IdeasVariables GroupsEventsA model of social change using four methods for describing systemsOld Thinking New ThinkingMotivate peopleWho is wrong?Define responsibilitiesWatch bottom lineMeasure peopleDefine jobFix deviations“Obey orders”Individual rewardsMonetary incentivesRemove barriersWhat is wrong?Define proceduresWatch qualityMeasure systemsDefine customerReduce variability“Improve things”Team rewardsPraise, recognition and gain sharingHow an emphasis on quality is changing management IDEAS in the USIn favor of change Opposed to changePeople new to the organizationQuality improvement consultants with newknowledgeHigh-level managers who want to reduce costsThose who see some personal benefitThose whose jobs involve administering theold systemManagers who believe the old system isbased on sound psychologyWorkers who believe the current system isinevitable and do not want to be botheredMiddle managers who fear being laid offGROUPS that favor and oppose the new way of managingOld System New SystemSomeone has an ideaThe department head tries to be supportive and tells the person to go aheadThe person must now convince all relevant people to act on the idea, but the idea is a personal interest, not a department initiativeThe person runs out of steam and becomes discouraged. He or she learns to accept things as they areNew ideas come to be viewed negatively, as a drain on personal energiesSomeone has an ideaThe person takes the idea to a quality improvement committeeThe committee considers the idea and replies or asks for clarificationIf convinced, the committee and the entire organization work to implement the ideaThe person is recognized and publicly praisedNew ideas come to be viewed positively, as an enhancement of the organizationSequences of EVENTS in the old and new management systemsNew products Ideas put into Praise for new ideasor processes + practice + + Customer satisfaction yes + - no +Quality improvement Revenue team? + +Profit Ideas generated ++ + +Salaries and bonuses Employee SatisfactionHow the old and new systems can be described in terms of VARIABLESOld Soviet System New Russian SystemSupply is more important than demandManagers strive to control resourcesBarter is used to exchange excess resources for desired goods. In the early transition economy barter was used to avoid cash transactions and hence taxesWorkers wait for bosses to decideA mistake leads to someone being blamed and punishedThe “external environment” is a ministry planning office and several suppliersManagers do what is good for their bossEmployees do what they are told but do not exercise initiativeBusiness is based on personal relationsCharismatic, personal leadershipAuthoritarian style of managementTreat employees as interchangeable partsPay workers as little as possibleFamily relationships in organizationsMaintain traditionsDemand is more important than supplyManagers strive to increase demandTax rates should be low enough so individuals and companies will pay them rather than avoid themA market economy requires that those who work in a process continually strive to improve the processA mistake leads to the process being redesigned so the error does not occur againThe “external environment” includes government regulations, competing firms, independent labor unions,consumers, and residents who live near factoriesManagers do what is necessary to be successful in the marketEmployees exercise initiative, innovateBusiness is based on market and professional relationsLead by organizing and by defining a vision and mission for the organizationCreativity and flexibility in managementTreat employees as highly skilled knowledge workers who know the company, its history and its capabilitiesProvide salaries and benefits that make employees loyal, highly skilled and highly motivatedBusiness relationships in organizationsDeliberately create the desired organizational cultureIDEAS underlying the old and new management systems in RussiaIn favor of change Opposed to changeYounger generation (less than 30)Managers with new knowledge High level managers People who can find personal benefits in thenew systemOlder generation (older than 60)Workers and managers who believe in theold systemMid level managersWorkers and managers who lose somethingbecause of the changesGROUPS who favor and oppose management changes in Russia19851986-198919891989-19911991, Aug.199119921993, Oct.1991-present1991-19961992-19961992-19961993, Dec – 19961995-200319961998, Aug.2000-20022000Gorbachev becomes General Secretary of the USSR Communist PartyA series of reforms called glasnost and perestroikaBerlin Wall fallsCrisis of Soviet power in the republicsAttempted coup against Gorbachev. Yeltsin makes a short speech standing on a tank. People take to the streets todefend democracyCollapse of USSR and creation of a Confederation of Independent StatesPrice liberalization and hyperinflation. A majority of Russians lose their savings. Stratification of societyincreases. Most of the population becomes impoverishedTanks in Moscow shoot at anti-Yeltsin leaders in the Russian parliamentDevelopment of parliamentary government in Russia. Four Russian DumasProduction falls more than 50 percent. Economic links among republics of the former USSR are brokenPrivatization, which was called by people "prihvatizatsiya." It is a play on words: "prihvatit'" is a popularexpression meaning "to steal”The crisis of nonpayments. Workers were not being paid, so workers went on strikeFirst military campaign in ChechnyaTerrorist actions in Moscow and other Russian citiesSecond election of Yeltsin. General Lebed signs Chechen peace treatyCurrency default. Second impoverishment of a majority of people in RussiaSecond military campaign in ChechnyaPutin becomes President of Russia. Creation of “vertical power.” Presidential representatives are appointed forseven Russian districts20032001-presentFirst democratic election in Chechnya. Acceptance of Chechen Constitution. Reconstruction of Checheneconomy. Party of Putin’s reforms wins parliamentary electionEconomic growth in RussiaSome EVENTS during the transition in RussiaManagement desire to
View Full Document