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Business Management Fads
Employers are constantly on the watch for ways to improve the
environment, productivity and profitability of their organizations.
To that end they keep abreast of the latest management ideas,
technologies and programs. Confronted with advertising, promotions
and social pressure, it is difficult to ascertain which programs
might have long term positive effects for their companies and
which might be management fads. It is an important difference.
“Management Fad” is sometimes used as a term to
characterize a change in philosophy or operations which is implemented
by a business or institution for the purpose of obtaining a competitive
advantage.
Management fads often have the following characteristics:
- New jargon for existing business processes
- External consultants
who specialize in the implementation of the fad
- A certificate or
appraisal process performed by the external agent for a fee
- Amending
or adding job titles and duties of existing employees which
include references to the fad
- Claims of business improvement via a measurement
that is defined by the fad itself
An internal sponsoring department or individual that gains
influence due to the fad’s implementation
- Big words and
complex phrases
- Promises that if a company embraces the fad in
all aspects, then the company will outperform their peers
Over the last 70 years dozens of management fads have been
introduced into the workplace. Some of them include the following:
Decision Trees
Management Grids
Theory X and Y
Theory Z
Management by Objectives
360 Degree Feedback
Globalization
Business Process Reengineering
Embracing Mistakes
Matrix Management
Sensitivity Training
Empowerment |
Decentralization
Authentic Leadership
Zero Based Budgeting
Quality Circles/TQM
One Minute Managing
One Minute Managing
Management by Walking Around
Emotional Intelligence
Six Sigma
Core Competency
Delayering
Balanced Scorecard
Self Directed Work Teams |
Over the last 40 years, I have worked as a Human Resources
professional in the positions of Director or VPHR for several
hospitals and financial institutions. I have personally witnessed
the implementation and demise of several of the programs listed
above. As an example, in 1990, I was the VPHR of a large hospital
in Tennessee. One morning, a meeting was held where I and several
hundred other employees were present. The hospital COO began
to explain that the hospital would soon be undergoing a fundamental
change which would last well into the next century. It was
called Total Quality Management. Implementation of this program
would give us a measurable competitive advantage over other
hospitals in the area. Soon thereafter, all employees went
through an exhaustive training regime to insure that everyone
was aware of what to do and how to do it. Seven years later,
the program was abandoned. It became just one of a multitude
of management fads.
This brings me to the primary reason for this post. I have
read and heard a lot recently about the new programs of diversity
and inclusion. Are they the newest management fad or are they
here to stay? One writer stated that, “Businesses which
embrace diversity are said to be better equipped to remain
competitive and current in the modern workforce. In a diverse
team, individuals with varied talents and backgrounds work
together towards a common goal. They develop more heterogeneous
solutions and ideas. This increases creativity and problem
solving abilities.”
On the other hand another writer states, “Some people
believe that a diverse team will more likely encourage dissent
among the members which discourages group think in the process
and also discourages creativity.”
When reading about diversity and inclusion, many sites use
various versions of the following claim. “Companies that
embrace diversity and inclusion in all aspects at their businesses
statistically out perform their peers.” If you could
look back at the marketing materials over the past 70 years
of the fads listed above, I believe that you would find the
same statement in each one. Just delete the words diversity
and inclusion and insert Six Sigma, Matrix Management, Quality
Circles, TQM, etc.
A little research on the internet will produce a multitude
of information on why businesses should and should not embrace
the practice of diversity and inclusion. It is not my intent
to become a proponent of either side of this discussion. I
leave that up to the readers to decide for themselves. Unfortunately,
it seems that there is no way to accurately forecast whether
or not diversity and inclusion initiatives are truly a long
term management tool or if they are just another management
fad which is doomed to fail. If I am still around in 10 years,
I will try to remember to write another article in 2031 to
answer the question.
In the meantime, in order to ensure a best fit to any company,
it behooves every employer to take the time and effort to inspect
the details of any proposed new program and to consider how
well the program components and goals fit the mission, vision
and values of the company. Quality management, efficiency and
productivity, are important to any successful business. Employers
have an obligation to insure that their businesses are following
sound, effective and proven principles - not by following the
latest management fad.
A company’s best defense against
the potential expense and aggravation related to federal or
state law violations is to proactively review and revise as
needed all Human Resources policies, handbooks, hiring procedures,
compensation, benefits, training programs, communications tools
and other functions. The professionals of PHHR are ready to
assist your organization with this type of training as well
as to maintain compliance with the latest state and federal
mandates.
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