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Towards a New Conceptualization
    of Managerial Discipline
                Togar M. Simatupang
         School of Business and Management
           Bandung Institute of Technology
                  19 December 2011
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Objectives
• Understand what managerial discipline is and
  identify its characteristics.
• Identify the Body of Knowledge (BOK) of
  managerial discipline.
• Explain the four basic forms of managerial
  studies: management, administration,
  entrepreneurship, and stewardship.
• Describe the use of managerial studies typology
  in the nomenclature of academic degree
                                                    2
Overview
• What is management?
• What is managerial discipline?
• BOK of managerial discipline
• Clustering managerial discipline into
  managerial studies
• Proposed nomenclature of academic degree in
  managerial discipline
• Conclusion
                                            3
What is management?
• Management in all business and organizational activities is the act
  of getting people together to accomplish desired goals and
  objectives using available resources efficiently and effectively.
• Management comprises planning, organizing, staffing, leading or
  directing, and controlling an organization (a group of one or more
  people or entities) or effort for the purpose of accomplishing a goal.
• Resourcing encompasses the deployment and manipulation of
  human resources, financial resources, technological resources and
  natural resources.
• Since organizations can be viewed as systems, management can
  also be defined as human action, including design, to facilitate the
  production of useful outcomes from a system.
• This view opens the opportunity to 'manage' oneself, a pre-
  requisite to attempting to manage others.

Source: http://en.wikipedia.org/wiki/Management
                                                                       4
What is management?
Management is the act of coordinating
decision making and technical processes in a
social system including human and
institutional behavior and its relations to
external parties to accomplish desired goals
and objectives of an organization in the most
efficient and effective manner.



                                                5
What is Managerial Discipline?
• Managerial discipline is a set of theories, models,
  practices, the body and knowledge, and the social
  practice (experience) of management.
• Managerial discipline is both art and science.
• Managerial art is the experience and history of
  management in real life situations.
• Managerial science is part of social science and
  concerned with development, design,
  improvement, evaluation, and estimation of
  managerial paradigm, theory, system, and model
  of an organization based on scientific approach.
                                                    6
Managerial Discipline
                        experience and
                      consulting practice

     Managers:        Managerial
    getting things                                              RESULTS
         done
                        ART                    imitation,
                                            experimentation,    search for better
                         Methods             and innovation       performance

Managerial
Discipline
                         Theories                testing,      search for better
                                            experimentation,     explanations
        Scholars:                             and invention
                      Managerial
     developing and                                              RIGORS
      testing ideas    SCIENCE
                        Education and
                       research practice


                                                                                    7
Dewey Classification:
        Class 600s (Technology)
610 Medicine
620 Engineering
630 Agriculture
640 Home Economics
650 Management
660 Chemical Engineering
670 Manufacturing
680 Manufacturing for Specific Uses
690 Buildings

                                      8
The Body of Knowledge of Management:
      the entire managerial field

                 Strategy & Business
                      Economics

   Performance, Quality, Leadership, Culture, Ethics

 People &    Operations &   Marketing &     Finance &
Organization  Logistics       Sales         Accounting

            Decision Making & Negotiation


       Entrepreneurship and Technology (R&D)
                                                         9
Duality of Managerial Responsibility (1)

                        Management in an
                          organization
        Enterprise                              Lifecycle
       Performance                            Performance
       Responsibility                         Responsibility



    Management                             Lifecycle Enterprise
      System                                     System



 Value Added (better                    New venture (new
profit) to the economy              enterprise) to the economy
                                                                  10
Duality of Managerial Responsibility (2)


                                                                  Rejuvenate?
PERFORMANCE

                     Responsibility for
                    Current Performance
          You are
           here!
                                             Responsibility for
                                          Lifecycle Performance




                                                                        TIME

                                                                                11
Clustering Managerial Discipline
• Offering a framework for generating scientific
  research and its application in the area of
  managerial discipline, not only to optimize the
  performance of the enterprise at a given time but
  also at every stage of its life cycle activities.
• Identifying the types of Managerial Studies
  – Two underlying dimensions of Managerial Discipline
• Interpreting Types of Managerial Studies


                                                         12
Two Underlying Dimensions of
         Managerial Discipline
• Mission orientation determines duality of mission
  achievement of an enterprise either to attain
  enterprise performance or lifecycle performance
  – Enterprise Performance
  – Lifecycle Performance
• Managerial focus determines the degree to which
  an enterprise formulating and structuring the
  tasks and goals.
  – Externally Deliberate
  – Internally Regulate

                                                  13
Four Types of Managerial Studies
              (Simatupang, 2011)




                                         Deliberate
  Management          Entrepreneurship




                                                      Managerial Focus
                                         Regulate
 Administration          Stewardship


     Enterprise              Lifecycle
    Performance            Performance
            Mission Orientation
                                                                         14
Types of Managerial Studies
• Management:                               • Entrepreneurship:
    – A focus on enterprise performance        – A focus on lifecycle performance
      and external deliberation                  and external deliberation
    – Starts from an existing concept and      – Starts from a unique idea and
      strategic planning                         orientation for the future
    – Ensures performance achievement          – Ensures performance adaptability
    – Provides answers and solutions to        – Provides answers and solutions to
      managerial problems                        developmental problems
• Administration:                           • Stewardship:
    – A focus on enterprise performance        – A focus on lifecycle performance
      and internal regulation                    and internal regulation
    – Dedication to apply good corporate       – Willingness and dedication to help
      governance and accountability              people and the community
    – Ensures consistency                      – Ensures sustainability
    – Provides answers and solutions to        – Provides answers and solutions to
      administrative problems                    sustainable problems




                                                                                  15
Competencies of Managerial Studies
•   Management
     –   Strategic planning and optimization
     –   Strong commitment to improve enterprise performance
     –   Enterprise system innovation
•   Administration
     –   Sense of good governance and accountability
     –   Lives revolve around procedures and process
     –   Procedure and knowledge innovation
•   Entrepreneurship
     –   Sense and response to opportunity
     –   Autonomy, flexibility, and creativity
     –   Business model innovation
•   Stewardship
     –   Friendship, commitment, focus on performance, high energy
     –   Intense and determined to achieve equality and sustainability
     –   Eco- and social innovation


                                                                         16
Management versus Administration
• “Management” is widely used in Britain, Europe,
  and Africa, for example, while “administration” is
  preferred in the United States, Canada, and
  Australia.
• Managing is maintaining efficiently and
  effectively current organizational arrangements
  and present operations.
• Administration is the primary function of
  ensuring good governance and accountability
  based on a formal framework of authority that is
  carefully outlined and precisely followed.

                                                   17
Managerial Education
• Managerial education is simply the provision of managerial education in
  universities and other comparable institutions.
• Managerial education is a field of study and practice concerned with the
  operation of teaching, learning, and training of participants who wish to
  acquire the research and analytical skills of the scientific community in
  managerial discipline.
• The purpose is to build managers and entrepreneurs of analytical
  reasoning and scholars of high intellect that create value.
• Managerial educations provides a solid methodological basis and the
  ability to design and implement research projects in managerial discipline.
• Managerial education both contributes to:
   – the development of effective managers (i.e., management education),
   – the economic performance of a country (i.e., entrepreneurship
      education).
                                                                            18
The Principles for Responsible
              Managerial Education (1)
• Principle 1
     Purpose: We will develop the capabilities of students to be future
       generators of sustainable value for business and society at large
       and to work for an inclusive and sustainable global economy.
• Principle 2
     Values: We will incorporate into our academic activities and
       curricula the values of global social responsibility as portrayed in
       international initiatives such as the United Nations Global
       Compact.
• Principle 3
     Method: We will create educational frameworks, materials,
      processes and environments that enable effective learning
      experiences for responsible leadership.


Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf
                                                                                            19
The Principles for Responsible
                  Managerial Education (2)
•      Principle 4
        Research: We will engage in conceptual and empirical research that advances our
           understanding about the role, dynamics, and impact of corporations in the
           creation of sustainable social, environmental and economic value.
•      Principle 5
        Partnership: We will interact with managers of business corporations to extend
           our knowledge of their challenges in meeting social and environmental
           responsibilities and to explore jointly effective approaches to meeting these
           challenges.
•      Principle 6
        Dialogue: We will facilitate and support dialogue and debate among educators,
           business, government, consumers, media, civil society organizations and other
           interested groups and stakeholders on critical issues related to global social
           responsibility and sustainability.


    Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf
                                                                                                20
Distorted Face of Management
          Education in Indonesia

                               Faculty of Social and
Faculty of Economics
  “Management becomes
                               Political Science
  Management Economics and       “Management becomes Business
  Economics reduces to           Administration”
  Development Economics”



Faculty of Psychology           Faculty of Engineering
   “Management becomes Human      “Management becomes
   Resources Management”          Engineering Management (EM)
                                  and Information Systems
                                  Management (ISM)”
                                                                21
A new face of management
An independent academic discipline!




        Source: http://www.cbe.wwu.edu/ceme/description.asp   22
A Proposal of Managerial Education in
                 Indonesia
                   VOCATIONAL      ACADEMIC   PROFESSIONAL

Doctorate Degree
                                    Doctor

Masterate Degree                                 Advanced
                                    Master      Certification

Undergraduate
                   Diploma IV      Bachelor     Certification
Degree

                   Diploma I-III                   Basic
                                                Certification
   High School


                                                                23
Proposed Nomenclature of Academic
       Degree in Managerial Education

    Doctor of
 Management (Dr.)


                                         Applied Master Degree
                                         Master of Business          Master of
Master of Science in      Master of
                                          Administration         Entrepreneurship
Management (MSM)       Management (MM)
                                              (MBA)                  (M.Entr.)




               Bachelor of               Bachelor of Business      Bachelor of
             Management (BM)             Administration (BBA)    Business (B.Bus.)

                                                                              24
Conclusions
• This presentation aims to contribute to a better understanding of
  managerial discipline.
• The analysis conducted reveals the underlying factors accounting
  for the different classes of managerial studies: management,
  administration, entrepreneurship, and stewardship.
• It is suggested that management becomes an academic discipline
  built around several well-articulated theories, all designed to
  address a single set of highly related scientific questions and
  managerial problems.
• It is suggested that the nomenclature of managerial education in
  Indonesia is developed based on the identified managerial studies
  taxonomy.
• Further research is required to define and contrast a set of
  knowledge and skills required in the four basic forms of managerial
  studies.

                                                                    25
Thank You




            26

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Towards a new conceptualization of managerial discipline

  • 1. Towards a New Conceptualization of Managerial Discipline Togar M. Simatupang School of Business and Management Bandung Institute of Technology 19 December 2011 All materials contained in this PowerPoint Presentation are protected by copyright laws. You may download or print this material for your own personal and educational use only, without altering or removing any trademark, copyright or other notice from such material.
  • 2. Objectives • Understand what managerial discipline is and identify its characteristics. • Identify the Body of Knowledge (BOK) of managerial discipline. • Explain the four basic forms of managerial studies: management, administration, entrepreneurship, and stewardship. • Describe the use of managerial studies typology in the nomenclature of academic degree 2
  • 3. Overview • What is management? • What is managerial discipline? • BOK of managerial discipline • Clustering managerial discipline into managerial studies • Proposed nomenclature of academic degree in managerial discipline • Conclusion 3
  • 4. What is management? • Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. • Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. • Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. • Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. • This view opens the opportunity to 'manage' oneself, a pre- requisite to attempting to manage others. Source: http://en.wikipedia.org/wiki/Management 4
  • 5. What is management? Management is the act of coordinating decision making and technical processes in a social system including human and institutional behavior and its relations to external parties to accomplish desired goals and objectives of an organization in the most efficient and effective manner. 5
  • 6. What is Managerial Discipline? • Managerial discipline is a set of theories, models, practices, the body and knowledge, and the social practice (experience) of management. • Managerial discipline is both art and science. • Managerial art is the experience and history of management in real life situations. • Managerial science is part of social science and concerned with development, design, improvement, evaluation, and estimation of managerial paradigm, theory, system, and model of an organization based on scientific approach. 6
  • 7. Managerial Discipline experience and consulting practice Managers: Managerial getting things RESULTS done ART imitation, experimentation, search for better Methods and innovation performance Managerial Discipline Theories testing, search for better experimentation, explanations Scholars: and invention Managerial developing and RIGORS testing ideas SCIENCE Education and research practice 7
  • 8. Dewey Classification: Class 600s (Technology) 610 Medicine 620 Engineering 630 Agriculture 640 Home Economics 650 Management 660 Chemical Engineering 670 Manufacturing 680 Manufacturing for Specific Uses 690 Buildings 8
  • 9. The Body of Knowledge of Management: the entire managerial field Strategy & Business Economics Performance, Quality, Leadership, Culture, Ethics People & Operations & Marketing & Finance & Organization Logistics Sales Accounting Decision Making & Negotiation Entrepreneurship and Technology (R&D) 9
  • 10. Duality of Managerial Responsibility (1) Management in an organization Enterprise Lifecycle Performance Performance Responsibility Responsibility Management Lifecycle Enterprise System System Value Added (better New venture (new profit) to the economy enterprise) to the economy 10
  • 11. Duality of Managerial Responsibility (2) Rejuvenate? PERFORMANCE Responsibility for Current Performance You are here! Responsibility for Lifecycle Performance TIME 11
  • 12. Clustering Managerial Discipline • Offering a framework for generating scientific research and its application in the area of managerial discipline, not only to optimize the performance of the enterprise at a given time but also at every stage of its life cycle activities. • Identifying the types of Managerial Studies – Two underlying dimensions of Managerial Discipline • Interpreting Types of Managerial Studies 12
  • 13. Two Underlying Dimensions of Managerial Discipline • Mission orientation determines duality of mission achievement of an enterprise either to attain enterprise performance or lifecycle performance – Enterprise Performance – Lifecycle Performance • Managerial focus determines the degree to which an enterprise formulating and structuring the tasks and goals. – Externally Deliberate – Internally Regulate 13
  • 14. Four Types of Managerial Studies (Simatupang, 2011) Deliberate Management Entrepreneurship Managerial Focus Regulate Administration Stewardship Enterprise Lifecycle Performance Performance Mission Orientation 14
  • 15. Types of Managerial Studies • Management: • Entrepreneurship: – A focus on enterprise performance – A focus on lifecycle performance and external deliberation and external deliberation – Starts from an existing concept and – Starts from a unique idea and strategic planning orientation for the future – Ensures performance achievement – Ensures performance adaptability – Provides answers and solutions to – Provides answers and solutions to managerial problems developmental problems • Administration: • Stewardship: – A focus on enterprise performance – A focus on lifecycle performance and internal regulation and internal regulation – Dedication to apply good corporate – Willingness and dedication to help governance and accountability people and the community – Ensures consistency – Ensures sustainability – Provides answers and solutions to – Provides answers and solutions to administrative problems sustainable problems 15
  • 16. Competencies of Managerial Studies • Management – Strategic planning and optimization – Strong commitment to improve enterprise performance – Enterprise system innovation • Administration – Sense of good governance and accountability – Lives revolve around procedures and process – Procedure and knowledge innovation • Entrepreneurship – Sense and response to opportunity – Autonomy, flexibility, and creativity – Business model innovation • Stewardship – Friendship, commitment, focus on performance, high energy – Intense and determined to achieve equality and sustainability – Eco- and social innovation 16
  • 17. Management versus Administration • “Management” is widely used in Britain, Europe, and Africa, for example, while “administration” is preferred in the United States, Canada, and Australia. • Managing is maintaining efficiently and effectively current organizational arrangements and present operations. • Administration is the primary function of ensuring good governance and accountability based on a formal framework of authority that is carefully outlined and precisely followed. 17
  • 18. Managerial Education • Managerial education is simply the provision of managerial education in universities and other comparable institutions. • Managerial education is a field of study and practice concerned with the operation of teaching, learning, and training of participants who wish to acquire the research and analytical skills of the scientific community in managerial discipline. • The purpose is to build managers and entrepreneurs of analytical reasoning and scholars of high intellect that create value. • Managerial educations provides a solid methodological basis and the ability to design and implement research projects in managerial discipline. • Managerial education both contributes to: – the development of effective managers (i.e., management education), – the economic performance of a country (i.e., entrepreneurship education). 18
  • 19. The Principles for Responsible Managerial Education (1) • Principle 1 Purpose: We will develop the capabilities of students to be future generators of sustainable value for business and society at large and to work for an inclusive and sustainable global economy. • Principle 2 Values: We will incorporate into our academic activities and curricula the values of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact. • Principle 3 Method: We will create educational frameworks, materials, processes and environments that enable effective learning experiences for responsible leadership. Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf 19
  • 20. The Principles for Responsible Managerial Education (2) • Principle 4 Research: We will engage in conceptual and empirical research that advances our understanding about the role, dynamics, and impact of corporations in the creation of sustainable social, environmental and economic value. • Principle 5 Partnership: We will interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities and to explore jointly effective approaches to meeting these challenges. • Principle 6 Dialogue: We will facilitate and support dialogue and debate among educators, business, government, consumers, media, civil society organizations and other interested groups and stakeholders on critical issues related to global social responsibility and sustainability. Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf 20
  • 21. Distorted Face of Management Education in Indonesia Faculty of Social and Faculty of Economics “Management becomes Political Science Management Economics and “Management becomes Business Economics reduces to Administration” Development Economics” Faculty of Psychology Faculty of Engineering “Management becomes Human “Management becomes Resources Management” Engineering Management (EM) and Information Systems Management (ISM)” 21
  • 22. A new face of management An independent academic discipline! Source: http://www.cbe.wwu.edu/ceme/description.asp 22
  • 23. A Proposal of Managerial Education in Indonesia VOCATIONAL ACADEMIC PROFESSIONAL Doctorate Degree Doctor Masterate Degree Advanced Master Certification Undergraduate Diploma IV Bachelor Certification Degree Diploma I-III Basic Certification High School 23
  • 24. Proposed Nomenclature of Academic Degree in Managerial Education Doctor of Management (Dr.) Applied Master Degree Master of Business Master of Master of Science in Master of Administration Entrepreneurship Management (MSM) Management (MM) (MBA) (M.Entr.) Bachelor of Bachelor of Business Bachelor of Management (BM) Administration (BBA) Business (B.Bus.) 24
  • 25. Conclusions • This presentation aims to contribute to a better understanding of managerial discipline. • The analysis conducted reveals the underlying factors accounting for the different classes of managerial studies: management, administration, entrepreneurship, and stewardship. • It is suggested that management becomes an academic discipline built around several well-articulated theories, all designed to address a single set of highly related scientific questions and managerial problems. • It is suggested that the nomenclature of managerial education in Indonesia is developed based on the identified managerial studies taxonomy. • Further research is required to define and contrast a set of knowledge and skills required in the four basic forms of managerial studies. 25
  • 26. Thank You 26