TheManagementCenturyBy: Walter Kiechel IIIPresented by:Chew Ann Liang (G1200837L)Fransisca Katherina Rumambi(G1200547C)Norrizwan Rasip (xx)
Agenda Introduction The age of Scientific Management Management TriumphantFrederick Winslow Taylor (1856 – 1915) The era of nervous globalism Conclusion
The Age of Scientific Management The Principles of Management (1911) the humanity things of of production production THE RIGHT BALANCEFrederick 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
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 enterpriseStrategic Thinking
The Era of Nervous Globalism Forces for change Shareholdercapitalism’s ascent over stakeholder capitalism Theshift toward leadership and innovation
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
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
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
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
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?
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
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.
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
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
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