In this ever changing environment, managing resources has not only become very important, but it has also changed over recent decades.

The main concern is limited resources vs. unlimited needs; this has been the dilemma of people throughout history. Some societies thought that they had found the answer by trying to limit needs and wants, while some other societies promoted needs and wants, motivating people to work harder to satisfy the same. However, questions, such as How to decrease the cost of production? How to increase productivity? and What is the best method for motivating people? remained important through the last century.

These are the very same questions for which the business world is trying to find the answers.

The efficient management of resources is very important. The management of manpower plays a critical role in the satisfactory completion of this task. To maximize the use of all resources one must also maximize the use of human resources.

A New Approach: Coaching vs. Managing.

In recent decades, we have seen a new approach, the use and effectiveness of which has been increasing in management; COACHING. More organizations have become interested in coaching their employees rather than managing them.

Managers manage numbers, goals, objectives and activities for results.

Coaches develop others to reach higher levels of contribution, personal attainment, and success.

Managers ensure there is a place to work, a procedure to follow, and a system for monitoring business.

Coaches, on the other hand, build high-performance teams by focusing on interpersonal relationships with employees and guiding them to achieve their dreams and aspirations. Everything else is trivia that should be delegated to someone else or relegated to after-hours. A leader or coach makes the relationship with their employees the first priority.

Management today recognizes the need to have a winning organization; it must be more knowledgeable and competent in dealing with and developing people.

Traditional management methods, which are organization-centered, although they have served business well and have accomplished a great deal, are now being challenged by the needs of the employees and customers. In dealing with these new challenges, most managers find that they are at the limits of their current skills. A changing business environment requires us to continuously improve our approach to management. Now is certainly the time for a new methodology which incorporates many of the approaches used by successful managers. That is the fundamental change.

The process of evolution is at the base of the need to develop a management competency in dealing with and developing people. The belief that all employees are self- motivated and that the manager’s role is simply to direct the activities of their subordinates through intimidation or any other method, assumes a results orientation with little regard for the means. In such a system, the employees generally have little opportunity to provide input to the process, and management becomes a numbers game, with little or no attention being paid to developing skills or people.

Because it is people who make things happen, and because we are dealing with a more enlightened and demanding work force, blind submission to direction is no longer feasible. We all want and expect a clear communication of roles, responsibilities and resources, and we expect to be evaluated as we perform our assigned tasks. We have to understand the dynamics of interpersonal relationships and how we are perceived by the people we are leading. We have to develop a competence and consistency in dealing with the people who are reporting to us. Indeed, we have to develop multiple skills, combining the sensitivity of a leader who is viewed as a capable and involved person with those of a trainer who provides the subordinate with skills enhancement and a defined pay off.

The new approach is employee-oriented rather than organization-oriented.

High Trust Leadership: High trust equals high performance.

Today’s younger generation, as well as many of the older generation, are assuming different interests which change the desired expectations and outcomes of their lives. We need to tune into these changes and be aware of the fact that unless we present a work environment that aligns with these expectations, we may not be able to keep our better employees. Without competent players, exemplary results become significantly more difficult to attain.

There is a pervasive and accelerating transition from the long term relationship between the employer and the employee, which represented the norm in the 60’s, 70’s, and 80’s. Quality of life, family and independence have become the priorities for the worker in the twenty-first century. Management must be aware of these needs and it has to address the means by which the organization and managers meet them.

Each of us can remember a number of instances when we asked someone to explain or show us how to do something. Whether riding a bike, shooting a basketball or solving a difficult puzzle, there was a moment when we asked for help. Yet, after we asked for help, we were impatient with the helper or coach and wanted to get back to hands-on as rapidly as possible. Your team members are no different. They want to put their spin on the advice or the directions. The easier the manager makes it for team members to set the rules on how and when they are coached, the more likely it is that they will develop the discipline to find the information themselves and make their own decisions. An integral part of coaching is teaching and reinforcing. Whether it is sports or business, winning and losing do not depend on trick plays or new systems. The information your competition has is the same as yours. So what are you going to use to win? It comes down to motivating people to work and to prepare to play as a team. In a word, it is COACHING.

Six Essential Skills;

There are six essential management skills, or personalities, that are needed in order to optimize our efforts to become an effective coach.

1- Relationship builder: Get to know your team well and as individuals. Make sure you understand them, their values, their personal goals, and their objectives.

2- Team builder: In understanding each member of the team it becomes imperative that the manager develops the skills to link and blend these individuals into a coordinated, cooperative, and cohesive team in order to address the common goals and objectives of all.

3- Planner: An effective manager must also be a planner. Your team will look to you for direction, strategies, improvement processes, etc. They will expect guidance in managing their time and activities. It is essential that you have the necessary background, knowledge and skills to define and establish well thought-out road maps and game plans for your team.

4- Interactive Communicator: The essential key to acheiving this skill and the foundation for successful interactions is effective and active listening. Acquiring and sharing know-ledge and information is an integral part of the business world.

5- Organizer: A manager must also be an effective organizer. Organization is essentially preparing a framework for getting the job done properly, effectively, and efficiently.

6- Experience gatherer: Finally managers need to focus on the need to become experience gatherers. Managers must continue to expand their knowledge and their skill base and share that growth with their team members. To be a good manager, you must be a good leader and a great coach first.

The importance of coaching is that the scope of opportunity and success expands significantly as the manager’s skill dimensions increase. Therefore, the more effectively the managers incorporate each management dimension into their management process, the more likely it is that they will be able to attain results that are otherwise perceived as unattainable.

Leadership Qualities;

– Challenging the process: thinking out of the box.

– Setting the example: Do what you want your team to do, lead by example.

– Recognizing and rewarding value: Look for the right things that team members do and reward them; do not look to catch mistakes.

– Enabling others to succeed and attain goals: Make it the team’s own goal that they will accomplish.

– Establishing and sharing your vision: Give the team a road map and future hopes and dreams to catch hold to.

– Maintaining your commitments: Never break a promise and ensure that the goals and objectives are clearly communicated.

The organizations which employ more effective coaches to lead their work force will have the upper hand in the competitive business world, and will be a center for attracting better people. Since everyone likes to be on a winning team, it is critical for organizations which want to maximize their resources, lower their operation costs, reduce their turnover and increase loyalty to build teams to win. I hope to see every organization building their own winning team and getting ahead of the game.

Other developments supported this trend, the most important being:

The invention of the silicon chip (1958-59). Subsequent improvements have so miniaturized computer components and compressed data that data transmission is now practically instantaneous. When combined with Web browsers, search engines, and the Internet, access to financial and other data can be exploited to its full potential. The U.S. Congress’ approval of Internet commerce and the falling prices of home computers and phone calls was a boon for transnational corporations (TNCs). Now they can micromanage their far-flung operations, direct money to the best economic opportunity, avoid taxes and financial losses, cripple unions and labor gains, skirt environmental legislation, and find other “creative” ways to increase profits.

The deregulation of financial capital (1973). This was signaled by abandoning the Bretton Woods system of fixed currency exchange rates, which had been maintained by America since 1944 and supported by its adherence to the gold standard, in favor of letting the market determine a currency’s value. Now that governments could no longer control the outflow of national currency, TNCs were free to move it as they wished.

Breaking the large banks’ and insurance companies’ monopoly on providing financial loans. With the rise of the bond market in the late 1960s, securitization of home mortgages in the 1970s, and “junk bonds” and the securitization of the international debt market in the 1980s, the current phase of globalization quickly blossomed.

These developments opened once-closed markets to millions of individual investors and mutual fund managers whose first concern is profit. As a result: “Not only can investors now buy and sell stocks and bonds from all over the world, not only can they now do that buying and selling from their home computers, but Internet brokerage sites are now giving them-for free-the information and analytical tools to make those trades, without ever having to call a broker. The more people do that, the more they will demand more information and analyses about different economies and companies, and the more easily they will move their money around, punishing the bad performers and rewarding the good ones.”¹

The underlying philosophy of increasing profits meshed nicely with a firm belief in social Darwinism. Developing and then applying “economic” Darwinism was a logical outgrowth. Just as individuals and species survive by adapting and becoming stronger, so companies survive by means of rapid adaptation.

This can take the form of corporate mergers or understandings, paying lower wages to and providing few if any benefits for overseas workers, and justifying everything in terms of increased efficiency. A new vocabulary has emerged for such activities: downsizing, outsourcing, streamlining, business restructuring or re-engineering, cost rationalization, retrenchment, redundancy, rationalization, risk minimization, profit alignment …

Benefits and Drawbacks

Those who dream of vast legions of Chinese consumers assert that globalization will make China a more open society. First, they say, Beijing’s official monopoly on information will end because foreign and local investors must have access to the Internet. Internal dissident groups can use it to contact sympathizers and publicize their causes at home and abroad.² Second, as China is drawn further into the world community, Beijing will have to adhere to international business law and treaties on workers’ rights, working conditions, fair payment, and so on. It also will have to adjust to globalization’s driving economic philosophy of neo-liberalization, which means liberalizing the economy, privatizing state-owned businesses and utilities, opening the financial and banking sectors, establishing transparency and accountability, and providing accurate financial data. Supposedly, such reforms will counteract China’s tendency to put politics and ideology above all other concerns. Third, those Chinese who work with foreign investors will learn about democracy, individuality, personal responsibility, human rights, governmental accountability, and how people in other countries actually live. In addition, foreign investment will open up new opportunities for Chinese entrepreneurs and those who want to improve their lives. They might even be paid above the normal hourly or daily wage, and thus can send money home to help their families.

Such arguments can be applied to many developing countries with only slight variations. These arguments sound great and really do have some merit, but reality sometimes does not conform to theoretical expectations. The following examples are by no means confined to the countries mentioned.

In Mexico, economic development is concentrated in Mexico City and along the northern border with America. The agricultural sector is largely ignored, despite the large numbers of people involved in it. Looking for debt relief, foreign investment, and entrance into the North American Free Trade Association (NAFTA), the government gutted Article 27 of its constitution, which made all communal land belonging to indigenous communities off-limits to foreigners and TNCs. It had to do this because America and Canada want access to Mexico’s untapped wealth, most of which is under indigenous-held land. The result was the Zapatista uprising on January 1, 1994, which continues to enjoy wide support, and a host of problems that drove the 71-year old ruling party from power in 2000.

In northern Thailand, villagers untouched by Bangkok’s modernization and development can see how their urban counterparts live thanks to television. Hoping to reap some of the benefits, some families sell their daughters to Bangkok’s brothels. Large sectors of Thai society and the government silently support this, finding an easy way out of this moral dilemma by saying that it is the girls’ karma. The result is an out-of-control AIDS epidemic and a booming sex-tourism business based upon the unbelievable exploitation of young women. Neighboring Cambodia has the same problem, while many Russian women see prostitution as the key to the good life.

In Ecuador, Amazonian Indian tribes and other affected peoples sued Texaco in an American court (1993) to force it to clean up the contamination it left behind. Texaco, which no longer operates in Ecuador, dumped “4.3 million gallons per day of toxic oil waste water over a period of 20 years … [but] claims the dumping caused no appreciable damage.” It also left behind more than 300 open waste pits contaminated with heavy metals and other carcinogenic compounds. “In their lawsuit, the plaintiffs cite a wave of deadly cancers, skin lesions, birth defects and other abnormalities among the areas indigenous peoples, and massive die-offs of plants, crops, and animals from air and groundwater pollution as well as poisonous “black rain.” In some villages near polluted water sources, the rate of cancer is 100 times higher than the historical norm.” The case has yet to be resolved.³ There are similar problems with Shell in Nigeria, Nike in Indonesia, Union Carbide in India, and Rio Tinto in Papua New Guinea.

Areas of Concern

Agriculture. The Green Revolution of the 1960s globalized agriculture and introduced the concept of “cash crops.” It also brought the promise of higher crop yields, reduced malnutrition, and rural development. However, along with it came traditional crop varieties and farmers displaced by agribusiness and hard-currency-earning cash cops, expensive imported fertilizers and pesticides, increased land distribution inequity, foreign corporate patenting of seeds and crop strains developed by local farmers over the centuries, and the diversion of financial and natural resources to agribusiness.

All of this undermined local agriculture, a devastating blow to indigenous farmers. Even worse, the Food and Agriculture Organization says that about 75 percent of all plant species have become extinct. In more than 80 of the 154 countries surveyed in 1995, this loss was attributed to “the spread of modern, commercial agriculture and the introduction of new varieties of crops.”⁴

Medicine. On February 1, 2001, America threatened to complain to the World Trade Organization about Brazil’s national and highly successful AIDS treatment program. By producing local and cheap generic drugs and delivering them for free, Brazil has halved its AIDS victims’ death rates and substantially reduced treatment costs. On April 19, 2001, after a protracted battle in South African courts, several pharmaceutical TNCs dropped their quest to block the South African government’s plan to import cheap generic drugs to treat its AIDS victims. Cilpa, an Indian company that produces cheap generic drugs for AIDS victims, routinely faces pressure from pharmaceutical companies and their governments to cease and desist.

In each case, the charge is the same: violation of the intellectual property and patent rights held by Western pharmaceutical companies. That these same companies are among the richest in the world, and that their clients are among the poorest countries in the world, is rarely mentioned. Prices have been reduced as a result of such negative publicity, but many victims in Asia and Africa still cannot afford the medicine they need to survive.

In the Amazon, researchers have discovered many plants and herbs with medicinal value from the indigenous peoples. However, most of them sell the data to the large pharmaceutical companies and both become rich. The Amazon’s people do not benefit; in fact, their situation deteriorates as even more TNCs descend upon them.

National Sovereignty. The rise of 24-hour computerized and almost instantaneous financial transactions and currency speculation makes it hard to know who is in control. Governments face an impossible situation: “Central banks and elected governments [are] regularly compelled to choose between [their obligations to domestic economies and the new force of the global market] … This was often a ‘no win’ choice for political leaders since yielding to the market’s idea of ‘sound economic policy’ frequently required them to depress their own economies, increasing unemployment or cutting social spending.”⁵

George Soros, perhaps the best known of all individual and institutional currency speculators, has humbled governments with this strategy. Working together, they humiliated the Bank of England in 1992 and destroyed Europe’s Exchange Rate Mechanism in 1993. Malaysian Prime Minister Mohamad blames Soros for the Asian economic crisis of 1997-98. No individual currency speculator can do much on his or her own, but when big players like Soros begin to move, others jump on the bandwagon. The results show who is really in charge of a nation’s economy and, to a certain extent, social policy.

Structural adjustment programs (SAPs) are another controversial matter. In the 1980s, America began tying its aid to World Bank and IMF economic prescriptions and reforms (reducing inflation, promoting exports, meeting debt-payment schedules, and decreasing budget deficits) and to facilitating increased American trade and investment.

However, they generally entail “severe reductions in government spending and employment, higher interest rates, currency devaluation, lower real wages, sale of government enterprises, reduced tariffs, and liberalization of foreign investment regulations…. But while government balance sheets may improve, SAPs have failed to establish a base for sustainable, balanced economic development … [and] have bankrupted local industries, increased dependency on food imports, gutted social services, and fostered a widening gap between rich and poor.”⁶

In addition, they tend to keep poor countries in debt, for new loans are needed to pay off existing debts and to qualify for future loans. Despite this, they remain the usual “cure” for countries seeking international financial aid and investment. This could change if anti-SAP protests continue, and if demands that lending institutions become more transparent and make allowances for social policies succeed.

Political Development and Human Rights. Decades of Western investment in oil-rich Middle Eastern and resource-rich African countries appears to have strengthened dictators of all persuasions. Instead of supporting human and religious rights in Chinese-occupied Tibet and Sinkiang, not to mention in China itself, American business interests persuaded Washing-ton to grant China permanent normal trade relations on September 19, 2000. Thus, China’s violations of human, labor, and religious rights no longer has to concern the American business community. Unfortunately, this seems to be the rule rather than the exception.

Conclusion

Global capitalism, based upon unfettered consumerism and the idea that continued profits through continued growth leads to ultimate happiness, now runs the world’s economy: “The culture-ideology of consumerism is the set of beliefs and practices that persuades people that consumption far beyond the satisfaction of physical needs is, literally, at the center of meaningful existence and that the best organized societies are those that place consumer satisfaction at the center of all their major institutions.”⁷

If this is true, human unhappiness is sure to increase. Poor people viewing the “real” lives of the rich through foreign television programs or movies see a lifestyle and possessions forever beyond their rich. Workers face constant job insecurity. Rural migrants in cities have their hopes dashed when they cannot find jobs. The media report the rise of sweat-shop and child labor, environmental devastation, a loss of corporate accountability and responsibility to their home bases, a hollowing of hard-won labor gains by threats of relocating overseas, and declining taxes as TNCs juggle their books.

Even those who benefit cannot feel secure. Their job might be outsourced in the interest of higher profits, abolished by corporate streamlining, or lost because they cannot acquire new skills fast enough. Shareholder dissatisfaction can destroy their companies, and job-related demands upon their time can make a normal family life and friendships impossible.

In sum: “Given their narrow premise, market economists never attempted to calculate all of the collateral damage that could also be attributed to the liberalization of finance-the capital investments destroyed when viable factories were abruptly abandoned, the economic output lost when economies grew more slowly, the public welfare costs from rising unemployment or declining wages, the instability for companies and nations caused by the sifting money values.”⁸

Economic globalization does have its good and bad points. But its emphasis on always-increasing profits as the way to ultimate happiness and meaning in our lives is misguided, for how can what is transient give lasting satisfaction? It has nothing to offer those who fall behind but dreams that will be fulfilled “sometime in the future.” And one day they will demand the fulfillment of those dreams…

Footnotes

1. Thomas L Friedman, The Lexus and the Olive Tree: Understanding Globalization (New York: Anchor, 2000), 71.
2. China’s first “cyber-dissident” was tried in Shanghai on December 4, 1998, “on charges of subversion for having given the addresses of 30,000 Chinese computer users to VIP Reference, a journal that Chinese dissidents publish in the United States.”
3. Ibid., 68.
4. Cristobal Bonifaz and Joseph C. Kohn, “Amazon Tribal Leaders Blast U.S. Judge For Blocking Texaco Pollution Case,” 31 May 2001. Online at: www.amazonwatch.org.
5. The State of the World’s Plant Genetic Resources for Food and Agriculture, Chapter 1: “The State of Diversity,” (Leipzig: 1996). Online at: http://web.icppgr.fao.org/ wrlmap_e.htm.
6. William Greider. One World, Ready or Not (New York: Simon & Schuster, 1997), 242.
7. Carol Welch and Jason Oringer, “Structural Adjust-ment Programs,” Foreign Policy In Focus, vol. 3, 3 (Apr. 1998). Online at: www.foreignpolicy-infocus.org/briefs/ vol3/v3n3sap.html.
8. Leslie Sklair, The Transnational Capital Class (Oxford, UK: Blackwell, 2001), 4-5. 8 Greider, One World, 250.

Other References

• Bales, Kevin. Disposable People: New Slavery in the Global Economy. Berkeley and Los Angeles: University of California, 2000.
• Barnet, Richard J. and John Cavanagh, Global Dreams: Imperial Corporations and the New World Order. New York: Touchstone, 1995.
• Korten, David C. When Corporations Rule the World. 2d ed.
• Bloomfield, CT: Kumarian Press, 2001. Madeley, John.
• Big Business, Poor People: The Impact of Transnational Corporations on the World’s Poor. New York: Zed Books, 2000.

Recently, the population of the world has grown enormously, as has consumption of goods and services, and this has meant an enormous increase in the volume of waste. Many scientific studies have been undertaken to find solutions to the ‘garbage problem’, which is, of course, also a pollution problem. Some studies showed that for plastics to be broken down completely and absorbed naturally could take as much as 400 years. Environmentally sensitive consumers therefore turned to using paper instead of plastics. But were they right to have done so? Or was it just a bit o f clever advertising by paper manufacturers?

Paper or plastic?

Paper manufacturers initiated many ‘anti-plastic’ campaigns. David Jacobson (1990) notes that they had lost about 60% of their grocery bag market to plastics by the 1980s. Paper once 20% more expensive than plastics was by then double the cost. But cost was not the only factor in consumer preferences. Technological advances made plastics thinner and lighter, requiring less storage space and reducing delivery costs. Consumers increasingly preferred lightweight plastic bags with moulded handles, and stores were happy to push the cheaper bags. Stone Container Corporation (which claims about 40% of the paper grocery market and 20% of the total grocery bag market) launched a vigorous campaign to raise consumer demand for paper grocery bags in the test markets of Jacksonville, Florida, and Hartford, Connecticut. The 13-week campaign included full-page newspaper ads, billboard advertising and 30-second prime time TV spots. According to Jacobson, the campaign improved paper bag sales by about 3%.

Plastic manufacturers fought back quickly, arguing that paper was not environmentally better than plastic: they ‘publicized findings that nothing degrades in a landfill – even biodegradable paper bags – thus negating part of paper’s environmental claim’ (Jacobson, 1990).

According to ‘The Changing Bag Market’, a market research report published by Business Communications Co. Inc., ‘low energy costs and favourable consumer response to plastic bags could increase plastic’s market share to 56.2% by the year 2000’ (quoted in ibid.).

The battle has remained remarkably positive. Both plastic and paper manufacturers acknowledge that they want to increase sales, but both express genuine concern for the environment.

Another preliminary study, done by Bank of America’s Environmental Policies and Programs Department, indicated that ‘though plastic film requires a bit more energy to manufacture, it may be the better choice because.., made with less water and chemicals’ (Bank of America, 1996. p.1).

Degradable plastics

Unlike traditional plastics, which may last 200 to 400 years, degradable plastics may deteriorate in a matter of months (GAO, 1988, p.8).

The report of the US General Accounting Office (GAO) grants that ‘degradable plastics may thus be able to reduce the life span of litter in the landscape and at sea; they also diminish the amount of plastics accumulating in landfills. Technical uncertainties about the performance of degradable plastics, however, have stirred some questions about their ability to alleviate these problems. As a result, some experts contend that recycling and incineration …. may be more effective responses to the environmental problems posed by plastics…:

In addition to their potential environmental benefits, it must be noted that degradable plastics offer new opportunities for use with agricultural products.

The private sector, local state and federal government have promoted the use of degradable plastics. In a letter dated January 19, 1988, Senator John Glenn, Chairman of the Senate Committee on Governmental Affairs, asked the GAO to conduct a study of federal government activities in the area of degradable plastics. Subsequently, the GAO contacted officials and scientists in the federal government and private sector. They found that the US Department of Agriculture, the Department of Defense, the Department of Energy, and the National Science Foundation were together supporting 12 research and development projects directly related to degradable plastics, at a total funding level of $1.7 million in fiscal year 1988 (GAO, 1988, pp.8-13).

Recycling vs incineration of plastics

Incineration of paper or plastics is controversial: ‘… some people

object to the disposal of plastics [also paper] in waste-to- energy plants because, they say, plastics burned for energy are lost forever, but recycling allows the product to be used over and over again’ (Alexander, 1993, p. 138). Recycling is a better way of protecting the environment which has been gaining wider acceptance in recent years. Package goods titans such as Procter & Gamble and Lever Brothers, have both made commitments to use a percentage of recycled plastic resins in their detergent bottles and other consumer products. ‘Contrary to public presumptions, plastics are among the easiest materials to recycle, reports Amoco, one of two hundred companies re claiming millions of used plastic containers for conversion to paintbrush bristles, traffic signs, toys, floor tiles, wastebaskets, plastic lumber, and many other useful items…’ (ibid.)

As of 1990 about 20% of soft-drink bottles were being recycled for use in making textiles and fibres, appliance handles, etc. (Saunders, 1993, pp. 178-9). Among numerous other examples of applications for recycled plastics, McDonald’s Playlands are composed of partially shredded, worn-out tyres.

On the other side, while a number of US companies have adopted plans to buy recycled paper supplies, many have resisted instituting such policies because of concerns over cost or quality. Because of the current technology, recycled paper products can cost 50% to 60% more than new ones (Eisenhart, 1990, p.20).

For the present, then, it would appear that, contrary to common misconceptions; the use of plastics is better for the environment than the use of paper.

References

• ALEXANDER, i.E-I. (1993) In Defense of Garbage, Praeger. Westport, CT.
• BERNARD, K. & LAWLER, E.D. (1990) ‘Recycling, Yes. Buying recyclables? Well’, Business Marketing, 75(11), pp.30-2.
• EISENHART, T, (1990) ‘There’s gold in that garbage!’ Business Marketing, 75(11), pp.2O-5.
• GAO [=US General Accounting Office I (1988) Degradable Plastica: Standards, research, and development, Report to the Chairman,Committee on Govemmcntal Affairs, US Senate, Washington, DC.
• JACOBSON, 0. (1990) ‘Paper marketers aim to bag their plastics cornpetitors’, Business Marketing, 75 (11), pp.32-3.