Tuesday, 16 April 2013

Social Media's Impact on Personal Life



I have been on vacation the past week or so and am currently on personal leave to finish writing my dissertation proposal (which, as you can see, I am procrastinating!) During my vacation, I swore I would take a break from blogging, Twitter, email, and all things electronic.
I admit - I did honestly make the attempt and in fact, did not turn on my computer one time.  However, the iPad is a constant companion, especially since the books I am reading (currently, the Game of Thrones series) are on there, so I had the iPad with me a lot - even on the beach.  It was very easy to check if I had emails, to check out my Facebook or to send a Twitter or two.  Long story short, I failed miserably at the disconnecting aspect.
Which brings me back to the question of does social media impact personal life? The obvious answer in my case is a resounding yes. Is this impact good or bad? The answer to that: it depends. On vacation, while at the beach, sitting in my beach chair under the canopy, I took pictures with my iPad and posted them to Facebook.  This was a good benefit to my personal life, as it kept a record of the vacation, captured moments that were happening right then and there, let friends and family see what was going on, and allowed all the friends we were vacationing with to have pictures they could tag and keep as memories.

Social Media Impact on Socity


 However, while in same beach chair under same canopy, I also checked my email because, gosh darnit, I just can't help myself!  This was a BAD impact on my personal life because clearly, I was NOT escaping my work and truly enjoying the vacation. Granted, I did mostly just read or delete the emails versus responding, but the fact that I was constantly connected to work is an aspect of social media that interferes with personal life.  Obviously, I could turn off the email, but I don't, and I would imagine there are many others like me who can't turn off as well.
 I also tweeted while on vacation.  Not on a daily basis, but I definitely did tweet.  I found this the second most difficult thing to avoid on vacation besides email. Those of you who tweet know that a daily presence is important, and so I felt as if I was missing out on things, which means this social media tool has a bad impact on my personal life - feeling guilty that I am not posting because a) I am missing information posted by those I follow and/or b) I might lose followers due to long-term silence in the twittersphere. I couldn't help myself - I did participate in the weekly #edchat on Tuesday.  At the beach again, in my chair....but there it is - I was giving an entire hour of my vacation and time with friends to connect with my PLN.  Bad impact or good impact on my personal life? A little of both I would think.  Bad because I took that time away from the family and friends I was currently with, but good because I was connecting with people I 'know' virtually and sharing and getting ideas. (And - let's admit it - pretty cool that I could do it on the beach!!)
I did not blog - the one thing I managed to control.  However - I felt extreme guilt that I was not blogging, since it's now been well over a week with no post. So - this is a bad impact of social media on personal life - the guilt.  I don't know about those of you who blog or tweet or Facebook, but I personally feel a constant sense of guilt if I am NOT posting regularly.  And the funny thing is, I don't really know that anyone besides me cares that I don't post - heck, I don't even know if there are people out there reading what I write or are interested in what I have to say, but I feel a sense of responsibility to post, and when I don't, I feel guilty.  The fact that every day I think about what I could post to Twitter or Linked In, and that I am constantly, in every aspect of what I do, thinking about whether it would make an interesting blog post or tweet, means that social media is impacting my personal life on a daily basis.

 My conclusion - social media definitely impacts personal life.  How much is up to the individual person. And whether it's a good impact or bad impact depends on the situation, the time, and the reason.  Social media and the folks you connect with via social media channels do become part of your personal life, so it's a matter of balancing the live experiences with the virtual experiences and knowing when to disconnect.  Balance is the key and clearly I need to work on my balancing act!


Tuesday, 13 November 2012

What is Citizen journalism


The concept of Citizen journalism (also known as "public", "participatory", "democratic "guerrilla"  or "street journalism"  derives from public citizens "playing an active role in the process of collecting, reporting, analyzing, and disseminating news and information." Citizen journalism should not be confused with community journalism or civic journalism, which are both practiced by professional journalists. Citizen journalism should also not be confused with collaborative journalism, which is practiced by professional and non-professional journalists working together. Citizen journalism is a specific form of citizen media as well as user generated content.

New media technology, such as social networking and media-sharing websites, and the increasing prevalence of cellular phones have made citizen journalism more accessible to people all over the world, who can often report breaking news much faster than traditional journalistic organs. Notable examples of citizen journalism being used to report major world events include the Arab Spring and the Occupy movement. At the same time, the unregulated nature of citizen journalism has drawn criticism from professional journalists for being too subjective, amateurish, and haphazard in quality and coverage.

Thursday, 12 April 2012

Media Management

Objective: The objective of the lecture is to inculcate among the students of Mass Communication, an understanding of the media organizational structures and management hierarchies. For this purpose, the lecture has been divided into two parts. Part one deals with generalized/typical management structures for both print and electronic media. In the second part, management structures used in the Pakistani media (both public and private) have been discussed.
Hierarchy is the order in which authority is organized. Management hierarchy is a means to distribute power and allocate resources in an organization. This structure is the marketplace's inheritance from feudalism and monarchy. It works well if leaders are benevolent and falls apart when leaders put their own interests above those of the organization.
The newsroom hierarchy is the manner in which a news-gathering operation is organized. The complexity of the hierarchy changes with the size of the news entity. A very small, weekly newspaper might have a hierarchy of just two people, an editor and a reporter. A very large organization might have several layers of editors and reporters.


Upper-level management in newspapers 


At the top of the organizational chart stands the editor, according to JProf, an online guide for journalism instructors. The editor is tasked with setting editorial policy and overseeing the newsroom budget. In many cases, the editor is a member of the editorial board. Below the editor stands the managing editor, responsible for the day-to-day operations of the newsroom. A managing editor ensures that deadlines are met and often decides, in consultation with other members of management, which stories go on the front page. Several editors may report to the managing editor, including the chief of the copy desk, the chief of the design desk, and section editors, such as the business editor, features editor, sports editor and photo editor. 

Newspaper middle management 

Several editors may report to the managing editor, including the chief of the copy desk and the chief of the design desk, and section editors, such as the business editor, features editor, sports editor and photo editor. Each section editor may have a deputy or assistant editor. Below the section editors stand the reporters. Photographers report to the photo editor. Designers, who organize the physical layout of words, headlines and pictures, report to the design chief. Reporters report to the section editors or their deputy. Members of the copy desk read stories to ensure grammar, accuracy and taste. They also write headlines. 

Television newsroom 

Television newsrooms differ slightly in their organizational chart. At the top is the news director, whose job most closely resembles that of the managing editor in a newspaper in that it manages the day-to-day operations, according to an organizational chart compiled by the Council on Great City Schools. In some cases, a well-known anchorman may outrank the news director and may exercise significant judgment over presentation of the news broadcast. The newsroom manager may have an assistant. Reporting to the news director are an anchor or executive producer, who manage production of content and provide guidance for the development of stories. Producers book satellite feeds and manage the timing of the show. They report to an executive producer or anchor. Assignment editors, who may also report to the anchor or executive producers, assign stories to reporters based on tips, items on the newswires and competitors' broadcasts. Reporters generally report to producers. In addition to reporters are video editors and photographers. Erica Gormley, in "Writing and Producing the News," presents an organizational chart in which video editors and photographers report to the chief of photography. One recent trend, enabled by
smaller cameras and more reliable mobile technology, is the development of the backpack reporter, who shoots, edits and writes his or her own stories. 

Web 

The role of Internet operations differs from newsroom to newsroom, reflecting, perhaps, the newness of Internet operations. In some cases, Internet operations are completely set apart from the newsroom. They have access to news content, but little say in its development. In other operations, Internet operations are closely intertwined with the newsroom and may have a role in selection and allocation of resources. Web staffers may report to the managing editor or editor in the newspaper. In TV newsrooms, the Web staff may report to the news director. In some news operations, the Internet staff is a completely separate business unit. 

Non-newsroom managers 

In newspapers, the editor reports to the publisher, who oversees the business operations of the newspaper. The publisher usually has a say in the development of opinion-based editorials, but is not considered a member of the newsroom. Similarly, the ad director at both types of news organizations is not a member of the newsroom. 

Changes in newsroom hierarchy 

In response to intense pressure from the Internet, some newsrooms have reformatted their hierarchy. In some cases, this is done to reduce the number of layers of management.

Media Management- an introduction

Objective: The objective of the lecture is to introduce the students of Mass Communication with the concept of media management; its distinction as a sub-field of management, communication plan, business policy, policy development and implementation and the functions of managers of media organizations.
Peter Drucker (1993) defined management as “Supplying knowledge to find out how existing knowledge can best be applied to produce results is, in effect, what we mean by management. But knowledge is now also being applied systematically and purposefully to determine what new knowledge is needed, whether it is feasible, and what has to be done to make knowledge effective. It is being applied, in other words, to systematic innovation.”
“Media Management” characterises the process of leading and directing all or part of a media organization through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).
Lavine and Wackman (1988) have identified five characteristics that differentiate media industries from other types of businesses. These include (a) the perishable commodity of the media product, (b) the highly creative employees, (c) the organizational structure, (d) the societal role of the media (e.g awareness, influence) and (e) the blurring of lines separating traditional media. Ferguson (1997) also discussed these distinctions in a call for a domain of media management grounded in theoretical development. Caves (2000) offers a distinction between media firms and other businesses through the theory of contracts and the differences involved in dealing with creative individuals and demand uncertainty. Given the unique nature of the media, the study of the management of media enterprises, institutions, and personnel evolved quite naturally over time. Today, media management is a global phenomenon, and research and inquiry in the field of media management crosses interdisciplinary lines, theoretical domains, and political systems.
Media management stands apart as a distinct sub-field of management for two primary reasons. The first is that, from an economic standpoint, the products produced by media firms are quite distinct from the products produced by firms in other industries. Media firms produce content for distribution to audiences and audiences for distribution to advertisers. Both of these products—content and audiences—have a number of distinctive economic characteristics that effectively differentiate the media industries from other industries in the local and global economies. Consequently, managers operating in the content and audience markets require specialized training and a specialized understanding of the unique dynamics of the marketplaces in which they are operating in order to make effective strategic and managerial decisions.
The second reason that media management stands apart as a distinct subfield of management has to do with the unique position that media firms—and their output— occupy in the political and cultural life of the nations in which they operate. Media firms are, of course, more than economic entities. Media firms also have the ability—and, in some contexts, the obligation—to have a profound impact on the political and cultural attitudes, opinions, and behaviors of the audiences who consume their products.
It is because of this unique potential for cultural and political influence, and the enormous responsibility that accompanies it, that the concept of the public interest long has been central to the operation of media organizations and to the decision making of media managers. The public interest concept encompasses those concerns beyond audience or profit maximization that are at the core of what media managers must consider in their day-to-day decision making. More so than in most other industries, managers in media firms must think about the impact of their decisions on the political and cultural welfare of their consumers. The nature of these concerns can be far reaching, involving issues such as the possible effects of violent television programming on children, the effects of news coverage (or lack thereof) of political campaigns on political knowledge and political participation, or whether programming is effectively serving the needs and interests of all segments of the community, including minority segments.

Key Functions of Media Management: 

* To analyse and evaluate both the existing and potential media activities and strategies
* To conduct, gather and analyse market research to determine new opportunities and competitiveness
* To identify, manage, coordinate and execute media programmes
* To work closely with other organizations to ensure tight integration of all media programmes and activities
* To develop unique value propositions, business partnerships and programmes targeted toward key customer segments.
* To develop benchmark criteria to measure the effectiveness of media programmes and implement improvements as needed
* Public participation
* Community education
* Collaboration with internal stakeholders
* Measurement of success of media activities.

Strategic Media Management

Objective: This lecture focuses on the way media organisations develop their strategies, different categories of media organisations on the basis of difference of strategies, media strategic network development and different characteristics of media products.

When applied in a media industry setting, the emphasis in strategy, by nature, shifts the central question of how media firms, at the aggregated level, meet the needs of audiences, advertisers, and society and the factors that have an impact on the production and allocation of media goods/services to how individual media firms’ various actions obtain competitive advantage and superior performance in the marketplace.
A media strategy study may be defined as the examination of one or more aspects of the financial, marketing, operations, and personnel functions that lead to the sustainable competitive advantage (SCA) of a firm or a group of firms in media industries.

THEORETICAL FOUNDATIONS IN STRATEGIC MANAGEMENT 

From the Beginning: The Industrial Organization (IO)

View of Strategy 

As mentioned earlier, the study of strategic management has its roots in industrial economics. Based primarily on industrial organization concepts, the discipline has tradition ally focused on the linkage between a firm’s strategy and its external environment. Such a linkage is especially evident in the Structure-Conduct-Performance (SCP) paradigm proposed by Bain (1968) and popularized with a strategic flavor by Porter (1985). Specifically, the foundation of strategic management as a field may be traced to Chandler’s definition of strategy as a set of managerial goals and choices, distinct from a structure, and the allocation of resources necessary for carrying out these goals (Chandler, 1962). In a sense, the industry structure in which a firm chooses to compete determines the state of competition, the context for strategies, and, thus, the resulting performance of the strategies (Collis & Montgomery, 1995; Grant, 1991). Process-wise, the IO approach of developing competitive advantage begins with examining the external environment, followed by locating an industry with high potential for above average returns. A strategy is then formulated to benefit from the exogenous factors, and assets and skills are developed to effectively implement the chosen strategy (Hitt, Ireland, & Hoskisson, 2001).
Some have argued that one of the most significant contributions to the development of strategic management came from industrial economics paradigms, especially the work of Michael Porter. His SCP model and the notion of strategic groups, where firms are clustered into groups of firms with strategic similarity within and differences across groups, have established a foundation for research on competitive dynamics (Hoskisson et al1999). As economics scholars gradually adopt other theories such as “game theory,” “transaction costs economics,” and “agency theory,” strategic management research moves closer to firm level and competitive dynamics (Hoskisson et al.). Beginning in the late 1980s, business scholars, seeking to explain the impact of firm attributes/behavior, such as diversification, vertical integration, and technological experience on performance (Lockett & Thompson, 2001), started investigating an inside–out, resource-based view of strategy.
The Arrival of Internal Competency: The Resource-Based View (RBV) of Strategy
Emphasizing the critical value of the internal resources of a firm and the firm’s capabilities to manage them, the resource-based view (RBV) assumes that each firm is a collection of unique resources that provide the foundation for its strategy and lead to the differences in each firm’s performance (Hitt et al., 2001; Peteraf, 1993; Wernerfelt, 1984). The RBV of the firm grew out of a need to identify the sources of the differential performance of firms (Hoskisson et al., 1999). The RBV literature stresses that a firm’s heterogeneous resources are the foremost factors influencing performance and sustainable competitive advantage.
According to the RBV, four specific attributes—value, rareness, non-substitutability, and inimitability—must work in tandem to increase performance. Valuable resources “exploit opportunities and/or neutralize threats in a firm’s environment” (Barney, 1991, p. 105). A rare resource is one that is not easily located and implemented, moving firms beyond the competitive parity that is associated with common resources. Similarly, a non-substitutable resource has no strategic equivalents that perform the same function. The final factor— imperfect imitability—virtually guarantees a firm’s sustainable competitive advantage, but it must work jointly with the aforementioned characteristics. That is, although a resource may be valuable, rare, and not easily substituted, it must be inimitable to bestow the firm with a sustained competitive advantage. Imperfect imitability may be the result of three factors: unique historical conditions, causal ambiguity, and/or social complexity (Barney, 1991). The concurrent interactions, then, between these four resource attributes form the basis of a firm’s superior performance.
Process-wise, an RBV approach begins with identifying and assessing a firm’s resources and capabilities, locating an attractive industry in which the firm’s resources and capabilities can be exploited, and finally selecting a strategy that best utilizes the firm’s resources and capabilities relative to opportunities in that industry (Hitt et al., 2001). Scholars, such as McGahan and Porter (1997), examined the relationship between the comparative impact of firm (an RBV approach) and industry (an IO approach) attributes on firm performance and concluded that firm-related factors seem to carry more weight in influencing performance.

What Kind of Resources? 

In examining a firm’s strategy, the relationship between strategy and resources, and the linkage between strategy and performance, strategy scholars developed a number of resource categorization systems in an attempt to assess the differential contributions of various resources to performance in different market environments. Hofer and Schendel (1978) suggested that resources can be classified into six categories: financial resources, physical resources, human resources, technological resources, reputation, and organizational resources. Barney (1991) placed firm resources into three groups: physical capital resources, human capital resources, and organizational resources. Porter (1996) maintained resources are of three types: activities, skills/routines, and external assets, such as reputations and relationships. Black and Boal (1994) further argued that resources are best classified as operating in bundles—or network configurations—of two types: contained resources and system resources, based on the complexity of the network to which the resource belongs. Habann (2000), from a different perspective, divided firm resources into two sets according to their contents: competence, which refers to firm-specific capabilities, and strategic assets, which refer to tangible and intangible assets of strategic importance.
Nonetheless, Miller and Shamsie (1996) and Das and Teng (2000) maintained that the classification of resources is theoretically sound only when incorporated into the afore-mentioned four attributes. Specifically, because the basis of a sustainable competitive ad- vantage lies mainly in the inimitability of a
resource, categorization of resources therefore must incorporate this notion of imperfect imitability. Resources, thus, may be classified into two broad categories: property-based resources and knowledge-based resources, each based on the inimitability of property rights or knowledge barriers, respectively.
Miller and Shamsie further incorporated Black and Boal’s (1994) concept of resource configurations, thus sub-classifying property-based and knowledge-based resources into discrete or systemic resources. That is, both property-based and knowledge-based re- sources may stand alone or compose part of a network of resources.
Specifically, property-based resources are inimitable because of the protection afforded by property rights. A firm may secure a competitive advantage based on the length of the protection, thus proscribing competitors from imitation and appropriation of their source (Miller & Shamsie, 1996). Contractual agreements form the foundation of the two types of property-based resources. Discrete property-based resources, for example, “take the form of ownership rights or legal agreements that give an organization control over scarce and valuable inputs, facilities, locations, or patents” (Miller & Shamsie, p. 524). Disney, for example, has “international rights to about 853 feature films, 671 cartoon shorts and animated features, and tens of thousands of television productions” (Hollywood wired, 2001). Systemic property-based resources include configurations of physical facilities and equipment whose inimitability lies in the complexity of the network configurations. Viacom’s television station group, which consists of 34 owned and operated (O&O) stations, is an example of systemic property-based resources (Viacom Television Stations Group, n.d.).
Knowledge-based resources refer to a firm’s intangible know-how and skills, which cannot be imitated because they are protected by knowledge barriers. Competitors do not have the know-how to imitate a firm’s processed resources, such as technical and managerial skill (Hall, 1992). McEvily and Chakravarthy (2002) attributed uncertain imitability to complexity, tacitness, and specificity of knowledge. Like property-based resources, knowledge-based resources are comprised of discrete and systemic resources.
Discrete knowledge-based resources, such as technical, creative, and functional skills, stand alone. The management experience of specific media subsidiaries is an example of discrete knowledge-based resources. Systemic knowledge-based resources, on the other hand, “may take the form of integrative or coordinative skills required for multidisciplinary teamwork” (Miller & Shamsie, 1996, p. 527). Increasing attention in the strategy literature within the RBV framework has centered on the factor of knowledge. Many studies focused on how firms generate, leverage, transfer, integrate, and protect knowledge (Wright, Dunford, & Snell, 2001). Some went even further, arguing for a “knowledge- based” theory of the firm, under the notion that firms exist because they can better inte- grate, apply, and protect knowledge than can markets (Grant, 1991; Liebeskind, 1996). In recent years, knowledge-based competition has become a popular area of study among strategic management scholars and practitioners. Some researchers claim that knowledge is the most important source of sustainable competitive advantage and performance (McEvily & Chakravarthy, 2002).

Resource Typology in Media Industries 

The property–knowledge-based typology presents a meaningful system for classifying and analyzing media firms’ resources because knowledge-related resources are particularly important in developing competitive advantages in a media industry: where the end product is mostly in the form of intangible
content, where creativity and industry knowledge remain the essential elements in the production of the content product, and where content is often seen as the key to success in any media distribution system. Furthermore, because of the fact that today’s media industries are entering a period of unprecedented changes brought about by emerging new technologies such as the Internet and digitization, examinations of knowledge-based resources for media firms are becoming more critical. For example, applying the property–knowledge resource typology, Landers and Chan-Olmsted (2002) studied the broadcast television networks’ changing strategies longitudinally as the broadcast market becomes less stable because of many technological developments. The notion of market uncertainty might be another important factor to investigate. As Miller and Shamsie (1996) discovered in their study of the Hollywood film studios, property-based resources—both discrete and systemic—led to superior performance in the stable environment, whereas knowledge-based resources led to superior performance in the uncertain environment.


Time Factor: Turbulent vs. Stable Environment

illustrates a possible resource typology as applied in the network television market (Landers & Chan-Olmsted, 2002). As depicted, resources such as affiliate contracts (or franchise agreements for cable television), station ownership, and content product copyright might be considered property-based resources, whereas technology management and content multi-purposing expertise might be viewed as knowledge-based resources. Logically, the list of resources would be somewhat different depending on the nature and the value chain of the particular media market. For example, for the newspaper sector, distribution and printing properties represent essential property-based resources. Note that knowledge is a difficult resource to measure because of its fluidity. Most strategy studies used proxies for knowledge-related variables under the assumption that firms acquire more knowledge about activities they invest or engage in to a greater extent (McEvily & Chakravarthy, 2002).In the case of media industries, film/TV program awards and managers’ average tenures were used as proxy measures for such a variable (Landers & Chanolmsted, 2002).The drawback of such an empirical procedure will be discussed later.

SUPPORTING ANALYTICAL FRAMEWORKS IN STRATEGIC MANAGEMENT 

The IO and RBV perspectives for examining strategy establish the basic approaches for investigating a firm’s functional, business, and corporate activities and their relationship to performance. Three more areas of study—strategic taxonomy, strategic network, and, more recently, strategic entrepreneurship—have also made a substantial contribution to the strategic management literature and will be reviewed next. These supporting constructs offer a rich theoretical base from which more media strategy studies might spring.

Strategic Taxonomy 

Classification of strategy types offers the utility of comparative analysis and systematic assessment of the relationship between different strategic postures and market performance. To this end, the strategy typologies proposed by Miles and Snow (1978) and Porter (1980) are perhaps the most popular frameworks used by strategic management researchers for analyzing business strategy (Slater & Olson, 2000). Whereas Porter proposed that most business strategies fall under one of the strategic types—focus, differentiation, or low-cost leadership, Miles and Snow developed a framework for defining firms’ approaches in product market development, structures, and processes. The notion is that different types of firms have differential strategic preferences. Though firms in the same category might have a similar strategic tendency, they could achieve various levels of performance because of differential implementations of the strategy. Miles and Snow classified firms into four groups:
1. Prospectors, who continuously seek and exploit new products and market opportunities, often the first-to-market with a new product/service
2. Defenders, who focus on occupying a market segment to develop a stable set of products and customers
3. Analyzers, who have an intermediate position between prospectors and defenders by cautiously following the prospectors, while at the same time, monitoring and protecting a stable set of products and customers
4. Reactors, who do not have a consistent product-market orientation but act or respond to competition with a more short-term focus. (Zahra & Pearce, 1990)
Despite the differences in strategic aggressiveness, empirical studies found that except for the reactors, the other three groups of firms achieve equal performance on average (Zahra & Pearce, 1990). The implication is that the implementation of the strategy is most critical to the performance variation within each strategy type.

Strategic Networks 

The media industries are among the top sectors for seeking out network relationships with other firms, both horizontally and vertically. This network orientation might be attributed to: media content’s public goods nature; the media industries’ need to be responsive to audience preferences and technological changes; and the symbiotic connection between media distribution and content.
Strategic networks may be defined as the “stable inter-organizational relationships that are strategically important to participating firms.” These ties may take the form of joint ventures, alliances, and even long-term buyer-supplier partnerships (Amit & Zott, 2001, p. 498). In essence, firms might seek out such inter-organizational partnerships to gain access to information, markets, and technologies, and to cultivate the potential to share risk, generate scale and scope economies, share knowledge, and facilitate learning (Gulati, Nohria, & Zaheer, 2000).
The most evident strategic network forms in the media industry are joint ventures and alliances. Many media firms have attractive core competencies such as the ownership of valuable content/talent and distribution outlets, but lack the size, access, or expertise to benefit from these unique resources and capabilities. Strategic networks not only offer an opportunity for access to a greater combination of competencies, but also reduce barriers to entry (e.g., scale economies and brand loyalty) in newer, technology-driven media markets such as the Internet and broadband sectors. Many recent studies in media industries found alliances to be a preferred method of entering the Internet, broadband, and wireless markets (Chan-Olmsted & Chang, 2003; Chan-Olmsted & Kang, 2003; Fang & Chan-Olmsted, 2003). The network strategy may also serve as a pre- curser for the essential merger and acquisition strategy. For example, Local Marketing Agreements (LMAs), which exist in many local television markets, offer participating stations access to expanded sales/marketing resources while, at the same time, reducing competition.
APPLICABILITY OF STRATEGIC MANAGEMENT IN MEDIA INDUSTRIES
This section will turn the focus from the more generic theoretical and empirical discussions in strategic management to the application of these same concepts and issues in media industries by introducing the unique characteristics of media products, certain media taxonomies, and an analytical framework for investigating strategic behavior of media firms.
The Characteristics of Media Products
Strategic decisions are often resource dependent and rely on the specificity within a particular industry (Chatterjee & Wernerfelt, 1991). To this end, media products exhibit certain unique characteristics that shape the strategic directions of media firms. The major distinction between media and non-media products rests in the unique combination of a number of characteristics.
First, media firms offer dual, complementary products of content and distribution. The content component is intangible and inseparable from a tangible distribution medium. Second, most media content products are non-excludable and non-depletable public goods whose consumption by one individual does not interfere with its availability to another but adds to the scale economies in production. Third, many media firms rely on dual revenue sources from consumers and advertisers. Fourth, many media content products use a windowing process to market content. For example, theatrical films are delivered to consumers via multiple outlets sequentially in different time periods (e.g., home video sales, home video rentals, cable and satellite television pay-per-view, pay cable networks, and broadcast networks). In a sense, the potential revenue for such a content product depends on the total number of distribution points and pricing at these points. Fifth, the market boundaries between various types of media products are becoming blurred (i.e., the degree of substitutability is increasing) because of technological advances. Sixth, each media content creation (not the distribution medium or a duplicated copy), by nature, is 9heterogeneous, non-standardizable, and individually evaluated based on consumers’ personal tastes. In other words, whereas Maytag may manufacture a new washing machine that contains certain standardized features, no movies can legally claim to contain identical content from the Harry Potter and the Chamber of Secrets movie. Even Ms. Rowland herself will not pen a standardized set of Harry Potter books. Finally, media products are subject to the cultural preferences and existing communication infrastructure of each geographic market/country and are often subject to more regulatory control from the host market because of how pervasive their impact is on individual societies.
The characteristics of media products listed earlier lead to a market environment in which certain strategies are often observed. For example, as intangibles, content-based media products may be stored and presented in various formats. A strategy of related product diversification, which extends a media firm’s product lines into related content formats (e.g., print and online content), typically benefits firms by enabling content re- purposing, marketing know-how, and sharing of production resources, and thus is likely to be preferred. It is also logical for media firms to seek out distribution products and content products that complement each other. The concept of resource alignment has been discussed extensively in the alliance literature. This concept emphasizes the importance of accessing resources that a firm does not already possess, but which are critical for improving its competitive position (Barney, 1991; Das & Teng, 2000). The symbiotic relationship between media content and distribution products provides a classic case of resource alignment. The fact that an existing product may be redistributed to and reused in different outlets, via a windowing process, reinforces the advantage of diversifying into multiple related distribution sectors in various geographical markets to increase the product’s revenue potential. Furthermore, because of the importance of cultural sensitivity and understanding of the regulatory environment, media firms are more inclined to diversify into related product/geographic markets to take advantage of their acquired local knowledge and relationships. The dependency on local communication/media infrastructure may also lead to a strategy that is geographically related (i.e., regionalized). This is because geographically clustered markets are often at similar stages of infrastructure development, and clusters of media distribution systems may lead to cost/resource-sharing benefits. For example, many U.S. cable systems and radio stations are geographically clustered.
The dual-revenue source mechanism and the public goods characteristic of media content products also create a driver for firms to offer media content that appeals to the largest possible group of marketable consumers. This is because the larger aggregated number of subscribers/audience adds to the value of advertising spots/space with minimal incremental costs for the firms. On the other hand, because of the heterogeneous, non-standardizable, creative characteristic of media content products, intangible resources become especially essential in building competitive advantages. As a result, small firms that do not have access to a mass audience but which possess unique creative resources, still have the opportunity to achieve superior performance.
Media products are also especially sensitive to intangible resources by nature. Intangible resources, such as technology and brand loyalty, often lead to diversification so a media firm might exploit the public goods nature of these assets (Chatterjee & Wernerfelt, 1991).

Wednesday, 11 April 2012

Human Relations in Media Management


Objective: This lecture focuses on managing people in media organizations who work in an industry that has experienced radical operating environment changes. Main ingredients of the lecture are media organizational behavior, psychology of media workers, news and information as business, creative media workers, and the media organizations as human collectives.

Media Organizational Behavior

This research discipline rose out of classical management scholarship that initially attempted to understand the world from a structural–functional perspective (Fayol, 1949; Taylor, 1947/1967). Management style is a key factor in organizational performance, particularly whether that style fits the needs of those being managed. McGregor (1960) identified two opposing approaches to management, Theory X (authoritarian command and control) and Theory Y (employee-centered with minimal control). Participative management grew popular in the 1960s with the gradual shift from the early 20th century view of strict control to an understanding by mid-century that individuals who have a sense of power, responsibility, and expectancy about their work environment are often more productive (Likert, 1961; Mayo, 1960; Vroom, 1964).
With the rise of Japanese competitiveness, which became a serious threat to American business, considerable attention was paid to how Japanese culture fostered organizational citizenship, and how American companies could use the Japanese model to help workers feel more closely tied to an organization and its goals (Ouchi, 1981). Total Quality Management became fashionable with the idea that quality circle teams of employees, empowered to create and innovate, would mean organizational success (Marash, 1993). Building on this idea, substantial research has grown to foster the idea that it is positive to have personal and organizational goals and values in sync (Finegan, 2000), so the organization and individual reinforce each other in a holographic mirroring of one another (Mackenzie, 1991; Morgan, 1997).
Peters and Waterman (1982) argued that excellence should be the goal of an organization, which would result in greater productivity and competitiveness. Their work fed a trend of increased attention to social dynamics processes and of generating common themes and values within organizations and among organizational members. The human element is now considered to be among the most critical factors in organizational success with the organizational structure serving as a support mechanism (Garfield, 1992). Identification theory is a growing area investigating the way individuals derive meaning from organizational relationships and may thereby increase their contributions to the organization (Ravasi & Van Reckom, 2003; Whetten & Godfrey, 1998). In capitalist economies shareholders look for increasing stock value. Stock options are a popular way to compensate managers because they provide direct financial incentive to do whatever it takes to increase profits. Likewise, many organizations, including media organizations, use stock option plans, not only as a financial incentive, but to link shareholder values to individual employee behavior by helping employees identify their daily work as a way of increasing both their personal wealth and the company’s stock performance (Greengard, 1999; Hannafey, 2003). In an environment geared toward steadily increasing stock value, maintaining high productivity while finding new ways to continually improve year after year is an omnipresent challenge (Drucker, 1988; Garmager & Shemmer, 1998; Greenberg, 1999; Hopkins-Doerr, 1989; Kanter, 1988; Schneider, 1983).
Recently organizational behaviorists have used the term social capital to refer to the human side of organizations (Clark, 2003; Oxman, 2002). The contemporary role of a leader or manager is to marshal that social capital in such a way that it carries the organization forward to accomplish management goals. Thus, in order to move the organization, a leader must find ways to inspire organizational members, who then actually move the organization (Fiorina et al., 2003). This is a very different perspective from early structural–functional, “classical” theorists who saw management as a driving force pushing benign workers who were paycheck-focused and perceived as willing to follow orders. Contemporary theorists see management’s challenge as charting the course but empowering the organizational members to sail it as a highly motivated, innovative, and creative crew (Bolman & Deal, 1991; Fournies, 2000; Hellstrom & Hellstrom, 2002). Today, we better understand the critical nature of the nuances of human relations.
In strong organizational cultures, management may be more effective in a facilitating role rather than merely as a command and control function (Logan, Kiely, & Greer, 2003; Lucas, 1999; Way, 2000). An organization, in today’s context, has great difficulty going anywhere the people within it do not want it to go. Long, standard organizational approaches such as goal setting are recognized as problematical, not always effective, and requiring considerable developmental care (Humphreys, 2003). Indeed, a fundamental question in the goal-setting equation is, as Levinson (2003) titled a recent article on this issue, “Management by Whose Objectives?” Thus, goal setting is a partnership activity. In a metaphorical sense, the organization is now viewed as a personality with human characteristics, including having a passion for the enterprise.

Psychology of Media Workers

Organizational member psychology is a daily factor in effectiveness that has been well established (Alderfer, 1972; Bandura, 1986; Herzberg, Mausner, & Snyderman, 1959; Vroom, 1964). Maslow (1954/1970) defined a hierarchy of human motivational needs in which a person moves up through levels from the bottom level of survival needs, to the top level of self-actualization—a sense of fulfillment, the deeper meaning of life. It is at the top of his hierarchy where individuals who feel safe will take risks, push innovative ideas, and feel free to create. Maslow perceived each level as resting on the former. Thus, if some unexpected event occurs, such as the firing of a favorite boss and replacement with someone feared, the self-actualizing employee may quickly drop back to the survival level. There, the tendency is to engage in a modern illusion of the survival-level employee telling the boss only what the employee thinks the boss wants to here; much like Hans Christian Anderson’s fairy tale: sycophants telling the emperor how splendid he looks in his new clothes, while in reality he is naked and absurd before his subjects (Anderson, 1837/1949; Argyris, 1998).
Herzberg et al. (1959) argued that people react to two sets of forces in the workplace. One set comprises the extrinsic factors. These are external to the individual—the job context such as working conditions, salary, and company policy. The second set of motivators includes more abstract intrinsic factors. These satisfy the person from the inside—the job content including a sense of responsibility, recognition, achievement, meaningful work, and doing something for the greater good of society. People who consider their work a calling, such as members of the clergy, medical doctors, and many journalists (Auletta, 1991) have high intrinsic needs that may outweigh financial remuneration.
Alderfer (1972) used a three-part model to explain motivation. Things like food, water, working conditions, and monetary pay are the existence needs. Those things motivate human beings to work, but humans also have growth needs, the sense of being productive, creative, or doing something worthwhile. Humans
also need personal and social relation- ships that are meaningful, called relatedness needs. The three needs groups—existence, growth, and relatedness—work together. The more perfect the balance among them, the higher the motivation.
Bandura’s (1986) social cognitive theory posited that people are complex blends of their backgrounds, intelligence, social learning, and other factors. These cannot be separated into individual elements, but swirl together in a kind of soup of emotion, each ingredient flavoring the whole. Individuals engage in social learning in which “correlated experiences create expectations that regulate action” (p. 188), and these vary from one individual to another.
Human beings learn patterns of behavior from what succeeded in the past. Humans then do things to produce the results they expect, based on those past experiences. This expectancy theory was advanced by Victor Vroom (1964). Additionally, when organizational members feel there is unfairness in something, they may take steps to adjust the scales, to restore their sense of equity. That can mean slowing down, turning out adequate but not stunning work, or even actively working to make something fail by withhold- ing service until the sense of fairness and balance is restored (Harder, 1991: Lamertz, 2002).
The psychology of the workplace, then, is inherently complicated. In group settings, people who are more pro-social, and not as self-absorbed, tend to be more interested in the larger context of organizational values (Nauta, de Dreu, & van der Vaart, 2002). Those who are positively motivated by a sense of ownership of the work, expanding themselves cognitively, and who are positively inclined to interrelating with others, are most effective in what are called self-managing work teams (Druskak & Pesconsolido, 2002). Recent work investigated psychological empowerment in the organizational context (Spreitzer, 1995), influencing behavior in the workplace (Brief & Weiss, 2002), the positive and negative effects of emotion in the organizational context (Kiefer & Briner, 2003), and how the rising number of so-called “knowledge workers” can be positively motivated by the work environment. These are the creative people who generate new things, ideas, or concepts. They have a great need to have the organization encourage them to accomplish their ideals and dreams, rather than to merely complete the required daily processes (Brenner, 1999). For many people the organization within which they work is a fundamental part of their very definition of self.
To varying degrees, people derive part of the identity and sense of self from the organizations or workgroups to which they belong. Indeed, for many people their professional and/or organizational identity may be more pervasive and important than ascribed identities based on gender, age, ethnicity, race, or nationality. (Hogg & Terry, 2000, para. 2)

News and Information as Business

Newspapers have historically been among the most successful businesses with profit margins typically exceeding 20% a year. Underwood (1995) argued that, despite their financial success, newspapers have increasingly emphasized profits, with an MBA mentality. Audience market research has increased in importance among all media to lure readers, listeners, viewers, and now Internet surfers. Thus, we are living in the age of what McManus (1994) dubbed market-driven journalism. His qualitative study of local television news provided great insight into the creation and packaging of current events information tailored to technical and marketing considerations. Technology dominates the way television stories are conceptualized and manufactured such as “live” introductions of stories actually covered much earlier. The live element is interjected to show off technology and to generate a greater sense of urgency, even
though the actual event may have concluded hours before and is included as a prerecorded insert between a live open and close (p. 44).
Bagdikian (2004) documented the steady collapse of mass media ownership into the hands of five dominant conglomerates, Time Warner, Disney, Viacom, News Corporation, and Bertelsmann AG. The economic influences on mass media were his major focus. Bagdikian posed the obvious questions about whether limited ownership of all media with which we engage means limited “voices” in the “marketplace of ideas,” and therefore is contrary to the intent of the framers in creating the “free” press clause of the U.S. Constitution. Is there less control of media if, instead of a king, all the power to control the flow of information and news is in the hands of a few corporations? The growth of conglomerate control of American media, combined with McManus’ concept of market-driven journalism, against the historical context of the worst excesses in American journalism, causes one to ponder whether what has occurred recently is a new evolution in modern media, or a return to the past. As Emery & Emery (1996) described the 1890s:
Yellow journalism, at its worst, was the new journalism without a soul. Trumpeting their concern for “the people,” yellow journalists at the same time choked up the news channels on which the common people depended with a shrieking, gaudy, sensation-loving, devil-may-care kind of journalism. This turned the high drama of life into a cheap melodrama and led to stories being twisted into the form best suited for sales by the howling newsboy. Worst of all, instead of giving effective leadership, yellow journalism offered a palliative of sin, sex, and violence. (p. 194)

Creative Media Workers

There is a continuing struggle between the idealism of practicing journalists and the for-profit organizations in which most of them work. Indeed, journalists receive positive benefits from those organizations (e.g., salaries and fringe benefits), and they are able to pursue their desired profession within fairly clear business-oriented parameters.
Media workers are often creative personalities who seek independence and a sense of ownership of their work. Efforts have been made to simplify the task of managing creative people (Loeb, 1995), generating more creativity by raising managerial expectations, thereby fueling the sense of creative employees that management cares about what they are doing (Tierney & Farmer, 2004), and understanding that a sense of empowerment can produce more positive behavior (Thomas & Velthouse, 1990). Research into the effect of both job-related and outside influences found creative performance is enhanced when the person has a sense of support in both sectors (Madjar, Oldham, & Pratt, 2002). Additionally, the environment of the organization needs to provide enough psychological space for creative people to come up with new ideas and to test them. When daily pressure to accomplish tasks is the focus, it can dampen creativity because the message is sent that thinking beyond the immediate task is not valued (Dickson, 2003). Ettema and Whitney (1982) brought together 13 perspectives on Individuals in Mass Media Organizations: Creativity and Constraint, which address the inherent conflicts in mass media production within the context of a capitalist system. The conflicts they identified 2 decades ago appear to be increasing as media companies become more economically powerful (Bagdikian, 2004).
To many media workers, the organization is a kind of funding source, with a medical and benefits package, to pursue their creative interests. You can be paid to write, shoot still or video pictures, and/or perform in front of a camera. This sets up a not uncommon situation where a creative, idealistic journalist
works for a pragmatic business concern focused on circulation (or ratings) and profit. The tension produced by such contrasting values appears inherent to the production of news and information, as Edward R. Murrow asserted a half century ago:
One of the basic troubles with radio and television news is that both instruments have grown up as an incompatible combination of show business, advertising and news. Each of the three is a rather bizarre and demanding profession. And when you get all three under one roof, the dust never settles. (Sperber, 1986, p. xvi)
Numerous works have been published to cast light on the inside world of journalism. These are particularly useful for researchers in human relations in media organizations because they often focus on people within the context of the events they covered and include a subtext of perceptions of what journalism is, or in the authors’ minds, should be. These range from critical works pointing out many of the problems in news and information work (e.g., Burns, 1993; Goldberg, 2002; Graham, 1990; Willis, 2003), to autobiographical efforts by celebrity journalists that often produce significant sales when released because of public curiosity about major news personalities (e.g., Brinkley, 1995; Brokaw, 2002; Kuralt, 1990; Rather, 1977). Other works range from journalistic narratives of the evolution of dominant networks (Slater, 1988), to well-researched biographies of significant figures in the history of mass media (e.g., Johnston, 2003; Sperber, 1986). Such works often provide a reporter’s perspective of the sweep of historical events, how coverage was managed, and the philosophical struggles of the individuals involved.
Thus, the give and take that goes on in news operations—between journalistic principles and ethics, and monetary and technical considerations in determining coverage—is available to those who have never had the experience of working within such a context. As in anthropological research, it is one thing to use a survey instrument to gather qualitative data about a tribe, and quite another to live with a tribe for a period of time to learn the nuances of its rights, rituals, and context of meaning.
The context of media endeavor directly affects the human relations process. Differences occur in values and attitudes of media workers, depending on the industry sector being considered. A major issue in one media sector may not be important in another. In one area, the point may be to create illusion, fiction, and drama; in another type of media organization the goal may be to manage the image of something for a more favorable vantage point (i.e., spin); in still another type of media organization, such approaches would be major violations of ethics and considered abhorrent activities subjecting theperson to firing or forced resignation in disgrace. For example, within traditional news organizations, at the newsroom level, there tends to be a working journalist perception of “a calling, not just a job” (Auletta, 1991, p. 559). However, at the organizational level, “the content of media outlets is developed to attract a specifically defined target audience, just as manufacturers create products designed to attract a target segment of consumers” (Wicks et al., 2004, p. 217). The ideal of informing the public, as part of the individual’s Calling may come into conflict with organizational goals to maximize ratings by pandering to marketing studies of what the audience wants while paying little attention to what the audience may need. This is a reaffirmation of the observation of Liebling (1961/1981) who observed that, “Freedom of the press is guaranteed only to those who own one” (p. 32).
Media are at once highly creative with increasing technology to manufacture images that appear real, while at the same time, confronted with a responsibility to be accurate, fair, and honest in serving the needs of society. Although flipping a photograph over to have the person in it look the other direction for
layout considerations may be perfectly fine in advertising, in news that would be a firing offense because it would not be the same person, but an illusion. Indeed, in many aspects of media the specific individual is the critical element contributing to their success.

MEDIA ORGANIZATIONS ARE HUMAN COLLECTIVES

It is important for researchers to consider the psychology of the media organization workplace. Media organizations are human collectives with considerable diversity in the way individuals frame their values and purpose in life. Unpacking those values, both organizationally and individually, is vital to more fully understanding the dynamics within those organizations and explaining both organizational and individual behavior.
The complexity of human interaction with the operating environment has been the focus of considerable research on motivation and organizational efficiency dependent on the individual members who make up the collective known as an organization. Various content theorists, such as Maslow (1954/1970), Herzberg, Mausner, and Synderman (1959), and Alderfer (1972), attempted to reconcile the external world to internal motivational considerations within the individual.
Bandura (1986) proposed a social cognitive theory in which the human being is seen as the junction of complex knowledge, perception, and desire strands, which are all affected by the particular environment at hand:
In the social cognitive view people are neither driven by inner forces nor automatically shaped and controlled by external stimuli. Rather, human functioning is explained in terms of a model of triadic reciprocality in which behavior, cognitive and other personal factors, and environmental events all operate as interacting determinants of each other. (p. 18)
Bandura’s triadic reciprocality is the view that the way we act (behavior), our knowledge acquisition (cognitive) processes and other personal factors, and the environment within which all of this occurs fold together interactively to create individualized meaning. Our personality and our way of engaging with the world around us cannot be separated into neat categories presumed to be mutually exclusive and unaffected by the others. All are contributors to, and products of, one another. This helps explain media industry workers who, while working within the context of a machine-like company, still retain a sense of professional independence and control over their work. Many media workers, particularly in creative areas, consider what they do as personalized (important and owned by them), not corporatized (merely something they do for the company to get money).
Several things come into play from Bandura’s social cognitive theory. A self-regulatory capability allows individuals to govern much of their behavior by “internal standards and self-evaluative reactions to their own actions” (Bandura, 1986, p. 20). Additionally, there is a “capability for reflective self-consciousness,” wherein people “think about their own thought processes” (p. 21). We are also “enactive learners” where our observations of what goes on, and the experiences we build up over time, exert strong influence on our decision making. When people have an outcome they particularly desire, they tend to use their organization or group experience to decide what action to take to attain it.
As the perceptions of threats, rewards, expected outcomes, and social learning come together in the human dynamic, we carefully watch for signals that predict the outcomes we desire. When we see those signals, we are positively reinforced that we’re on track. But when we don’t get those signals, or we get signals we don’t expect, fear may escalate as we worry about how things will turn out (Bandura, 1986, p. 205).

Media Culture and Climate Factors

Media organizations tend to be highly developed cultures with distinctive codes of behavior that, when violated, cause great turmoil (Jenkins, 2003). Thus, to understand a media organization you need to understand both its culture and climate. Organizational culture is the framework of rituals, practices, and behavior patterns that set an organization apart. Schein (1985) defined it as the pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, which have worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. (p. 9)
As such, culture is an acquired knowledge base that evolves within the organization as it resolves problems and adapts to its environment. An organization’s culture is wrapped up within its history, procedures, and people, and it is the fundamental definition of the organization and its purpose. At the same time, it is interconnected to its external environment as both continually evolve. (For a discussion of the concept of organizational culture see Eisenberg & Riley, 2000.)
Organizational climate is defined by Poole (1985) as, “collective beliefs, expectations, and values regarding communication, and is generated in interaction around organizational practices via a continuous process of structuration” (p. 107). For purposes of this discussion, think of organizational climate as the atmosphere of a company. This organizational weather system swirls through every corner of an organization, “continually interacting and evolving with organizational processes, structured around common organizational practices” (Falcione et al., 1987, p. 203). If organizational culture is thought of as the entity’s personality, organizational climate is the current of emotional fluctuations that ebb and flow within it. The personality is more stable, defined, and therefore allows prediction. But the climate side is more variable and can be altered more quickly by sudden changes in the operating environment. It can have a profound effect on organizational performance because it “serves as a frame of reference for member activity and therefore shapes members’ expectancies, attitudes, and behaviors; through these effects it influences organizational outcomes such as performance, satisfaction, and morale” (p. 96).
Research demonstrated that strong organizational cultures can have a positive impact on performance. Juechter et al. (1998) found clear relationships between the strength of an organizational culture and bottom line financial performance. Companies with a strong culture tend to have, among other things, wider involvement of organizational members in strategy development, lower than average turnover, significant investment in training and personnel development within the organization, and greater financial success (Garmager & Shemmer, 1998; Levy & Levy, 2000). However, when media organizations are combined strictly for initial financial benefit, the differences in the respective organizational structures, cultures, and climates may prove unwieldy causing substantial loss in overall effectiveness. Such a case was the much publicized AOL–Time Warner merger that quickly spun off billions in losses for investors as managers struggled to restructure the conglomerate (Rosenbloom, 2004).
Some organizations approach changes in the environment defensively, resisting mak- ing internal adjustments in the way they do things, whereas others seem to seek adaptive strategies readily. What makes the difference is the propensity of the particular corporate culture to depart from tradition in order “to replace existing methods with more productive ones” (Kanter, 1988, p. 406). However, this is often a very complex problem because of traditional ways of doing things, large and small. Grove (1988) termed organizational inertia that which is generated “when the day-to-day protocols and procedures of a company get in the way of employees trying to do their jobs (p. 418).” Grove asserts such inertia is more prevalent over time and that “the older and bigger an organization, the more inertia it will tend to have” (p. 418). When a new management approach is implemented that does not sync with what the organizational culture is prepared to embrace, serious dysfunction can result (Robertson, 2003). Indeed, when a change agent is brought in, the effort to rejuvenate an organization can back fire, unless existing organizational dynamics are considered (Paulson, 2003).
Mackenzie (1991) saw organizations as “complex living systems of interdependent processes, resources and people” that must work in concert to adapt to a constantly changing, dynamic environment (p. 51). Those organizations that can achieve a high level of internal compatibility have a competitive edge because they eliminate much of what stymies organizations with weaker cultures. When traditional bureaucratic layering of position and power permeate an organization, there is rigidity in adjustment to change and a kind of myopia of management based on past practices, which hinder adaptation. This results in managers relying on past experience to make future decisions. However, when the conditions of the marketplace have changed, the decisions will be flawed. Indeed, “organizations, like organisms, are ‘open’ to their environment and must achieve an appropriate relation with that environment if they are to survive” (Morgan, 1997, p. 39)
A media organization example of this occurred as Cap Cities was finalizing its takeover of the ABC network in late 1985. The top executives at Cap Cities grew impatient with then-ABC president Fred Pierce, a career employee of the network. At the time, audience fragmentation, which was due to cable and other television alternatives to the broadcast networks, was just beginning. However, while Cap Cities executives grew increasingly wary of the way ABC was spending money, the network president continued justifying his actions by concentrating on the bright spots in the network efforts and ignoring the accelerating overall financial erosion. Cap Cities chair Tom Murphy, and chief operating officer Dan Burke, finally decided to replace Pierce. The symptom was continuing financial erosion of the network, but the underlying cause of Pierce’s increasing ineffectiveness was summed up by Burke, who said, “Fred was a hostage to his experience.” It was discovered later that Pierce had even put a psychic on the ABC payroll to advise him on programming the network (Auletta, 1991, p. 114).
The case of the major television network reaction to new technology was an example of how organizations can become what Morgan (1997) termed psychic prisons. He defined these as a playing out of the classic Plato’s Cave metaphor, wherein Socrates tells of inhabitants unable to cope with a different world outside the cave and thereby “tighten their grip on their familiar way of seeing.” As Morgan points out, like the ancient cave dwellers from classic literature, “organizations and their members become trapped by constructions of reality that, at best, give an imperfect grasp on the world” (p. 216). Morgan also uses a brain metaphor, asserting that organizations, like human brains, are communication and information processing systems that develop personalities. They harbor a kind of corporate rationale and psyche that can drive them in positive or negative directions with a collective consciousness. Thus, organizations can learn and adapt. However, to do so, the “learning organization”
cannot be trapped by mechanized bureaucracy but must “scan and anticipate change, ”while at the same time, it can “develop an ability to question, challenge and change operating norms and assumptions” (p. 90).

Dealing with Perceptions of Media workers

Interpretation of Meaning

It is very important to understand that individual, “pre-formed frames of interpretation” decode message meaning based on personal experience (McQuail, 1987, p. 243). In other words, people interpret the messages they receive and evaluate what is true based on their belief system. Burke (1966) called these filters through which we interpret reality “terministic screens” that work similarly to photographic filters; they alter the color, contrast, and warmth of messages we receive, if not the basic facts of the message itself.
This means we are set up to believe something, based on past experience or trusted sources. Thus, rumors containing false information may quickly gain credibility as they are passed from one person to another. They take on a life of their own. Once widespread, they are very difficult to reverse because they become part of the received truth, acquired from others whom the person trusts. When information is restricted, the work culture creates its own information. Sometimes management has very good reasons for not disclosing things. However, unless information is kept confidential for competitive or a legal reason, all restricting information flow does is feed the rumor mill. When organizational members are concerned about something, the rumor mill starts up because, “in general, rumors are grounded in a combination of uncertainty and anxiety” (Stohl & Redding, 1987, p. 481). Employees worry and develop scenarios of what they think is probably happening. Then they pass those around, and, in the process, the illusions gain credibility. Thus, it is vital that managers have open lines of communication with organizational members to get continual feedback on their perceptions and to provide accurate information to diffuse the rumor mill (Rosnow, 1980; Watson, 1982).
Media managers serve a multiplicity of communicative roles. They monitor the various information channels available, disseminate the information to others, and serve as spokespersons for various factions within the organization, and often externally as organizational representatives to those outside (Trujillo, 1983). Whatever is communicated, or not communicated, by a media manager has an effect. “People want to know what the problem is, why they are being asked to do certain things, how they relate to the larger picture” (Gardner, 1988, p. 224).
Human beings tend to filter meaning relative to their basic beliefs. According to selective influence theory we sift out that with which we have less fundamental agreement. In other words, we pay more attention to that with which we agree, while discounting or ignoring that with which we disagree (De Fleur & Ball-Rokeach, 1989).
When something comes up, we naturally compare it, consciously or unconsciously, with what we have experienced before. This means we tend to look at new problems and new solutions within the context of old problems and old solutions. This happened in the American network television industry beginning in 1980. Where formerly there were tight controls by the government and very few networks, there quickly evolved a myriad of competitors at the national level with concur re-governmental control. The result was what one critic termed, “an earthquake in slow motion” (Auletta, 1991, p. 4). As discussed earlier,
because of the rise of new technology, and a radicalization of the operating environment, the old solutions simply failed. Media organizations continue to struggle with this. It is natural, in one sense, to do what worked in the past. However, with the environment undergoing rapid technological change, this is a trap that can lead to serious decline and, potentially, organizational death (Whetten, 1988).

Equity, Expectancy and Malicious Compliance

How people perceive the fairness of their world, and what they expect it to provide, are major determinants of what they do and how they do it. We all make adjustments in our daily lives, our personal relationships, and our careers that depend on how we think things will turn out. We try to do what we hope will move matters toward a positive outcome and avoid what we fear will fail. We learn to anticipate various types of consequences from actions that are taken and the results they produce.
This area of organizational dynamics is important for those who want to be effective managers. By anticipating subordinates’ sense of fairness and expectation, managers can set in motion opportunities for both personal and organizational growth. Ingersoll (1896/1980) once said, “In nature there are neither rewards nor punishments—there are consequences” (p. 615). Everything is a consequence of something else. As a result, it is clear that, to affect what consequences occur, we need to look for causes. Equity and expectancy are causal factors for many behavioral consequences in media organizations.
The basic assumption in equity theory (Adams, 1963) is that workers compare their tasks and rewards with the tasks and rewards of those around them. They then develop perceptions of whether they are fairly treated based on that comparison (Harder, 1991). Such perceptions may or may not be based on accurate information and analysis by the individual.
Tied into the issue of equity is expectancy theory, originally advanced by Vroom (1964). From our knowledge and experiences, we expect things to happen based on what we do. In other words, a certain type of behavior is expected to produce a predictable outcome. If you rob a bank and are caught, you can expect to go to prison. If you study hard, you expect to earn a good grade. Expectancy has a big effect on us when coupled with rewards we desire. People balance their personal values and anticipated rewards all the time, continually adjusting their performance to achieve the outcomes they desire. When people operate from an expectancy perspective, they have linear logic that says, “If I work harder, I will do a better job. If I do a better job, I will be rewarded.”
An important aspect of maintaining equity and keeping expectancies realistic is using differentrewardsfordifferentpeople.Thisisparticularlyimportantinmediamanagement because of the diverse nature of media employees and their tendency to feel personal ownership in their work (Geisler, 1999). Research demonstrated that recognition and a sense of accomplishment are preferred by many people to monetary rewards (Hellstrom & Hellstrom, 2002). Typically pay becomes a right, in a person’s mind, within a relatively short time following a raise. Thus, pay is often merely the basic reason to show up for work rather than being perceived as a reward for doing that work well. So the rewardeffect of a raise is of limited duration and not automatically an incentive to work harder (Fournies, 2000). However, for a single mother with serious day care problems, flexibility in work hours can be a long-term motivator. One individual may seek overtime, but another person may prefer compensatory time off for extra hours he or she puts in. Media managers need to focus on the personalized environment within which people toil and the benefits they personally value. When a manager makes it apparent he or she cares about people and recognizes their needs, there is a positive effect throughout the work environment (Tulgan, 2000).
Regardless of a person’s position in the organizational hierarchy, there is a need to feel appreciated and have good work recognized. Such recognition can take many forms (Fournies).
When people do not believe things are equitable, or their expectancies are not realized, they move to restore the balance. They may slow down, reduce the quality of their work, or take other measures to get even for what they perceive is unfair (Harder, 1991). Taken to the extreme a syndrome called malicious compliance may result (Kennedy, 1992; Mariotti, 1996; Maurer, 1998). It is, in simple terms, doing the job well enough so it looks as if you are a team member, but in such a way you really are trying to harm the organization. Malicious compliance occurs when people do their job to the worst of their abilities, but only to the degree they won’t get caught. Usually, it is a conscious effort, but sometimes it can be an unconscious reaction to negative feelings that build up toward management. It can be manifested in little things such as throwing away perfectly good pens to increase the cost of supplies or stopping work 30 minutes before your shift ends and just socializing while waiting to leave. It can grow into major attacks on the organization such as working to bring in a union, sending confidential information to competitors, or doing something to trigger investigations by the news media or regulatory authorities. In entrenched, large bureaucracies a typical technique is simply to do everything according to the bureaucratic rules that everyone has found ways to circumvent. The organization slows down very quickly. It can be caused by personal grudges, or, in the case of deeply committed media workers, by a sense the organization has “sold out” to generating a profit and is no longer committed to the ideals of journalism (Redmond, 2004). It is important to note that, “where an organization is going is not where someone says it is going but where its internal behavioral processes actually take it” (Schneider, 1983, p. 34).

Effective Goal Setting as a Motivational Tool

Goal-based management has become endemic to American organizational culture. It is as if we don’t know how to work without having goals set for us that we are then under significant pressure to attain (Gibson, Ivancevich, & Donnelly, 1997). Effective goal setting takes “hard thinking and hard work” (Fiorina et al., 2003, p. 41). When used correctly, goal setting builds motivation, provides direction, and blends communication flows from the bottom up, as well as the top down (Lucas, 1999; Nicholson, 2003).
Organizations use goal setting to maintain competitiveness and involve organizational members in continuous adaptation and improvement (Humphreys, 2003; Levinson, 2003). Goals must include the following to be effective: (a) relevance to the individual, (b) reliability as a measure over time, (c) discrimination between good and poor performers, and (d) practical application for the organization (Gibson et al., 1997).
Additionally, very specific, relatively short-term goals are more effective than broad, long- term ones. People respond positively to what’s known as a small-wins strategy (Whetten & Cameron, 1995). Cutting large tasks into small, manageable pieces helps prevent frustration and gives people the sense things are moving along.
A major problem in goal setting is that both employer and employee have different ideas about appropriate goals, based on their individual motivations, values, and biases (Nicholson, 2003). To be maximally effective, goals must be set and accomplished in partnership with management and subordinates. Both sides have to buy-in to the goals, have a sense of ownership of them, have a clear idea of how the goal benefits them directly and/or personally, and have mutual responsibility for carrying them out (Denning, 1998; Humphreys, 2003; Lucas, 1999).

Building “Stakeholder” Relationships

One of the most effective ways to increase media workers’ dedication is to help them increase the perception of themselves as stakeholders in the success of the organization. Drucker (1988) coined the term to describe organizational members who are, in effect, psychological part owners. They see the success of the organization and their success tied together. When this occurs, a cause–effect relationship is developed that benefits both. However, a critical element in stakeholder development is building trust. In order for employees to buy into the organization as mutually beneficial partners, they have to have a sense of commitment from both management and their peers. However, this is particularly difficult when the operational environment is under stress.
Conflict is inherent in creative organizations, and people voicing different views and ideas contribute to innovation and adaptation (Sutton, 2002). Optimistic attitudes have been shown to foster greater creativity and innovation in the workplace, with a more relaxed environment bonding employees to one another and to the organization. In contrast, pessimistic attitudes tend to evolve in highly controlled, autocratic environments where the bully syndrome (also known as the emperor’s new clothes syndrome) of management is common (Bolman & Deal, 1991; Logan et al., 2003). It is vital that managers encourage championing of new ideas and risk taking by subordinates to be effective in the contemporary media organization environment, which depends on innovation, creativity, and adaptability.

Historical Trends and Patterns in Media Management


Objective
The lecture is aimed at imparting the knowledge, about historical trends and patterns in the field of management and their implications in the media industry, among the students of Mass Communication. It takes an overview of the “Classical and Human Relations Schools of Thought in Management” and the Contemporary Approaches and Management in the 21st century.
To understand contemporary trends and patterns in media management research, it is first helpful to review the major historical contributions to general management theory. The study of management began near the start of the 20th century, in the United States and abroad. Among the first to be engaged in the study of what would someday be called management was the philosopher Mary Parker Follett.
Ironically, Follett’s works were not appreciated until many years after her death, but her contributions to management thought and inquiry are now widely recognized as important foundation literature for the field of management.
Most management texts review the study of management by examining the major schools of thought that dominated early management science. These schools are reviewed in the following paragraphs, the earliest of which is referred to as the classical school of management.

CLASSICAL SCHOOL OF MANAGEMENT

The classical school of management (the late 1800s–1920s) parallels the industrial revolution, which marked a major shift from agrarian-based to industrial-based societies. This philosophy of management centered primarily on improving the means of production and increasing productivity among workers. Three different approaches represent the classical school: scientific management, administrative management, and bureaucratic management.

Scientific Management

Scientific management offered a systematic approach to the challenge of increasing production. This approach introduced several practices, including determination of the most effective way to coordinate tasks, careful selection of employees for different positions, proper training and development of the workforce, and introduction of economic incentives to motivate employees. Each part of the production process received careful scrutiny toward the goal of greater efficiency. Frederick W. Taylor, by profession a mechanical engineer, is known as the father of scientific management. In the early 20th century, Taylor (1991) made a number of contributions to management theory, including the ideas of careful and systematic analysis of each job and task and identification of the best employee to fit each individual task. Scientific management also proposed that workers would be more productive if they received high wages
in return for their labor. This approach viewed the worker mechanistically, suggesting that management could guarantee more output if better wages were promised in return. Later approaches proposed that workers need more than just economic incentives to be productive. Nevertheless, many of Taylor’s principles of scientific management are still found in modern organizations, such as detailed job descriptions and sophisticated methods of employee selection, training, and development.

Administrative Management

Henri Fayol, a French mining executive, approached worker productivity differently from Taylor by studying the entire organization in hopes of increasing efficiency. Fayol (1949) introduced the POC3 model, which detailed the functions of management the author identified as planning, organizing, commanding, coordinating, and control. In addition, the author established a list of 14 principles of management that must be flexible enough to accommodate changing circumstances. In that sense, Fayol was among the first theorists to recognize management as a continuing process. One can find Fayol’s management functions and principles widely used in contemporary business organizations.

Bureaucratic Management

German sociologist Max Weber focused on another aspect of worker productivity—organizational structure. Weber (1947) theorized that the use of a hierarchy or bureaucracy would enable the organization to produce at an optimal level. Weber called for a clear division of labor and management, strong central authority, a seniority system, strict discipline and control, clear policies and procedures, and careful selection of workers based primarily on technical qualifications. Weber’s contributions to management are numerous, manifested in things like flow charts, job descriptions, and specific guidelines for promotion and advancement.
The classical school of management concentrated on how to make organizations more productive. Management was responsible for establishing clearly defined job responsibilities, maintaining close supervision, monitoring output, and making important decisions. Individual workers were thought to have little motivation to do their tasks beyond wages and economic incentives. These ideas would be challenged by the next major approach to management.

HUMAN RELATIONS SCHOOL OF MANAGEMENT

The belief that workers were motivated only by wages and economic factors began to be challenged in the 1930s and 1940s, giving rise to the human relations school of management. The human relations school recognized that managers and employees were indeed members of the same organization and
thus shared in the accomplishment of objectives. Further, employees had needs other than just wages and benefits; with these needs met, workers would be more effective and the organization would benefit.
Many theories relating to the behavioral aspects of management arose in this era from a micro perspective, centering on the individual rather than the organization. Key contributors include Elton Mayo, Abraham Maslow, Frederick Herzberg, Douglas McGregor, and William Ouchi. Their contributions to the human relations school are discussed in the following paragraphs.

The Hawthorne Experiments

Perhaps the greatest influence on the development of the human relations approach to management involved this series of experiments conducted from 1924 to 1932 often identified with Harvard professor Elton Mayo. These experiments were actually commissioned by General Electric, with the goal of ultimately increasing the sale of light bulbs sold to business and industry.
In 1924, AT&T’s Western Electric Hawthorne plant in Cicero, Illinois, was the location to investigate the impact of illumination (lighting) on worker productivity. Efficiency experts at the plant used two different groups of workers in the seminal experiment. A control group worked under normal lighting conditions while an experimental group worked under varying degrees of illumination. As lighting increased in the experimental group, productivity went up. However, productivity in the control group also increased, without any increase in light.
Mayo and other consultants were brought in to investigate and expand the study to other areas of the plant. Mayo concluded the human aspects of their work affected the productivity of the workers more than the physical conditions of the plant. In other words, worker behavior is not just physiological but psychological as well. The increased attention and interaction with supervisors led to greater productivity among employees.
Workers felt a greater affinity to the company when management showed interest in the employees and their work. The term Hawthorne effect has come to describe the impact of management attention on employee productivity. The Hawthorne experiments represent an important benchmark in management thought by recognizing that employees have social as well as physical and monetary needs. In this era, new insights were developed into ways that management could identify and meet employee needs as well as motivate workers, and the results of the experiments stimulated new ways of thinking about managing employees.

The Hierarchy of Needs

Psychologist Abraham Maslow contributed to the human relations school through his efforts to understand employee motivation. Maslow (1954) theorized employees have many needs resembling a hierarchy. As basic needs are met, other levels of needs become increasingly important to the individual as the person progresses through the hierarchy.
Maslow identified five areas of need: physiological, safety, social, esteem, and self-actualization. Physiological needs are the essentials for survival: food, water, shelter, and clothing. Safety or security concerns the need to be free from physical danger and to live in a predictable environment. Social includes the need to belong and be accepted by others. Esteem is both self-esteem (feeling good about the self) and recognition from others. Self-actualization is the desire to become what one is capable of being—the idea of maximizing one’s potential.
The utility of Maslow’s hierarchy lies in its recognition that each individual is motivated by different needs, and individuals respond differently throughout the life cycle. Some people may have dominant needs at a particular level and not everyone moves through the entire hierarchy. Regardless, Maslow’s hierarchy suggests managers may require different techniques to motivate people according to their needs.

Hygiene and Motivator Factors

Psychologist Frederick Herzberg, studied employee attitudes through intensive interviews to determine which job variables determined worker satisfaction. Herzberg (1966) identified two sets of what the author called hygiene or maintenance factors, and motivators.
Hygiene factors were analogous with the work environment, including technical and physical conditions and factors such as company policies and procedures, supervision, the work itself, wages, and benefits. Motivators consisted of recognition, achievement, responsibility, and individual growth and development. Herzberg recognized that motivators positively influence employee satisfaction. Herzberg’s work suggests managers must recognize a dual typology of employee needs—hygiene factors and the need for positive motivation—in order to maintain job satisfaction.

Theory X and Theory Y

Whereas Maslow and Herzberg helped advance an understanding of motivation in management, industrial psychologist Douglas McGregor (1960) noted many managers still held traditional assumptions that workers held little interest in work and lacked ambition. McGregor labeled this style of management Theory X, which emphasized control, threat, and coercion to motivate employees.
McGregor offered a different approach to management called Theory Y. Managers did not rely on control or fear but instead integrated the needs of the workers with the organization. Employees could exercise self-control and self-direction and develop their own sense of responsibility. The manager’s role in Theory Y centers on matching individual talents with the proper position in the organization and providing appropriate rewards.

Theory Z

Ouchi (1981) used characteristics of both Theory X and Theory Y in contrasting management styles of American and Japanese organizations. Ouchi claimed U.S. organizations could learn much from a Japanese managerial model, which the author labeled as Theory Z.
Theory Z posits employee participation and individual development as key components of organizational growth. Interpersonal relations between workers and managers are stressed in Theory Z. Ouchi also drew from Theory X, in that management makes key decisions, and a strong sense of authority must be maintained. The human relations school signified an important change in management thought as the focus moved to the role of employees in meeting organizational goals. In particular, the ideas of creating a positive working environment and attending to the needs of the employees represent important contributions of the human relations school to management science.

CONTEMPORARY APPROACHES TO MANAGEMENT

By the 1960s, theorists began to integrate and expand concepts and elements of both the classical and human relations schools. This effort, which continues into the 21st century, has produced an enormous amount of literature on modern management thought in the areas of management effectiveness, leadership, systems theory, total quality management (TQM), and strategic management.

Management Effectiveness

The classical and human relations schools share organizational productivity as a common goal, although they differ on the means. The former proposes efficiency and control, whereas the latter endorses employees and their needs and wants. Neither approach considers the importance of effectiveness, or the actual attainment of organizational goals. In both the classical and human relations schools, effectiveness is simply a natural and expected outcome.
Modern management theorists have questioned this assumption. Drucker (1973) claimed effectiveness is the very foundation of organizational success, more so than organizational efficiency. Drucker (1986) developed Management by Objectives (MBO), promoting exchange between managers and employees.
In an MBO system, management identifies the goals for each individual and shares these goals and expectations with each unit and employee. The shared objectives are used to guide individual units or departments and serve as a way for management to monitor and evaluate progress.
An important aspect of the MBO approach is an agreement between employees and managers regarding performance over a set period of time (e.g., 90 days, 180 days, etc.). In this sense, management retains external control, whereas employees exhibit self-control over how to complete their objectives. The MBO approach has further utility in that one can apply it to any organization, regardless of size. Critics of MBO contend it is time-consuming to implement and difficult to maintain in organizations that deal with rapidly changing environments.

Leadership

The interdependent relationship between management and leadership represents a second area of modern management thought. Considered a broader topic than management, leadership is commonly defined among management theorists as “the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation” (Hersey & Blanchard, 1996, p. 94). Although leadership is not confined to management, there is wide agreement that the most successful organizations have strong, effective leaders. Most organizations contain both formal and informal leaders, some of which are in management positions, some are not.
Leadership can be studied from many different perspectives. Among the more significant scholars is Warren Bennis (1994) who claims leadership consists of three basic qualities: vision, passion, and integrity. Regarding vision, leaders have an understanding of where they want to go and will not let obstacles deter their progress. Passion is another trait of a good leader, whereas integrity is made up of self-knowledge, candor, and maturity.
Bennis makes several distinctions between someone who is a manager versus someone who is a leader. To Bennis, the leader innovates, whereas the manager administers. Leaders offer a long-range perspective, whereas managers exhibit a short-range view. Leaders originate, managers imitate. The author argues that most business schools—and education in general—focus on narrow aspects of training rather than on development of leadership qualities in individuals. Only one study related to the media industries has dealt with leadership aspects; Perez-Latre and Sanchez-Tabernero (2003) conducted a qualitative study to assess how leadership affects change among Spanish media firms.
There is an emerging body of literature that deals with leadership that is more practical in nature and less theory-driven. Publications like Strategy and Leadership, Fast Company, and Leadership Wired (an
online publication) provide articles related to leadership principles. Strategy and Leadership occasionally features specific articles that deal with the media industries (see Parker, 2004; Sterling, 2002).

Systems Theory

Systems theory approaches management from a macro perspective, examining the entire organization and the environment in which the organization operates (Schoderbek, Schoderbek, & Kefalas, 1985). Organizations are engaged in similar activities involving inputs (e.g., labor, capital, and equipment), production processes (converting inputs into some type of product), and outputs (e.g., products, goods, and services). In a systems approach to management, organizations also study the external environment, evaluating feedback from the environment in order to recognize change and reassess goals.
Organizations are not isolated; they interact interdependently with other organizations in the environment. The systems approach recognizes the relationship between the organization and its external environment. Although managers cannot control this environment, they must be aware of environmental factors and the impact they may have on the organization. Covington (1997) illustrates the application of systems theory to television station management.
Another approach to systems theory is the resource dependence perspective developed by Pfeffer and Salancik (1978). An organization’s survival is based on its utilization of resources, both internal and external. All organizations depend on the environment for resources, and media industries are no exception (Turow, 1992).
Much of the uncertainty organizations face is due to environmental factors. As Pfeffer and Salancik (1978) state, “Problems arise not merely because organizations are dependent on their environment, but because this environment is not dependable . . . [W]hen environments change, organizations face the prospect either of not surviving or of changing their activities in response to these environmental factors” (p. 3).
Organizations can alter their interdependence with other organizations by absorbing other entities or cooperating with other organizations to reach mutual interdependence (Pfeffer & Salancik, 1978). Mergers and acquisitions, vertical integration, and diversification are strategies organizations use to ease resource dependence.

Total Quality Management

Another modern approach to management theory is total quality management (TQM). TQM is best described as a series of approaches to achieving quality in organizations, especially when producing
products and serving customers (Weaver, 1991). Under TQM, managers combine strategic approaches to deliver the best products and services by continuously improving every part of an operation (Hand, 1992). Although management implements and leads TQM in an organization, every employee is responsible for quality.
A number of management scholars have contributed to an understanding of TQM, which is widely used. Considered the pioneer of modern quality control, Walter Shewart originally worked for Bell Labs, where early work focused on control charts built on statistical analyses. Juran (1988) and Deming (1982) contributed to Shewart’s early work, primarily with Japanese industries. Deming linked the ideas of quality, productivity, market share, and jobs; Juran contributed a better understanding of planning, control, and improvement in the quality process. Other important contributors to the development of
TQM include Philip Crosby, Armand Feigenbaum, and Karou Ishikawa (Kolarik, 1995). The popularity of TQM in the United States increased during the late 1970s and early 1980s, when U.S. business and industry were suffering from what many industrial experts labeled declining quality. Organizations adopted quality control procedures and strategies to reverse the negative image associated with poor-quality products. TQM is still used as a way to encourage and demand high quality in the products and services produced by organizations.

Strategic Management

The growth of companies and industries during the second half of the 20th century led to the importance of strategic management. Strategic management is concerned with developing the tools and techniques to analyze industries and competitors and developing strategies to gain competitive advantage. The most significant scholar in the area of strategic management is Harvard professor Michael Porter, whose seminal works Competitive Strategy (1980) and Competitive Advantage (1985) form the primary literature in studying strategy in business schools all over the world.