Unit 2: Historical Development and Globalization
The more complex an organization and its operations, the more active a role management plays. Successful management imposes a degree of order and discipline so that work can be accomplished expeditiously, no matter what the size of the organization, how many countries it operates in, or how much of its work is performed virtually.
In this unit, you will explore various theories of management throughout history, paying close attention to Frederick Winslow Taylor's scientific management theory, which was widely practiced in the industrial age of the 20th century. You will also take stock of more contemporary, 21st-century approaches to management, which tend to be better suited to organizations in knowledge-based industries (as opposed to those in manufacturing). Finally, you will begin to examine management from a global perspective.
Completing this unit should take you approximately 14 hours.
Upon successful completion of this unit, you will be able to:
- describe the history of management theory to see how various theories have developed over time to the present day;
- describe the effect of globalization on operating, growing, and managing a business; and
- analyze the impact of globalization on management.
2.1: A History of Management Theory
2.1.1: The P-O-L-C Framework
Read the introduction and section 3.1 for a brief review of the Planning-Organizing-Leading-Controlling (P-O-L-C) framework, which has been utilized by firms large and small throughout the 20th and 21st centuries. This section also explores the case of the Hannah Anderson Corporation, and how the company has implemented the P-O-L-C framework to create a thriving clothing-import business.
2.1.2: Understanding Early Management Principles
Study this visual timeline of 19th- and 20th-century management and leadership theories.
Read this section to explore the thought process behind early management theory, with a particular emphasis on Henri Fayol's 14 principles of management. Pay close attention to these principles, as they have great applicability to contemporary management. You will also be introduced to a more recent management thought process spearheaded by Thomas Peters and Robert Waterman in their book In Search of Excellence. Be sure to take detailed notes on these principles.
2.1.3: The Role of Social Networking in the 21st Century
Read this section, which explains why managers need to be able to identify social and political trends. These trends significantly shape how a manager performs his or her tasks and often dictate the foundational success of an organization. It also covers the evolution of social networking, from its origins as a way for college students to connect, to its present-day role as a viable, effective, and efficient way for corporations to utilize the viral nature of the Internet as a marketing tool. As you read, consider how social networking has blurred the lines between personal, professional, and business activities. Consider both the advantages and disadvantages for businesses using social networking.
Read this article and consider the growing ways in which you use email as compared with your use of email two years ago, or even five years ago. How much has your usage of email increased? Do you now rely on this method of communication more than you did in the past? How involved are you in social media, on both a personal and a business level? In your own work, are you often encouraged to use social media as a way to expand business opportunities?
- Make forum posts: 1
2.2: Historical and Contemporary Theories of Management
Read this article and think about the differences between the early scientific and bureaucratic approaches to management. Viewing these ideas within their historical context, do you think the two theories could have coexisted, or was it only possible for a company to use one or the other? As you read about the advancement of management theories, consider the approaches used in your own organization, or another contemporary organization. Can you see business areas in which some of the older theories are being implemented? If so, do they mesh well with some of the more modern approaches being used?
Read this article and think about what you have learned in this course regarding personality types. What traits do you see in Taylor as a person that resulted in the development of his theories? Where did Taylor's ability to develop management theories fit in with his ability to come up with innovative inventions? Recognizing the fact that Taylor's theories may have been misunderstood or misapplied, do you see any modern applications and uses for his methods? Are any of these methods being used in your own organization, or another contemporary organization you can think of?
Watch this lecture, which explains how and why we work well in so-called "tribes". Take notes as you watch.
Reflect on some of the theories of management that you have just explored. Consider the management theories that are in operation in your own workplace. Do you believe that these principles are being effectively implemented? What other practices do you feel might be better suited to your work environment? Share your thoughts on these questions in the course discussion forum by clicking the on link above and creating a free account (if you have not already done so). Read the responses that other students have posted and post your own comments on the forum. Be sure to take advantage of this opportunity to connect with your peers and to receive meaningful feedback of your own.
2.3: Scientific Management Theory
Read this article and consider the Ford Motor Company's manufacturing processes prior to Henry Ford's implementation of the assembly line. Think about what might have occurred had Ford not hired Frederick Winslow Taylor to evaluate Ford's manufacturing methods. How did Ford's strategy of lowering automobile pricing – so that his own employees could afford to buy one of his cars – change the automobile industry, consumer behaviors, and the future of urban and suburban environments?
2.4: A Modern Look at Management
Read this article and consider Henry Mintzberg's view of technology and email. Do you agree that these phenomena have a negative impact on a manager's effectiveness? What about Mintzberg's view that aiming for a specific goal can ultimately be detrimental to an organization's success? Also consider Mintzberg's view on creating sense of community within an organization. Does such a community exist in your own organization, or another contemporary organization you can think of?
Read this article and think about Henry Mintzberg's view that management is a result of an individual's experience and the situation in which that person finds himself or herself. Do you agree with this view? Do you, or those around you, manage based on this approach, or do you/they use a more scientific and structured method? In your experience, which approach has proven to be more effective? How does Mintzberg's management approach complement or contrast with other theories?
2.5: The Global Environment
2.5.1: Business Is Going Global, and Management Has To Change
Read the introduction and section 3.1, which discusses why countries and corporations, both large and small, engage in international trade. With globalization in mind, pay particular attention to the different models and incentives for international trade and business cooperation. Trade deficits and surpluses affect many aspects of our day-to-day lives. Think about how some of these determinants might impact the business market in your country.
2.5.2: Getting Involved in International Business
Read this section, which discusses companies' various challenges and opportunities as they engage in international business. When a company enters the global market, the application of management principles intensifies as stakeholders' demands begin to take shape. It also gives a roadmap to how companies expand internationally, emphasizing international licensing agreements and franchising opportunities. Pay attention to how companies outsource manufacturing to countries with lower costs of labor to maximize profits. Domestic and international manufacturing options have advantages and disadvantages regarding environmental conditions, skilled labor, financial incentives, and cultural differences.
2.5.3: The Environment of Global Business: Cultural, Economic, and Legal
Read this section, which describes how to identify legal, political, cultural, and economic differences between two countries. These are considered to be invaluable skills in the international business environment. Consider how business professionals utilize this information to increase organizational success. The concepts of language, time, and communication will help you improve your business while managing employees, resources, and capital.
2.5.4: Managing and Controlling Global Business
Read this section, which describes the ways in which governments and international bodies promote and regulate trade. You should be able to identify and discuss the various tools and policies that governments typically utilize to encourage economic growth. This information can be used by managers and leaders to make strategic decisions, including deciding if and when a business should expand on a global scale.
2.5.5: Managing through Trade Barriers
Read this section, which provides insight into the various ways to minimize and/or remove trade barriers, a process that directly supports the concept of free trade among designated nations. One example of this idea is NAFTA (the North American Free Trade Agreement), an agreement between the United States, Mexico, and Canada. It also introduces you to initiatives that countries and international organizations are taking to bridge the gap between developing and developed economies, allowing rapid growth in emerging markets, and encouraging competition on a global scale.
2.5.6: Global Enterprise Management
Read this article and consider the following questions: How has the spread of globalization provided growth opportunities for businesses? On the flip side, how has globalization challenged businesses? Does the company you work for, or one you are familiar with, implement the three management strategies? If yes, how so? If not, do you think these strategies could help the company excel as a global enterprise?
Read this article and consider the following questions: How important is globalization to Coca-Cola's success? How did Coca-Cola begin its globalization journey? What specific practices supported Coca-Cola's goal to be the best beverage company in the world? How did Coca-Cola's global marketing strategies, product differentiation, and technology efforts support the company's desire to grow globally?
2.5.7: Global Management on a Local Level
Read this section, which describes how to apply global management practices to variations within local business contexts. To navigate to the next section, click on the arrow key at the bottom of the page, or click on the link to the section in the left-hand table of contents.
Unit 2 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.