Principles of Management

Mason Carpenter, Talya Bauer, and Berrin Erdogan

Chapter 3 History, Globalization, and Value-Based Leadership

Learning Objectives
Learn about the history of principles of management Know the context for contemporary principles of management Understand key global trends See how globalization is affecting management principles and practices Appreciate the importance of value-based leadership (ethics) in management

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The P-O-L-C Framework must be adapted to meet global challenges

Early Management Principles

Henri Fayol
Frederick Taylor

Fayols 14 Principles

Scientific Management Taylorism

Frank and Motion Studies Lillian Gilbreth

Fayols Principles of Management (1-7)

Specialization/Division of L_________ Authority/Responsibility D__________ Unity of Command Unity of __________ Subordination of Individual Interest Remuneration

Principles of Management (8-14)

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

During Taylors time, coal was moved by shovel to rail cars or trucks.
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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

In Search Of Excellence
Managing Ambiguity and Paradox A Bias for Action Close to the Customer

Autonomy and Entrepreneurship

Productivity through People

Hands-On, ValueDriven

Stick to the Knitting

Simple Form, Lean Staff

Simultaneous Loose-Tight Properties

Peters Management Recommendations

Empower people by involving ________ in decision-making Eliminate bureaucratic rules and ____________ conditions Celebrate and recognize employees for their contributions Develop an inspiring __________

Lead by __________

Views of Leadership through the Ages

What leaders really do: set direction, align people, motivate people. John Kotter

A leader is a dealer in hope. Napoleon

I suppose that leadership at one time meant muscle; but today it means getting along with people. Indira Gandhi

Discussion
What goals seem to dominate early management principles? Do you see any commonalities between Fayols principles of management from 1911 and those of Tom Peters in the 1990s? Are there any jobs today for which time and motion studies would make sense to do? Would any other skills need to be taught as well? What do early management principles leave out? How would you put some of the ideas of the 1990s into practice? What aspects of POLC would be most likely to change based on what you have learned in this section?

CORPORATIONS AS SOCIAL MOVEMENTS

We are connected virtually

Dynamic and shifting authority structures

Fluid boundaries

Reduction of formal procedures

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Assists in identifying experts

Efficient sharing of information

SOCIAL NETWORKING

Showcases skills, talents, and knowledge

LEARNING ORGANIZATIONS

Systematic problem solving

Experimentation

Learning from past experience

Learning from others Transferring knowledge

Virtual Organizations
The Value of Wikis

Wikis pool the talent of experts as well as everyone from across the company and beyond it in all time zones and geographic locations. Input from unanticipated people brings fresh ideas and unexpected connections. Wikis let people contribute to a project any time, giving them flexibility in managing their time. Its easy to see the evolution of an idea, and new people can get up to speed quickly by seeing the history of the project. Co-creation of solutions eliminates the need to sell those solutions to get buy-in. Wikis cut the need for email by 75% and the need for meetings by 50%.

As the pace of change continues

transferring knowledge and experimenting with new ideas requires continuous learning and adaptation to dynamic work environments.

Discussion
What commonalities do you see between organizations and social movements? How would you use a social network to solve a workrelated task? Why do social networks inspire employees? How do social networks help managers plan, organize, lead, and control? What steps would you take to help your organization become a learning organization? What are the advantages of a virtual organization? What aspects of POLC would be most likely to change based on what you have learned in this section?

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The Triple Bottom Line = Profits, Employees, Environment

Harnessing wind power takes advantage of increasing interest in sustainable energy sources

Accelerated Global Change

Demand increases for expert and creative talent Technological connectivity creates fluid borders Collaborative opportunities to share information and solve problems Results in greater demand for personalization and customization

Discussion
How do you manage innovation if ideas can come from anywhere, including people who arent your direct employees or arent even part of the company? If , according to some trends, you can work anytime and anywhere, how do you decide when to work? When do you stop working? What advantages do you see from a global workforce? Which of the trends depend on technology? What aspects of POLC would be most likely to change based on what you have learned in this section?

GLOBALIZATION AND CROSS-CULTURAL LESSONS

Work environments are more diverse than ever before

Cultural and language differences require diverse management approaches

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Eight Dimensions of Culture

P__________ Orientation Uncertainty Avoidance
A__________

Power Distance

__________ Egalitarianism

Institutional Collectivism

Humane Orientation

__________ Orientation

Discussion
Youve just been made a manager in Sweden, known for its collective institutionalism. What incentives and reward structures would you use to motivate your employees? How would you prepare workers for an overseas assignment? Your company has twelve branches in the US and will be opening its first branch in Brazil. Your company prides itself on its selfmanaged teams. Will you keep this policy in the new country? Why or why not? Youre a manager in Japan and youve just discovered that a team leader under your supervision has made a mistake that will result in a quality problem. How will you handle this mistake? You work in Hong Kong for a Swiss-owned firm. The Swiss are known for their high uncertainty avoidance. What differences might you expect to see from your Swiss bosses compared to your Hong Kong employees? What aspects of POLC would be most likely to change based on what you have learned in this section?

Values-Based Leadership
Managers face many ethical challenges
Managers must model ethical behavior and uphold values and standards
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A desire to _______ ones career

Pressure to meet ____________ business objectives/deadlines

A desire to _______ ones 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

Integrating Ethics Into Managerial Decision Making

Assess the situation

Consider the stakeholders point of view

Consider all possible alternatives

Monitor outcomes

Make a decision

Pay attention to how it makes you feel

Discussion
What are the consequences of unethical behavior? If you were writing a code of ethics for your company, what would you include? In times of economic downturn, is ethical behavior a luxury? How would you handle an ethical violation committed by one of your employees? Nobel laureate economist Milton Friedman said that companies should focus on maximizing profits, not social responsibilities or purposes. Do you agree with this view? Why or why not? What aspects of POLC would be most likely to change based on what you have learned in this section?