Towards a New Conceptualization of Managerial Discipline

Togar M. SimatupangSchool of Business and Management

Bandung Institute of Technology19 December 2011

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Objectives

• Understand what managerial discipline is and identify its characteristics.

• Identify the Body of Knowledge (BOK) of managerial discipline.

• Explain the four basic forms of managerial studies: management, administration, entrepreneurship, and stewardship.

• Describe the use of managerial studies typology in the nomenclature of academic degree

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Overview

• What is management?

• What is managerial discipline?

• BOK of managerial discipline

• Clustering managerial discipline into managerial studies

• Proposed nomenclature of academic degree in managerial discipline

• Conclusion

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What is management?

• Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.

• Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

• Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources.

• Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system.

• This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

Source: http://en.wikipedia.org/wiki/Management

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What is management?

Management is the act of coordinating decision making and technical processes in a social system including human and institutional behavior and its relations to external parties to accomplish desired goals and objectives of an organization in the most efficient and effective manner.

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What is Managerial Discipline?

• Managerial discipline is a set of theories, models, practices, the body and knowledge, and the social practice (experience) of management.

• Managerial discipline is both art and science.• Managerial art is the experience and history of

management in real life situations.• Managerial science is part of social science and

concerned with development, design, improvement, evaluation, and estimation of managerial paradigm, theory, system, and model of an organization based on scientific approach.

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Managerial Discipline

Managerial Discipline

Managerial ART

Managerial SCIENCE

RIGORS

RESULTSManagers:

getting things done

Scholars: developing and

testing ideas

Methods

Theories

imitation, experimentation,

and innovation

testing, experimentation,

and invention

experience and consulting practice

search for better explanations

search for better performance

Education and research practice

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Dewey Classification: Class 600s (Technology)

610 Medicine

620 Engineering630 Agriculture640 Home Economics

650 Management660 Chemical Engineering670 Manufacturing680 Manufacturing for Specific Uses690 Buildings

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The Body of Knowledge of Management: the entire managerial field

Performance, Quality, Leadership, Culture, Ethics

Decision Making & Negotiation

People &

Organization

Operations &

Logistics

Marketing &

Sales

Finance &

Accounting

Entrepreneurship and Technology (R&D)

Strategy & Business

Economics

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Duality of Managerial Responsibility (1)

Lifecycle Enterprise System

Management System

Management in an organization

Value Added (better profit) to the economy

New venture (new enterprise) to the economy

Enterprise Performance Responsibility

Lifecycle Performance Responsibility

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Duality of Managerial Responsibility (2)

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TIME

PERFORMANCERejuvenate?

Responsibility for Current Performance

Responsibility for Lifecycle Performance

You are here!

Clustering Managerial Discipline

• Offering a framework for generating scientific research and its application in the area of managerial discipline, not only to optimize the performance of the enterprise at a given time but also at every stage of its life cycle activities.

• Identifying the types of Managerial Studies

– Two underlying dimensions of Managerial Discipline

• Interpreting Types of Managerial Studies

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Two Underlying Dimensions of Managerial Discipline

• Mission orientation determines duality of mission achievement of an enterprise either to attain enterprise performance or lifecycle performance– Enterprise Performance

– Lifecycle Performance

• Managerial focus determines the degree to which an enterprise formulating and structuring the tasks and goals.– Externally Deliberate

– Internally Regulate

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Four Types of Managerial Studies(Simatupang, 2011)

Management Entrepreneurship

Administration Stewardship

Re

gulate

De

libe

rate

Enterprise Performance

Lifecycle Performance

Mission Orientation

Man

agerial Fo

cus

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Types of Managerial Studies

• Management:– A focus on enterprise performance

and external deliberation– Starts from an existing concept and

strategic planning – Ensures performance achievement– Provides answers and solutions to

managerial problems

• Administration:– A focus on enterprise performance

and internal regulation– Dedication to apply good corporate

governance and accountability– Ensures consistency– Provides answers and solutions to

administrative problems

• Entrepreneurship:– A focus on lifecycle performance

and external deliberation– Starts from a unique idea and

orientation for the future– Ensures performance adaptability– Provides answers and solutions to

developmental problems

• Stewardship:– A focus on lifecycle performance

and internal regulation– Willingness and dedication to help

people and the community– Ensures sustainability – Provides answers and solutions to

sustainable problems

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Competencies of Managerial Studies

• Management– Strategic planning and optimization

– Strong commitment to improve enterprise performance

– Enterprise system innovation

• Administration– Sense of good governance and accountability

– Lives revolve around procedures and process

– Procedure and knowledge innovation

• Entrepreneurship– Sense and response to opportunity

– Autonomy, flexibility, and creativity

– Business model innovation

• Stewardship– Friendship, commitment, focus on performance, high energy

– Intense and determined to achieve equality and sustainability

– Eco- and social innovation

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Management versus Administration

• “Management” is widely used in Britain, Europe, and Africa, for example, while “administration” is preferred in the United States, Canada, and Australia.

• Managing is maintaining efficiently and effectively current organizational arrangements and present operations.

• Administration is the primary function of ensuring good governance and accountability based on a formal framework of authority that is carefully outlined and precisely followed.

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Managerial Education

• Managerial education is simply the provision of managerial education in universities and other comparable institutions.

• Managerial education is a field of study and practice concerned with the operation of teaching, learning, and training of participants who wish to acquire the research and analytical skills of the scientific community in managerial discipline.

• The purpose is to build managers and entrepreneurs of analytical reasoning and scholars of high intellect that create value.

• Managerial educations provides a solid methodological basis and the ability to design and implement research projects in managerial discipline.

• Managerial education both contributes to:

– the development of effective managers (i.e., management education),

– the economic performance of a country (i.e., entrepreneurship education).

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The Principles for Responsible Managerial Education (1)

• Principle 1Purpose: We will develop the capabilities of students to be future

generators of sustainable value for business and society at large and to work for an inclusive and sustainable global economy.

• Principle 2Values: We will incorporate into our academic activities and

curricula the values of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact.

• Principle 3Method: We will create educational frameworks, materials,

processes and environments that enable effective learning experiences for responsible leadership.

Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf19

The Principles for Responsible Managerial Education (2)

• Principle 4

Research: We will engage in conceptual and empirical research that advances our understanding about the role, dynamics, and impact of corporations in the creation of sustainable social, environmental and economic value.

• Principle 5

Partnership: We will interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities and to explore jointly effective approaches to meeting these challenges.

• Principle 6

Dialogue: We will facilitate and support dialogue and debate among educators, business, government, consumers, media, civil society organizations and other interested groups and stakeholders on critical issues related to global social responsibility and sustainability.

Source: The UN Global Compact (July 2007) at http://www.unprme.org/resource-docs/PRME.pdf20

Distorted Face of Management Education in Indonesia

Faculty of EconomicsFaculty of Social and Political Science

Faculty of Psychology Faculty of Engineering

“Management becomes Management Economics and Economics reduces to Development Economics”

“Management becomes Business Administration”

“Management becomes Human Resources Management”

“Management becomes Engineering Management (EM) and Information Systems Management (ISM)”

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A new face of management

An independent academic discipline!

Source: http://www.cbe.wwu.edu/ceme/description.asp 22

A Proposal of Managerial Education in Indonesia

High School

VOCATIONAL ACADEMIC PROFESSIONAL

Diploma IV

Doctor

Advanced CertificationMaster

Bachelor

Doctorate Degree

Masterate Degree

Undergraduate Degree

Diploma I-III

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Basic Certification

Certification

Proposed Nomenclature of Academic Degree in Managerial Education

Bachelor of Business Administration (BBA)

Bachelor of Management (BM)

Bachelor of Business (B.Bus.)

Master of Entrepreneurship

(M.Entr.)

Master of Management (MM)

Master of Science in Management (MSM)

Master of Business Administration

(MBA)

Doctor of Management (Dr.)

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Applied Master Degree

Conclusions

• This presentation aims to contribute to a better understanding of managerial discipline.

• The analysis conducted reveals the underlying factors accounting for the different classes of managerial studies: management, administration, entrepreneurship, and stewardship.

• It is suggested that management becomes an academic discipline built around several well-articulated theories, all designed to address a single set of highly related scientific questions and managerial problems.

• It is suggested that the nomenclature of managerial education in Indonesia is developed based on the identified managerial studies taxonomy.

• Further research is required to define and contrast a set of knowledge and skills required in the four basic forms of managerial studies.

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Thank You

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