Management Fads: Emergence, Evolution, and Implications for Managers Author(S): Jane Whitney Gibson and Dana V

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Management Fads: Emergence, Evolution, and Implications for Managers Author(s): Jane Whitney Gibson and Dana V. Tesone Source: The Academy of Management Executive (1993-2005), Vol. 15, No. 4, Themes: Business Strategies and Employee Development (Nov., 2001), pp. 122-133 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/4165791 . Accessed: 14/06/2014 20:11

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Managementfads: Emergence, evolution, and implications for managers

Jane Whitney Gibson and Dana V. Tesone

Executive Overview Management fads often get a lot of attention. Should managers be concerned about the latest management fad, or is it just a waste of time?' Considerable interest has been shown in the literature about management fads and fashions. Journal and newspaper articles abound,2 and professional books have been written on the subject.3 Unlike many literature-based, academic concepts, these fads and fashions are well known by practicing managers. This article focuses on five management fads of the late 20th century, each one representative of a management trend of a specific decade: MBO (1950s), sensitivity training (1960s), quality circles (1970s), total quality management (1980s), and self-managed or self-directed teams (1990s). In each case, this article explores the origin of the fad through its evolution into mainstream management practice. Further, each fad is examined to determine relevance to current management practice. The article offers practical guidelines for managers regarding which fads to embrace and when......

Faddish jargon is everywhere. As one author is generally thought of as a craze, a temporary noted: cultural blip in society, like the Hula Hoop craze of the 1950s or the miniskirts of the 1970s. You can, if you wish, flatten your pyramid, Management fads are a more serious phenome- become a horizontal organization, and elimi- non, although they are often as temporary and nate hierarchy from your You can company. compelling. empower your people, open your environ- One author defines management fads as rela- ment, and transform your culture.... You can tively transitory collective beliefs, disseminated by improve continuously, shift your paradigms, management fashion setters.5 A more recent defini- and become a learning organization. You can tion describes fads as "managerial interventions devote yourself and your company to total which appear to be innovative, rational, and func- quality management.4 tional and are aimed at encouraging better organi- In the last half of the 20th century, management zational performance."6 Learning outcomes associ- fads came and went, which suggests there is a life ated with effectiveness of the fad may result in the cycle to management fashion. One central, pre- retention or rejection of the fad itself. In either case, vailing question of this article is: where have these the fad loses its specific identity as an intervention fads gone? Have they disappeared or have they strategy at some point, which results in the decline of evolved into management practices? If the latter is its individual notoriety. However, the content of the true, do newer fads build upon the content of older fad becomes part of the overall management expe- fads? riential base, which means new fads should be at equal or higher levels than preceding processes.7 This overall management experiential base can be called a management practice. What Constitutes a Management Fad? We consider management fads to be widely ac- Management fads and management fashions are cepted, innovative interventions into the organiza- terms that are often used interchangeably. A fad tion's practices designed to improve some aspect

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This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 2001 Gibson and Tesone 123 of performance. Fads either evolve into new man- management gurus, business schools, and busi- agement practices or are abandoned as failures. ness mass-media publications.9 Another notes that management fads are also created by managers themselves, although they may be popularized Fads and Practices and articulated by outsiders: Many management practices started as fads. They were discovered or created by someone, after I know of no new form of organization that which they found their way into management prac- was invented by organization theorists while tice. The point of differentiation between a fad and advancing the theory. I have seen no new a practice is related to the age or newness of the form emerge from the test tubes of organiza- practice. New practices are often old fads. For in- tion theory. Instead, the researchers record stance, management by objectives (MBO) was not what the inventive practitioner creates and simply about setting goals. It was a radical depar- give it labels like grids, system 4, or matrix ture from the way objectives had previously been organization. 10 established. It advocated participative goal setting at all levels of the organization that ensured Regardless of where the original idea emanates mission-driven companies and provided specific from, some people are more eager to embrace a results to be evaluated by the performance man- new fad than others. Research summarized in Ta- agement system. Prior to this new approach, goals ble 1 finds that environmental pressures, forces for were established at the top of the organizational conformity, and characteristics of the organization hierarchy and forced downward. MBO, a wildfire determine in large measure the speed and fad dating back to the 1950s, lives on today in the strength with which fads are adopted in a given mainstream management practice of goal setting. organization. So while fads may fade in their original interpre- Environmental pressures are primarily external tation, they can morph into stable management to the organization. Organizations facing an in- practices, albeit under new names. creasingly competitive environment often look for new managerial techniques and strategies, i.e., New practices are often old fads. management fads, to help them sustain or increase market share. An increase in union activity may be a catalyst for management to seek employ- How Fads Develop ee-friendly techniques such as empowerment. The political and regulatory environment may prod or- Some management techniques that origi- ganizations into trying new fads designed to meet nated as fads include: management by objec- current imperatives in the way, for example, that tives, T-groups, matrix management, mana- sensitivity training coincided with equal-employ- gerial grid, job enrichment, quality circles, ment opportunity. A dynamic or turbulent environ- centralized corporate strategy, matrix organi- ment can also jostle the defenders of the status quo zations, total quality management, just- into looking for new solutions to new problems. in-time inventory management, self-directed Forces for conformity include a desire to be seen teams, empowerment, business process re- as progressive and a member of the in-crowd, a engineering, and even downsizing.8 desire to avoid sanctions by stakeholders who might see the manager or the company as lagging One author refers to those who initiate fads as behind current trends, and knowledge cascades. fashion setters, and identifies them as consultants, The last occur when people do not have enough

Table 1 Variables Leading to Fad Adoption*

Environmental Pressures Forces for Conformity Organizational Characteristics

Competitiveness Knowledge cascades Frustration from past efforts Increase in union activity Desire to be in the in-crowd Desire for differentiation Political and regulatory environment Desire to avoid sanctions Culture of risk taking Dynamic and turbulent environment

* Adapted from Carson, P. P., Lanier, P. A., Carson, K. D., & Berkenmeier, B. J. 1999. An historical perspective on fad adoption and abandonment: Developing theory from the management fad jungle. Journal of Management History, 5: 320-333.

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 124 Academy of Management Executive November information to make their own choices, so they lated to human resource management, com- imitate the choices made by others." pete with each other for attention more so Organizational characteristics that encourage than other management fashions, and thus fad adoption include a frustration with past fad the number of articles for either will not reach adoption. Past failures supposedly make compa- that of a fashion such as benchmarking.14 nies more determined to embrace change and prove that they have overcome past errors. A de- Other research found that management fads are sire for differentiation also leads companies to preceded by periods of dormancy followed by a adopt fads early so as to place them ahead of the bell-shaped life cycle. This same study found that competition. An internal culture of risk taking is the decline of one fad was usually interdependent another key factor in deciding whether to risk the with the development and increasing popularity of stability of the status quo by adopting new fads.'2 another management fad that replaced it.15 Ettorre proposed a similar life cycle, based on a Organizational characteristics that bell-shaped curve, that included five stages in the encourage fad adoption include a life cycle of a management fad, as shown in Table 2.16 In Stage 1, the discovery stage, the fad is just frustration with past fad adoption. beginning to come to the public's attention. Very early articles are appearing in the literature. It is Organizations are also more likely to support a during Stage 2, however, the wild-acceptance fad that is in the earlier stages of the life cycle.13 stage, that the fad becomes very popular. During The life cycle is a useful construct to understand Stage 3, digestion, critics begin to suggest that the the evolution of management fads. fad is not the panacea it might once have seemed to be. In Stage 4, disillusionment, there is more widespread recognition that problems exist with The Life Cycle of Management Fads the fad, and in Stage 5, hard core, only the staunch A bibliographic study of five management fads supporters remain loyal to the fad. During the dis- demonstrated general support for the contention illusionment stage, the next fad has already begun that fads display a symmetrical life cycle. Some of to capture the attention of the organization, has- these life cycles, however, seem to last much tening the decline of the current fad. However, this longer than others: does not mean that the fad always fades away completely. The fad may serve as a catalyst or While there may be an upward and down- antecedent to some new managerial fad or prac- ward trend to most fashions, the slope (rate of tice, or it may become part of the normal way of increase and decrease in number of articles) doing things under a different name. for each fashion will be different. This likely We apply Ettorre's life-cycle theory of manage- depends on the existence of other fashions ment fads to MBO, sensitivity training, quality cir- and events. It may be that peer review and cles, TQM, and self-managed teams, discussing pay-for-performance, since they are both re- the origin of these fads, their development, and

Table 2 Ettorre's Life Cycle Applied to Five Management Fads

Fad

Total Quality Self-Managed Stage MBO Sensitivity Training Quality Circles Management Teams

Discovery 1954-1964 1946-1955 1977-1979 1950-1971 1980-1991 Wild acceptance 1964-1981 1956-1964 1979-1981 1971-1991 1991-1996 Digestion 1982-1992 1964-1974 1981-1982 1992-1993 1997-1999 Disillusionment 1992-1996 1975-1980 1982-1986 1993-1996 unknown Hard core 1996 and later 1980 and later 1986 and later 1996 and later unknown

Note: The authors have identified MBO as being representative of the 1950s, Sensitivity Training of the 1960s, Quality Circles of the 1970s, Total Quality Management of the 1980s, and Self-Managed Teams of the 1990s. Table 2 shows some variance from this chronology in Stage 1: Discovery. However, the fads are marked as representative of the decades in which they became well- established in organizations.

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 2001 Gibson and Tesone 125 current status. These particular fads were chosen 500 firms, Forbes best-managed, and Dun's list of not necessarily as the most important ones of their best-managed companies.'9 Table 2 projects this decades, but as representative fads that were un- data onto the life-cycle model, showing the ap- deniably widespread and received much attention proximate year of each stage. in the academic literature. This attention is a good By 1996, management by objectives was a fad indicator of the importance of each management that was reported to be long gone.20 While it is fad, even though much evidence suggests that the probably true that MBO has lost its status as a academic literature lags behind actual manage- management fad, the practice continues to thrive ment practice. while couched in new fad terminology. For in- stance, MBO thinking exists in the current management practice known as self-managed work Management by Objectives teams. Additionally, managers in Japan have Management by objectives (MBO) gained promi- taken the MBO concept to a further point of matu- nence in the private sector during the 1950s as the ration and exported it back to American managers result of the writings of Peter Drucker and others. in the form of quality circles.2' The federal government began using MBO in the 1970s, during the Nixon administration, which launched the technique in the management of While it is probably true that MBO has public-sector institutions. lost its status as a management fad, the MBO covers a range of activities from planning practice continues to thrive while through performance appraisal. According to couched in new fad terminology. Drucker, it is a process of goal setting and self- control. Management by objectives is a technique that encourages participative decision making Sensitivity Training through shared goal setting at all levels of the organization and performance assessment based Sensitivity training is one of the primary roots of on the achievement of stated objectives. As is the organizational development. Dating back to the case with all management practices, MBO is sub- mid- and late 1940s, sensitivity training traces its ject to scrutiny not so much in theory, but in organ- beginnings to an intergroup relations workshop izational practice.'7 One critic contends that MBO held at the State Teachers College in New Britain, generates too much emphasis on bottom-line as- Connecticut, conducted by Kurt Lewin, the father of pects of the organization, in which upper-level social psychology and founder of the Research managers tend to mandate a series of financial Center for Group Dynamics at MIT, along with targets for performance.'8 Kenneth Benne, Leland Bradford, and Ronald Lip- MBO gained popularity during a time when the pitt.22 Shortly after Lewin died in early 1947, his world was intrigued with Western management three colleagues organized the National Training concepts, and it gained wider recognition in Japan Laboratories (NTL), which conducted a three-week than in the United States. This was partly due to session at the Gould Academy in Bethel, Maine. cultural norms concerning participation and to the Simultaneously, the Tavistock Institute in England willingness of many Japanese managers to dedi- and the Group Dynamics Department of Kyushu cate a number of years to institutionalizing MBO in University in Japan were conducting parallel re- their organizations. In contrast, American manag- search.23 ers were often quick to jump to the next manage- What was actually going on at these all-day ment fad. sessions? A sensitivity training session, widely One trend that helped popularize MBO in the called T-group (for training) or laboratory training, United States was the emergence of large numbers typically consisted of 10-12 stranger-participants of white-collar and administrative positions. This, and one or two trained facilitators. Over the one- to combined with Drucker's publications, which iden- three-week training period, a laboratory experi- tified different processes required for the manage- ence was derived from the interpersonal dynamics ment of non-assembly-line personnel, generated exhibited by the attendees. Here is what tran- wide interest among Western managers in MBO. spired: During the 1960s and 1970s, MBO saw a gradual increase in popularity. In the mid-1970s and con- The focus is on what goes on in the group and tinuing well into the 1980s, MBO's popularity on the interpersonal dynamics between group surged. In 1992 it was reported that MBO was stan- members. The learning is unstructured in the dard operating procedure in 80 percent of Fortune sense that there is no appointed leader and

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no assigned topic. The goal is for participants sessions of the sixties faded away, but some to develop self-insight and awareness, to in- of the laboratory learning goals stayed with crease sensitivity to one's effect on others, us: learn to admit mistakes, feelings, ques- and to bring to the surface data on one's blind tions, tolerate and even applaud openness. spots and hidden areas.... Participants can And some of the group techniques of the early then take back to their work new ways of days have persisted in somewhat modernized behaving and working with others.24 form.25

As the practice of laboratory training slowly came Quality Circles out of the laboratory and into organizations, T-groups attained considerable popularity all In the 1970s, while sensitivity training faded, qual- through the 1960s. Several problems emerged. ity circles (QCs) became very popular. Like many First, it was not unusual for poorly trained facili- quality initiatives, QCs came to the United States tators to lead these sessions. Since topics of a via Japan. After World War II, Japanese industry personal nature often came up during T-group seemed determined to rid itself of the negative training, an inexperienced trainer was often inept stigma associated with "Made in Japan," and em- at putting the group back together again. Second, barked on an all-out, national effort to improve while the original T-groups were totally voluntary quality and build market share. QCs were a part in nature and the participants were strangers one of that strategy. Simply put, quality circles con- to another, the very personal nature of the training sisted of volunteer groups of workers who met on took on a whole new meaning when interdepen- company time and considered ways in which the dent people, as opposed to strangers, were going quality of products and/or processes could be through this training. Third, there was little or no improved. It is thought that the first QC was reg- proof, other than purely anecdotal, that there was istered with the Japanese Union of Scientists and sufficient carry-over of training results back to the Engineers (JUSE) in 1962. By the early 1990s, over a job to justify the time and expense. As these short- million QCs had been registered in Japan.26 comings became apparent, T-groups began to lose It was not until the early 1970s, however, that the influence in the workplace. See Table 2 for the first use of quality circles in the U. S. was docu- approximate years of each stage of the sensitivity mented at Lockheed Missile and Space Compa- training cycle. ny.27 These circles quickly grew as American firms scrambled to adopt what might have been the sim- plest part of W. Edwards Deming's overall quality Since topics of a personal nature often program. Hughes Aircraft reported saving $45,000 came up during T-group training, an in 1978 as a result of a QC initiative.28 Deming inexperienced trainer was often inept at advocated the use of quality circles as part of a far putting the group back together again. more comprehensive program, but often QC programs were seen as a quick way to increase worker participation.29 When carefully planned The influence of sensitivity training, however, and inaugurated, however, QCs offered both mea- was felt in subsequent personal-development surable cost savings and human-relations benefits movements, such as encounter groups, and other in the form of improved attitudes and behavior management fads, such as team building. While among employees.30 T-groups proved to be an ineffective technique, the QC programs became popular in the United concept of sensitivity training surged in popularity States in a very short time. By 1980, Donald L. as workplace-diversity and harassment-preven- Dewar of the International Association of Quality tion programs became popular during the 1990s. Circles estimated that 2,000 to 3,000 quality circles The impact of T-groups as a fad may be summed were running in over 100 U.S. companies.3' In 1982, up in the following way: 6,300 U.S. sites were reported as having active QCs.32 By the middle of the 1980s, QCs were used Things have certainly changed from the 1960s in over 90 percent of the Fortune 500 companies, when laboratory learning or T-groups took on including IBM, TRW, Honeywell, Digital Equip- something of a fad nature. The extremes of ment, and Xerox.33 However, a survey in 1988 the fad were widely reported and widely crit- showed that more than 80 percent of the Fortune icized. It was another one of those touchy- 500 companies that had tried QCs had already feely seminars. No agenda, no leader. No top- abandoned them.34 ic.... The let's all be honest and open bull One measure of a fad's popularity is the number

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 2001 Gibson and Tesone 127 of articles appearing in academic journals about apply Japanese quality-movement methodologies it. In the business database ABI/Inform, the num- in their organizations. One prominent fad of this ber of articles on QCs grew from a modest begin- period was total quality management (TQM). TQM ning in the mid-1970s to a peak in the bell-shaped evolved from the works of Deming, Juran, Crosby, curve in 1981. After 1983, there was a steady and and others, who emphasized quantitative mea- rapid decline.35 Table 2 shows the approximate sures, continuous improvement, customer-defined years of each stage. standards, individual empowerment, situational Joseph Juran, Deming's contemporary in the analysis, and top-management support. quality revolution of the late 20th century, sug- The quality of products and services surged dur- gested a central reason why quality circles were ing the late 1980s and early 1990s in certain sectors far more lasting in Japan than in the U.S. The of industry, and consumers were recipients of Japanese QC movement was just that-a move- these quality improvements. But, as is the case ment-directed from the outside and supported with all management fads, a good deal of criticism and reinforced by JUSE. Juran sees the lack of such has emerged in the academic literature. One study central support and guidance as a key reason why contended that TQM had fallen on hard times be- these circles declined in the U.S., even as they cause of, among other reasons, high costs of over- continued to grow in Japan. Interestingly, Juran head, too much bureaucracy, and cumbersome pro- believes that, because many U.S. managers are cesses.39 Another identified a shift away from the now being trained in quality management, QCs philosophical roots on the part of managers into will have a revival in this country.36 standardized procedures, which resulted in less- Corporations, on the other hand, report specific than-meaningful buy-in by workers. Without un- reasons for abandoning QC programs. Whirlpool derstanding the philosophy, workers really did not vice president Kevin Coney has been quoted as embrace TQM as part of the culture, which was saying that quality circles didn't drive quality. The essential to the TQM philosophy.40 This problem meetings were not focused on specific problems, was addressed by quality experts, who convinced and employees did not sufficiently understand the organizational managers to buy in to the quality goals. Consequently, Whirlpool abandoned the QC journey and to accept that there would be no im- initiative. Likewise, General Electric found QCs mediate financial return. For many firms, the TQM weren't producing the expected quality advances: journey left them with large consulting fees and little improvement in their earnings reports.4' In quality circles, workers discuss defined While most organizations jumped on the quality topics in dozens of different areas, often iso- bandwagon during the 1980s, failed TQM projects lated from each other, and they get so much became common.42 direction from the top that their contributions are seldom substantial.37 For many firms, the TQM journey left As a consequence, GE began replacing QCs with a program called Work Out, which offered individ- them with large consulting fees and little ual rather than group recognition, and encouraged improvement in their earnings reports. workers to come up with radically new ideas. While the number of quality-circle programs has Research that led to the development of TQM declined within American firms, at least some re- began at the midpoint of the 20th century, and searchers feel that the philosophical underpin- Western managers began to become aware of the nings of participation and focus on quality have concepts during the 1970s, a time during which become the foundation for other techniques, such quality circles were the management mainstay. as TQM and self-managed work teams.38 QCs got The decline of QCs in the early 1980s paved the employees involved in everyday quality-improve- way for a surge in the popularity of TQM that ment initiatives in a similar way to the continuous- prevailed for the remainder of the decade and into quality efforts of TQM. Likewise, the employee ini- the 1990s. One study, however, cited high levels of tiative shown in QCs can be found in self- disappointment in TQM initiatives in Western or- managed teams that are responsible for many el- ganizations, noting surveys that showed as many ements of productivity. as 66 percent of managers thought that TQM had failed in their organizations.43 The number of ap- Total Quality Management (TQM) plicants seeking the Baldrige Award, the symbol of While the popularity of QCs was declining in TQM excellence, peaked in 1991 and fell sharply the 1980s, Western managers were still earger to thereafter. New consultants emerged in the early

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1990s who specialized in turning around failed TQM programs, and in 1993 an article in the Wash- SMT members even got involved in ington Post was titled, "Totaled Quality Manage- employee selection by participating in ment."44 Other literature links the demise of TQM hiring decisions. to that of its MBO predecessor, but argues for the perpetuation of quality programs in spite of the A number of organizations have reported suc- published criticisms.45 cessful implementation of SMT. Managers at BP As shown in Table 2, TQM moved into stage 3 Norge reported case-study examples of empower- during 1992, and to stage 4 during 1993. By 1996, ment that produced enhanced results in the organ- only the staunch supporters of quality initiatives ization. 3M managers cited market nimbleness as appeared to be in favor of TQM initiatives, which a major advantage of SMT implementation. An- qualified the fad as having entered the final phase drew Grove, chairman of Intel, was reported to notable ex- of the life cycle. However, there were claim that it was possible to develop a collective ceptions, like Ford and GE, which launched major identity, while maintaining a sense of personal TQM programs in the late 1990s. responsibility with SMT programs.51 Negatives associated with SMT have, however, started to emerge. Criticism of SMT included the Self-Managed Teams (SMT) assertion that improvements in performance were overstated in the literature.52 Other criticisms of Self-managed teams (SMT), also known as self- SMT included individual resistance to team partic- managed work teams (SMWT) and self-directed ipation and the claim that the techniques did not teams (SDT), became popular during the last decade prove to be beneficial to many organizations.53 As of the 20th century. SMT was based on a synthesis of indicated previously, one measure of fad popular- contemporary theories of group behavior and team ity is the number of literature citations. Eight arti- leadership that included participative management, cles were cited in the ABI/Inform database prior to systems theory, and sociotechnical systems (STS) 1986 on the topic of SMT. The majority of the arti- theory.46Utilizing rotating team leadership, SMT pro- cles, 143 in all, were written between 1986 and 1995. vided a departure from command and control man- A smaller number (33) appeared after 1995. Table 2 agement by establishing nonhierarchical work illustrates the development of SMT. groups that were responsible and accountable for The question remains: what lessons can be outcomes in the organization.47 learned from looking at these five management According to one study, SMT resulted in produc- fads and representative examples of fads which tivity enhancement and increased worker satisfac- were once wildly popular? What is their signifi- tion in organizations. Each work group was auton- cance to managers today? omous and provided maximum group control of work-related variables that resulted in improved results and member satisfaction.48 Other studies Significance of the Five Fads for suggested that small work groups consisting of Management Today eight to 12 members resulted in heightened intrin- In our introduction, we asked whether manage- sic worker motivation, performance levels, job sat- ment fads go away, or slip from individual notori- isfaction, and reduced labor turnover.49 ety into the general content of management prac- A number of factors were reported in the litera- tices. While at least three of these fads have ture as essential to the success of SMT in organi- entered the declining stages of the management- zations. For example, SMT membership required a fad life cycle, each has had some lasting signifi- shift in functional performance from specialist to cance on management. MBO, for example, while generalist activities. SMT members even got in- perhaps not followed in pure form today in most volved in employee selection by participating in organizations, is similar to much current thinking hiring decisions. Further, in the age of corporate about goal setting. Path-goal theory depends on downsizing, job security was cited as a fundamen- measurable, challenging goals, in much the same tal issue in successful implementation of SMT. way that MBO espoused. Goal-setting as part of Success was also linked to compensation prac- performance appraisal is still used by many man- tices, which included gain-sharing and profit-shar- agers, and with good results. While MBO was seen ing programs. Finally, formal team-building pro- as an organization-wide, deliberate program of grams and empowerment policies were cited as mutual goal-setting between supervisors and em- instrumental in SMT development practices.50 ployees, what we may be seeing todary is a less-

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structured application of the same beliefs. the initial discovery phase. By the time of wild Sensitivity training is the hardest of the five to acceptance, there is ample indication in both the justify in terms of lasting contribution to manage- popular and academic literature to guide the as- ment. Originally a technique for interpersonal de- tute manager into an understanding of the new velopment not intended for organizational set- management practice. Of greater importance to tings, T-groups found their way into corporations managers, however, may be the question of in large numbers during the 1960s. Subsequent whether they, themselves, should adopt a fad or problems diminished their attractiveness, but few take a wait-and-see posture. In choosing which would deny that sensitivity training did have fads to fully embrace, managers should watch the branches that spread to various types of commu- trends for signs of longevity and ask themselves nication training and group-development activi- the 11 questions in Table 3. The more yes answers ties. Participants in team building, as well as that are checked, the more likely it is that fad diversity-training and harassment-prevention pro- adoption is the right thing to do. Let's look at each grams, can thank Lewin and other social psychol- of these questions in turn. ogists for pointing the way with sensitivity training. Has the fad been around long enough to have a Quality circles are an even more interesting fad proven track record? For example, a CEO who to study. Originating in the U.S. and popularized in wanted to adopt sensitivity training around 1950 Japan, QCs were embraced in the U.S. in the 1970s for organizational use would have been taking a when Japanese management techniques suddenly risk, for there would have been little organiza- became popular. Yet quality circles failed to win tional experience or evidence to suggest how sen- the structured support in the U.S. that they enjoyed sitivity training could be used outside of the labo- in Japan, and fell by the wayside as total quality ratory. Most top managers have neither the time management came into vogue. Still, even today, in nor inclination to be the testing ground for untried companies like Motorola, quality efforts include and unproven fads. structured employee participation. The terminol- A more current example involves TQM, which ogy may be different, but worker commitment to was widely adopted in American corporations in quality is the same by any name. the 1980s. Many small companies, however, were Total quality management, as evidenced by text- not sure they could afford the necessary changes book data presented above, is still very much with in their operations in order to effectively imple- us. Like QCs, the philosophy of continuous quality ment TQM. By the mid-1990s, they realized they improvement now often carries a different name in couldn't afford not to. In addition to the Baldrige organizations. The TQM fad may be passing, but it Award, a rise in state and local quality awards is doubtful that as a nation the United States will began to recognize the efforts of many small ever again be able to ignore the necessity of improving customer service and the quality of goods and services. Those who do will quickly be Table 3 snapped back to the imperatives once called TQM. Checklist for Adopting Fads Finally, self-managed teams seem to be a natural enough to have a proven outgrowth of quality circles and TQM. They provide a 1. Has the fad been around long track record? tool by which the flattening of organizations can 2. Does the goal of the fad complement the needs of the proceed, with authority and responsibility delegated organization? down in the organization. They are also a natural 3. Does implementation of the fad mesh with the extension of other popular fads like empowerment organizational culture? Will the fad help the organization remain and 360-degree evaluations, and because of this in- 4. adopting competitive? tegration of fads, self-managed teams can be ex- 5. Does the organization have the resources needed to pected to have a fairly long life cycle. implement the fad? 6. Do the expected benefits of the fad outweigh the direct and indirect costs? Implications for Managers 7. Can the fad be implemented in small sections of the organization to test the new concepts with minimum risk? Fads, however transitory in practice, have a signif- 8. Has the organization's track record with previous fad icant impact on management practice for a while, adoptions been positive? and then linger in the workplace either as the roots 9. Can you wait for the long-term benefits from fad of new management fashion or under the guise of adoption? inertia and resistance to change be different and terminology. It is imperative 10. Can organizational jargon managed to successfully implement the fad? that managers who want to keep their toolbox cur- 11. Do you have a choice? rent pay attention to any fad that has gone beyond

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 130 Academy of Management Executive November organizations. Florida's Sterling Award included, Will adopting the fad help the organization re- for example, Armstrong World Industries, Inc., and main competitive? Organizations continue to look the Pinellas County School System, while the New for competitive advantage, and if TQM will gener- York Excelsior Awards recognized Trident Tool Co. ate greater customer satisfaction and thus an edge and AIL Systems, Inc.54 over the competition, it will be hard to resist giving Does the goal of the fad complement the needs of it a try. This question requires the manager to the organization? What problem is management know exactly what the fad is supposed to accom- trying to solve? If customer service and quality of plish. How can benchmarking make Kodak more products is a true concern of the organization, then competitive? What can empowerment do to im- it could hardly afford to ignore TQM in the 1980s. prove Delta Airlines' customer service? Managers However, if the company was already scoring very need to have their eyes on specific outcomes be- high in these areas, it was probably better not to fore running to embrace the latest fad. spend the time and money to overlay the new TQM approach on top of what was already working. Managers need to have their eyes on One company, Sun Microsystems' microelectron- ics division, was not handling customer problems specific outcomes before running to effectively. To deal with customers waiting up to embrace the latest fad. six months to get a problem solved, Sun set up a 15-member interdepartmental team to improve its Does the organization have the resources analysis of microchip failure. As a result, Sun's needed to implement the fad? Does the organiza- customers in 1999 could get a preliminary analysis tion have the time, money, and energy required to in six days instead of six months. Notably, the Sun implement the fad successfully? There are many team program went on to establish 300 teams, in- examples of failed MBO programs whose philoso- volving over 4,000 employees, but steered away phy was never communicated effectively to man- from calling the teams either quality circles or agers and employees at all levels. Merely deciding self-managed teams.55 to try a new technique does not necessarily mean Does implementation of the fad mesh with the that employees will follow through. If they find that organizational culture? This question has to do the fad is being given lip service and not truly with organizational fit. Does the new fad mesh being institutionalized, they may quickly revert to with the organizational culture as it exists? Cul- the old way of doing things. ture change requires a long lead time and often Institutionalizing fads often equates to putting causes much anxiety. If, however, the fad seems to financial resources behind them. When the blend well with the core values of the organization, Reagan Administration created the Federal Qual- it will be much easier to integrate with the expec- ity Institute, there was no executive order mandat- tation of positive results. ing TQM initiatives. It was left to the Defense De- Introducing self-managed teams, for example, partment (DOD) to provide a solid role model with into a bureaucratic, managed-from-the-top organi- its success stories. DOD saw TQM as a valuable zation will require considerable culture shift. The management philosophy and incorporated its sta- same fad would be much more easily implemented tistical tools and techniques widely. More impor- in a culture like Southwest Airlines where employ- tantly, DOD committed the resources to provide ees are already given a great deal of responsibility training, self-assessment protocols, and manage- and authority. Likewise, when one reads the qual- ment directives.57 ity-commitment statement of Boise Cascade, it is Do the expected benefits of the fad outweigh the clear the organization is philosophically in tune direct and indirect costs? This question asks the with its TQM program. The statement entitled "Our manager to do a cost/benefit analysis regarding Total Quality Commitment" states: the fad, measuring both direct and indirect costs. Indirect costs often escape notice. What type of corporate anxiety will reengineering produce? To continuously make improvements that will How will employees' fears be overcome and at enable us to anticipate, what cost? How much will the fad disrupt the rou- Understand, and fulfill both internal and ex- tine of the organization, and is that disruption a or ternal customer expectations positive a negative thing? The direct costs of training, for example, are easier to weigh, but all So that the company becomes the preferred costs must be clearly thought out before making supplier of each of our customers.56 the decision to proceed. Likewise, what benefits

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 2001 Gibson and Tesone 131 are likely to accrue to the organization? Do the fad? Change always produces stress on employees benefits justify the costs? and the organization's processes. Can this stress Can the fad be implemented in small sections of be managed in such a way that the fad is accepted the organization to test the new concepts with min- comfortably in a reasonable amount of time? One imum risk? Is it possible, for example, to introduce success story is that told by Rich Teerlink. When self-managed teams into a single department or Teerlink decided that a massive change program facility to perfect the process and measure the needed to be instituted to save the faltering Har- results? Assuming positive results, it will be easier ley-Davidson organization, he teamed with consul- to sell the rest of the organization on the benefits of tant Lee Ozley to introduce participative manage- the new fad if there are success stories to be told. ment and self-managed teams. Despite initial If the fad doesn't work out, the costs have been kept resistance, he eventually reported success: to a minimum. Has the organization's track record with previ- Employee satisfaction and "empowerment" at ous fad adoptions been positive? Research Harley-Davidson are at record levels, which shows that companies that have failed in their may also explain why customer satisfaction implementation of earlier fads are more likely to with the Harley-Davidson Sportster has im- run out and embrace the next fad, hoping for proved by 200%. The fact that a 16-24 month better results.58 Managers are advised to look waiting period has been reduced to 2 weeks or back in their organization's history and examine less clearly has delighted all stakeholders.61 how previous fads have fared. Have they been implemented successfully? If not, what caused Do you have a choice? Managers often find that the failure and how can these problems be they are under political pressure from upper man- avoided in the future? Managers at Philip Morris agement to institute the newest fad in their organ- think they have an answer. They believe QCs izations. Likewise, they may feel pressure to appear failed at their company primarily because of in- progressive and up-to-date in their managerial style sufficient management interest and the lack of and tools. In this case, managers may feel compelled concrete goals. In the early 1990s, they believed to try their best to operationalize the fad. Consider, they would fare better with TQM because the for example, the 1999 survey by Office Team that focus on customer needs and continuous im- showed that 79 percent of top executives surveyed provement more closely matched the corporate thought self-managed teams would increase produc- philosophy of Philip Morris.59 tivity for U.S. companies. Likewise, 84 percent be- Can you wait for the long-term benefits from fad lieved employees have adopted a better team-play adoption? The literature indicates that the life attitude over the last five years. Managers reading cycles of fads are getting shorter. This may be these statistics would be hard pressed to explain because of mounting external pressures on man- why their companies were not making use of the agers to be successful and competitive in an newest techniques.62 increasingly complex global environment. Achiev- Considering these 11 questions can help managing lasting benefits from something as fundamen- ers decide whether to support adoption of a partic- tally different as self-managed teams takes time ular fad and give them reasons to justify the deci- and patience. CAE Electronics Ltd. found persever- sion. After all, the goal of fad adoption is to provide ance paid off when it implemented QCs in the late an innovative technique to improve organizational 1970s and early 1980s. The first attempts failed for performance. Likewise, the adopter will want to the standard reasons: lack of management com- embrace a fad that has a good chance of evolving mitment, poor planning, and little training. By into a standard management practice over time. early 1990, however, CAE was ready to try again Otherwise, the effort and cost of the fad adoption and hired a full-time QC facilitator. Since that are unlikely to justify the short-term results. time, 44 major projects have been recommended to management by the QC teams, and all but one The Benefits of Fads have been accepted and implemented.60 Understanding management fads and translating them into practice within the organization is a The literature indicates that the life mark of the manager who stays current in both cycles of fads are getting shorter. theory and practice. This ability serves two pur- poses for the manager. First, it demonstrates that Can organizational inertia and resistance to the person is up-to-date on current management change be managed to successfully implement the techniques designed to increase organizational ef-

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 132 Academy of Management Executive November fectiveness. It prepares the individual in a very A look back at five management fads of the late twentieth real way for the next management fad or fashion century: Their roots, their evolution, and their influence on management today. that is bound to come along. Whether to adopt a 2 See the following articles for earlier work on management specific fad for a given organization depends on fads: Abrahamson, E. 1996. Management fashion. Academy of the fit of that fad. Managers can use the 11 ques- Management Review, 21(1): 254-285; Abrahamson, E., 1996. Man- tions in Table 3 to help make this decision. agement fashion, academic fashion, and enduring truths. Acad- Recent research suggests that, while there is no emy of Management Review 21(3): 616-619; Abrahamson, E., & Fairchild, G. 1997. Management fashion: Lifecycles, triggers, proven correlation between adopting management and collective learning processes. Academy of Management fads like TQM, empowerment, and self-managed Proceedings, 254-256; Carson, P. P., Lanier, P. A., Carson, K. D., teams, and resulting financial performance, there & Berkenmeier, B. J. 1999. An historical perspective on fad adop- are other documented benefits. A study of the 100 tion and abandonment: Developing theory from the manage- largest industrial corporations, based on the 1995 ment fad jungle. Journal of Management History, 5: 320-333; D. 1996. The of buzzwords. HR Focus Fortune database, showed that organizations that Chaudron, battle the 73(5): 13; DeBare, I. Quality craze: Often-ridiculed management fads were closely associated with popular management have helped improve performance at U.S. companies. San Fran- fads were more admired by the public and thought cisco Chronicle, 3 March 1999, Bl; Ettorre, B. 1997. What's the to be more innovative. These companies were also next business buzzword? Management Review, 86(8): 33-35; perceived as having better managers. The same Graves, J. 1994. Management tools that work. Fortune, 129(11): 15; research confirmed that CEOs of these firms also Malone, M. S. A way too short history of fads. Forbes, 7 April 1997, 72; McKinley, W. 1996. What's hot and what's not. Academy benefited from increased compensation, regard- of Management Review, 21(3): 614-616; Spell, C. S. 1998. Where less of corporate performance.63 do management fashions come from, and how long do they last? Paper presented at the annual meeting of the Academy of Management, San Diego; Stipp, D. 1996. The theory of fads. Recent research suggests that, while Fortune, 134(7):49-52; Wartenberg, M. 1996. Management fads or there is no proven correlation between management basics. Management Review, 85(3): 62; Worren, N. 1996. Management fashion. Academy of Management Review, adopting management fads like TQM, 21(3): 613-614; and Zemke, R. 1995. In defense of fad surfing. empowerment, and self-managed teams, Training, 32(9): 8. 3For books on the subject of management fads, see Hakuta, and resulting financial performance, K. 1988. How to create your own fad. New York: Morrow; Niren- there are other documented benefits. berg, J. 1997. Power tools: A leader's guide to the latest management thinking. Englewood Cliffs, NJ: Prentice-Hall; Shapiro, E. C. 1996. Fad surfing in the boardroom: Reclaiming the cour- Management fads, like clothing fads, are cyclical age to manage in the age of instant answers. Institutional In- in nature. They start out quietly, attract a lot of atten- vestor Systems, Inc.; and Wendel, C. B., & Svensson, E. 1995. tion, spread through expanding adoption by people Business buzzwords. New York: Amacom. who want to be in the in crowd, then often fade into ' Ginzl, D. 1996. Who's in charge here? Managers, consult- obscurity as the adopters tire of the fad and the effort ants, and management fashions in the 1990s. Commercial Lend- ing Review, 11(2): 90. required to maintain it. Some fads, however, are so ' Abrahamson, Management fashion, op. cit. useful that they become mainstays of our repertoire. 6 For a good discussion of how fads develop and why, see: Other fads are retired, only to come back in a slightly Carson et al., op. cit. different form years later. 7 Abrahamson, E. 1999. Lifecycles, triggers, and collective learn- Our advice to managers? Hold on to the remnants ing processes. Administrative Science Quarterly, 44(4): 708-740. 8Abrahamson & Fairchild, op. cit. of MBO as would and TQM you to your favorite old ' Eric Abrahamson has been one of the most prolific writers tie or skirt. Even if you can't use them today, they will on management fads. This information comes from Abraham- undoubtedly fit into the changing fashion demands son, 1996, Management fashion, op. cit. (or managerial environment) of tomorrow. 10 Galbraith, J. R. 1980. Applying theory to the management of organizations. In W. M. Evan, (Ed.), Frontiers in organization and management: 162. New York: Praeger. Acknowledgments I Stipp, op. cit. 12 Carson et al., op. cit. This article was accepted for the New Time special call for 13 Ibid. papers, which was the theme of the 2000 Academy of Manage- 14 Spell, op. cit. ment meetings. The authors would like to thank Editor Sheila 5 Abrahamson & Fairchild, op. cit. Puffer and acknowledge the special issue guest editor, the late 16 Ettorre, op. cit. Richard M. Hodgetts, for working with us on earlier versions of " For information on the beginnings of MBO, see Drucker, P. this manuscript. 1954. The practice of management. New York: Harper & Row; Drucker, P. 1964. Managing for results. New York: Harper & Row. Endnotes 1 Quigley, P. E. 1993. Can management by objectives be compatible with quality? IIE Solutions, 25(7): 14-17. 1 This article is based on a paper presented at the Academy 19Odiorne, G. S. 1992. MBO means having a goal and a plan: of Management's 2000 annual meeting in Toronto, and entitled: Not just a goal. Managemenlt. 44(1): 8-14.

This content downloaded from 91.229.229.44 on Sat, 14 Jun 2014 20:11:56 PM All use subject to JSTOR Terms and Conditions 2001 Gibson and Tesone 133

20 Lee, W. B., & Skarke, M. G. 1996. Value-added fads: From 43 Jacob, R. 1993. TQM: More than a dying fad? Fortune, 128(9): passing fancy to eternal truths. Journal of Management Con- 66-72. sulting, 9(2): 10-15. 44 Ibid. 21 Broadwell, M. M. 1995. Why command and control won't go 45 Youssef, M. A., Libby, P., Al-Khafaji, A., & Sawyer, G., Jr. away. Training, 32(9): 63-69. 1998. TQM implementation barriers in academe: A framework 22 French, W. L., & Bell, C. H., Jr. 1995. Organization develop- for further investigation. International Journal of Technology ment: Behavioral science interventions for organization im- Management, 16(4-6): 584-593. provement, 5th ed. Englewood Cliffs, NJ: Prentice-Hall. 46 Yeatts, D. E., & Hyten, C. 1998. High-performing self- 23 Harvey, D. F., & Brown, D. R. 1992.An experiential approach to managed work teams: A comparison of theory to practice. Thou- organization development. Englewood Cliffs, NJ: Prentice-Hall. sand Oaks, CA: Sage. 24 Ibid., 295. 47 Moravec, M., Johannessen, 0. J., & Hjemas, T. A. 1998. The 25 Ibid., 294. well managed SMT. Management Review, 87(6): 56-58. 26 Brocka, B., & Brocka, M. S. 1992. Quality management: Im- 48 Garson, B. E., & Stanwyck, D. J. 1997. Locus of control and plementing the best ideas of the masters. Homewood, IL: Busi- incentive in self-managed teams. Human Resource Develop- ness One Irwin. ment Quarterly, 8(3): 247-258. 27 Gray, G. R. 1993. Quality circles: An update. S.A.M. Ad- 49 Wall, T. D., Kemp, N. J., Jackson, P. R., & Clegg, C. W. 1986. vanced Management Journal, 58(2): 41. Outcomes of autonomous workgroups: A long-term field exper- 28 A quality concept catches on worldwide. Industry Week, 16 iment. Academy of Management Journal, 29(2): 280-304. April 1979, 125. 50 Pfeffer, J. 1999. Seven practices of successful organizations. 29 Gray & Spring, op. cit. Health Forum Journal, 42(1): 24-27. 51 30Juran, J. M., & Gryna, F. M. 1993. Quality planning and Moravec et al., op. cit. 52 analysis: From product development through use, 3rd ed. New Chaston, I. 1998. Self-managed teams: Assessing the ben- York: McGraw-Hill. efits for small service-sector firms. British Journal of Manage- 31 Nelson, J. Quality circles become contagious. Industry ment, 9(1): 1-12. Week, 14 April 1980, 99. 53 Moravec, M. 1997. Thumbs up for self-managed teams. 32 Stimson, R. A., & Mossburg, P. A. 1983. Quality circles: The Management Review, 86(7): 42. 54 latest fad? National Contract Management Journal, 17(1): 41. Hodgetts, R. M. 1996. Implementing TQM in small & medi- 33 Tang, T., L., & Butler, E. 1997. Attributions of quality circles' um-sized organizations. New York: AMACOM. 55 problem-solving failure: Differences among management, sup- DeBare, H. Quality craze: Often-ridiculed management porting staff, and quality circle members. Public Personnel fads have helped improve performance at U.S. companies. San Management, 26(2): 203-225. Francisco Chronicle, 5 March 1999, Bl. 56 Hodgetts, op. cit. 34 Abrahamson, 1996, Management fashion, op. cit. 35 Ibid. 57Anonymous. 1997. From quality circles to TQM. Govern- 361Juran, J. M. 1992. Juran on quality by design: The new steps ment Executive, 29(7): 60-62. for planning quality into goods and services. New York: The 58 Moravec, op. cit. Free Press. 59 Gray, op. cit. 37 Naj, A. K. Shifting gears: Some manufacturers drop efforts 60Davidson, G. 1995. Quality circles didn't die-They just to adopt Japanese techniques-they hit snags with ideas such keep improving. CMA, 69(1): 6. as quality circles, just-in-time deliveries-melding people and 61 Singer, J., & Duvall, S. 2000. High performance partnering machines. The Wall Street Journal, 7 May 1993, Al. by self-managed teams in manufacturing. Engineering Man- 38 Worren, op. cit. agement Journal, 12(4): 9-15. 39 Lee & Skarke, op. cit. 62 Sullivan, L. 1999. Tomorrow's workplace. Risk Manage- 40 McConnell, C. R. 1992. Quality: A watchword for the 1990s ment, 46(9): 9. or the same old song? The Healthcare Supervisor, 10(4): 75-83. 63 Staw, B. M., & Epstein, L. D. 2000. What bandwagons bring: 41 Holand, C., & Dey, K. 1996. Making quality pay. Telephony, Effects of popular management techniques on corporate perfor- 230(3): 34-40. mance, reputation, and CEO pay. Administrative Science Quar- 42 Wiersema, W. H. 1998. Producing better quality at lower terly, 45(3): 523-556. cost. Electrical Apparatus, 51(9): 42-43. 64 Adapted from Carson et al., op. cit.

Jane Whitney Gibson is a profes- Dana V. Tesone is an assistant sor of management at the Wayne professor in the School of Hos- Huizenga Graduate School of pitality Management at the Management and Entrepreneur- University of Central Florida. ship at Nova Southeastem Uni- He has held administrative versity, where she received her and executive positions in aca- DBA. She teaches courses in demic and corporate organiza- management, organizational be- tions. He received his Ph.D. havior, and human resources. from Nova Southeastern Uni- She is the author of books on su- versity. His current research is pervision and communication. in leadership, organization Her current research interests in- theory, and distance learning. clude leadership, mentoring, Contact: [email protected]. and online education. Contact: [email protected].

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