Wednesday 6 February 2013

Article / Topic: The susceptibility to Managerial Fads

Written By: HBR Correspondent
December: 2008
Summary

The belief that companies must become more global is the latest in a long line of widely held and generally unquestioned assumptions that can undermine the rational behavior of companies or entire industries.

The management trends you might even call them dads that grow out of these assumptions can be dangerous because they often lead to sloppy thinking. For example the label used to describe a trend may get stretched far beyond its original meaning. “Reengineering” had come to mean nearly and corporate reorganization: “related diversification” is used today to justify acquisitions within categories such as “communications media” and “financial services” that are so bread as to be almost meaningless.

 More troubling the stampede by companies to join peers in mindlessly embracing such trends can cloud manager’s judgment about what is worth while and achievable in their particular case. The pathology of management fads has an underlying dynamic that is worth exploring: Company X with talented people at the helm pioneers a new management approach the firm does well and others take notice maybe one or two experiment with similar innovations.

Overtime people use the now familiar label more and more loosely. They group all manner of activities under the heading. Despite its ambiguity there is a growing sense that activities under the rubric are worthwhile.

Ref –Page, No 74

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