Management fads planning
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  • 1. Management Fads
    Emergence, Evolution, and Implications for Managers
  • 2. 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
  • 3. About the Authors
    Both are professors in Florida
    They do research in management styles
    Dr. Jane W. Gibson Dr. Dana V. Tesone
  • 4. 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
  • 5. History of Management Fads
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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.
  • 10.
  • 11. Cost of Quality
    Phil Crosby—Quality is Free
  • 12. 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
  • 13. 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;
    • 14. Responsibility for producing a definable product;
    • 15. Responsibility for a set of interdependent tasks; and
    • 16. Control over managing and executing tasks.“
  • SMT Drawbacks
    Self-managing teams are difficult to implement, and they risk failure when used in inappropriate situations or without sufficient leadership and support
  • 17. Can we keep it? Should it be adopted?
  • 18. Is the fad adoptable?
  • 19. Group simulation