There's some pretty good evidence that Capitalism could be in deep trouble in today's world. And stereotypical CEOs, business models, as well as workplace practices are in equally deep trouble. One need only look at the increasing income gaps and disappearing middle class, increasing levels of employee disengagement and distrust of leaders, along with the control of almost all wealth in the hands of the few as evidence. We can point to some destructive myths about economic enterprise, leadership and work as feeding those problems.
Tony Schwartz, writing in the Harvard Business Review identifies four such myths. Myth 1: Multitasking is critical in a world of infinite demand. This flies in the face of recent neuroscience research; Myth 2: Anxiety helps you perform better. This often shows up as bosses putting performance pressure on people which inversely affects motivation and performance. Myth 3: Creativity is a genetic trait and can't be taught. But we know now that creative thinking can be taught and learned; Myth 4: The best way to get more work done is to work longer hours. This has led to workaholism and burnout and evidence of declining productivity.
Another myth is "management efficiency"—of course invented by managers. Tough economic times have produced a flood of management "experts" and many leaders of organizations whose only strategy for dealing with the downturn in the economy is cutting costs, layoffs and more efficiency-based strategies. The mantra for business for much of the last century has been operational efficiency. So leaders look for ways to cut costs and make the operations lean and mean. Yet much of the rationale for and evidence supporting efficiency as a key management strategy is questionable.
Management theory came to life in 1899 with a simple question: "How many tons of pig iron bars can a worker load onto a rail car in the course of a working day?" The man behind this question was Frederick Winslow Taylor, the author of The Principles of Scientific Management and, by most accounts, the founding father of the whole management business. Taylor's scientific management principles became the Bible upon which management practices have been used to dominate Western business for the past century. The problem is, that Taylor was a better salesman than a scientist.
Mathew Stewart, the author of The Management Myth: Why The Experts Keep Getting It Wrong, describes how Taylor manufactured his data, lied to his clients and inflated his results. He argues that since Taylor, business programs in universities continue to model much of their educaiton, with emphasis on technical knowledge and the scientific management approach. Stewart, who was for many years a management consultant, argues that the study of philosophy and ethics would serve society better as a basis for educating business leaders.
This theme is echoed by Tom Demarco in his book, Slack: Getting Past Burnout, Busywork And The Myth Of Total Efficiency, in which he details American business leaders' obsession with planning and cost saving efficiency based on a mistaken belief that human beings are efficient in the same way that machines are.
In a similar vein, a ground-breaking book by Dan Coffey, titled The Myth of Japanese Efficiency, challenges the commonly held view based on an earlier MIT study that Japanese car manufacturers pioneered a "lean and flexible" production model, which helped to reinforce the cultish devotion to efficiency.
Aubrey C. Daniels, one of the world's foremost authorities on management and human performance, outlines management practices that are destructive to organizations during boom or bust times, in his outstanding book, Oops! 13 Management Practices That Waste Time and Money (and what to do instead).
Daniels points out that few managers look for behavioral data to affect employee performance because most managers know very little about the science of behavior and recent brain science or neuroscience, and very few business programs in universities teach it. He says another reason why organizations are fundamentally flawed from a behavioral perspective is that they were designed by those people--those with financial expertise--who have only one purpose in mind, to make money. He says that "how employees are paid, appraised, rewarded, and recognized have financial implications," but when designed without an understanding of human behavior, you can have get contrary results. For example, there is a mountain of research to show that employees are not primarily motivated by financial rewards over the long term, yet we continue to use that as a management motivational strategy.
Daniels identifies 13 managerial strategies that not only don't work, but are destructive to organizations and the people in them, what's wrong with them and what to do about it. Among the most significant of these practices that perpetuate myths about a productive workplace and what leaders should do are:
1. Employee of the Month [and most other forms of recognition and reward] What's wrong with it: It focuses attention on one employee, but most work is a team effort. What to do about it: Acknowledge achievement for everyone the moment it happens.
2. Stretch Goals. What's wrong with it: Employees end up overwhelmed and frustrated if they fail to reach aggressive goals. What to do about it: Set achievable short term goals and chart employee progress month by month.
3. Performance Appraisal. What's wrong with it: It's hated by both managers and employees; it's done once a year and then appraisal is ignored for the rest of the year; it's not motivational. What to do about it: Give immediate management feedback to employees for success or failure.
4. Promoting People No One Likes. What's wrong with it: employees perform out of fear rather than commitment and loyalty. What to do about it: Promote people who are liked and have superior interpersonal and emotional abilities.
5. Downsizing. What's wrong with it: Many things including the stress placed on those employees that remain, and the costs of new hires after the recovery. What to do about it: Find more creative ways of costs savings, done by many companies.
Traditional management strategies in organizations are based more on animal training than on human psychology and neuroscience. Leaders promise bonuses and promotions (the carrot) for those who go along with the changes, and punish those (the stick) who don't with less important jobs or even job loss. This kind of managerial behavior flies in the face of evidence that shows that people's primary motivation in the workplace is neither money or advancement but rather a personal interest in their jobs, a good environment to work in and fulfilling relationships with their boss and colleagues.
Charles Jacobs, author of Management Rewired: Why Feedback Doesn't Work and Other Supervisory Lessons From The Latest Brain Science, says the brain is wired to resist what is commonly termed constructive feedback, but is usually negative. When people encounter information that is in conflict with their self-image their tendency is to change the information, rather than change themselves. So when mangers give critical feedback to employees, the employees' brain defense mechanism is activated because that information conflicts with what the brain remembers and knows.
