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Outline. Management in early civilizations Management before industrialization. Dark ages -Catholic Church -Feudalism -Revival of commerce. Renaissance -Protestant ethic Max Weber, Tawney , Mclelland -Liberty ethic Hobbes, Locke -Market ethic Quesnay, Adam Smith. Babylon Egypt

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Outline

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  1. Outline • Management in early civilizations • Management before industrialization

  2. Dark ages -Catholic Church -Feudalism -Revival of commerce Renaissance -Protestant ethic Max Weber, Tawney, Mclelland -Liberty ethic Hobbes, Locke -Market ethic Quesnay, Adam Smith Babylon Egypt China Roman

  3. 1. MANAGEMENT IN EARLY CIVILIZATIONS

  4. 1.1 Near East-Babylon • Group affiliation-family to nation, authority is always a question • Conflict between chiefs and priests • King Hammurabi

  5. King Hammurabi issued- • 282 laws-business dealings, personal behavior, interpersonal relations • Wage and fees • King Nebuchadnezzar • Weavers of cloth(pembuatpakaian) were paid with food according to output • Based on “He who neither workethfo himself or others will not receive the reward from God”(Prophet Muhammad) and “If anyone will not work, let him not eat”(2 Thess, 3:10)

  6. 1.2 The far east-China • Military • Sun Tzu • Importance of planning-“Do many calculations lead to victory, and few calculations to defeat” • War- needs forces(kuasa) and enemies; marketplace? • Marketplace- competitive strengths and competitors

  7. Confucius • Moral teachings and merit system • Merit system to enter public services • Merit as basis for promotions

  8. 1.3 Egypt • Based on the Nile river-engineering • “Vizier”(where supervisor is derived) • 10 workers to one supervisor • Spiritual matters-pharaoh, others-vizier • Forecast, planning, dividing work-administer

  9. 1.4 Hebrews • Origins of Charisma • Moses and his ideas: organization, span of control, delegation, and the exception principle • Other quotes suggest the Hebrews provided advice on planning, listening to advisers, and controlling

  10. 1.5 Greece • Institutions, arts, language, drama and art-contributes to our own culture • Trade and commerce-carried by slaves and common citizens

  11. Socrates Plato • “Managerial skills are transferable” • “Diversities in human, adapted to different occupations”

  12. Aristotle • Specialization of labour • “Work is better done not with the divided attention of the worker” • Departmentalization • “Every office should have a special function” • Centralization,decentralization,delegation • Synergy • “The whole is superior to the part” • Leadership • He who has never learned to obey cannot be a good commander

  13. Xenophon – advantages of specializing labor • Greece-fell into Romans- by internal moral decay, political disorder etc

  14. 1.6 Rome • Quasy factory system-to manufacture weapons, potteries and textiles • Built Roman road system-speed the distribution of goods • Business activities-carried by Asian and Greeks • Contributions-Roman law • -model for later civilizations

  15. In short, • Hammurabi – Code of Law • Prophet Mohammed – Importance of work • Sun Tzu – Planning and Strategy • Confucius – Personnel selection by merit, early bureaucracy, and division of labor

  16. Dark ages -Catholic Church -Feudalism -Revival of commerce Renaissance -Protestant ethic Max Weber, Tawney, Mclelland -Liberty ethic Hobbes, Locke -Market ethic Quesnay, Adam Smith Babylon Egypt China Roman

  17. 1.7 The dark ages • Decline of Roman empire • cultural and economic deterioration

  18. 1.7.1The Catholic Church • Bishops-become heads of various local churches • Conflict between centralized and decentralized authority still exists today –characterized as the need for unanimity of purpose yet discretion for local problems and conditions.

  19. 1.7.2 Feudalism and the Middle Ages • Caused by • the development of free people as tenant farmers, • growth of large estates, • political disorder, • economic, social, and political chaos. • Abolition of slavery-free people as farmers • Tied people to the land, fixed rigid class systems, established landed aristocracy, stopped education, caused poverty and ignorance, and stifled human progress until the Age of reformation.

  20. Self-sufficient • Military protection in exchange for a portion of the products of their labour • Problems associated with industrial revolution began during this period • Forests-razed with no reforestation • Coal-used more-created air pollution

  21. 1.7.3 Revival of Commerce • Crusades-stimulating commerce by • Opening new trade routes • Exposing feudal Europe to the wealth of Middle East • Growing trade- new system for inventory and cash flow • More secular life in Europe • New markets • New ideas • Rise of towns

  22. Luca Pacioli’s system of double-entry accounting – the first management information system (cash & inventory position and a check on cash flow) developed in 15th century. Fra Luca Pacioli

  23. Saint Thomas Aquinas - “Just Price” = market price; advocated by him in 13th century. • Trade rules (Code of Ethical Conduct) proposed by Friar Johannes Nider in 1468: • Goods should be “lawful, honorable, and useful. • Price should be just. • Seller should beware. • Speculation was a sin.

  24. Production of goods • Guilds-specialization; master owns tools, raw materials and finished product, each town is limited to certain crafts • Domestic system-negotiation of contracts with those who would do the work at home, no performance monitoring-uneven quality • Steam power and factory system emerged-end of feudalism

  25. 2. The cultural rebirth- Renaissance/ Management before Industrialization

  26. Dark ages -Catholic Church -Feudalism -Revival of commerce Renaissance -Protestant ethic Max Weber, Tawney, Mclelland -Liberty ethic Hobbes, Locke -Market ethic Quesnay, Adam Smith Babylon Egypt China Roman

  27. 2.1 Renaissance- an introduction • Rediscovery of the classics • Renewed interest in reason and science • Breaking the ancient hold of theology through Protestant Reformation->Protestant ethic • Emergence(kemunculan) of liberty ethic-new concepts in relations between people and the state through constitutional government • Emergence of market ethic-notion of a market-directed economy

  28. Protestant ethic, liberty ethic and market ethic-> changing cultural values toward people, work and profits-> creation of a new environment that leads to formal study of management

  29. 2.2 Protestant ethic

  30. Middle ages/dark ages- domination of Catholic Church • People to think not of this world • Business-evil • Self interest of trade divert people’s thoughts from God • Protest of Roman Catholic Church

  31. John Calvin’s concept of elect- • Those predetermined to be saved gave Spirits to his followers-people should believe That they are all elect

  32. Affirmed by Max Weber • “The impulse to acquisition, pursuit of gain(money) has nothing to do with capitalism; it is common to all conditions of men in all countries” • “Unlimited greed for gain is not identical with capitalism” • Instead of waiting for Judgment Day, a person should choose and pursue an occupation

  33. People had a duty • to work • To use their wealth wisely • To live self-denying lives • Unequal distribution of goods-because each person had unequal talents • Wealth- no assurance for heaven, the poor did not need to worry as long as they performed their calling properly

  34. Outcomes of Calvinism: • Wasting time-deadliest of sins • Willingness to work is essential • Division and specialization of labour-higher skill and improvement • Consumption beyond basic needs-wasteful and sinful

  35. Criticism of Weberian- Robert Tawney • Capitalism is the cause of Protestantism, not the effect • Rise of capitalism as action and reaction • Conclusions • Bound Weber’s notion of the church and spirit of capitalism • Economic motivation- steam pushing on church authority

  36. Support for Weber-Mclelland • Psychological factors that are important for economic development • Need for achievement-”n achievement”

  37. Findings of Mclelland • High in achievement-essential in engaging entrepreneurial activities • Society high in achievement-rapid economic development • Certain ethnic, religious, and minority groups show different marks in n achievement • Wealth- a way in keeping score, not goal

  38. 2.3 The liberty ethic • Political philosophers began to stimulate the thoughts of people with such new ideas as equality, justice, the right of citizens, a rule of reason, and notions of a republic governed by the consent of the governed.

  39. Nicolo Machiavelli • “3 ways to the top- fortune, ability and villainy” • Indicates the type of leadership • Founder of a state must give it laws • All men are bad • So rulers were justified in pursuing any leadership style that suites their purpose • Choose between being feared or loved; better being feared

  40. Thomas Hobbes(Leviathan, 1651) • Strong central leadership • Without civil government, some greater power must exist to bring order from chaos(kekecohan)

  41. John Locke(Concerning Civil Society, 1690) • Principles of English revolution(1688) • People are governed by natural law of reason, not tradition or authoritarian figures • Civil society is build on private property-no to harms another’s posession

  42. Contributions • A law based on reason • A government get its powers from the governed • Freedom to pursue individual goals-natural • Private property and its use in the pursuit of happiness-natural and legal • Forming a solid political foundation for industrial growth • Base for laissez faire economics • Guaranteed rights of property • Protection to contracts • System of justice

  43. 2.4 The Market Ethic • New lands were discovered though exploration, new trade routes and new products emerged

  44. Francois Quesnay • Challenged Mercantilism • Wealth did not lie in gold and silver, sprang from agricultural production • Advocated laissez-faire capitalism-government should leave alone mechanism to market

  45. Adam Smith (The Wealth of Nations) • Mercantilism-destructive • Berpendapat: • Only market and competition be the regulators of economic activity • Concept of specialization of labour-pillar of market specialization • Discovered benefits and disadvantages of specialization • Manager, in order to gain productivity, must rely on the division of labour

  46. Impacts to Great Britain • Market ethic as economic sanction for private initiative rather than mercantilism • Motivating force-competition, innovation and self interest

  47. 3. Summary

  48. Dark ages -Catholic Church -Feudalism -Revival of commerce Renaissance -Protestant ethic Max Weber, Tawney, Mclelland -Liberty ethic Hobbes, Locke -Market ethic Quesnay, Adam Smith Babylon Egypt China Roman

  49. Early management-antibusiness, antiachievement, antihuman • Controlled and affected by religion-can be good or bad • Industrialization- 3 forces-protestant, liberty and market ethic

  50. 4. Self-test

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