Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.82.3.178-180

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Book Review
To cite this article: (2007) Book Review, Journal of Education for Business, 82:3, 178-180, DOI:
10.3200/JOEB.82.3.178-180
To link to this article: http://dx.doi.org/10.3200/JOEB.82.3.178-180

Published online: 07 Aug 2010.

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Date: 11 January 2016, At: 23:24

BOOK REVIEW

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Rouse, William B. (Ed.)
Enterprise Transformation:
Understanding and Enabling
Fundamental Change
Hoboken, New Jersey:
Wiley, 2006
527 pp.
ISBN: 0471736813, Price: $75

T

his book of readings is about the
change process and how leaders in
organizations often need to transform

not only themselves but also those
around them. The premise of the text
reflects the viewpoint that enterprises
today are likely to be in a flux of continual change whether they are in the
private, public, or nonprofit sector. Generally, global competition, technology,
and government deregulation drive
change. Therefore, the contributors to
the text generally argue that there is
enormous value attributed to transforming an organization, especially as markets change.
In this regard, William Rouse, the editor of the publication, has put together
an impressive list of authors that provide
success stories of those organizations
that have undergone substantial change
over the past decade. Companies used to
illustrate how transformation adds value
to an organization are Reebok, Lockheed Martin, UPS, and Wal-mart. The
text contributors provide ample evidence
of the positive results of undertaking the
effort to transform an organization into a
more effective operation.

The text targets those serious leaders
of change presently employed in the private, public, or nonprofit sectors and
advanced undergraduates at the university level interested in accelerating their
careers by becoming change agents.
The assumption made by Rouse is that
change is not only a good thing but also
now required for an organization to
remain a viable entity in the marketplace. However, the text may also be
useful for graduate students (particularly those in business administration)

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seeking to advance their knowledge
about transforming their organizations.
In this regard, the text targets those individuals with considerable business
experience seeking their master of business administration (MBA) or equivalent degrees through accelerated executive graduate programs. Therefore, the
audience for this text is rather extensive.
Enterprise Transformation offers the

reader the opportunity to obtain multiple perspectives of the change process.
The text contributors include not only
those from the academic community,
but also business executives and change
consultants. As pointed out in the text,
change is more than simply modifying
existing work patterns in an effort to do
something better. In the view of Rouse,
change often involves performing tasks
entirely differently and even doing different kinds of work.
Structurally, the text is divided into
four parts. Part 1 includes three chapters
that introduce the reader to forces that
prompt organizational transformation. A
brief overview of the transformation
process enables the reader to gain an
intriguing perspective of change methodology for reinventing an organization.
Part 2 includes eight chapters that
focus on how to change the work culture within organizations found in both
the manufacturing and service sectors.

At this point in the text, William
George, a contributor to the text, compares several important aspects of transformational leadership with those of
transactional leadership. Also, there is
an introduction of the Six Sigma
methodology, including its history and
application.
Part 3 of the text includes six chapters
addressing issues that a change agent
generally must confront at one time or
another, such as coping with a financial
crisis, handling work conflicts, and dealing with taxation ramifications.
Part 4 includes five chapters that provide an in-depth view of how change
principles have been applied in well-

known companies such as Rubbermaid
and Interface—with an added twist of
incorporating academic institutions,
such as Georgia Tech, into the mix.
The primary strength of the text is the
many references documenting how

undertaking the transformation process
has impacted on an organization’s ability to not only survive but also grow to
the next level. In addition to the organizations indicated above, there are references to such highly publicized companies as UPS, Home Depot, Target, Dell,
Hewlett-Packard, and Nike, among others. Another series of examples of a successful transformation being undertaken
include academic institutions such as
Massachusetts Institute of Technology
(MIT), Harvard University (especially
the Harvard Business School), and University of Pennsylvania.
Finally, even references to the U.S.
Air Force, the U.S. Supreme Court, and
the U.S. Internal Revenue Service add
to the litany of examples of where institutions have undergone or are in the
process of undertaking a significant
transformation.
Another strength to the text is an indepth analysis of what are labeled as
critical points that change agents must
often address. These include what is
referred to in the text as business
processes and value streams, outsourcing, and asset management. Business
processes reflect those decisions by

change agents that impact core activities
that are crucial to achieving specific
organizational objectives. In this regard,
one objective is to add value to the product and services sought out by customers. In this text, outsourcing is generally perceived as being transformative
in itself. This topic relates to the capability of an organization to keep production costs in line with price pressures in
the marketplace.
Moreover, asset management relates
to how change agents may redeploy
land, labor, and facilities to generate
greater efficiencies. These topics are

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discussed in great detail and there are
continual references to organizations
that have successfully addressed these
issues as change took place.
Finally, another intriguing aspect to
the text is the analysis of different catalysts for generating (and also accomplishing) change in an organization. In
this instance, Basole and Demillo, two

contributors to the text, refer to such
catalysts as “transformation archetypes”
(pp. 223–248). One such archetype
reflects companies like General Electric
and IBM that transformed their entire
business model by completely dismantling old ways of doing things.
Another archetype is when an organization either acquires or merges with
another enterprise, resulting in a complete transformation, such as Tennenbaum Capital and Lockheed Martin.
Lastly, a third archetype for transformation reflects an enterprise that actually
forces its competitors to transform.
Illustrations of this phenomenon are
Amazon, CNN, and e-Bay, which redefined how books may be marketed, how
news can be delivered 24 hrs a day, 7
days a week, and how an online community that links selling, payment, and
shipping electronically can be built
respectively.
The end of chapter case studies and
numerous analytical tools introduced
throughout the text enable readers to
enhance not only their understanding of

the transformation process but to actually test themselves when attempting to
put those techniques into action.
At the conclusion of the text, the final
five chapters consist of the reporting of
transformation case studies that give the
reader special insight as to the how to
infuse a corporate culture into accepting
change.
A weakness in the text is the lack of
attention to social responsibility issues as
they relate to change outcomes. Because
change has a tendency to bring about
chaos in an organization, it also impacts
how employee complaints are handled
and how workers are maneuvered about,
whether outsourced or downsized or
fired. Because local communities are
typically affected by change, a discussion of social responsibility issues is
important. Although there is a reference
to customer-relations management and

customer satisfaction considerations, the
analysis is more about generating profits
rather than respecting standards of
decency and ethical treatment.
In conclusion, the text may be characterized as a significant instructional
aid for clarifying the transformation
process. A wealth of examples provides
an impressive learning environment for
updating the reader as to the most current thinking in change methodology. In
this regard, Rouse, the text editor, did a
superb job of bringing together an
assortment of scholars to communicate
best practices of many enterprises in all
three sectors: nonprofit, for profit, and
private.
The methods and tools presented
enable the reader to have a framework
for entering into the change process
with some degree of confidence.

Although not a panacea for addressing
all issues relating to the change process,
Rouse provides a very comprehensive
analysis of enterprise transformation.

Forgang, William G., and Einolf, Karl W.
Management Economics: An
Accelerated Approach
New York: M. E. Sharpe, Inc., 2007,
218 pp.
ISBN-10:0-7657-1778-1. Hardback,
$78.95

The authors promise a book that
delivers an accelerated learning strategy
to analyze economic principles that
enhances decision making on the part of
those who are either preparing to enter
into a management position or those
who are presently employed. The study
of managerial economics traditionally
requires advanced quantitative skills to
effectively apply economic principles
for resolving business issues. However,
Forgang and Einolf rely on a nonmathematical approach of study under the
rubric of management economics.
In other words, the authors view the
study of economics as an art whereby
critical thinking becomes more significant when arriving at a decision. Therefore, the learning strategy espoused in
their book suggests that to learn about
economics, readers do not necessarily
have to subject themselves to a scientific approach (i.e., using mathematical

models to arrive at the best solution).
This subtle, but important, discrepancy
between positioning the text as a book
on management economics versus managerial economics serves as the backdrop for the instructional tools presented and for a description of their use in
decision making.
The text is written for the adult learner who may be seeking an undergraduate business degree (or perhaps a master
in business administration [MBA]) and
prefers to learn about economic principles through a 7-week one-semester
accelerated or online course. The
authors reflect the perspective that the
quality of business, as well as personal
decisions will be greatly enhanced by
applying both basic micro- and macroeconomic principles. By better understanding micro- and macroeceonomic
effects on outcomes of decisions, people can make more decisive choices.
The text also differs from others
because it is less theoretical, thus providing a more insightful (or realistic)
view of the organizational environment
in which professionals make decisions.
The accelerated or online course
often results in limiting the interaction
between the instructor and the student,
thus relying on the self-discipline of students themselves to stay up-to-date with
their readings and assignments. However, the authors have been successful in
building a sustainable learning environment. To meet the demands that both
accelerated and online formats place
upon faculty to assure learning, Forgang
and Einolf have designed an intriguing
array of pedagogical features.
The authors encourage student discussion in a variety of formats to teach
them how to apply basic economic principles within a business framework. For
example, in the online course alternative, text exercises are discussed
through an electronic chat room. Complementary to this strategy, students are
engaged in searching for information on
the Internet and then analyzing it within
an economics framework. In the 7-week
classroom-accelerated format, exercises
involve a similar data analysis requirement to address issues often found in
organizations. To further assist the
learning process, discussion questions
appear at the end of each chapter,
January/Febrary 2007

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enabling the adult learners to self-test
their command of the topics.
The authors also use case studies to
present issues in management that often
required economic analysis for making
informed decisions. These case studies
are instrumental to the online discussions conducted via chat rooms but are
also useful for promoting similar classroom exchanges for those participating
in the 7-week accelerated format. The
use of application boxes for providing
realistic examples of resolving issues
found in management, marketing, and
finance is another intriguing instructional strategy the authors adopted. By connecting economic principles to realworld practices, the adult learner is
directed to apply basic mathematical
skills while proceeding through a problem-solving process.
Because accelerated courses typically
last 7 weeks or less, the authors have
designed a text that includes just seven
chapters. Chapters 1–3 focus on presenting macroeconomic principles related to aggregate output, pricing, money
supply, and other financial issues. At the
conclusion of the initial chapter of the
text is an interesting introductory illustration of how a regression analysis may
be used for predicting outcomes.
In chapters 4–7, the authors introduce microeconomic principles, such
as supply and demand, production
costs, and profit maximization. Even
though the text represents a compact
version of study, the pace of instruction, intensity of coverage, and emphasis on learning in small-group formats
enable faculty to literally design their
own version of the course, whether a 7week accelerated version, an online
interactive version, or even a typical
13-week course.

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Journal of Education for Business

In addition, within the seven-chapter
format, Forgang and Einolf integrate the
study of economic principles via three
instructional stages. The first stage promotes the premise that economic principles affect everyone’s life in some way,
whether a manager in business or an
individual making personal decisions
regarding everyday responsibilities.
Therefore, the discipline of economics
can be adapted in some way by everyone who lives and functions in a free
market system.
Building on this perspective, the
authors introduce a second stage of study
that narrows the learning process to
understanding the ways in which those in
management organize and analyze data.
Finally, the third stage of study links the
application of economic theory to resolving real-world issues in management,
marketing, finance, and accounting.
Therefore, the strength of the text
relates to the authors’ simplicity in presenting the material to assist readers in
applying economics to both their professional and personal lives. Numerous
tables and figures distributed throughout the text easily refer to what is being
described in the text.
The authors assumed that the adult
learner is capable of making his way
through an array of significant economic issues by using only basic mathematical skills. The ability to convert rather
challenging contextual material into
easy-to-understand formats for the adult
learner results in this text’s uniqueness
in the field.
There is one weakness of the text:
The authors appear to only touch upon
some economic principles that are crucial to understanding the intricacies of
the decision-making process in which
management typically engages. For

example, in the concluding chapter of
the text, the authors describe how the
study of economics may help the reader
understand the design and implementation of business strategy. However, the
authors may be underestimating the
depth of economic understanding one
requires to plan, implement, and assess
a business strategy. Also, the authors do
not fully explain important issues confronting management today, such items
as outsourcing, distributing factors of
production, and global positioning,
although there are references to these
topics to a lesser degree.
In conclusion, the text merits consideration for adoption, but for a specific limited use. I find the text unable
to serve as a comprehensive exposure
to economics for the traditional 4-year
business major or for the MBA student. The book appears to be more
appropriate for those who desire to
learn about economics within an easyflowing format, but not for those who
require an in-depth study of the discipline. However, Einolf and Forgang do
fill an important unmet need for accelerated and online courses for managers, particularly nonbusiness undergraduates, and those entertaining an
MBA who presently, for some reason,
have limited knowledge of micro- and
macroeconomics.
Because the authors take the position
that the reader does not require a significant foundation in statistics, or
advanced mathematics, the text may
appeal to a wider audience by providing
a viable alternative for learning some
valuable analytic techniques.
James L. Morrison
University of Delaware
Newark, DE
Copyright © 2007 Heldref Publications