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.

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

14. Responsibility for producing a definable product;

15. Responsibility for a set of interdependent tasks; and

17. Can we keep it? Should it be adopted?

18. Is the fad adoptable?

19. Group simulation