Managing for Success: A Comparison of the Private and Public Sectors

Abstract

Declining productivity in the United States has become a persistent concern of economic and business analysts over the past five years, and, as the decline continues so does the search for solutions. Theories on the reasons behind the decline cover a broad spectrum of both myth and reality that range from the antiquity of the American manufacturing plant to the collapse of the work ethic among our country's young people. Dozens of organizations have attempted to solve their productivity problems by application of various innovative management techniques that have recently achieved prominence. Foremost among these have been initiatives associated with the so-called Japanese style of management, and particularly practices that are intended to foster greater worker involvement in the organization. Numerous publications have reported on successful adoptions of the Japanese management style or other innovative techniques to transform poorly performing organizations into productive, profitable ones. More recently, however, accounts are emerging which detail the plight of organizations in which attempts at productivity improvement have failed. This has been especially true with respect to the increasingly popular quality control circle concept. What has apparently occurred in many of these situations is that basically unhealthy organizations have looked to the piecemeal adoption of certain management techniques as a cure for all or too many of their ills. A real danger exists that the management styles that have recently come into vogue may be seen as a panacea for deep-rooted organizational problems. The adoption of pre-packaged productivity improvement plans by basically unhealthy organizations might succeed in some cases. In many instances, however, this may simply divert attention from the fundamental management practices that have enabled some organizations to remain healthy and successful throughout the vacillations in the American productivity cycle. A study of ten highly successful organizations, five in the public sector, and five in the private sector, reveals certain interesting principles and practices of management.' Some of these organizations embody the new, Japanese-style or Theory Z management techniques; others are experimenting with selected devices, such as quality circles; still others have no formal productivity improvement programs at all.2 Each is well-managed and highly productive, and each has a great deal to offer in improving our understanding of how both private and public organizations can be successful and productive.