Sidle, S. (2009). Is Your Organization a great place for bullies to work? Academy of Management Perspectives; Nov2009, Vol. 23 Issue 4, p89-91, 3p. Retrieved March 31, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/pdf?vid=1&hid=9&sid=3487d776-00ec-43e0-954d-7e1820133c96%40sessionmgr10
This research brief was written by University of New Haven Psychology Professor Stuart Sidle, and discusses research done on the subject of supervisorial bullying in the workplace. In it, he states that little has been done to eradicate bullying because firms take a Band-Aid approach by reacting to specific problems instead of addressing the organizational factors that contribute to the problem. Studies show that the most likely targets for workplace bullying are those with less power, which can be affected by both social and positional status differences; therefore, women and minorities that are in personal services roles are targeted more often than others. Another finding is that organizations that operate under chaotic or disorganized circumstances, which reflect poor management practices, are more likely to have supervisorial bullying going on as well. Managers that use bullying practices generally are either trying to get better performance from their employees, or in some cases, they feel the employee is somehow a threat to them, or for some, they actually enjoy being a bully. To avoid bullying from happening in the first place, companies should take proactive steps that can help avert such practices in their firm. They should have a clearly written policy against such practices and they should have a means that employees can report situations and have actions taken when such occurrences do happen. This article is brief in detail but addresses a subject that manager should be familiar with and should take measures to prevent.
Wednesday, March 31, 2010
Tuesday, March 30, 2010
Monitoring Employee Email
Smith, W. & Tabak, F. (2009). Monitoring employee e-mails: Is there any room for privacy? Retrieved March 30, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/pdf?vid=2&hid=8&sid=d2acb272-84a7-4e12-95fc-d683b6ed05fa%40sessionmgr14
This is a study published in the Academy of Management Perspectives November, 2009 issue and is a discussion about the trends, legalities, results, and consequences of employers monitoring employee’s e-mails in the workplace. The study cites a 2007 review by the American Management Association that shows that 84% of employers have e-mail-use policies and 43% engage in some type of email monitoring, and 28% have terminated employees for inappropriate use of e-mail. Although the US legal system does not directly address the rights and responsibilities associated with e-mails, the courts have consistently supported the rights of employers to monitor their employees’ e-mail activity. Advocates in support of monitoring state three basic justifications: protecting the firm from liability risks, protecting company assets, and ensuring employee job performance. The authors also discuss the legal implications for the employer and the privacy concerns that need to be considered from the employees’ point of view. Additionally, the employer has to consider the psychological effects on the employee and understand that there could be some unintended consequences of monitoring. E-mail monitoring could lead to employees feeling degraded, stressed, or frustrated, leading to mistrust, job dissatisfaction, and high voluntary turnover rates. This article contains important information that managers should understand because as the world becomes more assessable through e-mail and other electronic means, it is important for managers to know that their employees are using these tools effectively in the workplace, but should try to find a balance that will give the employees some sense of privacy as well. These types of challenges will continue to develop as technologies continue to expand.
This is a study published in the Academy of Management Perspectives November, 2009 issue and is a discussion about the trends, legalities, results, and consequences of employers monitoring employee’s e-mails in the workplace. The study cites a 2007 review by the American Management Association that shows that 84% of employers have e-mail-use policies and 43% engage in some type of email monitoring, and 28% have terminated employees for inappropriate use of e-mail. Although the US legal system does not directly address the rights and responsibilities associated with e-mails, the courts have consistently supported the rights of employers to monitor their employees’ e-mail activity. Advocates in support of monitoring state three basic justifications: protecting the firm from liability risks, protecting company assets, and ensuring employee job performance. The authors also discuss the legal implications for the employer and the privacy concerns that need to be considered from the employees’ point of view. Additionally, the employer has to consider the psychological effects on the employee and understand that there could be some unintended consequences of monitoring. E-mail monitoring could lead to employees feeling degraded, stressed, or frustrated, leading to mistrust, job dissatisfaction, and high voluntary turnover rates. This article contains important information that managers should understand because as the world becomes more assessable through e-mail and other electronic means, it is important for managers to know that their employees are using these tools effectively in the workplace, but should try to find a balance that will give the employees some sense of privacy as well. These types of challenges will continue to develop as technologies continue to expand.
Monday, March 29, 2010
How CEOs Must Overcome Denial
Lagace, M. (2010). Ruthlessly realistic: How CEOs must overcome denial. Retrieved March 29, 2010 from: http://hbswk.hbs.edu/item/6393.html
This article is published on Harvard Business School’s Working Knowledge Web site and is a question and answer session between the author and Richard S. Tedlow, a professor of business administration at Harvard Business School and the author of a book on the subject of denial by company leaders. The interview is based on the subject of CEO denial the lack of ability for CEOs to make appropriate changes due to their denial that changes need to be made or a problem needs to be addressed. He states that denial is not being wrong, it is the unwillingness to acknowledge and deal with reality. He also states that denial is much more costly in today’s business world than in the past because we are living in a less forgiving world than before. An example Tedlow gives for a costly denial are the dot-com bubble of the 90s that busted and cost a lot of people a lot of money. The signs were there but many denied the facts and in hopes that the good fortunes would continue. This article is important to managers because even on a smaller scale bases, it’s important that managers look at, understand, and act upon the facts and the realities of the situation, not what you want it to be. The saying “it is what it is” comes to mind when you are faced with a reality that is not what you wanted but you realize that you have to deal with it head-on anyway.
This article is published on Harvard Business School’s Working Knowledge Web site and is a question and answer session between the author and Richard S. Tedlow, a professor of business administration at Harvard Business School and the author of a book on the subject of denial by company leaders. The interview is based on the subject of CEO denial the lack of ability for CEOs to make appropriate changes due to their denial that changes need to be made or a problem needs to be addressed. He states that denial is not being wrong, it is the unwillingness to acknowledge and deal with reality. He also states that denial is much more costly in today’s business world than in the past because we are living in a less forgiving world than before. An example Tedlow gives for a costly denial are the dot-com bubble of the 90s that busted and cost a lot of people a lot of money. The signs were there but many denied the facts and in hopes that the good fortunes would continue. This article is important to managers because even on a smaller scale bases, it’s important that managers look at, understand, and act upon the facts and the realities of the situation, not what you want it to be. The saying “it is what it is” comes to mind when you are faced with a reality that is not what you wanted but you realize that you have to deal with it head-on anyway.
Sunday, March 28, 2010
Becoming Lean
Steverman, B. (2010). Corporate balance sheets show surprising strength. Retrieved March 24, 2010 from: http://www.businessweek.com/investor/content/mar2010/pi20100322_127641.htm
This article is published on the businessweek.com Web site and reports that many firms are successfully shedding debt and other obligations to put themselves in good position to deal with the economy as it changes. The author states that stronger corporate balance sheets stand out when government and consumer finances remain shaky. At the same time, many companies have taken the opposite stance and had taken on more debt; the S&P 500 companies are split in half as to which direction they have gone. The companies that are shedding debt are positioning themselves to be able to concentrate on becoming more focused on their primary products or services, or could also be putting themselves in position to expand through acquisitions or make other strategic moves when the opportunity arises. Time Warner’s CFO, John Martin, states that their newly improved balance sheet, which gives them financial flexibility, is a “strategic asset”. The importance to managers is that cash flow and cash on hand is a very important asset. It is important for all businesses to use a certain amount of leverage to grow their business but it is also important to have enough cash to make financial moves when the opportunity arises and to also be able to fund the company during the tough times.
This article is published on the businessweek.com Web site and reports that many firms are successfully shedding debt and other obligations to put themselves in good position to deal with the economy as it changes. The author states that stronger corporate balance sheets stand out when government and consumer finances remain shaky. At the same time, many companies have taken the opposite stance and had taken on more debt; the S&P 500 companies are split in half as to which direction they have gone. The companies that are shedding debt are positioning themselves to be able to concentrate on becoming more focused on their primary products or services, or could also be putting themselves in position to expand through acquisitions or make other strategic moves when the opportunity arises. Time Warner’s CFO, John Martin, states that their newly improved balance sheet, which gives them financial flexibility, is a “strategic asset”. The importance to managers is that cash flow and cash on hand is a very important asset. It is important for all businesses to use a certain amount of leverage to grow their business but it is also important to have enough cash to make financial moves when the opportunity arises and to also be able to fund the company during the tough times.
The World’s Most Ethical Companies
Coster, H. (2010). The world’s most ethical companies. Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/22/ethisphere-ethical-companies-leadership-citizenship-100.html?feed=rss_home
This article is published on the forbes.com Web site and is a listing of the 100 US businesses that are considered to be the most ethical. The list was compiled by the Ethisphere Institute, a New York City think tank. The data used to measure the company’s ethical score was mostly in the form of questions that the companies had to answer about themselves and Ethisphere is counting on these firms to be honest and they believe that the information they receive from these companies is accurate. The companies are scored in seven different categories, including “Innovations that contributes to the public well-being” and “Executive leadership and tone from the top”. Eliminated from the list, were companies that had significant legal problems in the past five years. This list is certainly not scientific in how it is put together and there are probably some companies that are on it that do not belong and others that should be on the list but are not. The importance for managers is that ethics is important for all firms and if they lead their company in a way that could get them on such a list, they are probably leading their company in the right direction. Another interesting note in the article is that the companies on this list have delivered a 53% return since 2005 compared the S&P 500, which is down 4% in the same period.
This article is published on the forbes.com Web site and is a listing of the 100 US businesses that are considered to be the most ethical. The list was compiled by the Ethisphere Institute, a New York City think tank. The data used to measure the company’s ethical score was mostly in the form of questions that the companies had to answer about themselves and Ethisphere is counting on these firms to be honest and they believe that the information they receive from these companies is accurate. The companies are scored in seven different categories, including “Innovations that contributes to the public well-being” and “Executive leadership and tone from the top”. Eliminated from the list, were companies that had significant legal problems in the past five years. This list is certainly not scientific in how it is put together and there are probably some companies that are on it that do not belong and others that should be on the list but are not. The importance for managers is that ethics is important for all firms and if they lead their company in a way that could get them on such a list, they are probably leading their company in the right direction. Another interesting note in the article is that the companies on this list have delivered a 53% return since 2005 compared the S&P 500, which is down 4% in the same period.
Wall Street Relieved by Health Reform
Beller, P. (2010). Wall Street relieved by health reform. Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/22/briefing-americas-closer-markets-equities-healthcare-hospitals.html?feed=rss_home
This article, published on forbes.com Web site, reports that Wall Street investors are relieved that the healthcare bill has passed and that health-care related stocks lifted the major indexes on Monday after the passing of the bill. The stock market does not like uncertainty and the passing of this bill took away a lot of uncertainty in the market. Stocks in many health-care related companies jumped suggesting investors believe that the new reform will be good for some healthcare providers. Stocks in major hospital operating firms went up as well as pharmaceutical companies to a lesser extent. This article shows that perception and lack of uncertainty are very important factors in the market because there is a long way to go before people will know how the health-care reform bill will affect the economy. There are many factors that can affect the stock market and the economy as a whole. It is important that managers and investor keep up with what is going on in politics and in the economy so they can be prepared to respond to changes that can affect it.
This article, published on forbes.com Web site, reports that Wall Street investors are relieved that the healthcare bill has passed and that health-care related stocks lifted the major indexes on Monday after the passing of the bill. The stock market does not like uncertainty and the passing of this bill took away a lot of uncertainty in the market. Stocks in many health-care related companies jumped suggesting investors believe that the new reform will be good for some healthcare providers. Stocks in major hospital operating firms went up as well as pharmaceutical companies to a lesser extent. This article shows that perception and lack of uncertainty are very important factors in the market because there is a long way to go before people will know how the health-care reform bill will affect the economy. There are many factors that can affect the stock market and the economy as a whole. It is important that managers and investor keep up with what is going on in politics and in the economy so they can be prepared to respond to changes that can affect it.
Is the World Out of Recession?
Ramnath, N. S. (2010). Is the world out of recession? Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/19/forbes-india-is-the-world-out-of-recession.html?feed=rss_home#
This article appears in Forbes India and on forbes.com Web site and attempts to answer the question: Is the world out of recession? The answer is yes if you go by the textbook definition of recession, which defines recession as two consecutive quarters of economic decline and the U.S. economy grew by 5.7% in the last quarter of 2009. The answer is not so definitive if you look at many of the other economic indicators. One important indicator is the job market. In the US and many other developed economies, payrolls continue to decline; in developing countries, the job market is improving. Consumer confidence is another indicator and in the US, the CCI came down to 46 in February from 56.5 in January. Merger and acquisition activity has been slow in the past two years; however, there is some recent activity picking up in some parts of the world. Gold prices are another indicator, as the economy weakens; gold prices go up and have for the past couple of years. More recently, prices have started declining, possibly indicating more confidence in other investments and an improved economy. Finally, surveys show that executives are seeing improvements in their business and are somewhat optimistic of improvement in the next six months. These indicators are important for managers to understand because it’s important to know what is going on in the economy and what to expect next so they can be ready for and take advantage of the recovery as it unfolds.
This article appears in Forbes India and on forbes.com Web site and attempts to answer the question: Is the world out of recession? The answer is yes if you go by the textbook definition of recession, which defines recession as two consecutive quarters of economic decline and the U.S. economy grew by 5.7% in the last quarter of 2009. The answer is not so definitive if you look at many of the other economic indicators. One important indicator is the job market. In the US and many other developed economies, payrolls continue to decline; in developing countries, the job market is improving. Consumer confidence is another indicator and in the US, the CCI came down to 46 in February from 56.5 in January. Merger and acquisition activity has been slow in the past two years; however, there is some recent activity picking up in some parts of the world. Gold prices are another indicator, as the economy weakens; gold prices go up and have for the past couple of years. More recently, prices have started declining, possibly indicating more confidence in other investments and an improved economy. Finally, surveys show that executives are seeing improvements in their business and are somewhat optimistic of improvement in the next six months. These indicators are important for managers to understand because it’s important to know what is going on in the economy and what to expect next so they can be ready for and take advantage of the recovery as it unfolds.
Taxes on Investment Income
Boles, C. (2010). US democrats defeat repeal of tax on investment income of wealthy. Retrieved March 24, 2010 from: http://www.foxbusiness.com/story/markets/democrats-defeat-repeal-tax-investment-income-wealthy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Flatest+%28Text+-+Latest+News%29
This article is published on the foxbusiness Web site and reports that the Senate Democrats successfully blocked the Republicans’ attempt to cut out a tax on the investment income of wealthy Americans; the tax revenue is to be used to help pay for the new health-care bill passed last week. Had it been successful, the Republicans’ amendment would have done away with the 3.8% tax on investment income for individuals making more than $200,000 and couples making more than $250,000. The Democrats believe this tax is necessary to help pay for health care and is not harmful to the economy because it only affects a small percent of people, who can afford it. The republicans believe that it is a “job killer” because it affects many of the people that are the job creators. Many see this as another way performing “income redistribution”, which opponents say discourages productivity and entrepreneurship. This subject is important for managers because taxes do affect the economy and business but are a necessary evil and have to be weighed from a cost/benefit standpoint. One thing is for sure, if a firm’s owner pays more taxes, they have to make up for the additional costs from somewhere else and this could be in the area of fewer employees. Is the benefit received from funding the health-care bill worth this cost? That debate will continue but it’s important for managers to be aware on what’s going on in the economy and how it affects them and their firm.
This article is published on the foxbusiness Web site and reports that the Senate Democrats successfully blocked the Republicans’ attempt to cut out a tax on the investment income of wealthy Americans; the tax revenue is to be used to help pay for the new health-care bill passed last week. Had it been successful, the Republicans’ amendment would have done away with the 3.8% tax on investment income for individuals making more than $200,000 and couples making more than $250,000. The Democrats believe this tax is necessary to help pay for health care and is not harmful to the economy because it only affects a small percent of people, who can afford it. The republicans believe that it is a “job killer” because it affects many of the people that are the job creators. Many see this as another way performing “income redistribution”, which opponents say discourages productivity and entrepreneurship. This subject is important for managers because taxes do affect the economy and business but are a necessary evil and have to be weighed from a cost/benefit standpoint. One thing is for sure, if a firm’s owner pays more taxes, they have to make up for the additional costs from somewhere else and this could be in the area of fewer employees. Is the benefit received from funding the health-care bill worth this cost? That debate will continue but it’s important for managers to be aware on what’s going on in the economy and how it affects them and their firm.
Friday, March 26, 2010
Cruises and Recovery
Esterl, M. (2010). Carnival poised to ride a wave of recovery. Retrieved March 24, 2010 from: http://online.wsj.com/article/SB10001424052748704896104575139770082534464.html?mod=rss_whats_news_us_business
This article is published on WSJ.com Web site, and reports that the cruise industry’s move toward higher pricing is an indicator that the economy is recovering. Carnival Corporation, operator of 11 cruise lines, believes they have gained some pricing power because there has been a spike in reservation bookings in the past few months. They say the consumers have a lot of pent-up demand because many of them skipped their vacations last year to save money. Rich Tucker with CruiseDeals.com says that prices for trips between June and August 2010 are up by about 27% compared to the same period last year. This information is important to managers, even if they are not working in the leisure travel industry, because these types of indicators can point toward economic recovery and managers in almost all industries need to be ready to take advantage of the recovery as it happens.
This article is published on WSJ.com Web site, and reports that the cruise industry’s move toward higher pricing is an indicator that the economy is recovering. Carnival Corporation, operator of 11 cruise lines, believes they have gained some pricing power because there has been a spike in reservation bookings in the past few months. They say the consumers have a lot of pent-up demand because many of them skipped their vacations last year to save money. Rich Tucker with CruiseDeals.com says that prices for trips between June and August 2010 are up by about 27% compared to the same period last year. This information is important to managers, even if they are not working in the leisure travel industry, because these types of indicators can point toward economic recovery and managers in almost all industries need to be ready to take advantage of the recovery as it happens.
Thursday, March 25, 2010
Limits on Executive Pay
MarketNewsVideo.com (2010). Further limits on executive pay in 2010, says Kenneth Feinberg. Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/23/further-limits-on-executive-pay-in-2010-says-kenneth-feinberg-marketnewsvideo.html?feed=rss_home
This article appears on the Forbes.com Web site and reports that “Pay Czar” Kenneth Feinberg announced earlier this week that the top 25 earners of five companies that have received bailout money from the government will be forced to earn approximately 15% less than they did in 2009 and that their cash salaries will be capped at $500,000. There are other ways to compensate these executives through equity bonuses, but it does limit the companies’ ability to attract and keep top performing managers. Many people would agree that companies that have received federal aid should limit their executive’s pay; however, it is also important that companies are able to recruit and retain top-notch executives that can lead the company out of their difficult times so they can become self-reliant and no longer dependent on the government. This article points toward an important subject in management. Leaders need to take measures that will keep their company from becoming dependent of government bailouts because once they receive this type of assistance, the government ends up with a lot of control over the firm, which can lead to even further dependence and less ability for the company to work its way out of the predicament they are in.
This article appears on the Forbes.com Web site and reports that “Pay Czar” Kenneth Feinberg announced earlier this week that the top 25 earners of five companies that have received bailout money from the government will be forced to earn approximately 15% less than they did in 2009 and that their cash salaries will be capped at $500,000. There are other ways to compensate these executives through equity bonuses, but it does limit the companies’ ability to attract and keep top performing managers. Many people would agree that companies that have received federal aid should limit their executive’s pay; however, it is also important that companies are able to recruit and retain top-notch executives that can lead the company out of their difficult times so they can become self-reliant and no longer dependent on the government. This article points toward an important subject in management. Leaders need to take measures that will keep their company from becoming dependent of government bailouts because once they receive this type of assistance, the government ends up with a lot of control over the firm, which can lead to even further dependence and less ability for the company to work its way out of the predicament they are in.
Effective Web Sites
Steiner, C. (2010). The 10 essentials of any effective web site. Retrieved March 24, 2010 from: http://www.forbes.com/2010/03/24/web-site-design-entrepreneurs-technology-tips.html
This article, published on Forbes.com Web site, explains the essentials for designing and maintaining an effective website. The author states they the Internet is full of shoddy Web sites and he gives tips on what businesses should do to make sure their site is desirable and effective. The following are the top 10 tips: Who and What; who is the company and what do they do. Front-and-Center Contact Info; make sure contact information is very visible and don’t make the user have to search for it. Speed; make sure your home page loads quickly, rule of thumb is 3 seconds. Clubby Atmosphere; find ways to get people to return to your site, i.e., make free features available to registered users. Tools; have useful applications that help the user. A Clear Path; give the user an easy way to find what they are looking for once they get to the home page. Some Sizzle, More Steak; make the content attractive. The Drum Beat; highlight the company’s two or three main qualities. The Soft Sell; people do not like pushiness. Freshness; fresh content added and updated often. This is good information for all managers because in today’s business world you must have some type of Web site and for many businesses, there needs to be an extensive Web site. Effective Web presence is becoming a very important competitive factor and the lack of a site or presence of an ineffective site can impair a company’s ability to compete in today’s market.
This article, published on Forbes.com Web site, explains the essentials for designing and maintaining an effective website. The author states they the Internet is full of shoddy Web sites and he gives tips on what businesses should do to make sure their site is desirable and effective. The following are the top 10 tips: Who and What; who is the company and what do they do. Front-and-Center Contact Info; make sure contact information is very visible and don’t make the user have to search for it. Speed; make sure your home page loads quickly, rule of thumb is 3 seconds. Clubby Atmosphere; find ways to get people to return to your site, i.e., make free features available to registered users. Tools; have useful applications that help the user. A Clear Path; give the user an easy way to find what they are looking for once they get to the home page. Some Sizzle, More Steak; make the content attractive. The Drum Beat; highlight the company’s two or three main qualities. The Soft Sell; people do not like pushiness. Freshness; fresh content added and updated often. This is good information for all managers because in today’s business world you must have some type of Web site and for many businesses, there needs to be an extensive Web site. Effective Web presence is becoming a very important competitive factor and the lack of a site or presence of an ineffective site can impair a company’s ability to compete in today’s market.
Tuesday, March 23, 2010
Home Affordable Modification Program (HAMP)
Kopecki, D. (2010). Obama loan program may extend foreclosure crisis, watchdog says. Retrieved March 23, 2010 from: http://www.businessweek.com/news/2010-03-23/obama-loan-program-may-extend-foreclosure-crisis-watchdog-says.html
This article, published on BusinessWeek’s online site, makes the case that Obama’s loan program, the Home Affordable Modification Program, which was designed with the intent of helping consumers to stay out of foreclosure, is actually helping few borrowers and making the situation worse by spreading the crisis out over a long period of time. Although the US Department of Treasury states that the program will help 3 to 4 million on a long-term bases, internally, they are saying that only half that number will receive permanent alterations of the mortgage loans. This is important information for managers and investors because more than expected foreclosures will have an effect on the economy. Propping up the economy with temporary fixes could make things worse than they would have been otherwise and managers need to be aware of the things that affect the economy and ultimately their business.
This article, published on BusinessWeek’s online site, makes the case that Obama’s loan program, the Home Affordable Modification Program, which was designed with the intent of helping consumers to stay out of foreclosure, is actually helping few borrowers and making the situation worse by spreading the crisis out over a long period of time. Although the US Department of Treasury states that the program will help 3 to 4 million on a long-term bases, internally, they are saying that only half that number will receive permanent alterations of the mortgage loans. This is important information for managers and investors because more than expected foreclosures will have an effect on the economy. Propping up the economy with temporary fixes could make things worse than they would have been otherwise and managers need to be aware of the things that affect the economy and ultimately their business.
Higher Taxes are Coming
Gross, D. (2010). Higher taxes are coming, but it’s not the end of the world. Retrieve March 23, 2010 from: http://finance.yahoo.com/tech-ticker/higher-taxes-are-coming-but-it's-not-the-end-of-the-world-dan-gross-says-447086.html?tickers=HRB,INTU,JTX,%5EGSPC,%5EDJI,TBT,XRT&sec=topStories&pos=9&asset=&ccode
This article, written by financial journalist and author Dan Gross, tells how and why taxes will be going up soon for some on America’s wealthiest citizens. In order to pay for the expanded health-care bill just passed, President Obama is looking to increase taxes on individuals that make more than $200,000 and couples that make more than $250,000. Also, many believe that there will be higher taxes on unearned income, such as capital gains and other investment income. Gross believes that these higher taxes will not have a large effect on the economy or the stock market; that the people affected will find ways to cut cost and become more efficient. This subject is important to managers because many small businesses are the “wealthy that can pay more in taxes”. Many believe these new taxes do affect the economy and ultimately the stock market because there is less investments in financial markets and in the labor market because of the additional costs of the new taxes. In many cases, taxing the wealthy is the same thing as taxing the employers that create jobs and managers need to be aware of these pending tax changes as they make business decisions regarding expansion and/or contraction.
This article, written by financial journalist and author Dan Gross, tells how and why taxes will be going up soon for some on America’s wealthiest citizens. In order to pay for the expanded health-care bill just passed, President Obama is looking to increase taxes on individuals that make more than $200,000 and couples that make more than $250,000. Also, many believe that there will be higher taxes on unearned income, such as capital gains and other investment income. Gross believes that these higher taxes will not have a large effect on the economy or the stock market; that the people affected will find ways to cut cost and become more efficient. This subject is important to managers because many small businesses are the “wealthy that can pay more in taxes”. Many believe these new taxes do affect the economy and ultimately the stock market because there is less investments in financial markets and in the labor market because of the additional costs of the new taxes. In many cases, taxing the wealthy is the same thing as taxing the employers that create jobs and managers need to be aware of these pending tax changes as they make business decisions regarding expansion and/or contraction.
Monday, March 22, 2010
College is Worth the Cost
Holtom, B. (2010). College is worth the cost. Retrieved March 21, 2010 from: http://www.businessweek.com/debateroom/archives/2010/03/college_is_wort.html
This article is published on the BusinessWeek online website and shows the financial benefits of having a bachelor’s degree and states that the math adds up that the additional earnings of a college graduate far outweighs the costs of obtaining an education. The author states that a college graduate earns an average of $2.1 million in a lifetime compared to $1.2 million lifetime earnings of a high school graduate. Furthermore, college graduates on average are healthier because they smoke less and exercise more than non-graduates. They are also more-rounded because of social networks developed in college and happier because they are more likely to find a job they enjoy. Although some of the information reported in the article is widely known, this is a good article for students to read so they can be encouraged to finish their degree and start their career with a good advantage that will pay off for them in the long run.
This article is published on the BusinessWeek online website and shows the financial benefits of having a bachelor’s degree and states that the math adds up that the additional earnings of a college graduate far outweighs the costs of obtaining an education. The author states that a college graduate earns an average of $2.1 million in a lifetime compared to $1.2 million lifetime earnings of a high school graduate. Furthermore, college graduates on average are healthier because they smoke less and exercise more than non-graduates. They are also more-rounded because of social networks developed in college and happier because they are more likely to find a job they enjoy. Although some of the information reported in the article is widely known, this is a good article for students to read so they can be encouraged to finish their degree and start their career with a good advantage that will pay off for them in the long run.
Jobs Bill
Hulse, C. (2010). Job bill passes in senate with 11 republican votes. Retrieved March 21, 2010 from: http://www.nytimes.com/2010/03/18/us/politics/18cong.html?partner=rss&emc=rss
This is a news story published on the New York Times website and tells the details of a bipartisan vote that approved legislation that is intended to help create jobs. The legislation would give employers incentive via payroll tax exemptions through the end of 2010 for each employee they hire that has been unemployed for at least 60 days. This part of the bill is estimated to costs $13 billion over 10 years because employers are expected to get credited for as many as five million employees; however, most of the employees would have been hired anyway and it is further estimated that only 200,000 new jobs will actually be created. Another aspect of the bill extends the federal highway construction program by shifting $20 billion for road and bridge building. This part is expected to make some positive impact on the jobs market and the economy because it creates a lot of good-paying construction jobs. The bill is being paid for in part by tightening rules of offshore tax havens; however, it is also largely funded with more deficit spending. Democrats are also considering legislation that would extend more than $30 billion in corporate tax breaks and aid to small business. The information in this article should be important to managers because it gives them some additional means to expand their business and take advantage of opportunities that will pass them by if they are not informed.
This is a news story published on the New York Times website and tells the details of a bipartisan vote that approved legislation that is intended to help create jobs. The legislation would give employers incentive via payroll tax exemptions through the end of 2010 for each employee they hire that has been unemployed for at least 60 days. This part of the bill is estimated to costs $13 billion over 10 years because employers are expected to get credited for as many as five million employees; however, most of the employees would have been hired anyway and it is further estimated that only 200,000 new jobs will actually be created. Another aspect of the bill extends the federal highway construction program by shifting $20 billion for road and bridge building. This part is expected to make some positive impact on the jobs market and the economy because it creates a lot of good-paying construction jobs. The bill is being paid for in part by tightening rules of offshore tax havens; however, it is also largely funded with more deficit spending. Democrats are also considering legislation that would extend more than $30 billion in corporate tax breaks and aid to small business. The information in this article should be important to managers because it gives them some additional means to expand their business and take advantage of opportunities that will pass them by if they are not informed.
Sunday, March 21, 2010
User-Centered Innovation Is Not Sustainable
Verganti, R. (2010). User-centered innovation is not sustainable. Retrieved on March 20, 2010 from: http://blogs.hbr.org/cs/2010/03/user-centered_innovation_is_no.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29
This article, published on the Harvard Business Review’s website, was written by Roberto Verganti, professor of the management of innovation at Politecnico di Milano, who is also the author of a book on innovation as well. He states that the user-centered innovation of the pre-recession past will not give the economy a sustainable amount of growth that is needed for strong economic recovery. He states that many experts see user-centered innovation as a panacea but he strongly disagrees. User-centered innovation is basically where firms watch consumer patterns to understand their needs and base their innovative efforts to meet these needs and he believes this approach will not create sustainable growth. He states that successful leaders are forward-looking and they are able to step back from the current needs and behaviors of consumers and are able to envision new scenarios. This is an interesting subject that manager should consider. Most managers and firms seem to concentrate of supplying current consumer wants and needs; however, to be step ahead of the others, it’s important for firms to create wants and needs with innovative products and services the consumer hasn’t even considered yet.
This article, published on the Harvard Business Review’s website, was written by Roberto Verganti, professor of the management of innovation at Politecnico di Milano, who is also the author of a book on innovation as well. He states that the user-centered innovation of the pre-recession past will not give the economy a sustainable amount of growth that is needed for strong economic recovery. He states that many experts see user-centered innovation as a panacea but he strongly disagrees. User-centered innovation is basically where firms watch consumer patterns to understand their needs and base their innovative efforts to meet these needs and he believes this approach will not create sustainable growth. He states that successful leaders are forward-looking and they are able to step back from the current needs and behaviors of consumers and are able to envision new scenarios. This is an interesting subject that manager should consider. Most managers and firms seem to concentrate of supplying current consumer wants and needs; however, to be step ahead of the others, it’s important for firms to create wants and needs with innovative products and services the consumer hasn’t even considered yet.
Recovery in Progress
The Economist (2010). Recovery in progress: World trade is on the mend, but the strength of the rebound remains uncertain. Retrieved March 20, 2010 from: http://www.economist.com/business-finance/displaystory.cfm?story_id=15599453&fsrc=rss
This article is published on The Economist Online website and discussed the possibility of an economic recovery in progress. According to the Netherlands Bureau of Economic Policy Analysis (CPB), which tracks global trade volumes, the last quarter of 2009 showed renewed vigor with a 6% increase. However, with a huge 13.9% reduction in trade volume in 2009, which is only the third drop since they started tracking these numbers in 1961 and a lot bigger drop than the 1.9% and 0.9% in 1975 and 1982, respectively, there is a long way to go before the crisis is over. They also point out that December’s trade volume can skew the numbers some because of holiday spending in many parts of the world. Also concerning is that the World Bank, which tracks trade value instead of volume, states that there was a deceleration in the last quarter of 2009 in that measure, so the recovery is weak at best. This article is important for managers to understand because it is important to know what is going on in the world economy and how it affects your business decisions. As the economy improves, it is important for managers to make the correct business decisions based upon their particular circumstances within the current economic conditions.
This article is published on The Economist Online website and discussed the possibility of an economic recovery in progress. According to the Netherlands Bureau of Economic Policy Analysis (CPB), which tracks global trade volumes, the last quarter of 2009 showed renewed vigor with a 6% increase. However, with a huge 13.9% reduction in trade volume in 2009, which is only the third drop since they started tracking these numbers in 1961 and a lot bigger drop than the 1.9% and 0.9% in 1975 and 1982, respectively, there is a long way to go before the crisis is over. They also point out that December’s trade volume can skew the numbers some because of holiday spending in many parts of the world. Also concerning is that the World Bank, which tracks trade value instead of volume, states that there was a deceleration in the last quarter of 2009 in that measure, so the recovery is weak at best. This article is important for managers to understand because it is important to know what is going on in the world economy and how it affects your business decisions. As the economy improves, it is important for managers to make the correct business decisions based upon their particular circumstances within the current economic conditions.
Saturday, March 20, 2010
Health-Care Reform
The Economist (2010). Presenting the bill: The stage is set for crucial vote on America’s health-care reform bill. Retrieved March 20, 2010 from: http://www.economist.com/world/united-states/displaystory.cfm?story_id=15748396&fsrc=rss
This article, published on The Economist Online website, discusses the upcoming House vote on the health-care reform bill. As of the time of writing this, the vote has not occurred but is scheduled for tomorrow. Based on the recent switches from the ‘no’ column to the ‘yes’ column, it appears that the Democrats will have the 216 votes they need to pass this bill; however, this key number seems to be fluid, so it’s not over until there is a vote. This article does not directly discuss business matters but this bill, if passed, will have a very large impact on the economy and will affect businesses in many ways, though it is hard to tell in what way because you hear two very different scenarios depending on which side of the isle you are listening to. The Democrats say that the bill is “the largest deficit reduction of any bill we have adopted in Congress since 1993”. All of the House Republicans are voting against it for various reason; one being they believe it will costs even more than the proposed $940 billion, over the next ten years, and they also believe that this is an overreaching government takeover of health care and that it will further put the U.S. in debt and will become more a burden than a panacea. This topic is important to managers because they need to be aware and take action when there is legislative action going on that will affect the economy and their business in a direct way. This is a very big piece of legislation, but even the ones that don’t make the daily news are important to be aware of and to take a stand for and against, when needed.
This article, published on The Economist Online website, discusses the upcoming House vote on the health-care reform bill. As of the time of writing this, the vote has not occurred but is scheduled for tomorrow. Based on the recent switches from the ‘no’ column to the ‘yes’ column, it appears that the Democrats will have the 216 votes they need to pass this bill; however, this key number seems to be fluid, so it’s not over until there is a vote. This article does not directly discuss business matters but this bill, if passed, will have a very large impact on the economy and will affect businesses in many ways, though it is hard to tell in what way because you hear two very different scenarios depending on which side of the isle you are listening to. The Democrats say that the bill is “the largest deficit reduction of any bill we have adopted in Congress since 1993”. All of the House Republicans are voting against it for various reason; one being they believe it will costs even more than the proposed $940 billion, over the next ten years, and they also believe that this is an overreaching government takeover of health care and that it will further put the U.S. in debt and will become more a burden than a panacea. This topic is important to managers because they need to be aware and take action when there is legislative action going on that will affect the economy and their business in a direct way. This is a very big piece of legislation, but even the ones that don’t make the daily news are important to be aware of and to take a stand for and against, when needed.
Friday, March 19, 2010
Are We in a Liquidity Trap?
Krugman, P. (2010). How much of the world is in a liquidity trap? Retrieved March 18, 2010 from: http://www.businessdictionary.com/definition/liquidity-trap.html
This article was written by columnist and economics professor Paul Krugman and in it he states that almost all advanced countries in the world, making up 70% of the world’s GDP, are in a liquidity trap. A liquidity trap is where rates are extremely low, but few want to borrow money for purchases or investments because they are afraid of the current and expected economy and their future. Krugman states that unconventional monetary policy is difficult; however, conventional policy calls for the Fed to lower the fund rate, but they cannot because rates are already at the zero lower bounds, therefore limiting the Feds ability to use conventional policy to improve the economy. Krugman is basically saying here that the Fed need to do some other things also, but that the zero lower bound needs to be lowered to give them more room to expand monetary policy. This is a good article for students and managers to read and they should further explore how the monetary policy works and how it can affect them.
This article was written by columnist and economics professor Paul Krugman and in it he states that almost all advanced countries in the world, making up 70% of the world’s GDP, are in a liquidity trap. A liquidity trap is where rates are extremely low, but few want to borrow money for purchases or investments because they are afraid of the current and expected economy and their future. Krugman states that unconventional monetary policy is difficult; however, conventional policy calls for the Fed to lower the fund rate, but they cannot because rates are already at the zero lower bounds, therefore limiting the Feds ability to use conventional policy to improve the economy. Krugman is basically saying here that the Fed need to do some other things also, but that the zero lower bound needs to be lowered to give them more room to expand monetary policy. This is a good article for students and managers to read and they should further explore how the monetary policy works and how it can affect them.
Stagflation Versus Hyperinflation
Krugman, P. (2010). Stagflation versus hyperinflation. Retrieved March 18, 2010 from: http://krugman.blogs.nytimes.com/2010/03/18/stagflation-versus-hyperinflation/
This article was published in the New York Times, and was written by columnist and Princeton professor of Economics and International Affairs Paul Krugman. In it, he explains the difference between Stagflation and Hyperinflation and discusses our economy’s current condition. He states that many are becoming paranoid that hyperinflation is just around the corner, which Krugman does not agree with. Hyperinflation is out of control inflation caused primarily by the government spending more than they can collect and therefore printing new money to cover the deficit spending. This lead to inflation, which leads to the consumer spending less, which causes the need for the government to print even more money to make up for the smaller amount revenue that is caused by a slow economy. Stagflation, on the other hand, is a combination of high inflation and high unemployment, which normally go in opposite directions. Krugman does not anticipate either of these things to happen in the near future. This is a good article for students and managers to read. However, it is short on details, it does help leaders understand inflation a little better.
This article was published in the New York Times, and was written by columnist and Princeton professor of Economics and International Affairs Paul Krugman. In it, he explains the difference between Stagflation and Hyperinflation and discusses our economy’s current condition. He states that many are becoming paranoid that hyperinflation is just around the corner, which Krugman does not agree with. Hyperinflation is out of control inflation caused primarily by the government spending more than they can collect and therefore printing new money to cover the deficit spending. This lead to inflation, which leads to the consumer spending less, which causes the need for the government to print even more money to make up for the smaller amount revenue that is caused by a slow economy. Stagflation, on the other hand, is a combination of high inflation and high unemployment, which normally go in opposite directions. Krugman does not anticipate either of these things to happen in the near future. This is a good article for students and managers to read. However, it is short on details, it does help leaders understand inflation a little better.
Wednesday, March 17, 2010
How to Get Employees Innovating
Waghorn, T. (2010). How one company gets its employees innovating. Retrieved March 16, 2010 from: http://www.forbes.com/2010/03/15/bayer-employee-innovation-leadership-managing-engagement.html?feed=rss_home
This article, posted under Forbes’ Leadership section of their website, describes how pharmaceutical giant Bayer AG has developed a system they call “Triple-i: Inspiration, Ideas, Innovation” that generates a great deal on innovative efforts from their employees. The company’s employees are invited to come up with innovative ideas for the company to consider and further develop if they are seen as promising. The company sifts through them and the most promising ones are sent for further research and development and possibly production. They believe that by keeping their employees creative juices flowing, the employees are benefiting from increased job satisfaction and ultimately the company benefits from that aspect and also by getting new ideas for future growth as well. To sift down to the best ideas, each has to pass a five-question test: Is the idea feasible? Is it really a new idea? Is there a need in the market? What is the benefit for the consumer? The last question is: Does the idea fit with the company’s focus, mission, and portfolio? This is an interesting article because it is important to keep employees involved and interested in their jobs and to utilize their creativity to benefit the company as well. Bayer AG is a large company with 108,000 employees, but a similar system would work in small companies as well.
This article, posted under Forbes’ Leadership section of their website, describes how pharmaceutical giant Bayer AG has developed a system they call “Triple-i: Inspiration, Ideas, Innovation” that generates a great deal on innovative efforts from their employees. The company’s employees are invited to come up with innovative ideas for the company to consider and further develop if they are seen as promising. The company sifts through them and the most promising ones are sent for further research and development and possibly production. They believe that by keeping their employees creative juices flowing, the employees are benefiting from increased job satisfaction and ultimately the company benefits from that aspect and also by getting new ideas for future growth as well. To sift down to the best ideas, each has to pass a five-question test: Is the idea feasible? Is it really a new idea? Is there a need in the market? What is the benefit for the consumer? The last question is: Does the idea fit with the company’s focus, mission, and portfolio? This is an interesting article because it is important to keep employees involved and interested in their jobs and to utilize their creativity to benefit the company as well. Bayer AG is a large company with 108,000 employees, but a similar system would work in small companies as well.
Tuesday, March 16, 2010
Are Educators Creating Artificial Stupidity?
Sowell, T. (2010) Educators creating artificial stupidity. Retrieved March 15, 2010 from: http://jewishworldreview.com/cols/sowell031010.php3
In his commentary, published on Jewish World Review’s website and the Paducah Sun on March 15, 2010, Sowell takes a jab at the US educational system and states that they are creating artificial stupidity. He states that people are born ignorant but not stupid but much of the stupidity we see today is induced by our educational system. He further states that educational institutions were created to pass on the knowledge, experiences, and culture of the past but instead have become indoctrination institutions that push notions and ideologies instead of knowledge. People normally outgrow the indoctrinated information with their own life experiences but the danger, he states, is that they get used to hearing one side of an issue and take action without hearing both sides and that students are not developing mental skills that would enable them “to systematically test one set of beliefs against another”. This is an interesting subject that I think students should be interested in. There are certainly good schools and teachers out there that do not fall into the category of indoctrinators but students should be aware that it does go on and they are responsible for their own learning and for developing the skills they need to weigh out different beliefs.
In his commentary, published on Jewish World Review’s website and the Paducah Sun on March 15, 2010, Sowell takes a jab at the US educational system and states that they are creating artificial stupidity. He states that people are born ignorant but not stupid but much of the stupidity we see today is induced by our educational system. He further states that educational institutions were created to pass on the knowledge, experiences, and culture of the past but instead have become indoctrination institutions that push notions and ideologies instead of knowledge. People normally outgrow the indoctrinated information with their own life experiences but the danger, he states, is that they get used to hearing one side of an issue and take action without hearing both sides and that students are not developing mental skills that would enable them “to systematically test one set of beliefs against another”. This is an interesting subject that I think students should be interested in. There are certainly good schools and teachers out there that do not fall into the category of indoctrinators but students should be aware that it does go on and they are responsible for their own learning and for developing the skills they need to weigh out different beliefs.
Sunday, March 14, 2010
Dealing with Adversity
Margolls, J., & Stoltz, P. (2010). How to bounce back from adversity. Retrieved March 14, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/pdf?vid=2&hid=4&sid=caf2c8da-0d93-436e-8238-77d18854ecce%40sessionmgr4
This article was written be Harvard Business professor, Joshua Margolls and Paul Stoltz, founder and CEO of PEAK Learning; it purpose is to describe ways form manager to deal with adversity. They state that managers can build a high level of resilience in themselves and their employees by taking charge of how they think of adversity. That after adversity arises; they must shift from cause-oriented thinking to response-oriented thinking. They describe four lenses that managers must use to view adverse events so they can make the appropriate shift. 1. Control: regardless of whether you can control the factors that cause the adversity or not, it’s important to take the steps now that will help resolve the situation. 2. Impact: try to identify what positive impacts your actions might have. 3. Breadth: is the underlying cause of the problem specific and can it be contained? 4. Duration: How long with the crisis and the lingering effects of it last? They state that psychological studies have shown that the ability to bounce back from adversity hinges on uncovering one’s beliefs about it and shifting how one responds. This article contains useful information for managers because any business situation will eventually run into adverse situation and it is important that managers handle these situations properly.
This article was written be Harvard Business professor, Joshua Margolls and Paul Stoltz, founder and CEO of PEAK Learning; it purpose is to describe ways form manager to deal with adversity. They state that managers can build a high level of resilience in themselves and their employees by taking charge of how they think of adversity. That after adversity arises; they must shift from cause-oriented thinking to response-oriented thinking. They describe four lenses that managers must use to view adverse events so they can make the appropriate shift. 1. Control: regardless of whether you can control the factors that cause the adversity or not, it’s important to take the steps now that will help resolve the situation. 2. Impact: try to identify what positive impacts your actions might have. 3. Breadth: is the underlying cause of the problem specific and can it be contained? 4. Duration: How long with the crisis and the lingering effects of it last? They state that psychological studies have shown that the ability to bounce back from adversity hinges on uncovering one’s beliefs about it and shifting how one responds. This article contains useful information for managers because any business situation will eventually run into adverse situation and it is important that managers handle these situations properly.
Saturday, March 13, 2010
Avoiding the Mistakes That Plague New Leaders
Bennis, W. (2010). Avoiding the mistakes that plaque new leaders. Retrieved March 13, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/detail?vid=1&hid=14&sid=1d304b32-14b9-4529-9197-3887228dbb6a%40sessionmgr10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=43480345#db=buh&AN=43480345
This article is a summary of an interview done with Warren G. Bennis, distinguished professor of business administration at the University of Southern California’s Marshall School of Business. In it, he discusses the mistakes that new leaders tend to make and should try to avoid. He states that there is a myth that leadership is a solo act and that leaders need to be in control of every aspect of the business. Further, he states the truth is that effective leaders need to be “bothered” by others; people that will give the leader “reflective back talk”. I order for this to be effective, there has to be a deep culture of trust and openness between the leader and his direct reports, otherwise the employees will not open up as they should. New leaders need to become good delegators, which will require them to turn loose of control and the desire for perfection. This article is a good tool for managers to read and understand. It can be very difficult for leaders to let go of control of some of the firm’s operations and decision making but to be and effective manager, it is crucial.
This article is a summary of an interview done with Warren G. Bennis, distinguished professor of business administration at the University of Southern California’s Marshall School of Business. In it, he discusses the mistakes that new leaders tend to make and should try to avoid. He states that there is a myth that leadership is a solo act and that leaders need to be in control of every aspect of the business. Further, he states the truth is that effective leaders need to be “bothered” by others; people that will give the leader “reflective back talk”. I order for this to be effective, there has to be a deep culture of trust and openness between the leader and his direct reports, otherwise the employees will not open up as they should. New leaders need to become good delegators, which will require them to turn loose of control and the desire for perfection. This article is a good tool for managers to read and understand. It can be very difficult for leaders to let go of control of some of the firm’s operations and decision making but to be and effective manager, it is crucial.
The Age of Customer Capitalism
Martin, R. (2010). The age of customer capitalism. Retrieved March 12, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/pdf?vid=2&hid=7&sid=43c61009-9208-4aa9-9e24-54be5e8b3de2%40sessionmgr4
This article, published in the Harvard Business Review, discusses the past and present major eras of modern capitalism and suggests that it is time for a new era in today’s business market. The first era began in 1932; its premise was that firms should be managed by professional managers as opposed to the majority owner of the company. The second era, which started in 1976, was shareholder value capitalism, where the main goal of the company was to maximize shareholders’ wealth, which was believed to point companies toward optimal performance. The author states this type of capitalism is flawed because it can become too short-term oriented. Shareholder value is created by raising expectations today about the company’s future. He states that the time has come to move away from this type of management and into consumer-driven capitalism. The basis of this idea is that taking care of the consumer first will lead to success and improved shareholder value will happen as a result. In this type of operation, the CEO is able to concentrate of real business issues that will help the company grow instead of concentrating on shareholders’ expectations. This is an interesting article and I believe the ideas should be considered by all managers. It seems that concentrating on the people that buy your products or services would make sense
This article, published in the Harvard Business Review, discusses the past and present major eras of modern capitalism and suggests that it is time for a new era in today’s business market. The first era began in 1932; its premise was that firms should be managed by professional managers as opposed to the majority owner of the company. The second era, which started in 1976, was shareholder value capitalism, where the main goal of the company was to maximize shareholders’ wealth, which was believed to point companies toward optimal performance. The author states this type of capitalism is flawed because it can become too short-term oriented. Shareholder value is created by raising expectations today about the company’s future. He states that the time has come to move away from this type of management and into consumer-driven capitalism. The basis of this idea is that taking care of the consumer first will lead to success and improved shareholder value will happen as a result. In this type of operation, the CEO is able to concentrate of real business issues that will help the company grow instead of concentrating on shareholders’ expectations. This is an interesting article and I believe the ideas should be considered by all managers. It seems that concentrating on the people that buy your products or services would make sense
Friday, March 12, 2010
Spotting Bubbles on the Rise
Mullainathan, S. (2010). Spotting bubbles on the rise: We have the tools to sound the alarm early. Retrieved March 12, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/detail?vid=1&hid=7&sid=abb23a60-d328-45cf-8382-85d81b846988%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#toc
This article, published in HBR’s Breakthrough Ideas for 2010, discusses the idea of setting up an early warning system that could see a financial bubble as it develops and therefore measures can be taken to minimize or stop it. The author is suggesting that a “bubble committee” be formed and that past data and research in behavioral finance can be used to predict a financial bubble. He further states that the committee would not be able to time when a bubble will burst, only that one exists. Since the market itself is more interested in the timing of a burst, it is important that this initiative be done by the public and not the market. The author states that further research would be needed to make this a reality but with all of the data that is available that it is certainly a viable endeavor. This is an interesting idea that is worth further research because everyone is affected when there is a large market bubble burst such as the one that happen in 2008 and is still being felt in a big way today.
This article, published in HBR’s Breakthrough Ideas for 2010, discusses the idea of setting up an early warning system that could see a financial bubble as it develops and therefore measures can be taken to minimize or stop it. The author is suggesting that a “bubble committee” be formed and that past data and research in behavioral finance can be used to predict a financial bubble. He further states that the committee would not be able to time when a bubble will burst, only that one exists. Since the market itself is more interested in the timing of a burst, it is important that this initiative be done by the public and not the market. The author states that further research would be needed to make this a reality but with all of the data that is available that it is certainly a viable endeavor. This is an interesting idea that is worth further research because everyone is affected when there is a large market bubble burst such as the one that happen in 2008 and is still being felt in a big way today.
Thursday, March 11, 2010
What Really Motivates Workers
Amabile, T., & Kramer, S. (2010). What really motivates workers. Retrieved March 10, 2010 from: http://web.ebscohost.com.ezproxy.waterfield.murraystate.edu/ehost/detail?vid=1&hid=7&sid=abb23a60-d328-45cf-8382-85d81b846988%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN0047193009-4#db=buh&AN=47193009
This article, published in Harvard Business Review, describes the results of a study done to find out what factors are the best motivators for employees. There are five common factors that were studied: recognition, incentives, interpersonal support, support for making progress, and clear goals. In a survey of managers, the majority believed that recognition was the number-one factor. In fact, the factor that ranked last in the survey turned out to be the number-one factor: making progress. Employees that feel they are making progress toward a goal in their workday are the ones with the greatest job satisfaction and have the highest level of motivation. Recognition is still a great motivator that manager should use from time-to-time, but making progress is more of a daily factor that can play a more important role. This is an important subject for managers to understand because if a manager can help an employee learn to reach daily goals to where they can see that they are making real progress, this will go a long way in motivating workers to give their best while on the job.
This article, published in Harvard Business Review, describes the results of a study done to find out what factors are the best motivators for employees. There are five common factors that were studied: recognition, incentives, interpersonal support, support for making progress, and clear goals. In a survey of managers, the majority believed that recognition was the number-one factor. In fact, the factor that ranked last in the survey turned out to be the number-one factor: making progress. Employees that feel they are making progress toward a goal in their workday are the ones with the greatest job satisfaction and have the highest level of motivation. Recognition is still a great motivator that manager should use from time-to-time, but making progress is more of a daily factor that can play a more important role. This is an important subject for managers to understand because if a manager can help an employee learn to reach daily goals to where they can see that they are making real progress, this will go a long way in motivating workers to give their best while on the job.
Wednesday, March 10, 2010
Roaring Out of Recession
Gulati, R., Nohria, N., & Wohlgezogen, F. (2010). Roaring out of recession. Retrieved March 9, 2010 from: http://hbr.org/product/roaring-out-of-recession/an/R1003C-PDF-ENG
This article presents the result of a study published by Harvard Business Review that looks into performance of companies prior to, during, and after the last three periods of recession and also compares the survival/growth strategies the firms used during these periods. They state that neither deep cost cutting nor aggressive investment during recessionary times is a good solution for coming out ahead in the long run. Firms that were able to find the right balance between costs cutting today to survive and investing for the future has the best chance of coming out of the recession ahead of the pack. The authors classify companies and their management approach to recessionary times into four categories types: Preventive-focused, which generally cut cost dramatically; promotion-focused, which invest in offensive moves; pragmatic, which combine defensive and offensive moves; and progressive companies, which use an optimal mix of offensive and defensive moves. The study shows that the progressive companies do better than all the other type firms and about twice as well as the average firm in general. This is a very informative study that gives managers insight into how they should operate their business in recessionary times. There needs to be a balance between costs cutting and new investment in order to survive and flourish during and after these periods.
This article presents the result of a study published by Harvard Business Review that looks into performance of companies prior to, during, and after the last three periods of recession and also compares the survival/growth strategies the firms used during these periods. They state that neither deep cost cutting nor aggressive investment during recessionary times is a good solution for coming out ahead in the long run. Firms that were able to find the right balance between costs cutting today to survive and investing for the future has the best chance of coming out of the recession ahead of the pack. The authors classify companies and their management approach to recessionary times into four categories types: Preventive-focused, which generally cut cost dramatically; promotion-focused, which invest in offensive moves; pragmatic, which combine defensive and offensive moves; and progressive companies, which use an optimal mix of offensive and defensive moves. The study shows that the progressive companies do better than all the other type firms and about twice as well as the average firm in general. This is a very informative study that gives managers insight into how they should operate their business in recessionary times. There needs to be a balance between costs cutting and new investment in order to survive and flourish during and after these periods.
Monday, March 8, 2010
Will I Stay or Will I Go?
McGinn, K., & Milkman, K. (2010). Will I stay or will I go? Cooperative and competitive effects of workgroup sex and race composition on turnover. Retrieved March 8, 2010 from: http://www.hbs.edu/research/pdf/10-066.pdf
This is a working paper published by Harvard Business School and its focus is to study the voluntary and involuntary turnover in knowledge organizations such as consulting firms, law firms, and universities. According to the study, women and minorities are underrepresented at the top levels of such organizations, which contribute to ongoing inequalities in promotion and exit rates because senior executives are the ones that choose who is promoted or cut and they tend to promote those who are similar to themselves, including similarity in gender and race. Additionally, the study shows that demographic similarity with peers, in terms of age and cohort, has been shown to reduce the likelihood of exit. However, the study also concluded that working alongside same sex and same race peers made it more likely that a junior professional would exit so getting the right workgroup composition is a very important task for firms. This is an extensive study they goes into a lot of detail and is worthwhile to read. Although its focus is on knowledge organizations, managers in other organizational types can probably benefit from the study as well.
This is a working paper published by Harvard Business School and its focus is to study the voluntary and involuntary turnover in knowledge organizations such as consulting firms, law firms, and universities. According to the study, women and minorities are underrepresented at the top levels of such organizations, which contribute to ongoing inequalities in promotion and exit rates because senior executives are the ones that choose who is promoted or cut and they tend to promote those who are similar to themselves, including similarity in gender and race. Additionally, the study shows that demographic similarity with peers, in terms of age and cohort, has been shown to reduce the likelihood of exit. However, the study also concluded that working alongside same sex and same race peers made it more likely that a junior professional would exit so getting the right workgroup composition is a very important task for firms. This is an extensive study they goes into a lot of detail and is worthwhile to read. Although its focus is on knowledge organizations, managers in other organizational types can probably benefit from the study as well.
Sunday, March 7, 2010
Stuck in Neutral? Reset the Mood
Shiller, R. (2010) Stuck in neutral? Reset the mood. Retrieved March 6, 2010 from: http://www.nytimes.com/2010/01/31/business/economy/31view.html
This article, which was written by Yale economics professor, Robert Shiller, discusses how the mood on the consumer and businesses are affecting the economic recovery. Fear and pessimism are important factors that drive the economy and according to recent polling data the author quoted, two-thirds of Americans feel that economic recovery will not start for two or more years. Banks are still not lending much now because of their reduced tolerance for risk and because of the uncertain future. The ability for businesses to borrow to fund growth is one of the main keys to economic recovery. The pessimism regarding the economy can become a self-fulfilling prediction, which will result in a delayed recovery and further slow things down. This subject is important to managers because it affects most businesses. It is important for managers to protect the assets of their business, but in order to grow, and survive, it important for managers to find a happy medium between being overly conservative and too aggressive in seeking new ways to do business and to grow. At the same time, it is going to take some loosening of regulations at the banks, which managers will need to push for as well.
This article, which was written by Yale economics professor, Robert Shiller, discusses how the mood on the consumer and businesses are affecting the economic recovery. Fear and pessimism are important factors that drive the economy and according to recent polling data the author quoted, two-thirds of Americans feel that economic recovery will not start for two or more years. Banks are still not lending much now because of their reduced tolerance for risk and because of the uncertain future. The ability for businesses to borrow to fund growth is one of the main keys to economic recovery. The pessimism regarding the economy can become a self-fulfilling prediction, which will result in a delayed recovery and further slow things down. This subject is important to managers because it affects most businesses. It is important for managers to protect the assets of their business, but in order to grow, and survive, it important for managers to find a happy medium between being overly conservative and too aggressive in seeking new ways to do business and to grow. At the same time, it is going to take some loosening of regulations at the banks, which managers will need to push for as well.
Identity and Economic Performance
Heskett, J. (2010). To what degree does "identity" affect economic performance? Retrieved March 6, 2010 from: http://hbswk.hbs.edu/item/6367.html
This article, written by James Heskett, Baker Foundation Professor, Emeritus, at Harvard Business School, discusses ways an organization’s culture can affect its economic performance. He states that people put forth more effort and produce better results for organizations whose values they identify with. So, it is optimal for firms to clearly formulate those values and make them clear to prospective employees. He states that there is evidence that show a correlation between workforce satisfaction and firm performance and that intrinsic rewards play a larger role in satisfaction than monetary compensation does. This article touches on an interesting subject, though in very brief detail. It shows that it is important for leaders to develop a strong organizational culture and to promulgate it and to find employees that will be a good match to the culture.
This article, written by James Heskett, Baker Foundation Professor, Emeritus, at Harvard Business School, discusses ways an organization’s culture can affect its economic performance. He states that people put forth more effort and produce better results for organizations whose values they identify with. So, it is optimal for firms to clearly formulate those values and make them clear to prospective employees. He states that there is evidence that show a correlation between workforce satisfaction and firm performance and that intrinsic rewards play a larger role in satisfaction than monetary compensation does. This article touches on an interesting subject, though in very brief detail. It shows that it is important for leaders to develop a strong organizational culture and to promulgate it and to find employees that will be a good match to the culture.
Saturday, March 6, 2010
Just for Fun and “Awareness”
Transport for London. Retrieved March 6, 2010 from: http://www.youtube.com/watch?v=oSQJP40PcGI#watch-main-area
This is a link to a YouTube video which was designed test your awareness and then has a message that says “it’s easy to miss something you’re not looking for” and then an ending message that states “look out for cyclists”. This video was not designed for business purposes but it does point out that it is easy for things to slip by you if you are distracted with other things, so I believe it has important business and life implications. Take a look!
This is a link to a YouTube video which was designed test your awareness and then has a message that says “it’s easy to miss something you’re not looking for” and then an ending message that states “look out for cyclists”. This video was not designed for business purposes but it does point out that it is easy for things to slip by you if you are distracted with other things, so I believe it has important business and life implications. Take a look!
The Hidden and Heretofore Inaccessible Power of Integrity
Jenses, M., Erhard, W. (2010). Beyond agency theory: The hidden and heretofore inaccessible power of integrity (PDF of keynote slides). Retrieved on March 5, 2010 from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1552009
This paper is a PDF copy of a PowerPoint presentation written by Michael Jensen, Professor Emeritus at Harvard Business School and Werner Erhard. The focus of this presentation is integrity and how it influences increased performance of individuals and organizations. In this writing, the authors state that there is too much emphasis placed of conflict of interest between agents and owners and not enough emphasis on the damage caused by individual conflicts or actions of individuals that are not in their own self interest. They state that integrity problems, which they refer to as an agency problem with one’s self, accounts for one-fourth of the conflicts of interest and that these conflicts cannot be dealt with in the same manner as an agency problems. Integrity is defined, in part, as an unbroken condition or wholeness, so when there is a lack of integrity, things do not work as they should and performance declines. By this definition, performance maximization can only be reached when integrity, among other factors, is in place. The authors also list several clues of out-of-integrity behavior in organizations including: win at any cost, everyone else is doing it, nobody’s hurt by it, and many more. In contrasting integrity to the “Golden Rule”, which leaves you depending on the actions of others; integrity is something you do for yourself and though it affects others around you, it does not require the cooperation of others. This is a very interesting presentation that makes a lot of good points that can affect the performance and production of individuals and firms. This is insightful information that managers and other individuals should read, understand, and use in their daily business dealings and in their lives in general.
This paper is a PDF copy of a PowerPoint presentation written by Michael Jensen, Professor Emeritus at Harvard Business School and Werner Erhard. The focus of this presentation is integrity and how it influences increased performance of individuals and organizations. In this writing, the authors state that there is too much emphasis placed of conflict of interest between agents and owners and not enough emphasis on the damage caused by individual conflicts or actions of individuals that are not in their own self interest. They state that integrity problems, which they refer to as an agency problem with one’s self, accounts for one-fourth of the conflicts of interest and that these conflicts cannot be dealt with in the same manner as an agency problems. Integrity is defined, in part, as an unbroken condition or wholeness, so when there is a lack of integrity, things do not work as they should and performance declines. By this definition, performance maximization can only be reached when integrity, among other factors, is in place. The authors also list several clues of out-of-integrity behavior in organizations including: win at any cost, everyone else is doing it, nobody’s hurt by it, and many more. In contrasting integrity to the “Golden Rule”, which leaves you depending on the actions of others; integrity is something you do for yourself and though it affects others around you, it does not require the cooperation of others. This is a very interesting presentation that makes a lot of good points that can affect the performance and production of individuals and firms. This is insightful information that managers and other individuals should read, understand, and use in their daily business dealings and in their lives in general.
Friday, March 5, 2010
A New Model of Leadership
Jensen, M., Scherr, A. (2007). A new model of leadership (PDF file of keynote slides). Retrieved March 5, 2010 from: http://papers.ssrn.com/abstract=982630
This paper is a PDF copy of a PowerPoint presentation written by Harvard Professor Emeritus Michael Jensen and Allen Scherr. Its purpose is to introduce and explain a new definition of leadership. The presentation begins by defining a leader as a person with both the commitment to produce results whose realization would be considered extraordinary given the current circumstances and also have the integrity to see the commitment through. The presentation compares leadership vs. management; problem vs. breakdown, where a breakdown is seen as a challenge as opposed to a problem; a leadership plan vs. a management plan; and an assertion vs. a declaration. This presentation is informative, though brief; however, it does give managers (or leaders) insight into different ways to view and approach the role of leadership in most any type of business setting.
This paper is a PDF copy of a PowerPoint presentation written by Harvard Professor Emeritus Michael Jensen and Allen Scherr. Its purpose is to introduce and explain a new definition of leadership. The presentation begins by defining a leader as a person with both the commitment to produce results whose realization would be considered extraordinary given the current circumstances and also have the integrity to see the commitment through. The presentation compares leadership vs. management; problem vs. breakdown, where a breakdown is seen as a challenge as opposed to a problem; a leadership plan vs. a management plan; and an assertion vs. a declaration. This presentation is informative, though brief; however, it does give managers (or leaders) insight into different ways to view and approach the role of leadership in most any type of business setting.
Wednesday, March 3, 2010
Management and the Financial Crisis
Sahlman, W. (2009). Management and the financial crisis (We have met the enemy and he is us …). Retrieved March 3, 2010 from: http://www.hbs.edu/research/pdf/10-033.pdf
This is a working paper published by Harvard Business School and was written by HBS professor, William Sahlman. In the paper, Sahlman give a comprehensive description of what he believes led to the financial collapse in the past two years and what he believes should happen to keep such a calamity from happening again. He states that the cause of this crisis can be boiled down to failures of five managerial systems: incentives, relating to risk and reward; control and information technology, referring to limits on behavior; accounting, how managers choose accounting policies; human capital, the management of people; and culture, referring to the values of the people. He further states that there were several economic indicators in the US economy that were pointing toward the crisis in advance of the collapse. These include: slow growth in personal income, zero savings rates, large structural deficits in the federal budget, and increase leverage on the personal, business, and government level. He concludes that making the right changes in the five managerial systems list above will help to shield against future crisis’ such as the current one. This is a very interesting paper that gives a lot of insight to the things that managers and governing board of directors should be looking at as they make decisions in the direction to take their company and how to manage their risk along the way.
This is a working paper published by Harvard Business School and was written by HBS professor, William Sahlman. In the paper, Sahlman give a comprehensive description of what he believes led to the financial collapse in the past two years and what he believes should happen to keep such a calamity from happening again. He states that the cause of this crisis can be boiled down to failures of five managerial systems: incentives, relating to risk and reward; control and information technology, referring to limits on behavior; accounting, how managers choose accounting policies; human capital, the management of people; and culture, referring to the values of the people. He further states that there were several economic indicators in the US economy that were pointing toward the crisis in advance of the collapse. These include: slow growth in personal income, zero savings rates, large structural deficits in the federal budget, and increase leverage on the personal, business, and government level. He concludes that making the right changes in the five managerial systems list above will help to shield against future crisis’ such as the current one. This is a very interesting paper that gives a lot of insight to the things that managers and governing board of directors should be looking at as they make decisions in the direction to take their company and how to manage their risk along the way.
Monday, March 1, 2010
A Golden Opportunity for Ford and GM
George, B. (2010). A golden opportunity for ford and GM. Retrieved March 1, 2010 from: http://hbswk.hbs.edu/item/6379.html
This article, written by Harvard Business School professor Bill George, gives advice to Ford and GM in how they can benefit in the long run because of the crisis Toyota is going through. In the short term, it is be easy for Ford and GM to sell more cars because Toyota has lost the confidence of the consumer and the company has a lot of work to do fix the problems they have before they can rebuild the consumer confidence that has been lost. The author states that the long-run gain in market share is what Ford and GM need to set their sights on. Ford and GM need to invest this windfall of new revenue into developing vehicles that will move them into the future. To become more competitive in the long run, they need invest more into fuel-efficient vehicle development as well as in improved quality and better customer value. This article discusses an important lesson in business because many leaders are reactive as situation come their way and not proactive in making things happen. It is a lot easier for manager to react to an opportunity like Ford and GM face by making the best of the short-term gains. But proactive steps are also important and can make a big difference in the long run. This lesson is true in most business environments.
This article, written by Harvard Business School professor Bill George, gives advice to Ford and GM in how they can benefit in the long run because of the crisis Toyota is going through. In the short term, it is be easy for Ford and GM to sell more cars because Toyota has lost the confidence of the consumer and the company has a lot of work to do fix the problems they have before they can rebuild the consumer confidence that has been lost. The author states that the long-run gain in market share is what Ford and GM need to set their sights on. Ford and GM need to invest this windfall of new revenue into developing vehicles that will move them into the future. To become more competitive in the long run, they need invest more into fuel-efficient vehicle development as well as in improved quality and better customer value. This article discusses an important lesson in business because many leaders are reactive as situation come their way and not proactive in making things happen. It is a lot easier for manager to react to an opportunity like Ford and GM face by making the best of the short-term gains. But proactive steps are also important and can make a big difference in the long run. This lesson is true in most business environments.
Subscribe to:
Posts (Atom)
