEEN EFFICIENCY & EFFECTIVENESS?EFFICIENCY:-THE ABILITY TO GET THINGS DONE. (MANUAL WORK)EFFECTIVENESS:-THE ABILITY TO GET THE RIGHT THING DONE. (KNOWLEDGE WORKERS)WHY DOES MANAGEMENT NEED TO APPROACH KNOWLEDGE WORKERS &SERVICE WORKERS DIFFERENTLY FROM THE TRADITIONAL BLUE-COLLAR WORKER?
WHAT MUST MANAGEMENT OFFER KNOWLEDGE WORKERS?THE OPPORTUNITY TO:1) COMBINE THEIR EXPERTISE WITH OTHER PEOPLE’SCOMPLIMENTARY SKILLS, INSIGHT, & RELATIONSHIPS.2) WORK TOWARD A MISSION THAT HAS AN IMPACT ON THECUSTOMER.3) BE ABLE TO MEASURE THEIR EFFECTIVENESS.
AS MANAGERS, HOW CAN WE MOTIVATE OURKNOWLEDGE WORKERS SO THAT THEY WILL BE EFFECTIVE & ENGAGED EMPLOYEES?“PEOPLE WORK JUST HARD ENOUGH NOT TO GET FIRED.” PETER GIBBONS
•FIRST, WE MUST RECOGNIZE THAT PEOPLE ARE ANORGANIZATION’S MOST VALUABLE ASSET. -PEOPLE: CUSTOMERS & EMPLOYEES•SECOND, WE MUST FIGURE OUT WHAT MOTIVATES EACHOF OUR INDIVIDUAL EMPLOYEES. -THE CANDLE PROBLEM -THE STUCK TRUCK DANIEL PINK CLIP ON MOTIVATION
THE CANDLE PROBLEM
THE CANDLE PROBLEM-CREATED IN 1945 BY PSYCHOLOGIST KARL DUNCKER.-MEASURES THE INFLUENCE OF FUNCTIONAL FIXEDNESS ON APARTICIPANT’S PROBLEM SOLVING CAPABILITIES.-FUNCTIONAL FIXEDNESS: A MENTAL BLOCK AGAINST USING ANOBJECT IN A NEW WAY THAT IS REQUIRED TO SOLVE A PROBLEM. -CANDLE PROBLEM BLOCK: THE BOX OF TACKS.
WHAT IS NEEDED TO GET THE RIGHT ANSWER TO SOLVE A PROBLEM?CREATIVITY -HOW CREATIVE ARE YOU TO COME UP WITH THE RIGHT ANSWER?MOTIVATION -HOW MOTIVATED ARE YOU TO COME UP WITH THE RIGHT ANSWER?
HOW THE CANDLE PROBLEM APPLIES TO EMPLOYEE MOTIVATIONWHY REWARDS, COMMISSIONS, & BONUSES TO MOTIVATE YOUR WORKERS DOES NOT WORK-SAM GLUCKSBERG (SCIENTIST FROM PRINCETON UNIV.)CONDUCTED AN EXPERIMENT TO SEE IF OFFERING AFINANCIAL REWARD HELPED PEOPLE PERFORM A TASK.-FINDING: WHEN A FINANCIAL INCENTIVE WAS OFFEREDFOR SOLVING A PROBLEM IN A SHORTER AMOUNT OFTIME, THE TEST GROUP TOOK LONGER TO SOLVE THEPROBLEM THAN THE GROUP THAT WAS NOTINCENTIVIZED. WHY?
-WHEN WE ARE OFFERED A REWARD/INCENTIVE FOR A BEHAVIOR,PART OF OUR BRAIN FOCUSES ON THAT REWARD. THAT’S HOWINCENTIVES WORK.
-HOWEVER, IF WE ARE DOING A TASK THAT REQUIRES CREATIVITY, NARROW FOCUS LIMITSTHE RANGE OF THOUGHT ESSENTIAL TO CREATIVE OUTPUT.-WHEN WE ARE NOT GIVEN AN INCENTIVE TO FOCUS ON, WE BECOME FREE TO COMPLETELYDEVOTE OUR MENTAL EFFORTS TO JUST SOLVING THE PROBLEM.-THUS, OUR MIND IS ABLE TO GENERATE CREATIVE SOLUTIONS FASTER.
-CONTINGENT MOTIVATORS (IF YOU DO THIS, THEN YOU GET THIS) OFTEN DO MORE HARMTHAN GOOD. THEY NARROW OUR FOCUS, & RESTRICT OUR POSSIBILITY.-STUDIES SHOW THAT AS LONG AS A TASK INVOLVES MECHANICAL SKILL, REWARDS WORKAS EXPECTED: THE HIGHER THE PAY, THE BETTER THE PERFORMANCE.-BUT ONCE A TASK REQUIRES EVEN BASIC COGNITIVE SKILL, A LARGER REWARD OFTENLEADS TO POORER PERFORMANCE.-IF/THEN REWARDS WORK WELL FOR NARROW FOCUSED 20TH CENTURY TASKS (BUILDING ACAR) BUT DO NOT WORK WELL FOR 21ST CENTURY TASKS THAT REQUIRE CREATIVITY(DEVELOPING THE NEXT IPOD).-STUDIES SHOW THAT FINANCIAL INCENTIVES OFTEN RESULT IN A NEGATIVE IMPACT ONOVERALL PERFORMANCE.-SO WHAT’S THE BEST WAY TO MOTIVATE EMPLOYEES?