Archive for May, 2007 Page 2 of 5



Welcome to the human resource.

It was sweltering hot in Boston today, but I enjoyed it. Living in Southern California and North Carolina, I’ve gotten used to hot temperatures and actually quite like the very hot days now. Anyway, small rant aside, I’m posting another discussion post from my Principles of Management class at Umass-Amherst, as it is still too hot to sit at the computer for too long tonight. Tonight’s post is about human resource management and is quite long as I had a variety of strong opinions on the subject. Enjoy.

In my mind, an organization is similar to a car, it’s structured and holds humans inside of it, and is always on the move, except when it (both the car and organization) is shut off. Human energy is the gasoline of a car, as it provides the organization the energy necessary to get to where it’s trying to go.  I won’t go into further detail with my analogy but the main point I’m trying to make is that humans are what [ideally] progresses an organization to achieve its goals. As we’re now learning with cars and gasoline, managing the source of energy is crucial to any machines’ (I mean machine in the physics sense, that an output is created via an input) ability to function.

Is managing human resources, through an HR department, a waste of time, energy, and other resources? Isn’t it ironic that in the last session we learned about the value of decentralization, yet many organizations manage there human resources through one department? Is it effective and efficient to house the power and control of how an organization’s most important asset [human employees] is managed in one department? My employer manages literally trillions of dollars, yet as our CEO stated in his recent annual earnings statement, people are the company’s most important asset. Shouldn’t this responsibility be decentralized and be assigned to managers in the field who can directly see the employees affected? Although this would be ideal, it’s not feasible as managers in the field must focus on accomplishing the goals of the organization. I believe my employer has a good set-up by having multiple human resource departments located at its various locations, this way power is decentralized and HR departments can be located near or integrated with the areas they are attempting to manage.

The biggest conflict between a human resource and how to manage it is compensation, benefits, and career development. I honestly believe that I should be paid more than I am, should have easier and more plentiful access to benefits, and should be the CEO of my company. My HRM department would cite that my pay is on par with the median for my experience, education, and skills and abilities, that I receive the same benefits as everyone else (depending on how much depth you want to argue on here, for instance I’m not receiving paid maternity leave but the woman behind me is, is this fair? I agree that she should be excused from work during her maternity and paid for it, but how is that fair to me?), and that the CEO is doing a fine job (mostly agree there, I still think I would do better) and that I would not be able to match his performance. How does HRM know this? They have their surveys and figures and all kinds of tools, but how can you know if I wouldn’t be a better CEO without giving me the chance and obviously at that point my current pay would not be on par with market standards. Some would argue that I have to work to that point, and that is a valid argument, but is it effective? Take the New England Patriots, and their starting MVP-caliber quarterback, Tom Brady, who got the chance to prove his abilities because of an injury to our former starting quarterback, Drew Bledsoe. The book states that career development is now the responsibility of each employee (I can agree that is exactly how it is at my current employer); this is a slippery slope, because if shy people who are skilled and valuable to the company do not develop, but a lazy person who contributes no real value to the company spends all of his/her time networking and making it appear that he/she is ready for a promotion, the organization will eventually fail because it’ll be completely run by a bunch of people who schemed their way to the top.

Too many times, politics wins out over actual performance in determining compensation. Even worse, when actual good performance is rewarded, our pay is still decreasing from a historical perspective when taking into account three important factors, inflation, cost of living and productivity. Even though many studies and corporate earnings statements show that we’re becoming more and more productive, we do not get paid accordingly. Karl Marx summarized this when he wrote "The laborer becomes poorer the more wealth he produces, indeed, the more powerful and wide-ranging his production becomes. " What’s happening here is that methods of training and the employee pool provide organizations enough fresh human resources that many times they do not have to pay their employees proportionally to the value the employee adds to the organization.

Conditions have worsened since 1844 for employees who are good performers, with new laws in place such as Civil Rights Act, Equal Pay Act, Mandatory Requirement Act and Americans with Disabilities Act, employers have become frightened to fire a poor performer due to the possibility of being forced into costly litigations. These laws were necessary but I’d like to believe that our society has advanced to the point that we do not need to have these laws anymore, they truly are detrimental to profit and proper employee compensation, as organizations still look to how they can comply with these acts instead of how to best reward good performers. In fact, these laws are now starting to have the opposite effect of their intention. Reverse discrimination, for instance, in which white males who are as qualified, if not more so, for a position are being rejected for other people, whose only advantage seems to be that they are not a white male. I personally saw this when I was applying to colleges out of high school. Boston College rejected me while accepting kids from my high school who were seemingly less qualified in all categories except one, their skin color. I feel that my generation (I’m 23) and the ones below mine do not need these laws in place to prevent discrimination anymore, and in fact these laws are now doing us all a disfavor by stating, in explicit words, that people are different and you cannot discriminate against them. Our country is becoming less and less capitalistic. People are different and we should look at all people differently.  If a purple person and a green person apply for a job and the purple person is more qualified but there are less green people working at the organization, who should get the job? In today’s world, the green person would get the job many times to fulfill the company’s diversity quota…

As the content of this session’s supplemental readings proves, human resource management is a complex and diverse field. The field basically encompasses all human skills, traits, and personalities. From Karl Marx’s description of capitalism as an inhuman force to the insensitivity shown in Death of A Salesman to the pure apathy towards work displayed by Bob Black to the ideals set forth by Robbins & Coulter; all of these aspects are part of human resource management. A topic I initially considered as simple before reading the materials, I now see as a infinitely complex one with literally an infinite amount of variables. Even, as I write this post I see it is rapidly becoming immense in length because I see so many different viewpoints on so many of the topics. This is another problem for HRM as they are in charge of creating a simple, easy to understand and utilize process for something that is so complex as humans. Maybe we should rename the study of human resource management to human resource help, because it does not seem to be a situation that can be completely controlled or managed but can be improved upon.

I thought Bob Black made a multitude of good points. Consider that companies such as Apple, Google, Youtube, Myspace, ESPN, Whole Foods, were started and became successful because there was a desire to fulfill the market those companies target. I can imagine that the founders of Myspace created the site for their own use, not profit. It seems more and more that great companies are being started because the founders had fun doing an activity and their enjoyment of that activity made them extremely good at it, to the point that they could then sell their expertise.

Think about how much work we must do to un-humanize ourselves in order to "get ready" for work, showering and changing clothes daily, commuting to and from work, complaining about the terrible day you had at the office when you get home so that all that rage doesn’t build up inside you, making sure you get to bed early so you can get up early to get ready for work. Do we really get that dirty on a daily basis? Why do we spend so much time covering up our true human nature? "Next we can take a meat-cleaver to production work itself. No more war production, nuclear power, junk food, feminine hygiene deodorant — and above all, no more auto industry to speak of. Already, without even trying, we’ve virtually solved the energy crisis, the environmental crisis, and assorted other insoluble social problems." Bob Black is simply stating the truth. Reality is not an ideal place, we do not live in a paradise world. Does everyone really need an automobile? Why in during the global warming crisis, do we still pay good money to have people drive around in a circle?

While many of the ideas Bob Black proposes are ridiculous and too radical, they are necessary ideas to release as our society it quickly deteriorating towards the vision of Karl Marx, a world in which humans are enslaved in a producing and consuming cycle. Depression medication is one of the biggest money-makers for the pharmaceutical industry, does this not show that we as humans are increasingly become less satisfied with our lives? I’ve never had the chance to read much of Karl Marx’s writings and am glad that he was one of the sources for this session, I found the following statement to be immensely valuable:

"The laborer feels himself first to be other than his labor and his labor to be other than himself. He is at home when he is not laboring, and when he is laboring he is not at home. His labor is not voluntary, but constrained, forced labor . Therefore, it does not meet a need, but rather it is a means to meet some need alien to it. Its estranged character becomes obvious when one sees that as soon as there is no physical or other coercion, labor is avoided like the plague. This alienated labor, this labor, in which human beings alienate themselves from themselves, is a labor of self-denial and self-torture. Finally, the alienation of labor manifests itself to the laborer in that this labor does not belong to him, but to someone else; it does not belong to him; while he is doing it he does not belong to himself, but to another. . . . the activity of the laborer is not his own activity. It belongs to someone else, it is the loss of his self."

Is it really necessary for us, (and here I mean Americans for we are one of the worst offenders of this) to work so much? Americans complains about the falling values of family, education, and social community, yet no one seems to work to decrease the time we spend at work. With the huge jump in productivity we’ve experienced, do we really need to spend 40 hours a week working? Are there not many other areas of our personal lives and society that could use our energy rather than working to get money?

Another Marx quote, "Through estranged labor, humans not only produce their relationship to the object and to the act of production as a power foreign and hostile to them, they produce also the relationship in which their production and their product stands in relationship to other humans as well as the relationship between themselves and other men.". Here Marx is stating that by working on a product, we lose sight of the human on the other end who will be using that product. Look at how foreign computers are to how humans naturally interact with the world.

Bob Black said "What I really want to see is work turned into play. " This is not as far-fetched or difficult as it might seem at first. A lot of play is inherently competitive. Consider the childhood classic, hide and seek, there are clear objectives, boundaries, and goals in the game, even if there are no clear cut winners and losers. Simple things can really turn a dull and monotonous office job into something more fun. Office pools and simple competitions like who helped the most people in a week could break up the monotony of a workplace but it seems that there are rules and regulations in place to ensure work is kept serious, but why? Why can’t we have fun and work at the same time?

The biggest problem is you cannot completely "manage" people. Karl Marx believes in communal living, where we all contribute equally and consume equally. This does not work. Some people are inherently lazy, how do you force them to contribute equally without violating freedom? Do you assign the lazy people personal managers to ensure they contribute equally? If you do, how is it fair that some people get aided by personal managers while others have to manage themselves? How do you account for people with disabilities who are not able to contribute equally? Bob Black believes we should just get rid of responsibility and let everyone do what they enjoy doing and somehow all the world’s need will get met. Is Bob Black volunteering to ensure our sewage systems run properly? Is there really someone out there who enjoys working in public sewage management? What about Howard from Death of a Salesman? Does Bob Black think he should go about making everyone feel miserable? Would Howard be in charge of checking everyone’s fun-time and if they didn’t have enough fun they don’t get to eat? I can completely emphasize with Willy, because there are times at my current job and at former jobs where I would do anything to improve my performance, but many of the times I’m told to keep the status quo. I worked in a Home Depot factory a couple years ago and the main task was to look busy! If you were caught joking around with a colleague while there was no work to do you would be reprimanded!

By the way, the title off this post is a rip on the Cisco commercial and slogan, "Welcome to the Human Network". Thanks for selling ourselves to ourselves, Cisco. We are entering a time of serious crisis, when more and more humans will exist and need to be managed, yet I fear there will not be enough qualified managers to do so (if only there were more people as the ones in this class…).

Centralization vs. Decentralization

The title says a lot for tonight’s post, which is pulled from the Principles of Management class I took at Umass-Amherst during the winter 2007 semester.

The advantages and disadvantages of centralized versus decentralized organizational structures lies greatly in the inherent qualities and effects of the structures themselves. Robbins and Coulter describe this very well, "If top managers make the organization’s key decisions with little or no input from below, then the organization is centralized." Companies which wish to consolidate power and decision-making abilities at the top of the organizational chart, tend to be centralized organizations. If the CEO of a corporation has a particular vision and wishes for it to remain pure to his/her perspective, he/she will centralize the organization so that he/she is able to control as much of the company as possible. As the textbook states, this is helpful for companies who need to be stable or are facing a crisis and need one source of decision-making to lead them. These sort of organizations are becoming more rare, as employees become smarter and organizations become larger, however a few do still exist. Consider the Oakland Raiders, a team which is widely acknowledged as being run completely (but poorly) by its owner, Al Davis or a monarchy such as Saudi Arabia, or an absolute theocracy, such as the Vatican City. Centralized structures are becoming rare because of their many disadvantages. Due to power being consolidated at the top of the organization, risk is great if the top of the organization becomes incapable of leading the organization (death, illness, or massive organizational size causing a weak span of control). Employees also will feel less motivated to perform for the organization as they will not have an avenue for sharing their ideas on how to improve the organization.

Decentralized organizations are becoming more popular as the ability for organizations to decentralize increases. Decentralization allows organizations to take advantage of division of labor by sharing decision-making across the organization. It also empowers employees and allows them to improve their performance by being able to act to improve deficient or inefficient areas immediately without approval from the top of the organization. Another advantage of decentralization is allowing for the managers of business areas to actually use their first hand knowledge and experience to improve their areas. Consider the Dallas Cowboys of the early 90’s, where Jerry Jones the owner had final say over all personnel decisions to the New England Patriots of today, where numerous individuals throughout the organization have an input on personnel decisions. By trusting the individuals within the organization to obtain accurate information and use their minds to provide appropriate analysis, the Patriots are able to take advantage of division of labor and allows for multiple individuals to give input on players. Decentralization has proven so successful for the Patriots (via seemingly always finding cheap players to replace expensive stars) that the Cowboys have now moved toward a more decentralized structure.

Immediately, I would apply decentralization by allowing each division of my diversified food company to make decisions on the ingredients, manufacturing process, and almost all other aspects of each brand. I would allow the cookie experts to decide on what how and out of what to make the cookies. In my mind, many of the aspects of a food company correspond to an organic structure; for this reason I would encourage my managers to use teams, maybe based on each individual product, especially cross-functional teams that would work with all four food divisions to ensure that no one employee becomes bored by performing the same menial task over and over and allowing for all four divisions to be on the same page.

One area where I would consider using a centralized structure is in marketing. It would prove harmful to the salty snack foods and cookies brand if my breakfast cereals and fruit juice divisions decided to proclaim the health benefits of cereals and juice and expose the negative health aspects of eating too many cookies and salty snacks. Controlling the public image of the entire corporation would prove beneficial over a long-term outlook, even though it might take some of the ideas and unique marketing strategies out of the hands of the people who know them best. Although I would allow for decentralization via listening to employees and allowing managers to compile marketing campaigns, I would maintain final approval of all marketing related strategies in the hands of a few employees, with whom I would maintain a close relationship with. Overall, I would definitely use a decentralized structure to allow me for more free time to focus on truly important items, like relaxing and watching Boston sports on what must be a massive television in my CEO home [this is sort of a joke, I would use the extra time provided by decentralization to ensure I performed my duties as CEO of leading the company and planning the overall strategy well, trusting my employees would be able to perform their duties without exact instructions from me].

It Just Works: How Apple’s Planning & Strategy Create Intuitive Interactions for Consumers

Pending any errors or glitches, I’m done with my group project for my Statistics course (10% of the final grade), so now all I have to do is take the Statistics Final and I’m done with the Spring semester! To mix things up a bit, tonight I’m posting the last essay for my Fundamentals of Marketing class. The assignment description was “Pick any retail store that you deal with. Using the ideas in Chapter 22, what strategies do you see them using? Try to identify one or two and explain what signs or actions by the company lead you to that conclusion.” My grade for this assignment is pending, but even if I receive a zero for this essay, I’ll be getting at least an A- in the class; if I receive a 6/10 or above on the essay I’ll earn an A for the class! [Update: I got a 10/10 on the essay and an A for the class]. Onto the essay…

I’ve used this company as an example before, but I admire their marketing strategies so much and feel they execute those strategies so well that they merit another discussion. Apple, and their Apple stores are part of the computer and now, with products such as the Apple TV, iPod, and iPhone, the electronic devices markets. Their corporate ethos places design as a highly valued component of Apple’s complete business strategy from manufacturing exemplary hardware and software to excellent and knowledgeable customer service to unique, interesting, and memorable advertisements.

One aspect of Apple’s corporate strategy is clear to everyone; Apple employees, consumers, analysts and critics can all see that Apple competes in the consumer electronics industry on a differentiation basis. The current PC (Personal Computer, meant to symbolize Microsoft Windows) versus Mac commercials airing highlight the differences between computers computers running Microsoft operating systems (such as Windows or Vista) and Apple computers running Apple’s Mac OS X operating system. Many of the ads promote the benefits of the Mac OS X operating system, such as increased security, intuitive use, valuable bundled programs and reliability in comparison to Microsoft’s market leading (in terms of market share) operating systems. These ads also promote the benefits of having a computer from Apple, such as the inclusion of a camera, built into the display. Apple differentiates itself form every other computer hardware and software manufacturer by producing the computer, its operating system, and user software. By controlling all aspects of the process, Apple is able to produce a machine that works with its software, and software that takes advantage of its hardware out of the box.

Apple then further advances its differentiation strategy through its Apple Stores, which are built with design in mind from the start. Many Apple stores have a pleasant and clean , stream-lined, look and layout to them, just as its software, from iTunes, GarageBand, iMovie and Mac OS X, and hardware, from Macbooks, iPhones, Apple TVs, and even keyboards, monitors, and network devices such as the Cinema Display and Airport Extreme. Whereas a large portion of the personal computer market is focused on keeping up with its competitors on both price and features, Apple separates itself from the whole field and focuses on improving and polishing their products.

Apple also highly values and focuses on implementing their marketing plan. Apple is well known for keeping their future products well under wraps until they are ready to reveal them to the world; so much so that a niche industry has developed devoted to discovering and reporting on new Apple products. Every year, Steve Jobs keynote address at the annual MacWorld Expo is one of the most anticipated events of the computer industry, as Steve is well known for revealing Apple’s latest inventions at that time. Once Apple reveals a new product, they do not pander to its fans by rapidly releasing that product to the marketplace; rather, Apple will hold back and delay a product until it is absolutely confident the item is ready for release. The much anticipated new version of Apple’s operating system, Leopard (its current version is name Tiger) has been delayed in order for Apple’s engineers to focus on the iPhone. Although delays are costly and can create lost opportunity costs because of consumers who wait until the new product is released, I highly commend Apple for releasing products when they are comfortable with releasing them, anxious fans be damned! In today’s world, too many companies rush products to the market that are filled with glitches and bugs in order to meet deadlines and fulfill consumer demand. Those companies do experience initial sales to consumers who are anxious for new products, but eventually end up angering most consumers for selling an imperfect product.

These delays could be viewed as flaws, as signs of a company which is not performing efficiently and is not meeting deadlines they established, if one did not consider that this is a technology company. Computer technology, both on the hardware and software fronts is till such a relatively new field that unexpected delays and glitches are expected but also unpredictable. Apple very well could have developed their new operating system with no glitches and it could have been released on time, but it’s highly unlikely. A precedent does exist that companies who focus on the product, and not on deadlines, produce better products in the end. As a consumer I appreciate companies which place product quality as their main priority. From a marketing analyst’s perspective, however, Apple will most likely lose money by not releasing their product on time. Consumers will look to and buy alternative products (which may include Apple’s existing products). Yet, this strategy also adheres to Apple’s focus on design, which is visible throughout the corporation. If Apple abandoned their attention to the details and quality of their product’s design, they would violate their marketing strategy. A coherent and cohesive marketing strategy is crucial for any company. By sticking to its guns, Apple re-enforces to its employees, consumers and partners that design and quality are its focus, which allows all their employees to focus on those aspects and re-assures consumers that Apple products are designed well and are reliable.

Apple’s devotion to quality in it’s products and public image spurred its recent success and sales growth. Their focus on unique, innovate and intuitive design affects all aspects of Apple, from its products to its retail stores. This focus on design, in a field where its competitors rely on maintaining performance and price with the industry sets it apart in a very crowded field. Although Apple only holds a very small market share of the computer industry, I see its share growing in the coming years. Apple has also taken its excellent design experience in the computer field and transported it to the overall consumer electronics field, where products such as the iPod, Apple TV and soon the the iPhone, are causing Apple to increasingly become a market leader in innovation and quality. One of the unique aspects of Apple, is that Steve Jobs, the Chief Executive Officer of Apple, can be considered a product and program champion who is more than willing to cut through red tape to affect changes. His encouragement to record companies to drop Digital Rights Management (DRM) and his leadership of Apple into new fields , such as cell phones, will open up new market and increase sales for Apple.

Planning at the Lend Lease Corporation

The majority of my finals will be over tomorrow night, so you’ll start seeing some fresh content soon. For tonight, I’ll be publishing one more discussion post from the Principles of Management class I took at Umass-Amherst in the Winter 20007 semester. To anyone who has the textbook, Management by Stephen Robbins and Mary Coulter, the case background is on page 175-177; the case revolves around the project management strategy of the Lend Lease Corporation.

For this post, I read the Lend Lease case BEFORE I read the chapter in hopes that I would pick up the types of plans and approaches Lend Lease utilized. As I’m looking at the notes I took while reading the chapter, I see that I observed portions of a lot of the different types of approaches to plans and the plans themselves. As I’m re-reading the case I can see an emphasis on a certain approach but still believe that Lend Lease is using a hybrid of the approaches discussed in the textbook.

In developing Bluewater Factors, Lend Lease utilized an operational plan to come up with how to build the complex, for instance architect schematics, budgeting, scheduling of resources, and coordinating with local government and community organizations; however the idea of purchasing the land and developing the Bluewater complex there was inspired by Lend Lease’s strategic long-term plan of real estate investment and development. The plan for buying the land was a short-term plan, the plan for developing the Bluewater complex was a long-term plan. Specific plan would be in the design and construction details of the complex, the directional plan would be the plan that covered the complex from start to finish (from the vision of the complex as seen by the executives all the way to the opening of the complex), in other words it was the plan that enabled the Bluewater vision to be accomplished. The plan for the complex was a one-time plan, but they most likely incorporated ideas and experience from building the complex into their standing plans for how to approach similar projects in the future.

I can see elements of the formal planning approach, as the project-control groups (PCG) do not work on the day to day task of the project but are held accountable for the success of the project, however Lend Lease does not rely on the top-down flow of formal planning as the PCG group is compromised of various groups not limited to but including the CEO and other top managers, in addition to the "manufacturers, community advocates, local planning authorities [etc.]…" (176).  In this way, Lend Lease also uses the second approach discussed on page 169 as they incorporate many organizational members AND outsiders" in the planning & review process.

Lend Lease also utilizes the Management by Objectives (MBO) approach to establishing goals, their objective of a "dramatic and unique civil space that would be a community gathering place in addition to being a popular retail shopping center." had a specific goal (the center) and explicit time period (the deadline). As the PCG constantly re-evaluated the plan and progress, Lend Lease also displayed the participative decision making and performance feedback aspects of MBO. Lend Lease also made use of means-ends chain because as one goal was accomplished, for instance buying the land, another goal was started, the design phase. This hybrid approach is odd because it makes some of the noted limitations of the MBO approach a positive for Lend Lease, for instance dropping old goals and establishing new ones is stated by Robbins & Coulter as a negative but Lend Lease tended to use it in a positive way and it contributed to their success.

As Lend Lease pretty much used all the planning elements discussed in the textbook it could be claimed that their approach might work for all organizations. I, however, don’t believe this is true as this hybrid approach may not work for many formal, strict, highly government regulated organizations. Then again I myself am part of such an organization (the global custodian I work for) and now that I think about it can see hybrid aspects in its’ planning. For instance, I work on integrating new clients into our bank and there is a very top-down approach to planning with a focus on deadlines which would make the company fall into the traditional goal setting approach but at the same time I can see aspects of the MBO approach because sometimes we do let our clients in on the planning aspects of new goals. For instance, our whole company is going through a shift to re-focus our work efforts on appeasing both internal and external clients. Part of this shift has caused us to give more attention to certain high-profile clients and we’ve definitely accepted input from these clients on how they would like to be treated and how to implement that treatment. Maybe planning is not as dependent on the organization but more so on the specific goals the plan is trying to accomplish?

As Lend Lease has a strong focus on environmentally sustainable development, their goals are more specific and thus their plans become more constrained. It would seem that constraint might not be a positive as it limits an organizations options, but it works for Lend Lease because they know they cannot use environmentally damaging methods to accomplish a goal. This constraint actually frees up Lend Lease’s resources to allow for managers and employees to focus more on the methods that are available and thus allows them to better choose which plan and which method is better suited to the particular goal they are seeking to accomplish.






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