Outline


Management in early civilizations
Management before industrialization
Babylon
Egypt
China
Roman
Ancient
Dark ages
-Catholic
Church
-Feudalism
-Revival of
commerce
1200
Renaissance
-Protestant ethic
Max Weber,
Tawney, Mclelland
-Liberty ethic
Hobbes, Locke
-Market ethic
Quesnay, Adam
Smith
1500
1700
1900
1. MANAGEMENT IN EARLY
CIVILIZATIONS
1.1 Near East-Babylon



Group affiliation-family to nation, authority is
always a question
Conflict between chiefs and priests
King Hammurabi

King Hammurabi issued 282
laws-business dealings, personal behavior,
interpersonal relations
 Wage and fees

King Nebuchadnezzar
 Weavers
of cloth(pembuat pakaian) were paid with
food according to output

Based on “He who neither worketh fo himself or others will
not receive the reward from God”(Prophet Muhammad) and
“If anyone will not work, let him not eat”(2 Thess, 3:10)
1.2 The far east-China


Military
Sun Tzu
 Importance
of planning-“Do many calculations lead to
victory, and few calculations to defeat”
 War- needs forces(kuasa) and enemies; marketplace?
 Marketplace- competitive strengths and competitors

Confucius
 Moral
teachings and merit system
 Merit system to enter public services
 Merit as basis for promotions
1.3 Egypt


Based on the Nile river-engineering
“Vizier”(where supervisor is derived)
 10
workers to one supervisor
 Spiritual matters-pharaoh, others-vizier
 Forecast, planning, dividing work-administer
1.4 Hebrews



Origins of Charisma
Moses and his ideas:
organization, span of control,
delegation, and the exception
principle
Other quotes suggest the
Hebrews provided advice on
planning, listening to advisers,
and controlling
1.5 Greece


Institutions, arts, language, drama and artcontributes to our own culture
Trade and commerce-carried by slaves and
common citizens
Socrates

“Managerial skills are
transferable”
Plato

“Diversities in human,
adapted to different
occupations”

Aristotle

Specialization of labour
“Work is better done not with the divided
attention of the worker”


Departmentalization

“Every office should have a special function”
Centralization,decentralization,delegation
 Synergy



“The whole is superior to the part”
Leadership

He who has never learned to obey cannot be a good commander


Xenophon – advantages of specializing labor
Greece-fell into Romans- by internal moral
decay, political disorder etc
1.6 Rome




Quasy factory system-to manufacture weapons,
potteries and textiles
Built Roman road system-speed the distribution of
goods
Business activities-carried by Asian and Greeks
Contributions-Roman law
 -model
for later civilizations
In short,




Hammurabi – Code of Law
Prophet Mohammed – Importance of work
Sun Tzu – Planning and Strategy
Confucius – Personnel selection by merit, early
bureaucracy, and division of labor
Babylon
Egypt
China
Roman
Ancient
Dark ages
-Catholic
Church
-Feudalism
-Revival of
commerce
1200
Renaissance
-Protestant ethic
Max Weber,
Tawney, Mclelland
-Liberty ethic
Hobbes, Locke
-Market ethic
Quesnay, Adam
Smith
1500
1700
1900
1.7 The dark ages


Decline of Roman empire
cultural and economic deterioration
1.7.1The Catholic Church


Bishops-become heads of various local churches
Conflict between centralized and decentralized
authority still exists today –characterized as the
need for unanimity of purpose yet discretion for
local problems and conditions.
1.7.2 Feudalism and the Middle
Ages

Caused by
the development of free people as tenant farmers,
 growth of large estates,
 political disorder,
 economic, social, and political chaos.



Abolition of slavery-free people as farmers
Tied people to the land, fixed rigid class systems,
established landed aristocracy, stopped education,
caused poverty and ignorance, and stifled human
progress until the Age of reformation.





Self-sufficient
Military protection in exchange for a portion of the
products of their labour
Problems associated with industrial revolution
began during this period
Forests-razed with no reforestation
Coal-used more-created air pollution
1.7.3 Revival of
Commerce

Crusades-stimulating commerce by
 Opening
new trade routes
 Exposing feudal Europe to the wealth of Middle East
 Growing trade- new system for inventory and cash
flow

More secular life in Europe
 New
markets
 New ideas
 Rise of towns

Fra Luca Pacioli
Luca Pacioli’s system
of double-entry
accounting – the first
management
information system
(cash & inventory
position and a check
on cash flow)
developed in 15th
century.


Saint Thomas Aquinas - “Just Price” = market
price; advocated by him in 13th century.
Trade rules (Code of Ethical Conduct) proposed
by Friar Johannes Nider in 1468:
 Goods
should be “lawful, honorable, and useful.
 Price should be just.
 Seller should beware.
 Speculation was a sin.

Production of goods
 Guilds-specialization;
master owns tools, raw materials
and finished product, each town is limited to certain
crafts
 Domestic system-negotiation of contracts with those
who would do the work at home, no performance
monitoring-uneven quality

Steam power and factory system emerged-end of
feudalism
2. The cultural rebirthRenaissance/ Management before
Industrialization
Babylon
Egypt
China
Roman
Ancient
Dark ages
-Catholic
Church
-Feudalism
-Revival of
commerce
1200
Renaissance
-Protestant ethic
Max Weber,
Tawney, Mclelland
-Liberty ethic
Hobbes, Locke
-Market ethic
Quesnay, Adam
Smith
1500
1700
1900
2.1 Renaissance- an introduction


Rediscovery of the classics
Renewed interest in reason and science
 Breaking
the ancient hold of theology through
Protestant Reformation->Protestant ethic
 Emergence(kemunculan) of liberty ethic-new concepts
in relations between people and the state through
constitutional government
 Emergence of market ethic-notion of a marketdirected economy
Protestant ethic, liberty ethic and market ethic->
changing cultural values toward people, work and
profits-> creation of a new environment that leads
to formal study of management
2.2 Protestant ethic

Middle ages/dark ages- domination of Catholic
Church
 People
to think not of this world
 Business-evil
 Self interest of trade divert people’s thoughts from
God

Protest of Roman Catholic Church

John Calvin’s concept of elect Those
predetermined to be saved gave
Spirits to his followers-people should believe
That they are all elect

Affirmed by Max Weber
 “The
impulse to acquisition,
pursuit of gain(money) has
nothing to do with capitalism; it
is common to all conditions of
men in all countries”
 “Unlimited greed for gain is not
identical with capitalism”
 Instead of waiting for Judgment
Day, a person should choose and
pursue an occupation

People had a duty
 to
work
 To use their wealth wisely
 To live self-denying lives


Unequal distribution of goods-because each person
had unequal talents
Wealth- no assurance for heaven, the poor did not
need to worry as long as they performed their
calling properly

Outcomes of Calvinism:
 Wasting
time-deadliest of sins
 Willingness to work is essential
 Division and specialization of labour-higher skill and
improvement
 Consumption beyond basic needs-wasteful and sinful

Criticism of Weberian- Robert
Tawney
 Capitalism
is the cause of
Protestantism, not the effect
 Rise of capitalism as action and
reaction
 Conclusions
Bound Weber’s notion of the church
and spirit of capitalism
 Economic motivation- steam pushing
on church authority


Support for Weber-Mclelland
 Psychological
factors that are important for economic
development
 Need for achievement-”n achievement”

Findings of Mclelland
 High
in achievement-essential in engaging
entrepreneurial activities
 Society high in achievement-rapid economic
development
 Certain ethnic, religious, and minority groups show
different marks in n achievement
 Wealth- a way in keeping score, not goal
2.3 The liberty ethic

Political philosophers began to stimulate the
thoughts of people with such new ideas as equality,
justice, the right of citizens, a rule of reason, and
notions of a republic governed by the consent of
the governed.

Nicolo Machiavelli
 “3
ways to the top- fortune, ability and
villainy”
 Indicates the type of leadership
Founder of a state must give it laws
 All men are bad
 So rulers were justified in pursuing any
leadership style that suites their purpose


Choose between being feared or loved; better
being feared

Thomas Hobbes(Leviathan, 1651)
 Strong
central leadership
 Without civil government, some greater power must
exist to bring order from chaos(kekecohan)

John Locke(Concerning Civil Society,
1690)
 Principles
of English revolution(1688)
 People are governed by natural law
of reason, not tradition or
authoritarian figures
 Civil society is build on private
property-no to harms another’s
posession

Contributions
A
law based on reason
 A government get its powers
from the governed
 Freedom to pursue
individual goals-natural
 Private property and its use
in the pursuit of happinessnatural and legal
• Forming a solid
political foundation
for industrial growth
• Base for laissez faire
economics
• Guaranteed rights of
property
• Protection to
contracts
• System of justice
2.4 The Market Ethic

New lands were discovered though exploration,
new trade routes and new products emerged

Francois Quesnay
 Challenged
Mercantilism
 Wealth did not lie in gold and silver, sprang from
agricultural production
 Advocated laissez-faire capitalism-government should
leave alone mechanism to market

Adam Smith (The Wealth of Nations)
 Mercantilism-destructive
 Berpendapat:
Only market and competition be the
regulators of economic activity
 Concept of specialization of labour-pillar of
market specialization
 Discovered benefits and disadvantages of
specialization
 Manager, in order to gain productivity, must
rely on the division of labour


Impacts to Great Britain
 Market
ethic as economic sanction for private initiative
rather than mercantilism
 Motivating force-competition, innovation and self
interest
3. Summary
Babylon
Egypt
China
Roman
Ancient
Dark ages
-Catholic
Church
-Feudalism
-Revival of
commerce
1200
Renaissance
-Protestant ethic
Max Weber,
Tawney, Mclelland
-Liberty ethic
Hobbes, Locke
-Market ethic
Quesnay, Adam
Smith
1500
1700
1900



Early management-antibusiness, antiachievement,
antihuman
Controlled and affected by religion-can be good
or bad
Industrialization- 3 forces-protestant, liberty and
market ethic
4. Self-test

In 30 minutes, write a 1 page essay of:
 What
is Sun Tzu’s principle in military?
 Sun Tzu says that war includes forces and enemies. In
the business world, who are the ‘forces’ and ‘enemies’?
Provide your explanations with examples.