MGPLect11
The Evolution of
Management Theory
Dr Robert Shaw
Guangdong University of Foreign Studies
8 May 2013
2
Introduction
Western management theory
What produces management theory?
What have been the major shifts in thinking?
Focus on people and their views
Our approach is historical
How management theory is going to develop
3
The dim distant past
Management is necessary for great works
We do not know how ancient structures were built
Probably by absolute rulers who were ruthless
Western (modern) management theory begins with the advent of capitalism and industrialisation
Management theory:
How do you get people to produce things for you, when you do not have slaves
4
Origins of capitalism
The theme of capitalism
Use wealth to create more wealth
Thirteenth Century origins
Usury Lend money and charge interest
Church “Neither a borrower nor a lender be”
Trade & prosperity (13-16 C)
Italy & Netherlands
Banking families
Merchants & foreign trade
5
6
Hunterian Museum
Map of the world was prepared for the Chinese Emperor Kangxi in 1674 by Jesuit missionary
Ferdinand Verbiest.
7
Understanding capitalism
8
Understanding capitalism
9
Understanding capitalism
10
Understanding capitalism
Bourgeoisie = those with wealth, owners (Marx)
Revolutionizing = changing
Instruments of production = factories
Social conditions = old jobs go, new jobs come, new cities, development
Constant revolutionizing = on-going change, brings uncertainty
Commodities = the things you buy in shops, getting cheaper
Chinese wall = Information barrier within a business, hidden barriers (Marx)
Nations are compelled to adopt the bourgeois mode of production
Capitalism creates a world after its own image.
11
12
Origins of industrialisation
Presupposition: The theme of capitalism
Use wealth to create more wealth
Industrialisation is a stage of capitalism
Trade and banking continue
Industrialisation augments the system of wealth creation
It requires money
It makes money
Speculation
Management Theory
Dr Robert Shaw
Guangdong University of Foreign Studies
8 May 2013
2
Introduction
Western management theory
What produces management theory?
What have been the major shifts in thinking?
Focus on people and their views
Our approach is historical
How management theory is going to develop
3
The dim distant past
Management is necessary for great works
We do not know how ancient structures were built
Probably by absolute rulers who were ruthless
Western (modern) management theory begins with the advent of capitalism and industrialisation
Management theory:
How do you get people to produce things for you, when you do not have slaves
4
Origins of capitalism
The theme of capitalism
Use wealth to create more wealth
Thirteenth Century origins
Usury Lend money and charge interest
Church “Neither a borrower nor a lender be”
Trade & prosperity (13-16 C)
Italy & Netherlands
Banking families
Merchants & foreign trade
5
6
Hunterian Museum
Map of the world was prepared for the Chinese Emperor Kangxi in 1674 by Jesuit missionary
Ferdinand Verbiest.
7
Understanding capitalism
8
Understanding capitalism
9
Understanding capitalism
10
Understanding capitalism
Bourgeoisie = those with wealth, owners (Marx)
Revolutionizing = changing
Instruments of production = factories
Social conditions = old jobs go, new jobs come, new cities, development
Constant revolutionizing = on-going change, brings uncertainty
Commodities = the things you buy in shops, getting cheaper
Chinese wall = Information barrier within a business, hidden barriers (Marx)
Nations are compelled to adopt the bourgeois mode of production
Capitalism creates a world after its own image.
11
12
Origins of industrialisation
Presupposition: The theme of capitalism
Use wealth to create more wealth
Industrialisation is a stage of capitalism
Trade and banking continue
Industrialisation augments the system of wealth creation
It requires money
It makes money
Speculation