Deming recommends the abolition of commission-based sales and substantiates that recommendation by noting that number-based systems permit the distortion of facts. In sum, Deming claims that America has fallen pray to a "goals without method" mentality.
Chapter 3 begins Deming's offer of a solution to our culture's short-sightedness: "The Introduction to a System." In addition to transforming corporate culture, a new systems theory would also help transform the educational and public service organizational cultures. Deming calls his system the system of profound knowledge. The system of profound knowledge has definable goals and definite and manageable methods to achieve those goals. Moreover, the goals must remain foremost in the mind of all managers, at the risk of losing sight of core values. Deming makes the analogy of the consumer need for mobility and not necessarily for automobiles or airplanes (p. 51). In order for the system to succeed, it must be managed by people: systems when left to themselves will fail. Managers guide systems, steering them toward their goals and navigating them through potential potholes. Interestingly, Deming includes competitors into the system, calling on managers to view systems as having discreet boundaries as well as definite goals. To support his argument, Deming notes real-world examples of successful systems and failures that help illustrate his point.
The "System of Profound Knowledge" is based on the principle of cooperation, and is outlined in Chapter 4. Again sounding New Age, Deming claims that the individual, "once transformed," will "move into the new philosophy without a feeling of guilt about the past," (p. 93). In fact, the author admits that his theory of profound knowledge stems in part from an understanding of human psychology. Deming advocates interdependence and urges self-reflection and "rational prediction," (p. 102). In keeping with his advice in Chapter 2, Deming claims that an overemphasis on quantifiable goals has profoundly hurt the American educational system. Grades in school create an apathetic, competitive educational environment. Deming's assessment of educational culture also parallels what the author claimed in Chapter 3 regarding the inefficiency of competition. Intrinsic motivation and the cultivation of deep and genuine pride in one's work are the goals of Deming's new economy.
In Chapter 5, "Leadership," Deming claims that an understanding...
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