Chapter 3: History, Globalization, and Value-Based
Leadership
 Learn about the history of
Learning Objectives
principles of management
 Be able to identify the
contributors to management
principles
 Know the context for
contemporary principles of
management
 Discuss corporations as social
movements
 Understand the nature of
Learning Organizations
 Understand key global trends
 Appreciate the importance of
value-based leadership (ethics) in
management
Management History
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The Classical Perspective
The Behavioral Perspective
The Quantitative Perspective
Integrating Perspectives
Contemporary Management Ideas
Management History
Early Management Principles
Henri Fayol
Frederick
Taylor
• Fayol’s 14 Principles
• Scientific Management
• Taylorism
Frank and
• Motion Studies
Lillian Gilbreth
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
Fluid
boundaries
Reduction of formal
procedures
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Social Networking in Organizations
Assists in
Identifying
Experts
Efficient sharing
Of Information
Showcases
Skills, Talent
And Knowledge
Social
Networking
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
Gender
Egalitarianism
Institutional
Collectivism
Humane
Orientation
Future
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
Integrating Ethics Into
Managerial Decision Making
Assess the
situation
Monitor
outcomes
Consider the
stakeholder’s
point of view
Consider all
possible
alternatives
Make a
decision
Pay attention
to how it
makes you feel