mgmgt 490 Individual Reflection Paper
Managing Cultural Capability is more than Organizing Creative Human Value
Professor Vipin Gupta
Learning Objectives
To understand alternative approaches to management; and the formative origins of the practice and the discipline of strategic management
To appreciate that the common factor in the alternative approaches is management of present capability, i.e. the capability that is formed, normed and transformed within the present cultural system
To be aware of the social benefits and the social costs of the alternative approaches
To know the value of a metaphysical approach to strategic management
To recognize that this course will teach you an approach to strategic management that you will not find in any book, any reading, any video, or any internet site, by helping you develop a new “metaphysical” vision to see the resources what you will find in any physical medium differently
Approaches for Managing Cultural Capability
Applied economics
Management = organizing creative self-managing human value of workforce (trading-effect)
Managerial science
Management = trading-effect x networking innovative self-organizing human value (human-effect)
Ontological approach
Strategic models for the management of formative capability (trading-effect x human-effect)
Beyond the Ontological approach
Norming and Transforming capability at the corporate level
Ontological concepts of managing cultural capability
Applied economics
Management = organizing creative self-managing human value of workforce (trading-effect)
How? By prioritizing on the economic dimension creates high risk on the social, human, ecological, national and psychological dimensions such risks are deemed desirable and inevitable high risk, high return theory
Managerial science
Management = trading-effect x networking innovative self-organizing human value (human-effect)
How? By prioritizing on the geographical dimension target stakeholders with positive local ecological impact, neutral national ecological impact, and negative international ecological impact
Metaphysical approach
Strategic models for the management of formative capability (trading-effect x human-effect)
How? By prioritizing on the administrative dimension manage alternative ecosystem values (national and psychological), so that the citizens put greater emotional value on avoiding negative and furthering positive local impacts than on the global impacts
Beyond the Ontological approach. A common denominator of value across the three approaches
Strategic approach to management is about an octave of well-being values – six managed (SHEENY), 1 self-organizing (GUIDER) and 1 self-managing (DIVINE)
Social value
Human value
Ecological value
Economic value
National value
psYchological value
How to create linkages among the six SHEENY values, through innovative GUIDER and strategic DIVINE values, for the desired transformation of cultural capability?
Potential epistemological values for the desired transformation of cultural capability
1. Traditional followership model of human-effect
In economics, human-effect = emotional intelligence = develop mental equanimity under varying (including negative) emotional states of social stakeholders
Cultural capability for constructing walls between the manager and the society, as a way for the organization to sustain into future the desired well-being of its local workers, its national citizens, and its core global stakeholders vs.
In management, human-effect = global citizenship = develop spiritual condition conscious of the value of positive emotional states of human stakeholders
Cultural capability for managerial consciousness of the present well-being of the potential collaborators of the local workers, national citizens, and global stakeholders, as a way for the organization to sustain into future its social, ecological and economic impact
Competing SHEENY values model – capable followers are traditionally expected to behave opportunistically according to the economic theory, while knowing that the managerial philosophy is an ideal value
Economic approach: There are too many people; only the fittest who can self-manage will survive.
Managerial approach: In the long-run, we will be dead if we don’t follow the economic theory, so let’s just focus on our present well-being, and worry about the rest in the next life.
Potential epistemological values for the desired transformation of cultural capability
2. Modern professional leadership model of human-effect
In management, human-effect = cultural intelligence = leadership opportunities for those who have this cultural intelligence trait, and followership roles for those who don’t.
In strategic approach to management, human-effect = leadership potential = work opportunities for those who managers believe have cultural intelligence trait
Negative SHEENY values model – the firms invest in the GUIDER model for behaving as global citizens, while becoming isolated islands devoted to their own well-being.
Managerial approach = only leaders who can self-organize through GUIDER matter.
Strategic approach = everything is fair in love and war game!
Kinetic axiological values for the desirable transformation of cultural capability
3. Emerging social entrepreneurship model of human-effect
In strategic approach = managers seek zero responsibility for those who are not self-organizing leaders
In socially-minded entrepreneurial approach = managers seek at par responsibility for those who are self-managing followers, i.e. who are willing to trade their cultural capability for the desirable capability (who follow “When in Rome”).
Supplementary SHEENY values model – Enables firms to create incremental ecological, economic and national values, as the excluded people trade their desired social and human (work) potential for what is the emerging norm to be included in the GUIDER market
Strategic approach exclude those who are not self-organizing leaders
Entrepreneurial approach include those who are self-managing DIVINE followers of the emerging social norms
Kinetic axiological values for the desirable transformation of cultural capability
4. Universal strategic management model of human-effect
In social entrepreneurship approach = managers seek negative values for those who are not self-managing followers (let the consumer beware!)
In strategic management approach = managers seek to promote responsible management consciousness among all people, so they may be motivated to become self-managing followers (transparency of social benefits of followership as a path for leadership)
Positive SHEENY values model – Enables people to accrue incremental value on their human-effect (as workforce), that they may then invest according to their desired cultural capability
Entrepreneurial approach diversify to manage the conscious consumer risk, thus accelerating GUIDER costs for the firm
Strategic management approach engage consumers to be conscientious DIVINE managers of their human-effect, so that they may invest in the SHEENY power desirable for the well-being of their local communities, thus mitigating GUIDER costs for the firm
Conclusions. Need metaphysical approach when desiring corporate entity = desiring local entity
Dynamic world is forcing managers to break their global mirror, and to create windows into knowing the unique desires of excluded social stakeholders
Technological costs are forcing managers to be inclusive of what is desirable to diverse social stakeholders, beyond corporate workforce
Technological exchange costs are forcing managers to even engage the bottom 80% who own 20% of the wealth, by demonstrating a sense of ownership for the grand societal challenges
Global firms are realizing that the values desired by the excluded local stakeholders have unique servicing value, and are seeking to form innovative linkages for trading those values
Local stakeholders need to understand the strategic value of their human-effect, in order to sustain desirable trading-effect from global exchange