History – you’re standing in it(!)
• Industrial Revolution
• 1760 – 1840 ( approx.)
• Shift from manual labour to use of water power / steam power based on coal
and then oil.
• Rise of factories and low skill work to replace declining use of labour on
farms.
• Massive increases in productivity / mass production begins / prices drop
• Labour used to be skilled artisans (now competing with machines) or low
skilled labour (now competing with / working with machines).
Key Impact of First Industrial Revolution
• Labour (people) now part of a production system involving
•
•
•
•
human capital, (people skill, learning and experience),
physical capital (money and machinery),
natural capital (resources, land, water, energy),
Social capital (relationships, organisations, etc).
• People as part of the machine had to be managed.
Online Research Break – 15 min
• F. W. Taylor
• Who was he ?
• What was his contribution to our understanding of the world?
• Hero or villain?
Scientific Management
World War 1 “intervenes” 1914-1918
• Industrial warfare seen for the first time
• Machine guns / nerve gas / tanks / aerial warfare / etc
• Very different to previous wars
• Seasonal, cavalry, infantry, artillery.
Impact of WWI
(the ‘great’ war, war to end wars)
• Massive loss of life and mental health impact of war seen for first
time in UK society.
• Many affected soldiers were officers.
• Online research - 10 minutes
• Find the link between
• “Officer and a gentleman” to “great man theory of leadership”
• How did the impact of war affect this idea?
So it turns out we are not that simple(!)
• People are not only part of the machine – they have lives
• Life = emotional experiences such as love & hate.
• Life = ambition, dreams, goals, etc.
• Life = heartache, pain, excitement, ecstasy.
Online research Break -5 minutes
• What is the purpose of life?
• How could this affect our work ?
Beginnings of Leadership theory in 1920-30
• Hawthorne experiment with Mayo
• Workers do better when their bosses are interested in them.
• Groups Theory
• Workers do better when they are involved in decisions that affect them.
• KEY FACT
• People appear to work better when managed as people (rather than part of
the machine)
Break
Ages of Economic Development
• Agricultural revolution 1650
• Industrial revolution1 (steam & water power, food & fibre) 1750
• Industrial revolution 2 (manufacturing, mechanical processes) 1850
• Industrial revolution 3 (advanced manufacturing, electronics) 1950
• Information revolution 1 (computers) 1975
• Information revolution 2 (internet) 1995
• Information revolution 3 (cloud – SAAS –big data) 2015
Undeveloped/Developing Economies (UDC)
• Low income levels
• Large agricultural sector
• Unequal income distribution
• Lack of investment capital
• Unemployment & underemployment
• High birth rate /low death rate (in demographic shift)
• Market and subsistence economy side by side
• Low level of technology (textiles, food, basic manufacturing)
Developed Economy (DC)
• High income levels
• Large services sector
• More equal income levels (changing now)
• Large capital base from historic earnings
• High employment based on exports /service economy
• Low birth rate (demographic shift has occurred)
• Market economy dominates
• High technology levels in export and service economy
Leadership Implications of UDC and DC
• DC economies
• Highly skilled workers operating in hypercompetitive global markets
• Human creativity and team work are competitive advantage.
• Leadership not management
• UDC economies
• Lower skill level in mostly domestic economies
• Export economy based on low labour cost
• Management not Leadership
Summary: The last 100 years of economic history. . .
• https://youtu.be/7hBjdVGDIs8
• Gary Hamel on Mgt 2.0
Modern Leadership Theories
• Trait theory 1940 - 50
• Behaviourial theories 1960 - 70
• Situational theories 1970 – 80
• Path-Goal Theory 1970
• Fiedler Contingency Theory 1990
• Transactional & Transformational theories 1980 – 90