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Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 1995
Length: 16 pages

Abstract

Why are some companies able to remain vital, even after extensive reengineering, while others flounder and fail? The answer, according to these authors, lies in a company''s ability to rejuvenate its employees by establishing a behavioral context with four characteristics - discipline, support, trust, and stretch. The authors trace postwar corporate history to identify the pernicious qualities that have ossified many companies, using the example of Westinghouse to illustrate an oppressive context based on the elements of compliance, control, constraint, and contract. They also show how companies like Intel and 3M have been able to renew themselves by creating an environment in which people are the most important resource.

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Abstract

Why are some companies able to remain vital, even after extensive reengineering, while others flounder and fail? The answer, according to these authors, lies in a company''s ability to rejuvenate its employees by establishing a behavioral context with four characteristics - discipline, support, trust, and stretch. The authors trace postwar corporate history to identify the pernicious qualities that have ossified many companies, using the example of Westinghouse to illustrate an oppressive context based on the elements of compliance, control, constraint, and contract. They also show how companies like Intel and 3M have been able to renew themselves by creating an environment in which people are the most important resource.

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