Section on Management and Marketing

Review of the Management Literature 1998

Abstract

Patricia Layzell Ward is Editor of Library Management, Secretary/Treasurer of the Section on Management and Marketing and involved with research, teaching and consultancy in the field of management. She can be contacted at Haulfryn, Cae Eithin, Minffordd, Penrhyndeudraeth, Gwynedd, Wales LL48 6EL UK (e-mail: layzellward@celtic.co.uk).

Introduction

General Impressions

Leadership, Management Style, Decision-Making

The reasons for the gap between decisions made by senior managers, and what is actually done, is examined by Balle¹². Harrison and Pelletier analyse the factors that comprise effective decision-making and the implementation of the decisions¹³. The psychological traps which undermine decisions are defined as: anchoring (too much weight to first information received), status quo (looking for reasons to do nothing), sunk cost (old investments that are irrecoverable but still lead to inappropriate decisions), confirming evidence (seeking information to support a view and avoiding other information), framing (the way a problem is defined), and estimating and forecasting (confronting uncertainty)¹⁴. The command and control style is obsolete, being superseded by persuasion, defined as being a learning and negotiating process¹⁵. Burdett argues that managers need to adopt a coaching role and lists forty issues that cover the techniques involved in all stages and aspects of coaching¹⁶.

Little attention has been paid to senior management teams and the situation in which one or more members of the group engages in disruptive behaviour, but Hengen offers five guidelines for turning such action into triumphs of performance management¹⁷. Several papers consider creativity within organisations and describe techniques that encourage creativity¹⁸, ¹⁹. Hiam identifies nine problems that get in the way of creativity²⁰. Amabile considers the contribution of expertise, motivation and creative-thinking skills, observing that creativity is killed more often than it is supported²¹. Topchik highlights three major causes of organisational negativity - mismanaged change, inappropriate norms, and problems related to trust²². Tepper et al have summarised the research that has been carried out into how subordinates respond to managers' attempts to influence them, noting the three main responses: commitment, compliance and resistance²³.

Argyris considers that there has been no real progress with empowerment because managers are attached to a command-and-control style, and employees are reluctant to be held accountable - one of the best papers of 1998²⁴. By contrast Harris and Purdy have evaluated the extent to which participative management is used in the implementation of TQM²⁵. Tjosvold, in a Canadian study, concluded that the way that employees interact is a key factor in the outcomes of employee involvement, requiring the development of necessary relationships and skills for open-minded discussion²⁶. McCune considers that trust at work is declining in the USA and Europe mainly due to job insecurity, and lists eight types of behaviour valued by employees²⁷.

The claims of top management 'teams' may be misnomers, for Katzenbach argues that non-team behaviour tends to prevail at the top, e.g. there is a lack of meaningful purpose, because there can be an apparent conflict between the disciplines of executive leadership and team performance²⁸.

Planning, Strategy, and Organisational Structure

Kane questions why some organisations struggle while other excel, and considers that this relates to their management processes and practices, noting that these are rarely discussed. An analogy is drawn between the accountability of a pilot (and their proneness to pilot error), and managerial accountability³³. Intellectual capital has become a crucial issue, as it is the only appreciable asset to an organisation. It is defined as being competence x commitment. Ulrich describes five tools for increasing competence³⁴.

Two management terms are returning to vogue. The first is strategic planning. Since the late 1980's it has been overtaken by TQM, which meant that any plan would be obsolete within three months³⁵. The second is synergy that was devalued in the 1980's, and Leidtka provides a three-stage model³⁶. Goold and Campbell, however, argue that the pursuit of corporate synergy often falls short of expectations, and offer a disciplined approach to synergy³⁷. Alexander and Serfass review seven futuring tools that can help to test a preferred strategic future: trend extrapolation, Delphi technique, morphological analysis, Crawford slip method, scenario planning, cross-impact analysis and the futuring tree³⁸.

A number of papers analyse the outcomes of business process re-engineering. Loch argues that it was the most influential management concept of the 1990's. One benefit was that it highlighted the need to examine processes in order to achieve effective operations³⁹. Lillrank and Holopainen identify the end-stage of a good management fad as being when the furore dies, and the ideas begin to disappear into business good sense and good practice. They consider that its legacy will be the understanding of the potential of information and communication technologies in restructuring organisations and their processes⁴⁰. Rigby surveyed management tools and techniques and found that reengineering peaked in 1995, and in 1997 strategic planning headed the list of fashionable techniques, with management ideas being influenced by what similar organisations are doing⁴¹. BPR has failed because it did not produce the desired outcomes because of: a misuse of methodology and misleading reported results, a poor definition of its negative impact on the organisation, a failure to understand the creative part of BPR, too long a cycle from start to reaping results, and it produced too good a result⁴². A case study of BPR in a British bank concludes that neither leadership nor communications could eradicate the tensions that arose in the exercise, and that the existence of organisational politics is inevitable⁴³. Dervitsiotis maintains that organisations face increasing rates of change in their operating environment, and identifies three routes to organisational transformation: reengineering which is discarded as failing to address the forces opposing change; TQM; and learning organisations. The last two are complementary to each other⁴⁴. A case study of the reorganisation of child protection services within local government in Norway identifies two strands within organisational change - entrepreneurialship and self-development in which change comes from within, and an isomorphic process characterised by local adaptation in which change is responsive to local pressure. It identifies gaps between the systems used to manage the formal organisation and the informal practices on the ground, underlining the need to bridge this gap, linking it to organisational learning⁴⁵.

Altman and Iles argue that, despite the widespread need for organisations to become learning organisations, there is confusion over the relationship between learning organisations, organisational learning and individual learning, and a limited consideration of the role of leadership and teamwork development in building a learning organisation. They set out different theoretical approaches⁴⁶. A learning organisation is defined as one that encourages and builds on individual learning and development in a continuous process of organisational transformation and development. Rowley considers how incorporating learning in management processes and values so that individual, experiential learning becomes a core component in all organisational operations can create a learning organisation, using a UK higher education context⁴⁷. Another UK case study analyses the dynamics of employee resistance to a decision by a local authority to close a public swimming pool. It draws on ju jitsu and its three styles to provide metaphors for the way in which resistance is carried out⁴⁸.

The nature of change has been discussed. The view that technology will greatly affect the way people work is disputed, since a survey of UK managers indicates that other factors are more important - organisational, psychological and sociological constraints⁴⁹. Reed has described the move towards the 24-hour society⁵⁰. The role of informality within the workplace is examined in terms of dress codes, linguistic cues, conversational patterns, postural and non-verbal cues, and modes of decor and architecture. It can contribute to organisational creativity and innovation⁵¹.

But if problems emerge? Before bringing in a consultant read Gilbert's paper on consultancy fatigue. It reports the experience of senior managers in central and Eastern Europe who have been receiving advice from Western consultants. Advice is offered to both parties on how to avoid problems, and a different approach is outlined which might have a great chance of success⁵². Ruff considers how organisations can deal with crises - local crises, mass service failures and major crises. Organisations need a plan for handling emergencies with trained individuals ready to respond; to respond quickly; to be willing to communicate with the press to avoid rumours; and to ask for help from outside crisis management experts⁵³.

Organisational Performance and Quality Management

A study of customers of the Canadian banking industry focused on the relationships between customer satisfaction, service quality and perceived value, considering the impact of these constructs on corporate image evaluation and customer loyalty. Customer satisfaction and overall image assessments have a positive effect on customer loyalty⁵⁷. A Swedish study examined service encounters in a hotel, drawing on linguistic theory and developing a method to record, analyse and interpret verbal and some non-verbal data. A valuable insight was gained into the dynamics of the service encounter and consideration is given to its extension to other areas of the service industry⁵⁸. A study of a chain of convenience stores in the US found that service quality measures are skewed, with most respondents reporting good or excellent service. It suggests that there is a need for greater clarity concerning the objective performance indicators that the organisation is trying to influence, and the customer behaviours that relate to these indicators⁵⁹.

Valentine and Knights argue that radical BPR has been revised to include human and cultural issues and now builds on what is there, rather than necessarily to reinvent, so that it now resembles TQM⁶⁰. De Cock analyses the actions and conceptualisations that undermine TQM and BPR including organisational politicking, power games, and managers looking after their own careers, and suggests a post-modern approach to understanding how they work, or do not work⁶¹. The problems of introducing the concept of TQM in the public sector highlights the need for empowerment as being one of the major obstacles, and suggests that control by the customer needs to be sought, along with demand by the worker⁶². Camison examines three particular aspects of the TQM concept which reflect the image of the whole organisation: it is a strategy which involves the whole organisation; every added value which is unsaleable or without value for the client has to be eliminated; and the problems of quality in an organisation stem from the management team, not the workers. A system of values forms a checklist for the introduction of TQM programmes oriented at both the client and at those carrying out the process, including: care of the product; consumer excellence and communication; and care of leadership, front-line personnel and continuous prevention⁶³. The problem of how to maintain the enthusiasm for continuous quality improvement when all the easy targets have been achieved is discussed by Tribus, who maintains that the leader must set the prime example⁶⁴. The importance of senior management support for implementing successful TQM programmes is reviewed. It is based on an examination of some 160 published sources of information⁶⁵. A paper reports the links between absenteeism and commitment during downsizing, and cautions against management relying on TQM to alter the organisational culture. An organisational culture based on commitment needs to be developed before the introduction of TQM⁶⁶.

Human Resource Management

Pfeffer examines six dangerous myths about pay. They are that labour rates and labour costs are the same; people work for money (yes they do, but they work even more for a meaning to their lives), for example. The importance of a fun atmosphere at work is stressed⁶⁸. Competence-related pay has been introduced in the US and the UK. Armstrong and Brown present the arguments for and against this approach, describing some of the factors in a competence-related job evaluation system⁶⁹.

The effect that self-esteem and self-efficacy can have on employees' performance and job -related attitudes has been studied by Gardner and Pierce, who found empirical support for the view that organisation-based self-esteem affects both job performance and job-related attitudes. This self-esteem is shaped, in part, by the employee's generalised feeling of self-efficacy⁷⁰. The set-up-to-fail syndrome is described whereby employees who are perceived to be weak performers, live down to the low expectations held for them. The costs of this syndrome include the undermining of a manager's reputation because of perceived unfair treatment, and that it is hard for the employee to break out of the cycle, even if they set themselves high targets, trying to impress a superior⁷¹.

Stansfield and Day examine the psychological impact that selection methods have on individual candidates for a job when they attend an assessment centre. It is important to treat candidates so that they have a positive image of the organisation, and that their self-esteem and development needs are addressed, particularly in feedback⁷².

Australia has probably moved further forward than most countries in enacting laws concerning workplace harassment, and Spry has set out how it is defined, the remedies available in law etc. It describes actions which employers should take to address the problem, how to investigate the issue, and the action that should be taken against the person allegedly engaging in the harrassment⁷³. Bullying at work has been discussed by Hannabuss who gives advice on how it should be handled⁷⁴.

Considerable attention is being paid to flexible forms of working. Malone and Laubacher consider that boundaries between organisations are becoming less important, and describe the coming of the e-lancers - electronically connected freelancers using flexible networks⁷⁵. The alternative workplace and the growth in telecommuting is discussed by Apgar, Goeltz and House who suggest questions that need to be answered in order to evaluate if the organisation is right for alternative practices e.g. is there an open and proactive management? The benefits, both tangible and intangible, are reviewed together with the shared-office concept. Advice is given on implementation, starting with a pilot project⁷⁶. Creagh and Brewster conclude that flexibility is a two-edged sword and examine the case for and against flexible working - contract flexibility, working time flexibility, and task flexibility. They summarise good practice that can deliver positive outcomes⁷⁷. The types of workers who can be considered as teleworkers have been classified, and the advantages and disadvantages discussed. The main disadvantage for the teleworker is seen as being psychological, with loneliness and a loss of perceived status as the main problems. Guidelines are provided which aim to establish the most effective teleworking environment, indicating that this pattern of work is likely to grow⁷⁸.

Coulson-Thomas discusses the implications of new organisational models on career development, reviewing how organisational change and restructuring has impacted on careers in general, before considering the particular impact of network organisations. The skills and qualities needed by these types of organisation, and the new forms of relationships between individuals and the organisations that they will engender, are described⁷⁹. This theme is also considered by Burke who examines the potential impact of organisational restructuring and downsizing on the psychological contract between employees and their organisation, and the way that employees view their careers. Canadian graduates were interviewed about their beliefs concerning their careers and it was found that their attitudes are in a transitional stage. They had neither fully abandoned their old career expectations, nor fully embraced the new. This has implications for the individual's job satisfaction and organisations that want to change from the old psychological contract to the new⁸⁰.

The literature concerning diversity is growing. A paper from the US argues that it should feature as one of the guiding principles informing all HRM practices. Workforce planning and benchmarking can be used to identify actions that will support diversity management, and advice is given on the action that should be taken⁸¹. Gardenswartz and Rowe set out the reasons why organisations should develop the diversity of their workforce, presenting a checklist of questions that can be used to measure diversity and the steps that need to be taken to develop an effective diversity strategy⁸². The debate in the US concerning affirmative action programmes is summarised, and the question is posed as to whether psychological factors can explain the different reactions among women and people from ethnic minorities to these policies. A survey of university students indicates that the perceptions of affirmative action programmes are, at least partly, related to the respondent's self-esteem and their beliefs about the gains made by others, concluding that psychological factors could be more important than demographic variables in explaining attitudes to affirmative action⁸³.

The apparent contradiction within HRM by which the idea of long-term investment in the workforce is endorsed, while at the same time the loyalty, commitment, and skills of long-service workers is considered. The authors speculate as to whether the treatment of older workers is an indication of a wider movement within HRM towards the control and commodification of labour in general⁸⁴.

Evidence, from government reports and investigations in Australia, indicates that management and leadership development needs to change to encourage diversity in management style and practice. A study finds support for the view that a masculine bias remains in management education. It points to evidence that this might disadvantage both male and female students because it discourages different skills being taught or different views being held⁸⁵. The influence of masculinity on organisational cultures is explored within British Airways, together with the ways in which images of masculinity have contributed to the exclusion of women and black people from particular roles within the company⁸⁶. Barriers to women's career progression in nurse management in the UK include the low-status of part-time work, inflexible working practices, and management inertia concerning the introduction of family-friendly policies⁸⁷. The question as to whether the responsibility for gender management should be devolved to line managers, is discussed by McDougall, since it could offer an opportunity to integrate the importance of equality and the valuing of gender differences into an organisational culture. A three-step devolvement process describes moves, from the initial stage of having a centralised specialist, to the final stage of full devolvement to line managers⁸⁸. The fifty most powerful women in American business are identified, and their success compared with counterparts in Asia and Europe, concluding that US women have moved furthest forward⁸⁹.

The experience of using interactive videoconferencing for training is reviewed, together with the benefits and issues that need to be considered⁹⁰. Sussman and Finnegan present the case for coaching the star - defined as an employee whose performance exceeds that of peers but could be enhanced further - explaining the reasons why it should be done, and examines the barriers which can inhibit managers from providing coaching⁹¹. The arguments for setting up a mentoring scheme are presented, together with a checklist to use when designing a programme⁹².

Information Technology

Other Issues

Kash and Darling argue that while organisations can, and should, try to identify issues that might pose a threat to them, they cannot foresee all eventualities, which makes crisis management a necessary part of strategic management. The advice is given that a permanent crisis management team should be set up in advance of any crisis. The need is stressed for an ongoing scenario analysis to spot potential crisis issues¹⁰².

Dibb discusses whether market segmentation always leads to success, applauding the logic behind it, but pointing out that heterogeneous clients are all too often lumped together¹⁰³.

Finally, a paper for all IFLA speakers. It considers the impact of presentation visuals on persuasion. A study showed statistically that visual aids enhanced audience attention, comprehension and memory retention of the presented material, with the use of 35mm slides being regarded as the most professional¹⁰⁴.

Acknowledgement

References

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