Phelps Et Al.Organizational and Strategic Leadership Essay Example
Phelps Et Al.Organizational and Strategic Leadership Essay Example

Phelps Et Al.Organizational and Strategic Leadership Essay Example

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The text examines the differing viewpoints resulting from changing management practices and corporate ownership. However, it also recognizes similarities in their approaches. The purpose of this study is to investigate the shared characteristics of total quality and scientific management, highlighting how Follett's law of situation links these seemingly distinct methods.

The enduring lessons found in Taylor, Follett, and Deming, enrich the literature on organizational and strategic leadership, providing valuable insights for practitioners and academicians.

Introduction

The scientific management theory of Taylor, total quality management perspective of Deming, and systems thinking of Follett all differ drastically in their approaches, like comparing apples to oranges (and grapes).

This paper explores how Deming's quality management approach incorporates ideas from Taylor and how Follet

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t's systems thinking bridges the gap between these two theories. The paper is divided into four sections: a brief description of Deming's total quality management (TQM), a comparison between Taylor's principles of scientific management and TQM in the second section, and a comparison of Follett's theory with Deming's in the third section.

According to the Academy of Strategic Management Journal (Volume 6, 2007 2), despite common beliefs, we find that these approaches actually have more similarities than expected.

Deming’s total quality management

Deming, a remarkable institution, was an exceptional and notable figure. He held a doctorate in mathematical physics from Yale University and was nominated for the Nobel Prize in 1992. Additionally, he was a savvy entrepreneur who revitalized Japan after World War II. Unfortunately, Deming passed away at the age of 93 in December 1993.

In his time, Deming was the most influentia

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management consultant worldwide and played a crucial role as a friend-consultant-advisor in enabling the Japanese post-second world war miracle to happen (Stupak, 1999). Consequently, due to their focus on quality, Japanese companies earned a place on the Fortune list. After saving Japan for three decades, Deming was asked by US businesses to provide suggestions for maintaining competitiveness and ensuring survival.

Deming's book "Out of Crisis" published in 1986 highlighted seven deadly sins that were causing problems for American businesses. He also provided fourteen remedies to overcome these sins. American companies began implementing Deming's recommendations in the 1990s to address their crises. Table 1 summarizes the deadly sins and Deming's 14 points as outlined in his book.

Table 1: Deadly diseases and prescriptions by Deming - Diseases that plagued companies in the Western world (Deming, 1986: pp 96-97) - 1. Lack of constancy of purpose 2.

Deming (1986: pp 23-24) recommends focusing on immediate profits, evaluating based on performance and merit, conducting annual performance reviews, implementing mobile management, relying only on visible figures, reducing high medical costs for employee healthcare which increase the overall cost of goods and services, and minimizing excessive warranty costs caused by contingency fee-seeking lawyers.

To ensure improvement in product and service, constancy of purpose should be established.

2. Embrace the new philosophy.

The establishment of reliance on mass inspection is crucial.

The practice of only awarding the business based on the price tag should be ended.

Continuously enhance and perpetually develop the system of production and service.

Training should be conducted at the Institute.

Institute leadership.

The eighth principle

is to drive out fear.

One way to improve the workplace is to break down barriers between staff areas.

Eliminate workforce slogans, exhortations, and targets.

11. Get rid of numerical quotas.

Remove obstacles that hinder employees from taking pride in their work.

Implement a stringent education and training program.

Step 14: Implement measures to achieve the desired change.

Despite never using the specific term Total Quality Management (TQM), scholars highlight Deming's substantial impact on it. Deming argued that a shift in management practices is essential to combat the decline of Western industry. Managers must recognize and tackle this crisis by emphasizing the significance of human effort alongside technology and machinery for achieving this transformation.

According to Deming (1986: 18), quality cannot be obtained by just buying it. Instead, he proposed a thorough transformation centered on his 'profound knowledge' system. This system includes four essential concepts which involve the interconnectedness of organizational units in achieving goals, understanding the insights derived from variables and their impact on the system's capabilities, grasping the theory of knowledge, and recognizing the importance of intrinsic motivation within psychology.

Deming's theory in the field of knowledge is influenced by Lewis' work in 1929. Lewis proposed that knowledge is constructed through combining theory, examination of previous experiences, and predictions for the future. Deming agrees with this view and adds that a rational prediction requires a theoretical foundation. He believes that knowledge is developed through systematically revising theories based on comparing actual outcomes with predicted ones. According to Deming, having comprehensive and prompt information alone does not constitute knowledge. True knowledge is characterized by

its temporal speed and cannot be utilized without a theory providing context and understanding for instantaneous information.

According to Deming, the system of profound knowledge and its four major themes can help managers adapt to unpredictable economic climates for survival and success. In the 1980s, Japanese companies were thriving while American businesses were declining.

(a) short-term orientation.

The R&D expenditures are decreasing.

The capital investment is declining.

During the period from 1960 to 1968, the United States had the lowest productivity growth out of the ten industrialized countries, with Japan coming in first.

The excessive concern with marketing and the heavy reliance on the power of marketing to drive product sales are present.

There is a tendency to excessively promote individuals with finance and/or law backgrounds to top management positions, while neglecting those with engineering backgrounds.

(g) The act of pretending to be professional, and

According to Haynes & Albernathy (1980), American businesses had a preoccupation with mergers and acquisitions, which led to a decline in competitive vigor in the market and growing concerns about the country's economic wellbeing.

Japanese companies achieved success by adopting a straightforward strategy of competing in the long term through the provision of superior products. The expectation was that Japanese companies would engage in global competition by emphasizing technological advancements (Lawrence, 1996). Deming deserves substantial recognition for promoting the idea that Japanese firms should compete based on the quality rather than quantity of their output. Looking back, it can be inferred that some of the challenges faced by American businesses might have been avoided if they had embraced Deming's

ideas three decades earlier.

Taylor versus deming

Taylor and Deming both shared an interest in achieving efficiency in production processes. Taylor emphasized the need for scientific analysis of work to determine appropriate daily tasks. He also called for management to standardize procedures for completing work. Additionally, Taylor suggested that management provide guidance and support to workers who struggled with certain tasks. Similarly, Deming discussed similar concepts using statistical control theory and different language.

Taylor and Deming both emphasize the importance of efficiency in their respective concepts. Taylor's idea of a 'proper day's work' aligns with Deming's notion of 'process capability'. Moreover, Taylor suggests involving a skilled teacher to assist struggling workers, which is similar to Deming's call for necessary rectificational measures. However, Deming takes it further by prioritizing quality over efficiency and basing his philosophy on statistical theory, specifically stochastic analysis of processes.

Deming and Taylor had different areas of focus in their work. Deming studied how variation can negatively affect the quality of products and processes, while Taylor focused on the variation in production by individual workers. Taylor's purely scientific approach and disregard for the human element led to his discredit, as his messages were not properly interpreted. However, it should be noted that Taylor did emphasize worker development and showed concern for their well-being.

Taylor (1911) argues that the primary goal of management is to achieve the utmost prosperity for both the employer and the employees. This prosperity entails not only higher wages compared to others in the same social class but more significantly, it involves optimizing each individual's abilities to achieve their highest level of

efficiency. In essence, maximum prosperity implies assigning individuals tasks that align with their natural abilities whenever feasible.

Taylor and Deming both emphasize the significance of enhancing system efficiency. Deming advocates for continuous improvement in order to enhance quality, productivity, and decrease costs. He suggests using the Shewhart Cycle or PDCA (plan, do, check, and act) to ensure ongoing improvement in production systems (Deming, 1986). For Deming, improving processes necessitates better allocation of human effort.

The text emphasizes the significance of selecting and positioning individuals in roles where they can learn and make maximum contributions. This principle applies to all staff members, including production workers, as it aids their career progression. The elimination of obstacles to pride in one's work is stressed for both production workers and management and engineers (Deming, 1986: 51). Taylor and Deming hold similar perspectives on worker selection.

Taylor argues that management should scientifically select and then train, teach, and develop the workman, whereas in the past he chose his own work and trained himself as best as he could (Taylor, 1911: p. 36). Similarly, Deming believes that the goal of leadership should be to improve the performance of both man and machine, enhance quality, increase output, and at the same time, instill pride in workmanship among individuals. The aim of leadership is to assist people in doing a better job with less effort (Deming, 1986: p. 249).

Table 2 displays a comparison of Taylor and Deming, emphasizing their similarities and differences. The table specifically focuses on particular points of comparison between Taylor and Deming.

Viewpoint

1. Control of business (Difference)
Taylor’s Organizational and

Strategic Leadership is established by staffing positions of responsibility and authority with professional managers who have been trained in the theory of scientific management and systems analysis (Taylor, 1911: p. 36). Improvements occur because of management's increasing division of work and increasing concurrency, which means that different aspects of work are being done at the same time within a project or process (Taylor, 1911: p 37). The objective is to develop systems that can perform repetitive tasks efficiently (Taylor, 1911: p 135). The optimum system is created by adequately formulating the objectives and evaluating alternatives to meet those objectives. Adequate information is necessary to create an optimal system (Taylor, 1911: p 137; Taylor, Shop Management, 1911: p 135). Once the system is properly installed, any failure to meet standards or stated objectives must come from outside the system (Taylor, 1911: pp 15-16).

On the other hand, Deming's Organizational and Strategic Leadership is established through leadership and cooperation (Deming, 1986: p. 117).

2. The improvements in division and concurrency of work, as well as creativity, contribute to advancements within a project or process, or across multiple projects or processes (Deming, 1986: p 122). It is important to develop systems that can handle repetitive tasks effectively (Deming, 1986: p 330). There is no perfect system in organizations, hence the need to analyze each system to comprehend its natural behavior and variation within it.

Deming suggests that the information required for developing an ideal system is both obscure and impossible to know (Deming, pp 336-338). Furthermore, discrepancies and contradictions may emerge within the system even after its implementation. Consequently, regular analysis is crucial for

recognizing and resolving any inherent flaws within the system itself (Deming, pp 306-311).

The third aspect involves the utilization of systems to determine similarity.

The fourth point is about the difference of optimum systems.

The discovery of causes (Difference)

The Academy of Strategic Management Journal, Volume 6, 2007 showcases a comparison between Taylor and Deming's viewpoints in Table 2. The table highlights various similarities and differences between their perspectives.

6. The difference between Taylor's organizational and strategic leadership lies in the role of management.

Continuous monitoring of the system's status is necessary to identify any deviations from the system objectives. This will allow for the identification of the root causes of deviation, such as improper selection, poor motivation, inadequate training, or inefficient supervision (Taylor, 1911: p. 152). The ultimate goal is control, and management plays a crucial role in achieving it (Taylor, 1911: p. 9).

Leadership aims to ensure maximum efficiency within the system, and a prescriptive method is recommended for achieving this goal (Taylor, 1911: p. 0). Strict adherence to standards and the use of threats are employed to enforce these goals (Taylor, 1911: p.26).

Deming emphasizes the importance of creating a secure environment where workers feel free from fear. This atmosphere enables the identification and rectification of system defects (Deming, pp 59-62). Every individual in the organization plays a vital role in achieving control (Deming, pp59).

The goals of leadership include assisting people, fostering learning, and setting or revising organizational goals. The example method is advocated by Deming for achieving these objectives (Deming, p 249). One noticeable effect of leadership is making people feel secure within the organization (Deming, p59).

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7. Control (Difference)

The topic of leadership is discussed from a different perspective.

9. Cooperation (Difference)

Follett and deming

Mary Parker Follett (1868-1933) was a philosopher and political scientist who examined the interactions between individuals and groups in society. She emphasized the remarkable capacity of individuals to personally grow and enhance their affiliated groups. Instead of viewing business purely as an 'economic setting', Follett regarded it as a social environment.

In her work, she proposed the replacement of Weberian bureaucratic authority with demographic authority. She also recommended the inclusion of networks of individuals throughout all stages of the production process. Consequently, she was considered to be remarkably ahead of her time. Furthermore, Follett made several significant contributions.

The 'law of situation' was relied upon in the development of a relational concept of authority.

(b) The significance of involving all stakeholders in making decisions.

The significance of group processes involves reciprocity and the inter-penetration of conflicting ideas among individuals.

Deming's idea of total quality management is centered around reciprocal conditioning and evocation processes (Fry ; Thomas, 1996). Follett emphasizes the importance of an organization adapting to both its external and internal environments. She believes that maintaining coherence between these environments is crucial for the organization's success. By anticipating and responding to internal and external factors, collective action can establish this coherence. Understanding each department's and employee's perspectives in a given situation is vital for the overall benefit of the organization. The law of situation suggests that all participants in the organization should collaborate in uncovering and adhering to specific situational laws (Eylon, 1998). According to Follett,

true power comes from collaborating with others rather than exerting power over them. It is important for everyone within an organization to recognize their interdependence instead of solely focusing on their individual situations.

The concept of 'power with' is in contrast to traditional power dynamics, it is based on obedience to a shared situation referred to as 'the law of situation' by Mary Parker Follett. Instead of one person giving orders to another, both individuals should agree to take their orders from the situation itself. This ideology eventually led to the development of empowerment. Follett's ideas are connected to Deming's 14 points through the creation of corporate culture, promotion of teamwork, and organizational design (See Figure 1).

Mary Parker Follett and Deming can be compared through their 14 points.

The first step is to establish a constant purpose.

2. Adopt a new belief system.

3. Stop relying on mass inspection

4. Horizontal authority promotes cross-functional teamwork.

5. To create a corporate culture that promotes teamwork, it is essential to empower individuals, address conflicts, and leverage power.

6. Establish training programs at the institute.

The seventh factor to consider is institute leadership.

8. Get rid of slogans.

9. Quotas should be removed.

10. Get rid of obstacles

11. Education and training

12. Cease providing rewards solely based on price.

The thirteenth point is system improvement.

The fourteenth principle is to drive out fear.

15. Overcome obstacles

16. Implement measures to achieve transformation, including decisions regarding job and organizational design.

In

Deming's language, Follett's philosophy of teamwork is evident when he discusses the necessity for consistent effort. Deming explains that if everyone knows what to do and gives their best effort, the outcome would be a dispersion of knowledge and effort resulting in suboptimal results. He emphasizes the importance of teamwork and effective leadership in achieving consistency of effort and knowledge. Similarly, Follett emphasizes the significance of horizontal authority, empowerment, constructive conflict, and cross-functional teamwork in transforming business into a social institution.

In her identification of the significance of horizontal authority, Follett advocated for the establishment of cross-functional committees and conferences of parallel heads. Instead of relying solely on formal authority, she promoted empowerment, as she believed that power granted always leads to failure. She emphasized that the most effective approach to exercising authority is to depersonalize the act of giving orders and to prioritize the importance of the task at hand. Follett's concept of mutual problem-solving through participative management and employee involvement serves as a valuable philosophical foundation for conflict management.

It is crucial to establish an organizational design that highlights the significance of reciprocal relationships rather than just focusing on tasks. Creating corporate culture, taking actions to promote teamwork, and making decisions about organizational design are the methods to achieve the central messages of Follett. Deming’s implementation of constancy of purpose, reducing reliance on mass inspection, and adopting a new philosophy align with Follett's emphasis on creating corporate culture. Additionally, Deming's approach to promoting teamwork involves educating and training employees while eliminating barriers.

The approach of Deming in changing structure focuses on improving the overall system and eliminating fear among employees.

Deming also emphasizes the need to stop solely rewarding based on price.

Follett's approach acts as a bridge, connecting Taylor's scientific management with Deming's total quality management.

The aim of this paper is to reconcile the contradictory theories and philosophies of Taylor, Follett, and Deming in the management field. We propose using Follett's philosophy as a bridge between Taylor's scientific management principles and Deming's 14 points to help organizations overcome crises (see Figure 2 on the following page). Taylor's managerial philosophy, as outlined in the principles of scientific management, forms the basis for improving performance. Taylor emphasized the importance of (a) replacing rule-of-thumb methods with scientific approaches, (b) scientifically selecting employees, (c) providing scientific education and development, and (d) cultivating friendly cooperation between management and employees.

Taylor believed that by following these principles, employees could collaborate with management to make the workplace successful. He also encouraged management to improve every aspect of the business to achieve excellence. However, Taylor faced criticism for promoting the idea of a single, ideal way to do tasks, as critics argue that it is difficult to find such a method. Figure 2: Mary Parker Follett—Bridging Management Thinking in the Deming’s TQM philosophy.

Taylor's scientific management

Scientific methods of working are replacing the rule-of-thumb method.

(b) the scientific selection of employees,

The focus is on scientific education and development.

Follett's philosophy is to encourage friendly cooperation between management and employees, learning from those who do.

  • Em erm pow ent
  • C rossfunctioning
  • H orizontal authority
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    Pow is er D ing’s 14 em points em phasizing

  • C ontinuous im provem ent
  • Perform ance m easurem ent
  • Em ployee involvem ent
  • C ultural transform ation
  • Im portance to custom er arned

Follett had a unique philosophy of management that emphasized empowerment, cross-functional teamwork, horizontal communication, adaptive behavior, and the role of conflict in organizations. Her ideas contributed to the development of an entrepreneurial spirit. Instead of the traditional vertical authority concept from Taylorism, Follett believed that authority should be based on function rather than position. She also believed that authority is exercised in relationships that are influenced by an impersonal 'law of the situation'. (Fry & Thomas, 1996).

Follett emphasized the significance of involving employees in decision-making to improve productivity within the organization. She additionally advocated for a bottom-up approach to authority, which brought about revolutionary changes in management practices. On the other hand, Deming concentrated on fundamental processes and the quality of products and services in his management philosophy.

The text highlights the importance of total quality management, as advocated by Deming. According to Deming, managers should consistently monitor the production process, prioritize quality, and define clear quality standards for customers. In addition, Deming emphasized the need for involving everyone in the continuous improvement process. Moreover, Follett integrated the principles of scientific management and human relations school of management, acting as a bridge between the two approaches. It is worth mentioning that Deming is considered a total quality management guru

(Graham, 1995).

Follett, a pragmatic prophet, analyzed the impact and outcomes of social processes in the efficiency-driven work world (Snider, 2000). Follett also highlighted the importance of resolving conflict through integrative unity, which depends on the law of the situation (Metcalf & Urwick, 1941: 59). The management of people according to Taylor's scientific management involves emphasizing the use of optimal methods and tools to enable employees to achieve efficiency in their output. Taylor specifically addressed the issue of deliberate soldiering, which refers to employees under-working.

Taylor was concerned about both lazy workers and other forms of wasteful actions in the workplace. He believed that training and education were crucial in managing employees. Deming agrees with Taylor and states that the biggest waste in America is not utilizing people's abilities. Therefore, it is important for management to provide training to ensure customer satisfaction.

Taylor argued that management should carefully select workers and then provide them with training, teaching, and development opportunities (Taylor, 1911: 36). Deming takes it a step further by suggesting that experienced workers should train new workers (Deming, 1986: 53). Taylor strongly emphasized the importance of employee training and compared it to the training of a surgeon (Taylor, 1911: 126). Follett's perspective on employee training can be seen in her advocacy for empowerment. According to Follett, in a social setting, workers should collaborate effectively with others to share and enhance their individual skills.

She argues that the true purpose of business is to cultivate individuals by coordinating relationships, ultimately enhancing the potential of group activities. This involves creating synergy within the organization through cooperation and coordination, where members not only

train one another but also contribute to the overall growth of the organization. According to Follett, empowerment is an ongoing process that leads to the development of new skills and perspectives, providing limitless resources for the organization (Florin ; Wandersman, 1990; Vogt ; Murrell, 1990).

Deming’s points 8, 10, 12, and 13 share a common theme of people management, aligning with Follett's fundamental philosophy. For instance, in line with Follett's concept of 'empowerment,' Deming suggests that when employees are empowered, they can overcome fear and leaders can make decisions based on knowledge rather than empty slogans. By granting empowerment, managers can eliminate obstacles that diminish employees' pride in their work. Thus, empowerment is the essential key to effective employee management.

Managing process

While Taylor and Deming both stress the significance of efficiency, their approaches differ. Taylor, in his emphasis on time and methods study, advocates for focusing on the "best" methods of production to achieve efficiency. On the other hand, Deming focuses on improving the production process and ensuring quality. According to Taylor (1911:25), work improvement is only achievable through thorough examination and ongoing study of work, as well as implementing the best processes and methods.

In those days, statistical quality control techniques were not available. However, Taylor used tested methods and also encouraged workers to suggest improvements in both methods and implementation process (Taylor, 1911: 128). Taylor believed that if a workers' new method was better than the current one, it would become the standard for the entire establishment (Taylor, 1911: 128). Deming believes that continued process improvement is achieved through customer satisfaction rather than meeting quotas.

Furthermore,

both Deming and Follett emphasize the importance of focusing on the 'process' rather than the 'product' or function. Deming suggests using statistical control charts to analyze data and identify variations caused by special or common factors. Similarly, Follett argues that achieving functional unity is essential for organizational synergy and efficient operation. Both scholars concur that continual improvement in quality can only be attained when the organization gives priority to the 'process' based on the law of situation.

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