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The Management Revolution

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The Management Revolution

Management - The organization and coordination of the activities of a business in order to achieve defined objectives.

Traditional management style:

  • The company controls each result
  • When errors are made, they identify who made it and then correct it
  • Believe employees are the cause of problems
  • Management is accountable to the manager
  • There is competition within the company
  • Employees motivated by fear of failure
  • Management of outputs - focusing on detection of defects
  • Fire fighting - address crises as they happen
  • Accomplishment comes from meeting quotas and bottom lines

The new management style:

  • Produce goods and services through the process
  • When errors are made, they identify what allowed the error and then reduce variation in order to prevent the error
  • Believe refining the process will reduce problems
  • Management is accountable to the customer
  • There is teamwork
  • Employees are self-motivated
  • Keep employees invested by having them more involved in the creative process
  • Management of process inputs - focus on prevention of defects
  • Continuous process improvement
  • Accomplishment comes from long-term impact of improving processes

New management styles have less hierarchy, embrace human nature and don't treat humans as machines.

The theory of Dunbar's Number says that 150 is the roughly maximum number of people that the brain can know, have connections with, and maintain genuine social relationships with. Thus, many companies split branches when they reach 150 employees.

By maintaining connections with coworkers, there can be better collaboration and efficiency.

Many of today's top companies are using new management styles that encourage teamwork, creativity and boosting overall employee happiness.

Google:

At Google's new headquarters (expected to be completed in 2015), every worker is expected to be within a 2.5 minute walk from each other. An infinity loop-shaped pathway runs through the building to better connect employees. (Studies have found that colleagues working within close proximity to each other, have increased collaboration For every 100 feet of shared space, collaborations increased by up to 20%.)

Perks:

  • Free rental cars for running errands
  • Free child care, hair cuts, gourmet food, on-site gyms, laundry services, shuttle service, oil changes
  • Use of Google's products even before they're released
  • Nap pods
  • Employees can bring pets to work
  • Massage credits for jobs well-done which can be redeemed for one-hour massages
  • Free beer and wine on Fridays
  • Paid maternity/paternity leave and a "baby bonding" bonus to help with expenses
  • Extensive death benefits (spouses get of the deceased's pay for 10 years after death, with an extra $1000/month for each child)
  • 80/20 rule allows Googlers to spend 80% of their time working on assigned tasks and 20% working on "passion projects" that will benefit the company
  • Concierge services to do anything from planning parties to locating items
  • Ability to take extended time off

Zappos:

Zappos encourages employees to have more contact with each other and the community. The new Las Vegas warehouse will have small breakrooms so that employees will "literally collide". The skyway from the parking garage is closed so that employees must take a longer route to work and interact with pedestrians. Elevators will have digital games to break awkward silences.

Upon hire at Zappos, employees receive four weeks of training where they learn the company's culture, strategy and processes About a week after completing this process, Zappos offers new hires $2000 if they quit. "We really want everyone at Zappos to be here because they want to be and because they believe in the culture. If they know they don't quite mesh with our culture, we don't want them to feel stuck here, so we give them an option." (from Zappo's Q&A page) Only 2-3% accept this offer.

Perks:

  • On-site gym
  • on-site fitness classes
  • on-site Weight Watchers sessions
  • free food
  • free smoking cessation classes
  • healthy babies program
  • adoption and infertility benefits
  • private health consultations
  • wellness fairs
  • cab vouchers
  • nap room
  • family counseling services
  • concierge service
  • flexible spending account for medical care
  • prepaid legal services plan
  • paid volunteer time off
  • monthly team outings

Other companies with great perks:

DreamWorks Animation:

  • Movie screenings
  • Art and film festivals
  • Artistic development classes
  • Family get-togethers
  • Free food
  • Doctor's office
  • yoga and kickboxing classes
  • Full-size kitchen on every floor, stocked with snacks

Facebook:

Facebook's campus has been called its own little city. Its campus includes:

  • candy shop
  • bank
  • dentist's office
  • doctor's office
  • gym
  • bike repair shop
  • barbershop
  • dry cleaners
  • coffee shop
  • sushi restaurant
  • video arcade
  • barbecue shack
  • Mexican restaurant
  • pizzeria
  • burger place

Sources:

http://www.google.com/about/company/facts/management/

http://www.forbes.com/sites/timworstall/2013/06/21/lessons-from-googles-management-style/

http://www.businessdictionary.com/definition/management.html#ixzz2aRSPUmWn

http://www.msqaa.org/Newsletter/TraditionalManagetoQualityManage.doc

http://online.wsj.com/article/SB10001424127887323798104578455081218505870.html

http://www.businessinsider.com/google-employee-favorite-perks-2013-3?op=1

http://www.workforce.com/articles/dreamworks-animation-cultivates-a-culture-of-creativity

http://www.bizjournals.com/sanjose/news/2013/04/03/facebooks-12-most-fantastic-employee.html?page=all

http://www.businessinsider.com/companies-with-awesome-perks-2012-10#dreamworks-animation-6

http://www.cxo.eu.com/article/How-the-dream-works/

http://about.zappos.com/it-true-zappos-offers-new-hires-2000-quit

http://www.businessweek.com/stories/2008-09-16/why-zappos-offers-new-hires-2-000-to-quitbusinessweek-business-news-stock-market-and-financial-advice

http://about.zappos.com/jobs/why-work-zappos/our-benefits

http://www.businessweek.com/articles/2013-01-10/the-dunbar-number-from-the-guru-of-social-networks



The Management Revolution