CHAPTER 1


MANAGEMENT MOSAIC

If you always do what you always did, you will always get what you always got.

[Anon]

Time for a little unfreezing: breaking down what we all ‘know’ about management. So we began with a mosaic of irreverent thoughts about management.

First comes the manager as orchestra conductor. We all know about this grand metaphor. Peter Drucker provides the first words. Well, read on, as Sune Carlson and then Leonard Sayles provide some other words. Management – you had better think again.

Next comes a cluster of short items, mostly from co-author Henry Mintzberg. The first is a list of words that have been used for managers over the ages, and most of them still. Managers: they’re everyone you think. Then comes a list of all the qualities needed to be a successful manager. Superman would be found wanting. Management: it’s everything you think. So the discussion turns to ‘the inevitably flawed manager’. Then we move on to decision-making, to discover that it’s not just what you think; it’s also what you see and what you do. And last is a discussion from Henry’s new book about the dynamics of managing. In this job, how can anyone possibly think?

In case you miss the point, there follows a classic piece by Albert Shapero, who contrasts the image of contemporary MANAGEMENT (his capitals) – staff-driven, bureaucratic, competitive, impersonal – with managing tuned to ‘the natural messiness of life’.

As if all this is not problem enough, we close with an article by Gimpl and Dakin called ‘Management and magic’. It offers some surprising thoughts about this supposedly rational job: they link planning to superstitious behaviour, forecasting to magic, and control to the illusion of control. Take special note of the quote that closes this chapter.

The manager as orchestra conductor
By Peter Drucker, Sune Carlson and Leonard Sayles

One analogy [for the manager] is the conductor of a symphony orchestra, through whose effort, vision and leadership, individual instrumental parts that are so much noise by themselves, become the living whole of music. But the conductor has the composer’s score: he is only interpreter. The manager is both composer and conductor.

PETER DRUCKER, THE PRACTICE OF MANAGEMENT, HARPER & ROW PUBLISHERS, 1954, PP. 341–342.

Before we made the study, I always thought of a chief executive as the conductor of an orchestra, standing aloof on his platform. Now I am in some respect inclined to see him as the puppet in the puppet-show with hundreds of people pulling the strings and forcing him to act in one way or another.

SUNE CARLSON, EXECUTIVE BEHAVIOUR, STROMBERG, 1951, P. 52.

The manager is like a symphony orchestra conductor, endeavoring to maintain a melodious performance in which the contributions of the various instruments are coordinated and sequenced, patterned and paced, while the orchestra members are having various personal difficulties, stage hands are moving music stands, alternating excessive heat and cold are creating audience and instrumental problems, and the sponsor of the concert is insisting on irrational changes in the program.

LEONARD SAYLES, ADMINISTRATION IN COMPLEX ORGANIZATIONS, MCGRAW-HILL, 1964, P. 6.

Management: be careful what you think
By Henry Mintzberg

Managers: they’re everyone you think

President

Prime Minister

Middle Manager

Administrator

Official

Foreman

Steward

Boss

Head Honcho

Conductor

Superior

Chief

Kingpin

Potentate

Lord

Pharaoh

Caesar

Emperor

King

Shogun

Czar

Maharaja

Headmistress

Head

Sheik

Sultan

Fuhrer

Viceroy

Superintendent

Director

Executive

Dictator

Oligarch

CEO

COO

CFO

CLO

Source: Adapted from Henry Mintzberg, Managing, FT/Prentice Hall, 2009.

Management: It’s Everything you think

Lists of the qualities of effective managers and leaders abound. They are usually short – who would take dozens of items seriously? For example, in a brochure to promote its EMBA program, entitled ‘What makes a leader?’, the University of Toronto Business School answered: ‘The courage to challenge the status quo. To flourish in a demanding environment. To collaborate for the greater good. To set clear direction in a rapidly changing world. To be fearlessly decisive’ (Rotman School, circa 2005).

The trouble is that these lists are not consistent – they contain all sorts of different characteristics. For example, where is native intelligence on the list above, or being a good listener, or just plain having energy? Surely these are important too. No problem: they appear on other lists. So if we are to find out what makes a manager truly effective, we shall have to combine all the lists.

This, for the sake of a better world, has been done in Table 1. It lists the qualities from the various lists that I have found, with a few missing favorites of my own added in. This list contains 52 items. Be all 52 and you are bound to be an effective manager. Even if not a human one.

The inevitably flawed manager

All of this is part of our ‘romance of leadership’ (Meindl et al., 1985), that on one hand puts ordinary mortals on managerial pedestals (‘Rudolph is the perfect manager for this job – he will save us’), and on the other hand allows us to vilify them as they come crashing down (‘How could Rudolph have failed us so?’). Yet some managers do stay up, if not on that silly pedestal. How so?

The answer is simple: they are flawed – we are all flawed – but their particular flaws are not fatal, at least under the circumstances. (Superman, you might recall, was flawed too – remember Kryptonite?)

If you want to uncover someone’s flaws, marry them or else work for them. Their flaws will quickly become apparent. So too will something else, at least if you are a mature human being who made a reasonably good choice: that you can usually live with those flaws. Managers and marriages do succeed. The world, as a consequence, continues to unfold in its inimitably imperfect way.1

This, of course, means that those superman lists of leadership qualities are also flawed: people often succeed even while failing on some of these qualities. But more to the point, these lists are often wrong. For example, leaders should be decisive, and they should be decent: who can argue with that? For starters, anyone who has worked for an indecent leader who got results. And how about Americans whose president learned the importance of being decisive in a case study classroom at Harvard and certainly was decisive in his decision to go to war with Iraq. The University of Toronto list calls this quality ‘fearlessly decisive’. He sure was.

Table 1 Composite list of basic qualities for assured managerial effectiveness

courageousenergetic/enthusiastic
committed upbeat/optimistic
curiousambitious
confidenttenacious/ persistent
candid zealous
  
 collaborative/participative/cooperative
reflective engaging
insightful supportive/sympathetic/empathetic
open-minded/tolerant (of people,stable
ambiguities and ideas)dependable
innovativefair
communicative (including being a goodaccountable
listener)ethical/honest
connected/informedconsistent
perceptiveflexible
 balanced
 integrative
thoughtful/intelligent/wise  
analytic/objective 
pragmatic 
decisive (action-oriented) 
pro-active 
charismatic 
passionate 
Inspiring  
visionarytall*

Compiled from various sources; my own favorites in italics.
* This item appeared on no list that I saw. But it might rank ahead of many of the other items because studies have shown that managers are on average taller than other people. To quote from a 1920 study, entitled The Executive and his Control of Men, based on research done a lot more carefully than much of what we find in the great journals of today, Enoch Burton Gowin addressed the question: ‘Viewing it as a chemical machine, is a larger body able to supply a greater amount of energy?’ More specifically, might there be ‘some connection between an executive’s physique, as measured by height and weight, and the importance of the position he holds?’ (1920: 22, 31). The answer, in statistic after statistic gathered by the author, is yes. Bishops, for example, averaged greater height than the preachers of small towns; superintendents of school systems were taller than principals of schools. Other data on railroad executives, governors, etc. supported these findings. The ‘Superintendents of Street Cleaning’ were actually the second tallest of all, after the ‘Reformers.’ (The ‘Socialist Organizers’ were just behind the ‘police chiefs’, but well up there.) Musicians were at the bottom of the list (p. 25).

As for some of the other items on the University of Toronto list, that president’s arch enemy in Afghanistan certainly ‘had the courage to challenge the status quo’, while Ingvar Kamprad, who built IKEA into one of the most successful retail chains ever, reportedly took fifteen years to ‘set [its] clear direction in a changing world’. Actually he succeeded because the furniture world was not changing: he changed it.

Reference

Meindl, J. R., Ehrlich, S. B. and Dukerich, J. M. (1985) ‘The romance of leadership’, Administrative Sciences Quarterly, 30, 78–102.

Footnotes

1   Not always. Politicians seem to have become particularly adept at hiding flaws until they become fatal. For example, the object of the political debates on television is to demonstrate that your opponent is flawed while you are not (or at least not revealed until you are elected).The assumption is that the flawed candidate should lose. Perhaps this theatrical farce is one reason why people these days are so fed up with political leadership.

Source: Excerpted from Henry Mintzberg, Managing, FT/Prentice Hall, 2009.

Decision Making: It’s not what you think
with Frances Westley

How should decisions be made? Easy, we figured that out long ago. First define the problem, then diagnose its causes, next design possible solutions, and finally decide which is best. And, of course, implement the choice.

But do people always make decisions that way? We propose that this rational, or ‘thinking first’, model of decision making should be supplemented with two very different models – a ‘seeing first’ and a ‘doing first’ model.

Consider how a real decision was made, a personal one in this case. It begins with a call from an aunt.

‘Hi, kiddo. I want to buy you a housewarming present. What’s the color scheme in your new apartment?’

‘Color scheme? Betty, you’ve got to be kidding. I’ll have to ask Lisa. Lisa, Betty wants to know the color scheme of the apartment.’

‘Black,’ daughter Lisa says.

‘Black? Lisa, I’ve got to live there.’

‘Black,’ she repeats.

A few days later, father and daughter find themselves in a furniture store. They try every desk, every chair: Nothing works. Shopper’s lethargy sets in. Then Lisa spots a black stool: ‘Wouldn’t that look great against the white counter?’ And they’re off. Within an hour, they have picked out everything – in black, white and steel gray.

The extraordinary thing about this ordinary story is that our conventional theories of decision making can’t explain it. It is not even clear what the final decision was: to buy the stool; to get on with furnishing an apartment; to do so in black and white; to create a new lifestyle? Decision making can be mysterious.

The limits of ‘thinking first’

Rational decision making has a clearly identified process: define → diagnose → design → decide. However, the rational approach turns out to be uncommon.

Years ago, one of us studied a host of decisions, delineating the steps and then laying them out. A decision process for building a new plant was typical. The process kept cycling back, interrupted by new events, diverted by opportunities and so on, going round and round until finally a solution emerged. The final action was as clear as a wave breaking on the shore, but explaining how it came to be is as hard as tracing the origin of that wave back into the ocean.

Often decisions do not so much emerge as erupt. Here is how Alexander Kotov, the chess master, has described a sudden insight that followed lengthy analysis:

‘So, I mustn’t move the knight. Try the rook move again… . At this point you glance at the clock. “My goodness! Already 30 minutes gone on thinking about whether to move the rook or the knight. If it goes on like this you’ll really be in time trouble.” And then suddenly you are struck by the happy idea – why move rook or knight? What about B–QN1? And without any more ado, without analysis at all, you move the bishop. Just like that.’

Perhaps, then, decision making means periods of groping followed by sudden sharp insights that lead to crystallization. Or perhaps it is a form of ‘organized anarchy’, as Stanford professor James March and colleagues have written. They characterize decision making as ‘collections of choices looking for problems, issues and feelings looking for decision situations in which they may be aired, solutions looking for issues to which they might be an answer, and decision makers looking for work.’

But is the confusion in the process, as described by those authors, or is it confusion in the observers? Maybe messy, real-life decision making makes more sense than we think, precisely because so much of it is beyond conscious thought.

‘Seeing first’

Insight – ‘seeing into’ – suggests that decisions, or at least actions, may be driven as much by what is seen as by what is thought. As Mozart said, the best part about creating a symphony was being able to ‘see the whole of
it at a single glance in my mind’. So, understanding can be visual as well
as conceptual.

In W. Koehler’s well-known 1920s experiment, an ape struggled to reach a banana placed high in its cage. Then it saw the box in the corner – not just noticed it, but realized what could be done with it – and its problem was solved. Likewise, after Alexander Fleming really saw the mold that had killed the bacteria in some of his research samples (in other words, when he realized how that mold could be used), he and his colleague were able to give us penicillin. The same can be true for strategic vision. Vision requires the courage to see what others do not – and that means having both the confidence and the experience to recognize the sudden insight for what it is.

A theory in Gestalt psychology developed by G. Wallas in the 1920s identifies four steps in creative discovery: preparation → incubation → illumination → verification.

Preparation must come first. As Louis Pasteur put it, ‘Chance favors only the prepared mind.’ Deep knowledge, usually developed over years, is followed by incubation, during which the unconscious mind mulls over the issue. Then with luck (as with Archimedes in the bathtub), there is that flash of illumination. That eureka moment often comes after sleep – because in sleep, rational thinking is turned off, and the unconscious has greater freedom. The conscious mind returns later to make the logical argument: verification (reasoning it all out in linear order for purposes of elaboration and proof). But that takes time. There is a story of a mathematician who solved a formula in his sleep. Holding it in his mind’s eye, he was in no rush to write it down. When he did, it took him four months!

Great insights may be rare, but what industry cannot trace its origins to one or more of them? Moreover, little insights occur to all of us all the time. No one should accept any theory of decision making that ignores insight.

‘Doing first’

But what happens when you don’t see it and can’t think it up? Just do it. That is how pragmatic people function when stymied: They get on with it, believing that if they do ‘something’, the necessary thinking could follow. It’s experimentation – trying something so that you can learn.

A theory for ‘doing first’, popularized by Karl Weick, goes like this: enactment → selection → retention.

That means doing various things, finding out which among them works, making sense of that and repeating the successful behaviors while discarding the rest. Successful people know that when they are stuck, they must experiment. Thinking may drive doing, but doing just as surely drives thinking. We don’t just think in order to act, we also act in order to think.

Show us almost any company that has diversified successfully, and we will show you a company that has learned by doing, one whose diversification strategy emerged through experience. Such a company at the outset may have laid out a tidy strategy on the basis of assessing its weaknesses and strengths (or, if after 1990, its ‘core competencies’), which it almost certainly got wrong. How can you tell a strength from a weakness when you are entering a new sphere? You have no choice but to try things out. Then you can identify the competencies that really matter. Action is important; if you insist on ‘thinking first’ and, for example, doing formalized strategic planning (which is really part of the same thing), you may in fact discourage learning …

Characteristics of the three approaches to making decisions

‘Thinking first’ features the qualities of ‘Seeing first’ features the qualities of ‘Doing first’ features the qualities of
ScienceArtCraft
Planning, programmingVisioning, imaginingVenturing, learning
The verbalThe visualThe visceral
FactsIdeasExperiences

So how did you choose your mate? Did you think first: specify all the criteria, then list all the alternatives and finally choose one or was it love at first sight? Maybe you acted first – we’ll let you think about that, and its consequences.

Source: MIT Sloan Management Review, Spring 2001. © 2010 by Massachusetts Institute of Technology. All rights reserved. Distributed by Tribune Media Services.

Managing: How can you possibly think?

Have a look at the popular images of managing – the conductor on the podium, those executives sitting at desks in New Yorker cartoons – and you get one impression of the job: well ordered, carefully controlled. Watch some managers at work and you will likely find something far different: a hectic pace, lots of interruptions, more responding than initiating. So let’s have a good look at some of these facts, compared with that folklore.

Folklore: The manager is a reflective, systematic planner. We have this common image of the manager, especially in a senior job, sitting at a desk thinking great thoughts, making grand decisions, and above all systematically planning out the future. There is a good deal of evidence about this, but not a shred of it supports this image.

Facts: Study after study has shown that (a) managers work at an unrelenting pace, (b) their activities are typically characterized by brevity, variety, fragmentation and interruption, and (c) they are strongly oriented
to action.

(a) The Pace Reports on the hectic pace of managerial work have been consistent, from foreman to chief executives. As one CEO put it, the work of managing is ‘one damn thing after another’. Managing is an open-ended job with a perpetual preoccupation: the manager can never be free to forget the work, never having the pleasure of knowing, even temporarily, that there is nothing left to do.

(b) The Brevity, Variety, Fragmentation, and Interruption Most work in society involves specialization and concentration. Engineers and programmers can spend months designing a machine or developing some software. Managers can expect no such concentration of efforts. Their work is fragmented and loaded with interruptions. Why? Because they don’t wish to discourage the flow of current information, also because they develop a sensitive appreciation for the opportunity cost of their own time: no matter what they are doing, managers are plagued by what they might do and what they must do.

(c) The Action Managers like action – activities that move, change, flow, are tangible, current, non-routine. Don’t expect to find much general planning or open-ended touring in this job; look instead for tangible delving into specific concerns. Does this mean that managers don’t plan? Sure they plan; we all plan. But the real planning of the organization, at least in a strategic sense, takes place significantly in the heads of its managers and implicitly in the context of their daily actions, not in some abstract process reserved for a mountain retreat or a bunch of forms to fill out.

Folklore: The manager depends on aggregated information, best supplied by a formal system. In keeping with the classical image of the manager perched on some sort of hierarchical pedestal, managers are supposed to receive their important information from some sort of comprehensive, formalized Management Information System. But this has never proved true, not before computers, not after they appeared, not even in these days of the internet.

Fact: Managers tend to favor the informal media of communication, especially the oral ones of telephone calls and meetings, also the electronic one of email. Studies have found managing to be between 60 to 90% oral. The manager does not leave the telephone, the meeting, or the email to get back to work. These contacts are the work. As Jeanne Liedtka of the Darden School has put it: ‘Talk is the technology of leadership.’ Moreover gossip, hearsay, and speculation form a good part of the manager’s information diet. Why? Because today’s gossip can become tomorrow’s fact. But then it may be too late: manager’s have to know sooner, not later.

Formal information is firm, definitive – at the limit, it comprises hard numbers and clear reports. But informal information can be much richer, even if less reliable. On the telephone, there is tone of voice and the chance to interact; in meetings, there is also facial expressions, gestures and other body language. As a consequence of all this, the strategic data banks of organizations remain at least as much in the heads of their managers as in the files of their computers.

Folklore: Managing is mostly about hierarchical relationships between a ‘superior’ and ‘subordinates’. Our use of these awful labels should be telling us something.

Fact: Managing is as much about lateral relationships among colleagues and associates. Study after study has shown that managers, at all levels, spend a great deal of their contact time – often close to half or more – with a wide variety of people external to their own units: customers, suppliers, partners, government and trade officials, other stakeholders, as well as all kinds of colleagues in their own organization. We might thus characterize the manager’s position as the neck of an hourglass, sitting between a network of outside contacts and the internal unit being managed.

Folklore: Managers maintain tight control – of their time, their activities, their units. The orchestra conductor standing on the platform waving the baton has been a popular metaphor for managing. Much of it is pure myth.

Fact: The manager is neither conductor nor puppet: control in this job tends to be covert more than overt. If managerial work is like orchestra conducting, then it is not the grand image of performance, where everything has been well rehearsed and everyone is on his or her best behavior, the audience included. It is rehearsal, where all sorts of things can go wrong and must be corrected quickly.

Managers exercise control despite the constraints, by using two degrees of freedom in particular. They make a set of initial decisions that define many of their subsequent commitments (for example, to start a project that, once underway, demands their time). And they adapt to their own ends activities in which they must engage (for example, by using a ceremonial occasion to lobby on behalf of their organization). Thus the effective managers seem to be, not those with the greatest degrees of freedom, but the ones who use to advantage whatever degrees of freedom they can find.

The impact of the internet

How has the internet, especially email, influenced all this? Has it changed managing fundamentally? No and maybe yes.

This powerful new medium has vastly increased the speed, range, and volume of communication. Yet like conventional mail, it is restricted by the poverty of words alone: there is no tone of voice to hear, no gestures to see, no presence to feel, usually no images to see. It can give the impression of being in touch while the only thing actually being touched is the keyboard.

Perhaps most significantly, email increases the pace and pressure of managing, and often the interruptions as well. Beyond the enticement of ‘You’ve got mail!’ add a BlackBerry in the pocket – the tether to the global village – and you’ve got interruptions galore.

Does the internet enhance or diminish the control managers have over their own work? Obviously it depends on the manager. As with most technologies, the internet can be used for better or for worse. You can be mesmerized by it, and so let it manage you. Or you can understand its power as well as its dangers, and so manage it.

Think of the power of email to connect, the power of internet to access and transmit information. Think too of the pressures and pace of managerial work, the needs to respond, the nagging feeling of being out of control.

Might the internet, by giving the illusion of control, in fact be robbing managers of control? One conclusion seems evident: the internet is not changing the practice of management fundamentally, but rather reinforcing characteristics that we have been seeing for decades. In other words, the changes are in the same direction, of degree, not kind.

But the devil can be in the detail. Changes of degree can have profound effects, amounting to changes of kind. The internet may be driving much management practice over the edge, making it so frenetic that it becomes dysfunctional: too superficial, too disconnected, too conformist. Perhaps the ultimately connected manager has become disconnected from what matters, while the freneticness is destroying the practice of managing itself.

Source: Excerpted from Chapter 2 of Henry Mintzberg, Managing, Berrett Koehler and FTPN, 2010.

What management says and what managers do
by Albert Shapero

Of the existing literature on management, 95 percent is American, and most of the rest is paraphrased or lifted from the American literature. Leading the field in prestige and circulation (160,000) is Harvard Business Review. Like the school from which it issues, H. B. R. is a major fount of MANAGEMENT, as distinguished from management. Management is what managers do. MANAGEMENT is a view of what managers do at major corporations – a view shared by business schools, management consultants, and many business and management journals.

Accordingly, the appearance of On Management (Harper & Row, $17.95), articles selected from twenty-five years of H. B. R., is an event of some importance. The book should be considered not only in terms of its contents (which are undated to emphasize their timelessness), but also in terms of the opportunity it affords us to examine MANAGEMENT, its relevance to real-life management, and its profound influence upon the way we work and live.

Images of control, pictures of chaos

For whom is MANAGEMENT; to whom is it addressed? It is certainly not for all of the 13 million or so business enterprises in the U. S. To cite one piece of evidence, only a single article in On Management is directed to ‘smaller’ companies and speaks in terms of what top executives should do in the absence of operations research, planning departments, and large-scale computer capacity.

MANAGEMENT, it appears, is for the FORTUNE 500 and perhaps 2,000 more of the world’s largest companies. But there remains a question whether even for these large enterprises MANAGEMENT relates to the actualities of corporate managerial life. The term MANAGEMENT conjures up images of control, rationality, systematics; but studies of what managers actually do depict behaviors and situations that are chaotic, unplanned, and charged
with improvisation.

Reports on what managers do, made over the past thirty years in various countries and industries, are all amazingly similar in the pictures they paint of corporate managerial life: the fifty-five-to-sixty-hour week; the lists of things to do that never get past the first item; 40 to 60 percent of their time spent in meetings, 90 percent of which were called by others; 15 percent of their time on the phone; an average of fifteen to thirty minutes between interruptions; stolen half-days to produce required reports.

The managerial life at every level is reflexive – responding to calls, memos, personnel problems, fire drills, budget meetings, and personnel reviews. The manager’s days are controlled by other people. I have asked hundreds of managers how much of their time is spent in such reflective activities as planning, thinking, or analyzing. They consistently say between 5 and 10 percent – and then admit to lying.

Occasionally, however, we find at managerial levels individuals who go twenty-four hours without being interrupted by meetings or phone calls. They are the long-range planners, the people in O. R., E. D. P., financial or market planning, or market research. MANAGEMENT is really for them. The bulk of the articles in On Management are concerned with ideas from the world of the staff functionary. These articles are either directed to the interests of the staff person in terms of analytical how-to’s, or they tell the chief executive to think like a staff person, support and take part in staff activities, or else.

The size of staffs and the influence of staffs on the conduct of business and government have grown very considerably over the past several decades. In 1920 nonproduction workers made up 19 percent of the manufacturing work force. Today about 27 percent of the manufacturing work force is not directly involved in production. The large and growing number of people not occupied with the apparent central business of their companies should give us pause.

Even more worrisome, however, is the increasing general preoccupation with the analytics that are the domain of staff people. Staff people are committed to the products of the analytics, such as models, graphs, ratios, printouts, and not to the people and things they represent. With very exceptional exceptions the staff person has seldom spent more than token time on-line in producing, selling, or servicing the products of a company.

Analysis in Wonderland

The staff view of life is the very essence of MANAGEMENT, and that is the view nurtured by our better business schools. Selling and manufacturing have been virtually expunged from the curriculum, and in their place we have analytical surrogates such as consumer behavior, market research, operations research, financial analysis, organization theory, and accounting theory. These are intellectually satisfying pursuits, but they are not directly involved with the realities, joys, and difficulties of real operations.

Twenty-five years of MANAGEMENT have resulted in an Analysis in Wonderland outlook where abstractions are reality and where people and things are ciphers of difficulties to be dealt with. In the MANAGEMENT world view, a typical managerial task is using E. D. P. with an M. I. S. to measure R. O. I. so the C. E. O. can please the board of directors with projected results of corporate competitive strategy as depicted in the L. R. P. graphics.

Traditionally, the staff person lived a life of frustration and petulance, trying to influence men of power who came out of production or sales. The constant effort was to get ‘them’ to listen. The successful staff person was a vizier, a gray eminence, turned to by the boss, wielding power through legitimate managers. With the growth of MANAGEMENT, however, the man of power is increasingly taking on a staff outlook.

The effects of twenty-five years of MANAGEMENT are manifest and troublesome. A 1975 issue of Harvard Business Review shows that corporations with assets exceeding $10 million have been outperformed by smaller companies over the past several years in terms of return on stockholders’ equity. U. S. corporate productivity is being outdone by Europeans to whom, under various technical-assistance programs, we promulgated our pre-MANAGEMENT methods of production and selling.

The staff-driven, bureaucratic, competitive, impersonal climate generated by MANAGEMENT has had and continues to have disastrous effects on many aspects of our lives. The recent bribery revelations, for example, are no passing accident. They are inexorable results of abstraction from direct concern for workers and customers with names, and direct contact with processes and products that have substance.

Why not bribe officials if it will get you the sales and make the annual report look good? Why not lower product quality to just above the lawsuit level? Why provide more than the minimum of service required to maintain profits? You will swiftly be promoted to another department if you can keep the numbers right. Show me a thirty-five-year-old executive with an M. B. A. from a very good school who wants to stay in direct sales because he likes making customers happy, who likes his colleagues and wishes them every success, and who would never do anything unethical, and I will show you a man known as a religious type, as a ‘loser’.

Making it work anyway

Eventually, the strange culture of MANAGEMENT will retreat. It has been able to prevail to the extent it has only because, no matter how you design a system, real human beings will make it work anyway. The immense goodwill and natural capabilities of hundreds of thousands of managers are committed each day to making sense of the wide gap between MANAGEMENT and the chaotic realities of daily existence. With feelings of guilt and inadequacy in the face of the latest methods they are urged to use, they give MANAGEMENT lip service, and still produce and sell as required.

When we forswear MANAGEMENT, do we forgo rationality? Is this the lesson of the past twenty-five years? No! Never have we had more need of rationality, but the kind of rationality rooted in observed phenomena. We need to return to a rationality tuned to the natural messiness of life, and not one dedicated to neat abstractions. There are no straight lines in nature, and despite the linearities depicted by MANAGEMENT, there are no straight lines in management either.

Source: This article appeared in the May1976 issue of Fortune magazine.

Management and Magic
by Martin I. Gimpl and Stephen R. Dakin

There is a fundamental paradox in human behavior – the more unpredictable the world becomes, the more we seek out and rely upon forecasts and predictions to determine what we should do. It is not unreasonable to draw an analogy between weather forecasting under conditions of extreme uncertainty, and management’s continuing interest in forecasting and planning activities in a highly uncertain trading climate. Why do we continue to seek forecasts when the weather is unpredictable? It is our contention that management’s enchantment with the magical rites of long-range planning, forecasting, and several other future-oriented techniques is a manifestation of anxiety-relieving superstitious behavior, and that forecasting and planning have the same function that magical rites have. Anthropologists and psychologists have long argued that magical rites and superstitious behavior serve very important functions: they make the world seem more deterministic and give us confidence in our ability to cope, they unite the managerial tribe, and they induce us to take action, at least when the omens are favorable (Perlmuter and Monty, 1977). In addition, these rites may act to preserve the status quo.

Superstitious behavior is behavior which in the eyes of a ‘reasonable’ man is unlikely to have the causal effect it is believed to have (Jahoda, 1970). E.J. Langer (1975) refers to this as ‘illusion of control’ – the belief that events are causally related when objectively they are not.

Superstitions increase in number and intensity as our environment becomes more uncomfortable and more unpredictable. Superstitions abound during periods of plague, famine, and warfare. B. Malinowski (1951), a social anthropologist, argued that ‘man resorts to magic only where chance and circumstances are not fully controlled by knowledge’. To illustrate the point, he described the fishing practices of the Trobriand Archipelago. Those who are in villages in the inner lagoon, where fishing is easy and safe, do not have any magical procedures associated with it. By contrast, those in villages on the open sea, where obtaining fish is more hazardous and uncertain, have many superstitions concerning fishing.

Similarly, in today’s uncertain trading climate we might expect a similar emergence of ‘superstitious’ behavior as managers try to predict and control events which, in terms of current conditions and technology, are manifestly unpredictable and out of control. Such conditions foster the use of predictive devices ranging from capital budgeting to assessment centers. Do these devices work? If not, then we may legitimately brand their continued use as superstition …

[S]uperstition often involves the emergence of cult-leaders, or ‘witch-detectives’, who may direct proceedings and interpret omens. Similarly, times of uncertainty in our modern world breed magicians, witch-detectives, and consultants. Why? As John Kenneth Galbraith (1982) says:

In an uncertain subject matter such as economics or psychiatry, there is something wonderfully compelling about those who are sure. Also, much discussion of money has a necromantic aspect; mystery, even witchcraft, is presumed to be involved. A special reputation accrues to those who, affirming the mystery, presume to penetrate it. They are in touch with the occult; others should trust them.

Superstitions are the vehicle whereby charismatic leaders provide feelings of certainty in otherwise uncertain times. The existence of these leaders may boost confidence, guide action, and, if things continue to go wrong, provide a scapegoat for the sufferer. The difference between modern economic forecasters and the shaman predicting and inducing rain may be more in their appearance than in the substance of their predictions …

Implicit in the discussion so far has been the notion that superstitions are undesirable; that illusions of control should be discouraged. On the contrary, it is apparent that under certain circumstances superstitious behavior can be highly functional for both individuals and groups.

One function that may be overlooked is that, under conditions of extreme ambiguity, people may readily opt for helplessness (Perlmuter and Monty, 1977). When people feel out of control there is a tendency toward inactivity – to do nothing. Under such circumstances, of course, it is more appropriate to do something – anything – since activity may uncover elements of control which were previously unnoticed. Thus, to the extent that superstitions give the feeling of control they may encourage necessary activity.

A second major function is that in a random world the best course of action is random action. Well-designed magical rites do precisely this – they encourage random action …

O.K. Moore (1957) tells of the use of caribou bones among the Labrador Indians. When food is short because of poor hunting, the Indians consult an oracle to determine the direction the hunt should take. The shoulder blade of the caribou is put over the hot coals of a fire; cracks in the bones induced by the heat are then interpreted as a map. The directions indicated by this oracle are basically random. Moore points out that this is a highly efficacious method because if the Indians did not use a random number generator they would fall prey to their previous biases and tend to over-hunt certain areas. Furthermore, any regular pattern of the hunt would give the animals a chance to develop avoidance techniques. By randomizing their hunting patterns the Indians’ chances of reaching game are enhanced …

There is an additional and secondary function that should be mentioned. While superstition is useful if it randomizes action, the magical rites associated with superstitions are useful in justifying random action. Devons has noted how difficult it is for government or nationalized industry to plan sensibly, and says:

No Chancellor of the Exchequer could introduce his proposals for monetary and fiscal policy in the House of Commons by saying, ‘I have looked at all the forecasts, and some go one way, some another; so I decided to toss a coin and assume inflationary tendencies if it came down heads and deflationary if it came down tails.’

Thus, magical rites, including the use of economic statistics, permit managers to justify taking random action.

Having said all this, it is clear that many managerial superstitions are dysfunctional. The basic reason for their dysfunctionality is that, while they reduce anxiety and build confidence in times of uncertainty, they may simply provide justification for continuing past practice rather than sanctioning innovation. Most techniques do not generate random data but introduce a biased series – the caribou are likely to pick up your pattern.

References

Devons, E. Essays in Economics, London: Allen and Unwin, 1961.

Galbraith, J.K. ‘You can’t argue with a monetarist’, a feature article in The Christchurch Press, 23 September 1982; from the London Observer Service.

Jahoda, G. The Psychology of Superstition, New York: Pelican, 1970 p. 127.

Langer, E.J. ‘The illusion of control’, Journal of Personality and Social Psychology, 32, 1975, pp. 311–328.

Malinowski, B. Magic, Science, Religion and Other Essays, quoted in Romans, G.C., The Human Group, London: Routledge Kegan Paul, 1951 pp. 321–323.

Moore, O.K. ‘Divination – a new perspective’, American Anthropologist, 59, 1957, pp. 69–74.

Perlmuter, L.C. and Monty, R.A. ‘The importance of perceived control: fact or fantasy?’, American Scientist, 65, 1977, pp. 959–964.

Source: © 1984, by The Regents of the University of California. Reprinted from the California Management Review, ‘Management and magic’ by M.L. Gimpl and S.R. Dakin, Vol. 27, No. 3. By permission of the Regents.

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