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Eric Grosch, Letter to Dr. Morgenstern on LOR - Semmelweis ...

Eric Grosch, Letter to Dr. Morgenstern on LOR - Semmelweis ...

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. Carry out the change or test decided up<strong>on</strong>, preferably <strong>on</strong> a small scale.<br />

c. Observe the effects of the change or test.<br />

d. Study the results. What did we learn? What can we predict?...(Deming 1986, 88)<br />

5. A leader will discover who if any of his people is (a) outside the system <strong>on</strong> the good side, (b)<br />

outside <strong>on</strong> the poor side, (c) bel<strong>on</strong>ging <str<strong>on</strong>g>to</str<strong>on</strong>g> the system. The calculati<strong>on</strong>s required...are...simple if<br />

numbers are used for measures of performance. Ranking of people...that bel<strong>on</strong>g <str<strong>on</strong>g>to</str<strong>on</strong>g> the system<br />

violates scientific logic and is ruinous as a policy,...<br />

In the absence of numerical data, a leader must make subjective judgment. A leader will spend<br />

hours with every <strong>on</strong>e of his people. They will know what kind of help they need...<br />

People...<strong>on</strong> the poor side of the system will require individual help....(Deming 1986 117)...<br />

7. Hold a l<strong>on</strong>g interview...three or four hours, at least...not for criticism, but for help<br />

and...everybody[‘s]...better understanding...<br />

8. Figures <strong>on</strong> performance should be used not <str<strong>on</strong>g>to</str<strong>on</strong>g> rank the people...that fall within the system, but<br />

<str<strong>on</strong>g>to</str<strong>on</strong>g> assist the leader <str<strong>on</strong>g>to</str<strong>on</strong>g> accomplish improvement of the system...(118)<br />

...Running a company <strong>on</strong> visible figures al<strong>on</strong>e (counting the m<strong>on</strong>ey). One can not be successful <strong>on</strong><br />

visible figures al<strong>on</strong>e...he that would run his company <strong>on</strong> visible figures al<strong>on</strong>e will in time have<br />

neither company nor figures.<br />

...the most important figures...are unknown and unknowable..., but successful management must<br />

nevertheless take account of them. Examples.<br />

Fallacies of reward for winning in a lottery. A man in the pers<strong>on</strong>nel department of a large<br />

company came forth with an idea, held as brilliant...<str<strong>on</strong>g>to</str<strong>on</strong>g> reward the <str<strong>on</strong>g>to</str<strong>on</strong>g>p (274) man of the m<strong>on</strong>th <strong>on</strong><br />

a certain producti<strong>on</strong> line (the man that made the lowest proporti<strong>on</strong> defective over the m<strong>on</strong>th) with<br />

a citati<strong>on</strong>. There would be a small party <strong>on</strong> the job in his h<strong>on</strong>or, and he would get half a day off.<br />

This might be a great idea if he were indeed an unusual performer for the m<strong>on</strong>th. There were 50<br />

men <strong>on</strong> the producti<strong>on</strong> line.<br />

Do the results of inspecti<strong>on</strong> of their work form a statistical system...? If the work of the group<br />

forms a statistical system, then the prize would be merely a lottery...if the <str<strong>on</strong>g>to</str<strong>on</strong>g>p man is a special<br />

cause <strong>on</strong> the side of low proporti<strong>on</strong> defective, then he is indeed outstanding. He would deserve<br />

recogniti<strong>on</strong>, and he could be a focal point for teaching men how <str<strong>on</strong>g>to</str<strong>on</strong>g> do the job.<br />

There is no harm in a lottery...provided it is called a lottery. To call it an award of merit when the<br />

selecti<strong>on</strong> is merely a lottery...is <str<strong>on</strong>g>to</str<strong>on</strong>g> demoralize the whole force, prize winners included. Everybody<br />

will suppose that there are good reas<strong>on</strong>s for the selecti<strong>on</strong> and will be trying <str<strong>on</strong>g>to</str<strong>on</strong>g> explain and reduce<br />

differences between men. This would be a futile exercise when the <strong>on</strong>ly differences are random

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