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Classical Management Foundations for the Future of Management
Education
Ellen S. O’Connor, Ph.D., M.B.A.([email protected])
Philosophie & Management (www.philoma.org) Brussels, June 23, 2014
What mustbe done?
1. Recover forgotten
knowledge
2. UnderstandWhy it was forgotten
3. Build on this knowledge
Mary P. Follett1868 - 1933
Chester Barnard1886 - 1961
Industrialization & the new organizational form
• Unlike familiar forms (church, state & military)
• Relating to (discovery) & applying basic science (exploitation)
• Converting to scale reliably & continuously (formal organizing)
• Spreading quickly
More
artificial
New organizational
form
More
fictitious
More
ephemeral
More
complex
Potentially Very large
scalePotentially generating
massive wealth
Education gap for the new industry
• “Business” schools: Clerks
• Colleges: Gentlemen
• Scientific schools: engineersWealthy industrialists
look for new institutions
Accelerating factors
Panic of 1873
Credit mobilier fraud 1870’s
Great railroad strike 1877
Injunctions against unions 1877
Pennsylvania state militia fires
1877
1879
Modern industry requires us to organize
under single leaders… great amounts of capital & numbers of laborers
The fruits of organized labor must be
properly divided among
capitalist, leader & workman
The importance of educating men to combine their energies for the accomplishment of any desirable object,
and the principles upon which such combinations should be effected
First Collegiate school of business curriculum
Joseph Wharton1826 - 1909
Instillnew values
Wharton’sagendas
Makenew discoveries
Teachnew subjects
Decentralization
New organizational
form(deeper)
Suboptimization
Regimentation
Uncertainty
New organizational form’s consequences
New individual, collectivity & interdependencies
New knowledge
But no institutional support for generating & growing that knowledge
Missed opportunities: the 4 crises
1881Wharton
Collegiate School of business
1919Harvard BusinessSchool
1890New York University
College
1948Carnegie
Graduate School of Industrial Admin.
Comprenhensive
knowledge transfer(Barnard & Harvard in 1930’s-40’s); Simon’s seminars on Barnard in late 40’s)
Basic science of
collective value(s) creationFollett (1924)
General
theory of organizationBarnard (1938)
TheClassics’
contribution
Exerting
centripetal force
Securing
creative contribution of allBuilding an
interdependence culture
TheClassics’
Key managerial roles
• Microeconomics• Corporate strategy• Shareholder value
theory• Neoclassical economics
No pursuit of problems & solutions identified by classical management
Agenda: Short-Term Wealth Maximization
Next steps?
1. Recover forgotten knowledge• Educate
educators
2. Understand why it was forgotten• Developing
historical sensibility
3. Build on classical management theories & findings
• Research• Rigorous testing• Living case method
Classical Management for today A workshop
Ellen S. O’Connor, Ph.D., M.B.A.([email protected])
Philosophie & Management (www.philoma.org) Brussels, June 24, 2014
Purpose of management education
Develop members & leaders of formal organization
who master the tool of organization, in pursuit of
individual & collective
value(s) creation at the highest level, continuously, and
in the long run
• Develop members and leaders of formal organization who master the tool of organization, in pursuit of individual and collective value(s) creation at the highest level, continuously, and in the long run.
• This calls for a higher-order institution with the knowledge to provide that education.
Need for a higher-order institution with the knowledge to provide that education
Need for a consensus on• Vision• Terminology• Tested & proven findings
What We Know So Far
Names & titles
Livinginsights
Historicalfigures
Educationalexperiments
Keyfindings
“Failed” educational experiments: the 4 crises
1881Wharton
Collegiate School of business
1919Harvard BusinessSchool
1890New York University
College
1948Carnegie
Graduate School of Industrial Admin.
Wharton(1826-1909)
Fayol(1841-1925)
Taylor(1856-1915)
Follett(1868-1933)
Rowntree(1871-1954)
Donham(1877-1954)
Barnard(1886-1961)
Key Findings
Core knowledge
grown piecemeal in a small group
of scientifically & developmentally
minded executives
Key findings
Business schools: so far organized to serve academic & technical specialists
Science based on
individual experience “in the physiological condition of personal responsibility”
in formal organization
Comprenhensive
knowledge transfer(Barnard & Harvard in 1930’s-40’s); Simon’s seminars on Barnard in late 40’s)
Basic science of
collective value(s) creationFollett (1924)
General
theory of organizationBarnard (1938)
LivingInsights(key classics’
contributions)
Management
Value(s) creation
pivot multiplier, in pursuit of
creative tension between conflicting forces(sensed within)
Centrifugalv.
Centripetal
Discoveryv.
Exploitation
Individualv.
Group
Individualv.
Regimentation
Freedomv.
Subordination
Contributingv.
Witholding
The Conflicting and Creative Forces
• Organization: Centrifugal v. centripedal• Organization: Discovery v. exploitation• Organization: The individual v. the group• Individual: Individualism v. regimentation• Individual: Freedom v. subordination• Individual: Contributing v. withholding
Management
Value(s) creation
pivot multiplier, in pursuit of
creative tension between conflicting forces(sensed within)
Centrifugalv.
Centripetal
Discoveryv.
Exploitation
Individualv.
Group
Individualv.
Regimentation
Freedomv.
Subordination
Contributingv.
Witholding
Executives exert
centripetalforce
(re)invent
purposes(re)invent
moral codes
integrate
internallyintegrate
externally
incarnate through
own person(Subordination, predictability
& sincerity)
