2. Agenda
Introduction
The age of Scientific Management
Management Triumphant
Frederick Winslow Taylor
(1856 – 1915)
The era of nervous globalism
Conclusion
3. The Age of Scientific Management
The Principles of Management (1911)
the humanity things of
of production production
THE RIGHT
BALANCE
Frederick Winslow Taylor
(1856 – 1915)
The earliest attempt to apply science to
the engineering of processes and to
management
Objective: improving economy
TAYLORISM efficiency, especially labor productivity
4. Management Triumphant
Concept of Corporation (1946)
A vision of the corporation as
a social institution and employees as knowledge
workers
The Practice of Management (1954)
Success in business meant rapid and intelligent
Peter Drucker adaptation to events occuring outside in an
(1909 – 2005) economy shaped by impersonal and objective
forces that were neither controlled by the
businessman nor influenced by his reaction to them
Managing for Results (1964)
The Rise of Businesses exist to produce results to grow the
enterprise
Strategic Thinking
5. The Era of Nervous Globalism
Forces for change
Shareholdercapitalism’s ascent
over stakeholder capitalism
Theshift toward leadership and
innovation
6. Forces For Change (1970s – 1980s)
Deregulation and global trade
Telecommunications, transportation
and finance sectors
Imports from global trade flooded the
US economy
Technology
Improved computing power
Evolved from integrated chips to
ubiquitous PCs
Stock market recovery in 1980s
More funds available
Acquired companies and sold off parts
of it for profit
7. Shareholder Capitalism’s Ascent Over
Stakeholder Capitalism
Corporate strategy’s aim is to create
wealth for shareholders
Michael porter
Competitive strategy and
competitive advantage that
sharpened corporation’s focus
Value chain and bench marking
Tom Peters and Bob Waterman
Importance of culture in
organisations – “soft is hard”
“In search of Excellence” sold more
than 6 million copies
8. Shareholder Capitalism’s Ascent Over
Stakeholder Capitalism (Cont.)
Two strains of thought
Numbers driven: push for more profitability
More Respect: humanity of production
US economy surged after 1982
Acceptable to sell off businesses that did not fit the
corporate strategy
No more lifetime employment
Exploited freedom of information act (1996) and
databases to gain competitive intelligence
9. Shareholder Capitalism’s Ascent Over
Stakeholder Capitalism (Cont.)
Two HBR articles in the 1980s
Michael Jenson’s agency theory provided rationale for
take over activity
Companies existed to benefit shareholders but
managers often develop self-interests
Stick of potentially being acquired
Carrots of incentives linked to stock price
Michael Hammer and James Chumpy
Focused on business process re-engineering
Destroy existing processes and exploit IT
Convenient excuse for layoffs
Management fad gone wrong
10. The Shift Toward Leadership and
Innovation
Advocates for the humanity of production
Asks two important questions:
Just what were the managerial practices that would
bring out the best from employees?
How were they to be measured and their value to the
company calculated?
11. The Shift Toward Leadership and
Innovation
Strategy had a fairly clear paradigm frameworks for
successive generations of thinkers to build on
Advocates of shareholder value gloried in their single
yardstick, the stock price, as the measure of all things
12. Issues
Scholars and students of human behavior in organizations
were all over the landscape – dispersed and lack unity
E.g. Books on how to be a learning organization jostled
with ones on the wisdom of teams, the power of
corporate loyalty, the necessity of core
competences, the importance of delighting
customers, and the imperative to navigate change, as
in figuring out who’d moved your cheese.
13. Leadership
Focus on “educating general managers” to “helping
leaders develop.”
No consensus has formed on exactly what constitutes
a leader
How those leaders and managers come to exist in the
first place?
Answers built on efficacy (“she gets results”) or even
inspiration (“he provides a vision”) lack the moral
resonance
14. Innovation
Innovation is where satisfying the fierce demands of
the market depends on eliciting the best from the
humanity of production.
No one yet appears to have been able to automate
the invention of the new or to come up with machines
to replicate the spark of human imagination.
The biggest managerial challenge facing the 21st-
century company will be finding ways to free that
spark, resident in employees, from the organization’s
tidal pull to keep doing the same old things
15. Conclusion
Age of manager is not
over
Humans stubbornly cling
to their propensity
To be - human
There is no such this as
“the one best way” to
manage humans
