Management Redeemed

Frederick G. Hilmer and Lex Donaldson challenge five of the most widely held beliefs about management. Drawing on examples from GE, Microsoft, Nike, Ford, Gillette, and other corporations, as well as on years of research from top business scholars, Management Redeemed argues that multiple layers of management and formal hierarchical structure actually help to make organizations more productive. Supporting another equally contrarian position, the authors demonstrate that reflection, analysis, and intellectual activity are as important to managerial success as quick action and intuition. They also warn against the dangers of corporate culture and quick-fix solutions such as TQM, reengineering, value-based planning, benchmarking, niche marketing, and gainsharing. And finally, in one of their most surprising revelations, Hilmer and Donaldson rebut the notion that independent boards are necessary to ensure that management works in the best interest of the shareholders. In fact, their evidence illustrates that boards with a majority of outside directors generally underinvest in R&D, retarding corporate success.
In contrast to all who decry managers and management, Hilmer and Donaldson have a strikingly positive view of managers. And, unlike those who predict the imminent extinction of managers, these authors foresee a larger role for them in the corporations of the future. Rather than doing away with classical management, Hilmer and Donaldson urge that it be upgraded to a profession on par with medicine, engineering, law, or architecture. To meet that standard, the authors say, corporations, business schools, and professional associations must work together to establish a firm set of ideals and ethics, a sound body of required knowledge, and a clear, jargon-free vocabulary.

Lex Donaldson is Professor of Organizational Design at the Australian Graduate School of Management, University of NSW.