Chapter 3: History, Globalization, and Value-Based Leadership Learning Objectives

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Learn about the history of principles of management

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Be able to identify the contributors to management principles

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Know the context for contemporary principles of management

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Discuss corporations as social movements

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Understand the nature of Learning Organizations

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Understand key global trends Appreciate the importance of value-based leadership (ethics) in management

Management History

• • • • • The Classical Perspective The Behavioral Perspective The Quantitative Perspective Integrating Perspectives Contemporary Management Ideas

Management History

Early Management Principles

Henri Fayol • Fayol’s 14 Principles Frederick Taylor • Scientific Management • Taylorism Frank and Lillian Gilbreth • Motion Studies

Henri Fayol: Father of Administrative Mgt.

• • 14 Principles of Management Five basic management functions Planning, Organizing. Commanding, Coordinating, Controlling

Fayol’s Principles of Management (1-7) Specialization/Division of Labor Authority/Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual Interest Remuneration

Principles of Management (8-14)

Centralization Line of Authority Order Equity Stability of Tenure Initiative Esprit de Corps

Scientific Management Pioneers

• • Frederick W. Taylor: Father of Scientific Mgt. Frank & Lillian Gilbreth: Time & motion studies and many mgt. and HR techniques)

Limitations of Early Theorists

Manual Labor Force Dehumanized Workers

Shift to Knowledge Workers

MANAGEMENT IDEAS OF THE 1990s

Peter Drucker Tom Peters and Robert Waterman Warren Bennis

Contemporary Views of Management

CORPORATIONS AS SOCIAL MOVEMENTS We are connected “virtually” Dynamic and shifting authority structures Reduction of formal procedures Fluid boundaries

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Social Networking in Organizations

Assists in Identifying Experts Efficient sharing Social Of Information Networking Showcases Skills, Talent And Knowledge

LEARNING ORGANIZATIONS

Systematic problem solving

Experimentation

Learning from past experience Learning from others Transferring knowledge

GLOBALIZATION AND CROSS-CULTURAL LESSONS Work environments are more diverse than ever before Cultural and language differences require diverse management approaches

Eight Dimensions of Culture

Performance Orientation Uncertainty Avoidance Assertiveness Power Distance Humane Orientation

Gender Egalitarianism

Future Institutional Collectivism Orientation

Values-Based Leadership

Managers face many ethical challenges Managers must model ethical behavior and uphold values and standards

Ethical Expectations vs. Reality

A desire to further one’s career Pressure to meet unrealistic business objectives/deadlines A desire to protect one’s livelihood

Ethical Lapse

2002 Sarbanes-Oxley Act

Requires companies to define a code of ethics as a codification of standards that is reasonably necessary to deter wrongdoing and to promote honest and ethical conduct Corporate Examples of Ethical Misdeeds Arthur Anderson Enron

Assess the situation Integrating Ethics Into Managerial Decision Making Consider the stakeholder’s point of view

Consider all possible alternatives

Monitor outcomes Make a decision Pay attention to how it makes you feel