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CHAPTER 5 DISCUSSION QUESTIONS

1) Fill in the blanks from the Drucker quote at the beginning of page 157. "Management is about _________. Its task is to make
people capable of ___________, to make their strengths _____________ and their weaknesses ________________.
2) What 3 questions should everyone in an organization be able to answer "yes" to?
3) How did Alcoa put Drucker's ideas about putting people (employees) first into practice?
4) Between 1987 & 2000:
A) Alcoa's lost workday rate fell from 1.87 to how many days per 100 workers?
B) Productivity went up by a factor of what?
C) Quality issues fell by a factor of what?
5) By the end of 2000, Alcoa increased market value by what %?
6) In 2005 Alcoa's lost work-day rate was down to what?
7) What term did Drucker coin in the late 1950's?
8) What did Drucker use the above term to mean?
9) What is the difference between efficiency & effectiveness?
10) Today, knowledge & service workers together constitute just over what % of the US workforce?
11) What is Whole Foods method for successfully finding the right people?
12) Fill in the blank. "A mission statement should fit on your ___________________."
13) What is FPU's mission statement?
14) What is the mission statement of your favorite organization?
15) Fill in the blanks. "Especially for knowledge workers, Drucker was a strong advocate for ________________ rather than
____________________.
16) There is no better motivation for working hard than what?
17) What did the PARC scientists refer to Xerox officials as?
18) Who is the world's largest producer of appliances?
19)  What general category of people & knowledge strategies typically involves the highest investment in knowledge?
20) What general category of people & knowledge strategies has a smaller knowledge component in its offering?
21) What general category of people & knowledge strategies is all about low price?
22) What general category of people & knowledge strategies has a high knowledge content within its offerings & needs few
people to operate?
“MANAGEMENT IS ABOUT HUMAN BEINGS. ITS TASK IS TO
MAKE PEOPLE CAPABLE OF JOINT PERFORMANCE, TO MAKE
   THEIR STRENGTHS EFFECTIVE & THEIR WEAKNESSES
                   IRRELEVANT.”
WHAT DO EMPLOYEES EXPECT FROM THEIR MANAGERS?


-EVERY PERSON IN AN ORGANIZATION SHOULD BE ABLE TO
  ANSWER YES TO 3 QUESTIONS:
1) ARE YOU TREATED EVERY DAY WITH DIGNITY & RESPECT
   BY EVERYONE YOU ENCOUNTER?
2) ARE YOU GIVEN THE THINGS THAT YOU NEED (EDUCATION,
   TRAINING, ENCOURAGEMENT, SUPPORT) SO THAT YOU
   CAN MAKE A CONTRIBUTION?
3) DO PEOPLE NOTICE THAT YOU DID IT?
HOW DID ALCOA PUT DRUCKER’S IDEAS ABOUT “PUTTING PEOPLE
                  FIRST” INTO PRACTICE?




 -MADE A CONNECTION BETWEEN HUMAN VALUES, EMPLOYEE
             SAFETY, & FINANCIAL SUCCESS.
-SOUGHT OUT TO BE THE FIRST 100% INJURY FREE WORK PLACE.
WHAT IS THE DIFFERENCE BETWEEN EFFICIENCY & EFFECTIVENESS?


EFFICIENCY:
-THE ABILITY TO GET THINGS DONE. (MANUAL WORK)


EFFECTIVENESS:
-THE ABILITY TO GET THE RIGHT THING DONE. (KNOWLEDGE WORKERS)


WHY DOES MANAGEMENT NEED TO APPROACH KNOWLEDGE WORKERS &
SERVICE WORKERS DIFFERENTLY FROM THE TRADITIONAL BLUE-COLLAR
                         WORKER?
WHAT MUST MANAGEMENT OFFER KNOWLEDGE WORKERS?


THE OPPORTUNITY TO:
1) COMBINE THEIR EXPERTISE WITH OTHER PEOPLE’S
COMPLIMENTARY SKILLS, INSIGHT, & RELATIONSHIPS.


2) WORK TOWARD A MISSION THAT HAS AN IMPACT ON THE
CUSTOMER.


3) BE ABLE TO MEASURE THEIR EFFECTIVENESS.
AS MANAGERS, HOW CAN WE MOTIVATE OUR
KNOWLEDGE WORKERS SO THAT THEY WILL BE
    EFFECTIVE & ENGAGED EMPLOYEES?




“PEOPLE WORK JUST HARD ENOUGH NOT TO GET
          FIRED.” PETER GIBBONS
•FIRST, WE MUST RECOGNIZE THAT PEOPLE ARE AN
ORGANIZATION’S MOST VALUABLE ASSET.
     -PEOPLE: CUSTOMERS & EMPLOYEES


•SECOND, WE MUST FIGURE OUT WHAT MOTIVATES EACH
OF OUR INDIVIDUAL EMPLOYEES.
     -THE CANDLE PROBLEM




          DANIEL PINK CLIP ON MOTIVATION
THE CANDLE PROBLEM
THE CANDLE PROBLEM
-CREATED IN 1945 BY PSYCHOLOGIST KARL DUNCKER.
-A COGNITIVE PERFORMANCE TEST THAT MEASURES THE INFLUENCE
OF FUNCTIONAL FIXEDNESS ON A PARTICIPANT’S PROBLEM SOLVING
CAPABILITIES.
-FUNCTIONAL FIXEDNESS: A MENTAL BLOCK AGAINST USING AN
OBJECT IN A NEW WAY THAT IS REQUIRED TO SOLVE A PROBLEM.
      -CANDLE PROBLEM BLOCK: THE BOX OF MATCHES.
HOW THE CANDLE PROBLEM APPLIES TO EMPLOYEE
                  MOTIVATION
WHY REWARDS, COMMISSIONS, & BONUSES TO MOTIVATE
        YOUR WORKERS DOES NOT WORK
-SAM GLUCKSBERG (SCIENTIST FROM PRINCETON UNIV.)
CONDUCTED AN EXPERIMENT TO SEE IF OFFERING A
FINANCIAL REWARD HELPED PEOPLE PERFORM A TASK.
-HE FOUND THAT WHEN A FINANCIAL INCENTIVE WAS
OFFERED FOR SOLVING A PROBLEM IN A SHORTER
AMOUNT OF TIME, THE TEST GROUP TOOK LONGER TO
SOLVE THE PROBLEM THAN THE GROUP THAT WAS NOT
INCENTIVIZED.


                      WHY?
-WHEN WE ARE OFFERED A REWARD/INCENTIVE FOR A BEHAVIOR,
PART OF OUR BRAIN FOCUSES ON THAT REWARD. THAT’S HOW
INCENTIVES WORK.

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Drucker chapter 5

  • 1. CHAPTER 5 DISCUSSION QUESTIONS 1) Fill in the blanks from the Drucker quote at the beginning of page 157. "Management is about _________. Its task is to make people capable of ___________, to make their strengths _____________ and their weaknesses ________________. 2) What 3 questions should everyone in an organization be able to answer "yes" to? 3) How did Alcoa put Drucker's ideas about putting people (employees) first into practice? 4) Between 1987 & 2000: A) Alcoa's lost workday rate fell from 1.87 to how many days per 100 workers? B) Productivity went up by a factor of what? C) Quality issues fell by a factor of what? 5) By the end of 2000, Alcoa increased market value by what %? 6) In 2005 Alcoa's lost work-day rate was down to what? 7) What term did Drucker coin in the late 1950's? 8) What did Drucker use the above term to mean? 9) What is the difference between efficiency & effectiveness? 10) Today, knowledge & service workers together constitute just over what % of the US workforce? 11) What is Whole Foods method for successfully finding the right people? 12) Fill in the blank. "A mission statement should fit on your ___________________." 13) What is FPU's mission statement? 14) What is the mission statement of your favorite organization? 15) Fill in the blanks. "Especially for knowledge workers, Drucker was a strong advocate for ________________ rather than ____________________. 16) There is no better motivation for working hard than what? 17) What did the PARC scientists refer to Xerox officials as? 18) Who is the world's largest producer of appliances? 19)  What general category of people & knowledge strategies typically involves the highest investment in knowledge? 20) What general category of people & knowledge strategies has a smaller knowledge component in its offering? 21) What general category of people & knowledge strategies is all about low price? 22) What general category of people & knowledge strategies has a high knowledge content within its offerings & needs few people to operate?
  • 2. “MANAGEMENT IS ABOUT HUMAN BEINGS. ITS TASK IS TO MAKE PEOPLE CAPABLE OF JOINT PERFORMANCE, TO MAKE THEIR STRENGTHS EFFECTIVE & THEIR WEAKNESSES IRRELEVANT.”
  • 3. WHAT DO EMPLOYEES EXPECT FROM THEIR MANAGERS? -EVERY PERSON IN AN ORGANIZATION SHOULD BE ABLE TO ANSWER YES TO 3 QUESTIONS: 1) ARE YOU TREATED EVERY DAY WITH DIGNITY & RESPECT BY EVERYONE YOU ENCOUNTER? 2) ARE YOU GIVEN THE THINGS THAT YOU NEED (EDUCATION, TRAINING, ENCOURAGEMENT, SUPPORT) SO THAT YOU CAN MAKE A CONTRIBUTION? 3) DO PEOPLE NOTICE THAT YOU DID IT?
  • 4. HOW DID ALCOA PUT DRUCKER’S IDEAS ABOUT “PUTTING PEOPLE FIRST” INTO PRACTICE? -MADE A CONNECTION BETWEEN HUMAN VALUES, EMPLOYEE SAFETY, & FINANCIAL SUCCESS. -SOUGHT OUT TO BE THE FIRST 100% INJURY FREE WORK PLACE.
  • 5. WHAT IS THE DIFFERENCE BETWEEN EFFICIENCY & EFFECTIVENESS? EFFICIENCY: -THE ABILITY TO GET THINGS DONE. (MANUAL WORK) EFFECTIVENESS: -THE ABILITY TO GET THE RIGHT THING DONE. (KNOWLEDGE WORKERS) WHY DOES MANAGEMENT NEED TO APPROACH KNOWLEDGE WORKERS & SERVICE WORKERS DIFFERENTLY FROM THE TRADITIONAL BLUE-COLLAR WORKER?
  • 6. WHAT MUST MANAGEMENT OFFER KNOWLEDGE WORKERS? THE OPPORTUNITY TO: 1) COMBINE THEIR EXPERTISE WITH OTHER PEOPLE’S COMPLIMENTARY SKILLS, INSIGHT, & RELATIONSHIPS. 2) WORK TOWARD A MISSION THAT HAS AN IMPACT ON THE CUSTOMER. 3) BE ABLE TO MEASURE THEIR EFFECTIVENESS.
  • 7. AS MANAGERS, HOW CAN WE MOTIVATE OUR KNOWLEDGE WORKERS SO THAT THEY WILL BE EFFECTIVE & ENGAGED EMPLOYEES? “PEOPLE WORK JUST HARD ENOUGH NOT TO GET FIRED.” PETER GIBBONS
  • 8. •FIRST, WE MUST RECOGNIZE THAT PEOPLE ARE AN ORGANIZATION’S MOST VALUABLE ASSET. -PEOPLE: CUSTOMERS & EMPLOYEES •SECOND, WE MUST FIGURE OUT WHAT MOTIVATES EACH OF OUR INDIVIDUAL EMPLOYEES. -THE CANDLE PROBLEM DANIEL PINK CLIP ON MOTIVATION
  • 10. THE CANDLE PROBLEM -CREATED IN 1945 BY PSYCHOLOGIST KARL DUNCKER. -A COGNITIVE PERFORMANCE TEST THAT MEASURES THE INFLUENCE OF FUNCTIONAL FIXEDNESS ON A PARTICIPANT’S PROBLEM SOLVING CAPABILITIES. -FUNCTIONAL FIXEDNESS: A MENTAL BLOCK AGAINST USING AN OBJECT IN A NEW WAY THAT IS REQUIRED TO SOLVE A PROBLEM. -CANDLE PROBLEM BLOCK: THE BOX OF MATCHES.
  • 11. HOW THE CANDLE PROBLEM APPLIES TO EMPLOYEE MOTIVATION WHY REWARDS, COMMISSIONS, & BONUSES TO MOTIVATE YOUR WORKERS DOES NOT WORK -SAM GLUCKSBERG (SCIENTIST FROM PRINCETON UNIV.) CONDUCTED AN EXPERIMENT TO SEE IF OFFERING A FINANCIAL REWARD HELPED PEOPLE PERFORM A TASK. -HE FOUND THAT WHEN A FINANCIAL INCENTIVE WAS OFFERED FOR SOLVING A PROBLEM IN A SHORTER AMOUNT OF TIME, THE TEST GROUP TOOK LONGER TO SOLVE THE PROBLEM THAN THE GROUP THAT WAS NOT INCENTIVIZED. WHY?
  • 12. -WHEN WE ARE OFFERED A REWARD/INCENTIVE FOR A BEHAVIOR, PART OF OUR BRAIN FOCUSES ON THAT REWARD. THAT’S HOW INCENTIVES WORK.