COWBOY MANAGEMENT

1. COWBOY MANAGEMENT CHRIS CUNDEY BUS 1050

2. WHAT IT IS • Cowboy management is seen as a reckless, ruthless management technique. Some see it as being sadistic. The criticism comes from renegade practices such as: • Disregarding regulations • Acting purely out of self-interest • Emotionally terrorizing employees • And a few more practices Managers usually pit employees against each other to increase productivity. They are also more inclined to do whatever it takes to eliminate their opponents. They love a fight. • Despite the negative criticisms, I see the leadership style as being healthy and productive. I see it as a style that can bring out the best in people. The style is perfectly suited for a capitalist economic system. The “invisible hand” (self-interest) is ever-present.

3. ADVANTAGES • Competition • Productivity • Balance

4. Competition • Productivity is increased through competition • Competitive markets—including labor markets– are proven to be the most efficient. Consider the DMV, a business without any competition. The lines are ridiculously long and the work is inefficient. Now consider European education systems. In most of the countries, students receive vouchers to go to any school that they please. Now that they have a shopping option, they are able to cast off poorly managed schools and attend schools that produce better results. If a school is under-producing, it is shut down. Compare that with the test scores between European and American students, European children with this kind of system will blow the American students out of the water. The statistics on the OECD’s website proves my statement. • I believe that sales departments use this leadership style the most. Sales teams will compete with each other for prizes and other incentives. Some companies, such as mine, actually have clubs for the top producers. Members of this “club” are awarded with extravagant prizes and incentives.

5. Productivity • This management style can also provide a great indication for which employees are deadweight, slackers. By getting rid of these workers, more space is cleared to bring in more productive workers. • Employees will work harder to stand out for reasons spanning from bragging rights to fear of losing their job.

6. Balance • A more balanced market is established through the methods of Cowboy Management. • The Parallel Start-Up method is extremely similar to a “covered call” in trading in the stock market. It is designed as an insurance measure to minimize loss through adding another service or product in case any issues occur with the first. • The Replacement business method is bolder, however it is still sound. Giving your company a facelift is risky, but it can work to your favor as long as evidence points to it being a wise business decision.

7. DISADVANTAGES • Resentment- The employees may begin resenting management. They could see this practice as being unfair. However, these individuals are most likely under-producers and will be weeded out one way or another. • Lack of quality- Employees may sacrifice quality for quantity. This is especially true in numbers-oriented businesses. At my work, loan officers will attempt to sell loans to people who may have issues with it later down the road (bad credit, high debt-to-income ratios). Also, they maybe in such a hurry to sell the person, they will leave out tons of information or add misinformation, that they submit a horrendous file to the processors.

8. CURRENT BUSINESS PRACTICES • I believe that it is very much present in our business world today. It is effective, why shouldn’t it be? The strength exuded from this style promotes confidence in the direction of where the company is heading. I personally would want a cut-throat, cowboy boss instead of a push-over boss. Employees will have more to gain for their hard work through incentive programs. Push-overs tend to not last. The prize will always go to those who are willing to catch it.

9. ORGANIZATIONAL PERFORMANCE • An example of the organizational performance can be seen at my work. We have TV screens all over the building that show how much everyone has sold and if they are meeting their quotas. This public display, according to the packet, is cowboyish in that it pits workers against each other to avoid public humiliation. It’s a system that inactively polices productivity. I think it’s brilliant. No one wants to be chastised for being an under producer, conversely everyone wants to be renowned for being a top producer. We even have parking spaces reserved for top producers. • I have seen this style in most of the businesses that I have worked for. High productivity is awarded through bonuses and paychecks. Low productivity is also penalized through bonuses and paychecks. Xerox uses this system.

10. COWBOY MANAGEMENT VS. CHIEF JOSEPH Chief Joseph definitely would not agree with this leadership style. He was more into peaceful practices. Through this he was able to command respect and able to manage his people from acting rash for a prolonged period of time of abuse. The American Government was acting like cowboys. They would fight battles over what they wanted and displace large groups of people to obtain it. Chief Joseph operated more off of respect, while cowboys act more out of self-interest. Both are great leadership methods, but only one group got what they wanted in the end. • I believe that the best leadership method for a capitalist society is Cowboy Management.