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Dr. W Edwards Deming encouraged management and staff to collaborate often to create new ideas. This raises the value of staff participation and effective communication (Finkleman, 2012, p. 5). The theories of Deming hve been used to transform managment to a more effective function. Deming’s organizational Theory of Profound Knowledge,contains four distinct core values:1. Appreciation for a system2. Some knowledge of the theory of variation;3. A theory of knowledge4. Some knowledge of psychology (Avery, 2010, 480-484). see video 1.1 Deming's 14 Points Management 1. Create constancy of purpose to improve product and service aiming to be competitive, stay in business, and provide jobs. 2. Adopt the philosophy of the new economic era, take on the challenge, learn responsibility, and lead change. 3. Build quality into the product to eliminate the need for inspection-dependent quality. 4. Minimalize cost. Do not associate business with a price tag. Use one supplier for every one product, and build business relations on loyalty and trust. 5. Constantly improve quality and productivity in order to reduce costs. 6. Train on the job. 7. Establish leadership. Supervision should be aimed at helping others and machines to do a better job. Supervision should also be focused on works as well as managment.8. Eliminate fear to enable workers to work effectively. 9. Break down barriers between departments. Multiple departments woking together can use their speciality to find or foresee problems with a product or service during production. 10. Eliminate work standards or quotas. Targets for work lead to low product quality. Substitute management by numbers with leadership among workers.11. Do not rob the hourly worker the right to pride of workmanship. Supervisors must refocus from numbers produced to quality. 12. Remove annual merit ratings which rob managment and engineers the right to pride of wokrmanship. 13. Institute continuous education and self-improvment. 14. It is the job of everyone in the company to work toward transformation. ("The system of profound knowledge"; "The fourteen points for the transformation of management"; "The seven deadly diseases", 2013)See video 1.2 Deming's "Seven Deadly Diseases" 1.Lack of constancy of purpose to plan for product and service to sustain a business in market. 2.Emphasis on short-term profits: the counter-idea to constancy of purpose. Short-term profits are motivated by producing dividends for bankers. 3.Evaluation by performance, merit ratings and annual reviews. 4.Mobility of management5.Use of only visible management figures to run a business. 6.Excessive medical costs7.Liability costs, or legal contingency fees for lawyers (Avery, 2010). See video 1.3 Dr. Deming's theories have proven to be effective in transforming companies to a more productive state. Using his theories, businesses can increase leadership, decrease costs, and improve communication. Dr. Demings' theories, The Fourteen Points as well as The Seven Deadly Diseases, can also be applied to the business of healthcare with some thoughtful modifications. His theories can reduce costs, improve quality, and increase workmanship. Quality of work can be improved in nursing by raising staff nurses to be leaders without increasing the number of nurses in managment positions. Dr. Deming's theories offer clarity and allow businesses to transform into their ideal function. Peter Ferdinand Drucker emphasized the importance of staff participation in planning. He aimed to foster 'individual autonomy' in staff memebers. Drucker encouraged managers to promote this sharing of ideas by seeking out staff memebers' thoughts and fostering leaders. (Finkelman, 2012, p. 6). For example, nurse managers should raise up new nursing leaders by encouraging their input for planning and implementation.Finkelman (2012) writes, "Nurses should be viewed as knowledge workers, not laborers." (Finkelman, 2012, p. 11) 2, p. 11) Drucker's Management by Objectives: 1. Management creates objectives2. Managment conveys objectives to employees3. Managment monitors employees4. Management evaluates achievements and progress 5. Management rewards the completion of the named objective(Management by objectives, 2010) See video 2.2Drucker created 5 important questions to ask before creating goals. 1. What is our mission?2. Who is our customer? 3. What does the customer value? 4. What are our results? 5. What is our plan? (Suddes, 2010) See video 2.3Drucker's theory of management by objectives requires the participation of every level of companies management system. Each management level is to review the proposed objectives and create goals. Drucker created the acronym SMART for the effectiveness of goals. Goals are to be SMART: S- specific M- measurable A- achievable R- realistic T- time bound (Management by objectives, 2010) See video 2.4 If the goals made by management pass the SMART test they are passed down to the next level of managment who convey these objectes and goals to employees, this process continues and permeates to every level of management and employment. (Management by objectives, 2010) Drucker stated that effectiveness was ultimately greater than efficiency, his theory of management ensures effectiveness due to collaboration and agreement on objectives by all of management. (Management by objectives, 2010). If a flaw is foreseen it is more probable that a memeber of management will voice the problem before the plan is implemented. This system of democracy is clearly a more logical way to brainstorm and function. Thus, communication among all levels of management and employment improve. The objectives can be made applicable to every department in a company (i.e. in helathcare objects can be made to appliy to administration, nurse managers, staff nurses, physicians, respiratory therapists, etc.). This theory allows management to relay their provisions to their subordinates while allowing employees to be creative, instill their unique ideas into the company, and maintain autonomy over their work. This system creates leaders out of employees not holding management positions and effectively meets the provided objectives. Healthcare organizations can effectively meet its needs and flow with the need for change by using Drucker's theory of management by objectives.

Dr. W. Edwars Demings

Peter Ferdinand Drucker

Deming vs Drucker

Created by: Stephanie Simms

Avery, L. (2010). A New House with a 1950s Foundation: The Complex Adaptive System Theory of the Organization related to Dr. W. Edwards Deming's Theory of Profound Knowledge. Proceedings Of The Northeast Business & Economics Association, 480-484. The Deming Institute. (n.d.) No title. [photograph]. Retrieved from Deming Institute. [DemingInstitute] (2009 August 25). Dr. Deming- The 7 Deadly Diseases. [video file). Retrieved from The Deming Institute. [DemingInstitute] (2012 November 28). Deming Institute 14 Points. [video file]. Retrieved from Deming Institute. [DemingInstitute] (2012 November 28). Deming Institute SOPK. [video file]. Retrieved from, W. E. (1982). Quality, productivity, and competitive position. Cambridge, MA: Massachusetts Institute of Technology, Center for Advanced Engineering Study. The Drucker Institute. (n.d.) No title. [photograph]. Retrieved from, P. F. (2011). People amd Performance. In P. Drucker (Eds.). People and Performance. (p. 16-18). Finkelman, A. (2012). Conceptual bases for leadership and management. In A. Finkleman (Eds.). Leadership and management for nurses: Core competencies for quality care (p. 6-7, 11). Flaherty, J. E. (1999). Peter Drucker : Shaping the Managerial Mind. San Francisco, Calif: Jossey-Bass. Killam, Laura. [NurseKillam]. (2013 Febuary 5). How SMART are your goals? How to recognize and write smart goals for change. [Video file]. Retrieved from by objectives. (2010). Retrieved Novemeber 15, 2013, from Minnick, E. [ErikaMinnick]. (2012 February 5). Authentic Leadership Peter Drucker. [video file]. Retrieved from [Momentumleadership]. (2012 October 14). Management by objectives: A video explaination [Video file]. Retrieved from, Dan. [Dan Predpall]. (2012 Febuary 20). Peter Drucker's Five Questions. [Video file]. Retrieved from, Tom. (2009 September 18). Drucker: 5 most important questions. Retrieved Novemebr 18, 2013, from system of profound knowledge, The fourteen points for the transformation of management, The seven deadly diseases (2013) In The W. Edwards Deming Institute. Retreived November 10, 2013 from

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American professor, consultant to governments and businesses, author on statistical variance, systems thinking, and psychology. After World War II, he helped raise the Japanese industry as well as revive the American automotive business in the late 1980s. (Darr, 1994; Deming, 1982; )

Peter Ferdinand Drucker (November 19, 1909 – November 11, 2005) was an Austrian-born American management consultant, and educator. (Drucker, 2011) See video 2.1

Video 1.1 (The Deming Institute, 2012)

Video 2.3(Predpall, 2012)

Video 2.1(Minnick, 2012)

Video 2.2 (Momentum, 2012)

Video 1.3(The Deming Institute, 2009)

Video 1.2 (The Deming Institue, 2012)

(The Deming Institute, n.d)

Video 2.4(Killam, 2013)

(The Drucker Institute, n.d.)


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