Applied Research Agenda for the Cable Industry

Introduction

The cable industry has many social, economic, and political issues that shape the modern business environment similarly to the scientific business era. Corporate executives deal with management issues such as labor unions, overworked installers, and finding the right balance of frugality, efficiency, and productivity. Therefore, business executives that work for multiple service operators (MSO) can benefit from an applied research agenda. This applied research agenda will outline Frederick Taylor’s (1856-1915) principles of scientific management, its relevance to U.S. business leaders that wish to remain competitive in the 21^st century and finally, a recommendation based on the analysis.

Frederick Taylor and his Contribution

Daniel Wren reflects on The Principles of Scientific Management written by the father of scientific management, Frederick Taylor (1856-1915). This published work served as a means of improving management practices. The problem that Taylor addressed was what he called ‘bad industrial conditions’ which restricted output and poor management. Taylor determined how each job becomes more efficient and established performance standards. (Daniel A. Wren, 2009) In the process of measuring distances and materials, he later devised a pay schedule that experimented with paying employees based on performance as opposed to a salary. According to Taylor, a man’s output determines profit sharing and if a man was unable to perform at the goals then he should not be entitled to the same compensation.

Because of the performance-based approach, Taylor ran into roadblocks from both politicians and labor unions that perceived this philosophy to provoke managers to abuse men. Nevertheless, Taylor went on teach at Harvard Business School and consulted many companies to promote the principles of management science.

Relevance to Business Leaders at Cable Companies

In the past, Taylor’s management science was only applicable to the industrial era; however, labor unrest, politics, and economic problems were also pertinent to executives in the cable industry. The National Cable and Telecommunications Association, lists the top MSO's as Comcast, Time Warner, and Cox cable (See table 1). For the purposes of this research, the focus is the top three MSO’s.

Table 1

Top three MSO’s

Rank MSO	Basic Video Subscribers
Comcast Cable	24,182,000
Time Warner Cable Cox Communications	13,069,000 5,328,304

Source: Cable: National Cable and Telecommunications Association

Cable companies face similar problems outlined in Taylor’s Principles of Management Science. The problems stem from labor unrest, poor public relations (PR), and above all trying to find cost effective ways to do business. The inability to manage the output of labor translates into a loss of customers. Cable industries have a history of labor problems in America. In some markets, cable companies are plagued with acquisitions of new markets in which the implementation of new technology does not go smoothly. Linda Haugsted interviewed Maggie Healy, assistant to the city manager and Healy stated,

“The New York City-based cable operator hired subcontractors to do the repair work, she said. The city official said field workers are required to give a consumer an explanatory letter when they enter private property to access easements. This was done and when homeowners challenged the strangers on their property, the workers were rude, according to Healy. Now, Time Warner is trying to correct mistakes, using its own technical crews.”(Haugsted, 2007)

This is an example of labor unrest, poor public relations, and above all finding cost effective solutions to the cable industry correspondingly, Taylor’s Principles of Management Science.

Recommendation

In agreement with Taylor’s The Principles of Management Science, devising a method to measure the quality of works, subcontractors should have the opportunity for profit sharing. If subcontractors have an opportunity to purchase shares of the company, based on productivity, this could result in a measurable win-win scenario for both parties. Mark Zimmerman stated,

“We can perceive the expressions of safety needs only in such phenomena as, for instance, the common preference for a job with tenure and protection, the desire for a savings account, and for insurance of various kinds. (Zimmerman, 2002)

With this perceived safety, cable companies could gain an extra boost in capital. Subcontractors will also feel a since of ownership, security, and a sense of stability resulting in higher levels of productivity.

Conclusion

The cable industry has many social, economic, and political issues that shaped the modern business environment. As a result, there is a current need to manage cable networks including subcontractors to find the right balance of frugality, efficiency, and productivity. This process needs a means of performance measurement and improvements aimed at making the already successful better.(Drucker, 1992) In response, this applied research agenda outlines Frederick Taylor’s (1856-1915) principles of scientific management, its relevance to U.S. business leaders in the 21^st century and finally made a recommendation based on the analysis.

References

Daniel A. Wren, A. G. B. (2009). The Evolution of Management Thought (6^th ed.). Hoboken: John Wile & Sons, Inc.

Drucker, P. F. (1992). Managing for the Future : The 1990s and Beyond. New York: Penguin Books USA, Inc.

Haugsted, L. (2007). Do Diligence: Time Warner Cable's acquisition of Adelphia Communications and Comcast operations in Los Angeles. 28, (17)(10), 2762.

Zimmerman, M. (2002). A Theory of Human Motivation by Abraham Maslow (1943). Psychological Review, 50(4), 370-396.