Management Myths Jeffrey Pfeffer And Robert ...

Management Myths Jeffrey Pfeffer and Robert Sutton, Stanford professors new book, Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting From Evidence-Based Management, recently discussed their 5 favorite myths of management with U.S. News. (1) Financial Incentives Drive Good Performance. Managers often think money can solve all their problems. Too many overlook the fact that incentives can inspire bad behavior as well as good. When you tie money to incentives, people will not necessarily focus on what’s best for the organization, but focus on what it takes to get the incentive. (2) First-Movers Have the Advantage. Be the first to move into a market, and you’ll have it all to yourself. It may be better in the long run to be second or even third. A lot of what’s effective management is doing things well and doing it over and over again. (3) Layoffs Are a Good Way to Cut Costs. Few studies, if any, prove layoffs have a positive effect on company performance. Bain & Co research finds companies that manage to avoid layoffs (even in tough financial straits) end up better off financially. Sometimes layoffs can’t be avoided, but before taking such a drastic, morale-destroying step, consider the myriad of other, cheaper ways to cut costs, e.g. trimming travel budgets, or executive pay. (4) Mergers Are a Good Idea. About 70% fail to live up to expectations for one of 3 reasons: The companies are too similar in size, they are too geographically distant, or cultural differences run too deep. Many treat mergers as an event, when in reality; once the contracts are signed the real work is just beginning. (5) Life and Work Should Be Kept Separate. Driving a wedge between work and life is a fool’s errand. The idea that you can separate them is just impossible. The two must be in harmony. The more companies realize it, the sooner work won’t have to be a 4-letter word. (U.S. News By Justin Ewers, 3/27/06)