Category Archives: Psychology

Don’t ask employees to be passionate about the company!

Don’t ask employees to be passionate about the company! People ask me, “How can I get our employees to be passionate about the company?” Wrong question. Passion for our employer, manager, current job? Irrelevant. Passion for our profession and the kind of work we do? Crucial. If I own company FOO, I don’t need employees with a passion for FOO. I want those with a passion for the work they’re doing. As we discussed in Stop Demotivating Employees Douglas McGregor … Continue reading →

Posted in Creativity, Management, Psychology, Respect, Software Development

Compensation at Whole Foods

Compensation at Whole Foods Market [the link that Whole Foods broke was removed] Most large companies also pay their executives large amounts of stock options in addition to large salaries and cash bonuses. However, this is not the case at Whole Foods Market. As the chart below indicates, the average large corporation in the United States distributes 75% of their total stock options to only 5 top executives with the remaining 25% going to everyone else in the company (actually … Continue reading →

Posted in Management, Psychology, Respect, Systems thinking | Tagged , , , | 1 Comment

Motivating People to Change

Don’t miss a nice series of posts by Jon Miller: How to Motivate People to Change – part 1, part 2, part 3. [links broken, so removed 🙁 ] Success may come in the short term when motivation is through a combination of fear and reward centering on financial safety and security, belonging to a group and achievement of status… There is some question as to whether this type of approach to motivation is sustainable, and at the very least … Continue reading →

Posted in Deming, Lean thinking, Management, Psychology, Respect, Toyota Production System (TPS) | Tagged , , ,

Making Better Decisions

Comment on: When Times Are Tough, Do You Make Better Decisions? [the broken link was removed] When times are tough you are more likely to do something – take some action, make some decision. When times are good, many are content to let things go: not make any tough decisions or any that might upset someone… When in a bind it is accepted that something has to be done, so you can often get past the “we are doing ok, … Continue reading →

Posted in Management, Process improvement, Psychology | Tagged , | 1 Comment

The Psychology of Too Much Choice

An understanding of psychology is one of the four components of Dr. Deming’s management system. This understanding lies behind practices such as: driving out fear, respect for people and eliminating slogans. In an organization all the components (practices, processes, investments, training, people, suppliers, customers…) interact with the others. Dr. Deming tried to develop a system that took that reality into account. This reminds me of Einstein’s thought that “Everything should be made as simple as possible, but not simpler.” Often … Continue reading →

Posted in Customer focus, Deming, Management, Psychology | Tagged | 2 Comments

Epidemic of Diagnoses

What’s Making Us Sick Is an Epidemic of Diagnoses by Dr. Welch, Dr. Schwartz and Dr. Woloshin: For most Americans, the biggest health threat is not avian flu, West Nile or mad cow disease. It’s our health-care system. True, and probably the biggest economic threat too. See: Deming’s Seven Deadly Diseases and Health Insurance Premiums Soar Again. But it also leads to more diagnoses, a trend that has become an epidemic. This epidemic is a threat to your health. It … Continue reading →

Posted in Deming, Health care, Management, Process improvement, Psychology, Quality tools | Tagged , , , , , | 4 Comments

Why Extrinsic Motivation Fails

Why Motivation by Pizza Doesn’t Work This completely changes the role of the manager as motivator. Rather than being the source of motivation (kind of a ludicrous idea in itself), the manager must help employees to find their own intrinsic motivation. Lean thinkers understand this idea as respect for people. Dr. Deming talked about joy in work. Douglas McGregor talked about theory x and theory y thinking. All of these perspectives incorporate an understanding of workplace systems and human psychology. … Continue reading →

Posted in Deming, Management, Psychology, Respect | Tagged , , , , | 5 Comments

The Illusion of Understanding

The “Illusion of Explanatory Depth”: How Much Do We Know About What We Know? (broken link 🙁 was removed) is an interesting post that touches on psychology and theory of knowledge. Often (more often than I’d like to admit), my son… will ask me a question about how something works, or why something happens the way it does, and I’ll begin to answer, initially confident in my knowledge, only to discover that I’m entirely clueless. I’m then embarrassed by my … Continue reading →

Posted in Deming, Management, Psychology | Tagged , , | 6 Comments

Righter Performance Appraisal

Speaking of “doing the wrong things righter” Microsoft has eliminated forced rankings in performance appraisal: to do performance appraisals righter. Microsoft exec puts her stamp on human resources: The forced curve was company policy. And it climbed up a list of employee gripes that grew as Microsoft’s stock, which accounts for much of the company’s compensation, languished. In May, after barely a year as Microsoft’s human-resources chief, Lisa Brummel swept away “artifacts of the past,” starting with the widely disliked … Continue reading →

Posted in Data, Management, Performance Appraisal, Psychology, Systems thinking | Tagged , , , , | 1 Comment

Why Pay Taxes or be Honest

This kind of stuff makes me mad. I was taught about robber barons in school (or actually I think by my uncle but…). And what I was taught was that business used to be seen as an amoral area. But then society agreed (or rather it no longer was an accepted excuse to claim business was an amoral area) that morality applied to whatever you did, whether you were at work, or not. But we keep getting these continuing examples … Continue reading →

Posted in Economics, Management, Psychology | Tagged , , , , , | 2 Comments

Excessive CEO Pay

Overpaid CEOs and Underpaid Managers: Fairness and Executive Compensation by James B. Wade, Charles A. O’Reilly, III and Timothy G. Pollock: We also find evidence suggesting that CEOs serve as a key referent for employees in determining whether their own situation is “fair,” and this influences their reactions to their own compensation. More specifically, we find that when lower-level managers are underpaid relative to the CEO, that is, underpaid more than the CEO or overpaid less, they are more likely … Continue reading →

Posted in Deming, Management, Psychology, Respect, Systems thinking | Tagged , , , , ,

Incentive Programs are Ineffective

Reward and Incentive Programs are Ineffective — Even Harmful by Peter Scholtes The greatest management conceit is that we can “motivate” people. We can’t. Motivation is there, inside people. Our people were motivated when we hired them and everyday, when they come to work, they arrive with the intention of doing a good job. Managers cannot motivate. They can, however, de-motivate. Herzberg established this over 30 years ago (Herzberg, Frederick “One More Time: How Do You Motivate Employees?” Harvard Business … Continue reading →

Posted in Deming, Management, Psychology, Respect | Tagged , , , , | 1 Comment

Lean Thinking at United

Mark Graban gives a nice review of some material on web site of a United labor union in: An Encouraging Lean Example at United Airlines. From the union web site, he quotes: “Once fully implemented, the 5S+1 process can increase morale, create positive impressions on customers, and increase efficiency and organization. Not only will team members feel better about where they work, the effect on continuous improvement can lead to less waste, better quality and faster lead times.” It is … Continue reading →

Posted in Lean thinking, Management, Psychology

Senge and Deming

Jeff Sutherland quoting Dr. Deming‘s response to Peter Senge request for a comment on his book, The Fifth Discipline: “Our prevailing system of management has destroyed our people. People are born with intrinsic motivation, self-respect, dignity, curiosity to learn, joy in learning. The forces of destruction begin with toddlers—a prize for the best halloween costume, grades in school, gold stars—and on up through the university. On the job, people, teams, and divisions are ranked, rewarded for the top, punished for … Continue reading →

Posted in Deming, Management, Psychology, Respect, Systems thinking | Tagged , , ,

Lean Leaders

Lean leaders [the broken link was removed] by April Terreri: Tim Corcoran, vice president of ZF Sales & Services, NA, LLC, that re-manufactures automotive transmissions and steering systems in Vernon Hills, IL. “We had a number of false starts by implementing tools like kaizen, value stream mapping and the 5Ss,” he admits. “We found it’s really about the thinking and how we approach work.” Once he and his first-line managers participated in a lean workshop at Lean Learning Center, everything … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Psychology, Quality tools | Tagged , , ,

Eliminate Slogans

This poster may do a better job, than my posts, of showing why posters and slogan are not an effective management strategy. Text from the poster: “If a pretty poster and a cute saying are all it takes to motivate you, you probably have a very easy job. The kind robots will be doing soon.” Despair (link to the motivation poster shown here), offers many such de-motivational posters and note cards – well done satire, in my opinion, but they … Continue reading →

Posted in Books, Deming, Management, Popular, Psychology, quote, Respect | Tagged , | 3 Comments