management organisation exam

MANAGERISM – BEGINNINGS, ROLE OF JAMES BURNHAM

In the 1940s and ealier, there were no professional management in the US or the Soviet Union.

In the US the people who manage then were primarely: engineers, financiers, scientists, doctors, etc. Management was somewhat additional, less important in common opinion.

The situation in the Soviet Union and in the countries dependent on him economy and enterprises were managed by the so – called economic activists. They were generally members of the rulling party, designated to lead industries / branches and state organizations. They were often more ideologists and propagandists than management experts.

Efficiency both of them was low becouse they were not prepared for professional management. They ordinary didn’t know professional methods, techniques and tools. They didn’t know the psychology and sociology of management. They usually didn’t use professional leaderships styles. It was generally a directive authocratic or authoritarian style, taken over from the army. These people couldn’t effectively mediate and resolve conflicts.

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MANAGERISM – BEGINNINGS, ROLE OF JAMES BURNHAM (2)

James Burnham was presented his concept of managerism in his work Managerial revolutions in 1941. His main theses were as follows:

- management is a job for professionals, becouse only professional managers may

significantly lead to the greater efficiency of the economy and living standards;

- management this is profession; it is an autonomous profession;

- professional management can be, and often should be, the only professional

occupation / busy of the manager;

- professional managers, not capitalists, should be the ruling class;

- managers should become a new social elite, not only in the economy;

- managerism will be useful in the struggle (fight) between democratic and

totalitarian or authoritarian systems and countries.

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MANAGERISM – BEGINNINGS, ROLE OF JAMES BURNHAM (3)

Initially, Burnham’s ideas vere badly received. People asked how it was possible to tolerate people „who did nothing” but point out to others what they should do, and take a lot of money for such. Professional management it was, in the mid 20th century, „nothing”.

People were used to being primarily an engineer, doctor, scientist, etc. Management was not considered a profession or even part of it.

The same problems we had in Poland – several decades later. Many our people couldn’t afford the fact that a manager is a profession.

Of course, not everyone who performs only some managerial functions – and to a limited extent – must be a professional manager. The lowest level managers or different coordinators are generally neither professionals nor the social elite.

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MANAGERISM - BEGINNINGS, ROLE OF PETER F. DRUCKER

Second book, which helped to promote professional management was The Concpet of the Corporation by Peter F. Drucker (1909 – 2005). This book was the effect of his pioneering research on the role of management in the world’s largest automotive company - General Motors. It was the first book about managers as a specific organ, which performs specific work and bears specific responsibility. It was the anatomy of manager’s work, role and social mission.

The book was rather poorly received by GM managers. They said it was written by an outsider, a no – industry man, not interested in selling cars.

Nevertherless this book by P.F. Drucker was noticed, and each subsequent was an event. There were 13 of them and they had a great impact on global management, its efficiency and quality.

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MANAGEMENT – MOST IMPORTANT PUBLICATIONS OF P.F. DRUCKER

Concept of the Corporation (1946)

The New Society (1950)

The Practice of Management (1954)

Managing for Results (1964)

The Effective Executive (1967)

Technology, Management, Society(1970)

Men, Ideas and Politics (1971)

Management, Tasks, Responsibilities (1973)

Management in Turbulent Times (1980)

Innovation and Entrepreneurship (1985)

Managing the Nonprofit Organizations (1990)

Peter Drucker on the Profession of Management (1998)

The Esential Drucker (2001)

The Five most Important Questions (2008)

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BOOM OF MANAGERISM AND A GOLDEN QUARTER OF CENTURY OF EUROPE

In the second half of the 20th century managerism great success was noted. There were both economic development and the development of management in many countries.

In Western Europe particularly successful period was so called golden quarter of century. It began with a strong economic assistance from the US for war – torn (demaged by II world war) Europe – as a part of so called Marshall Plan in the late 1940s. This lucky period continued until the oil crises of the 1970s.

In this period several important factors were simultanously influented:

- large American economic aid (Marshall Plan), which provided money for the reconstruction and

development of the economy of many countries;

- peace, no war;

- good ecomomical and political system; democracy, good law; freedom, state of law, entrepreneuship;

- efficiently functioning state institutions;

- social market economy, dominated in western Europe;

- development of professional management;

- international cooperation; gradual and reasonable unification of Europe

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BOOM OF MANAGERISM AND A GOLDEN QUARTER OF CENTURY OF EUROPE (2)

All these features were shaped over a longer period, in which everyone was learning: entrepreneurs, managers, employees, authority / ruling, officials, citizens, customers, the whole society.

It can be said that the countries of Western Europe received a gift from fate in the form of the American Marshall Plan. But they owe their golden quaeter century mainly to the fact that they were able to create such a system and such institutions, thabks to which - with the help of management and managers – they could develop and achieve so much.

Managerism and managers with high competencies are important, but they are just one of many elements elements of holistic social and political system. Boom of managerism appeared in democratic systems, open civil entrepreneurship societies with private ownership dominating.

In other words, in a bad system good managers could not exist. They couldn’t act / operate efficiently and effectively, too.

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BOOM OF MANAGERISM AND A GOLDEN QUARTER OF CENTURY ONLY IN WESTERN EUROPE

In ideologized authoritarian countries there was no demand for competent, creative and self – resposible managers. The authorities needed obedient and submissive people. This is why in the second half of the 20th century managerism developed very well in the countries of Western Europe and was practicaly absent in the countries of Central and Eastern Europe. The situation have began to change only in the last decade of the 20th century.

In the 1940s. the Americans proposed joint to the Marshall Plan also to Poland, which was, after all, a member of the anti – Hitler coalition. However, our country was not sovereign at that time, and the Soviet Union did not allow Poland to take advantage of this assistance. Thus, it was missed opportunity.

A multitude schools of management, post graduate studies, courses and training emerged arround the world, initially in the USA and later in other countries as well.

In Poland, cources matching the international term known as business administration (named shorter management) are most popular since more than 25 last years. One quarter of all our students are people studying management.

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BOOM OF MANAGERISM TOP MANAGERS AS A NEW WORLD’S ELITE

Managers, especially top – managers of great corporations, became really the new social elite. They were famous; books written about them. Sometimes there were dozens or even hundreds of publishing items. These books appeared in many countries. They became widely known to the public – their resumes, successes, failures, philosophy of business and management, principles, ruls of conduct and management.

The most famous of them and most admired are in particular:

- Giovanni Anhelli,

- Jack Welch, Chair and CEO of General Electric (1981 – 2001), the best top manager of XX

century in the world – according to unanimous opinion;

- Jorma Ollila, chairman and CEO of Nokia, the best top – manager of XX century in Europe;

- Steven Spielberg, famous director and film producer, multimillionaire;

- Bill Gates,

- Steve Jobs, co – founder and co – ovne, chearman and CEO of Apple

- Elon Musk, co-founder and co-owner, chairman and CEO of several enterprises, in it TESLA

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BOOM OF MANAGERISM GIOVANNI AGNELLI – GREAT ENTREPRENEUR AND TOP - MANAGER

Very interesting is the case of great entrepreneur and the same time top – manager of the global

format, Giovanni „Gianni” Agnelli (1991-2003). He came from family of Italian

industrialists with aristocratic roots. His grandfather - Giovanni Agnelli too – was

a founder of FIAT factory.

In his youth „Gianni” was a well known playboy, enjoyed the charms of life. He

very much didn’t want to continue family business and to manage such a large

factory. However, circumstances forced him to do so. He became President of FIAT in 1966.

He reoriented FIAT to mass production of inexpensive cars and international cooperation.

He also cooperated with General Motors. As a head of FIAT he controlled 4,4 % of Italy’s

GDP, 3,1 % of idustrial workforce, and 16,5 % of its industrial investment in research.

He was a richest man in modern Italian history.

He bought the best Italian football club Juventus and was its owner for 30 years.

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