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Confronting Managerialism

Confronting Managerialism

Robert R. Locke | J.-C. Spender

(2011)

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Abstract

Confronting Managerialism offers a scathing critique of the influence of neoclassical economics and modern finance on business school teaching and management practice. Locke and Spender show that responsible management has given way to ‘managerialism’, whereby an elite caste of businessmen disconnected from any ethical considerations call the shots. The book traces the loss of managers’ earlier social concerns, amply encouraged by management education’s transformation since the 1960's, especially in the US. It also questions not only the social ethics of the US management caste but its management efficacy compared to systems of management that are highly employee participatory and dependent, such as in Germany and Japan. A unique, topical and controversial look at a subject that impacts us all.
'Everyone should read this book to see what is so wrong with finance capitalism U.S.-style. The book's expose of bad "management philosophy from hell" carries one forward like an adventure story as it describes the academic and global diplomacy whose infighting has spread it. Most important is the authors' conclusion that it doesn't have to be this way!' Michael Hudson, author of 'Super Imperialism' 'Timely... Incisive... and right on target. The authors mount a fierce attack on "managerialism" and the business schools that promote it. The book should leave the professors, the deans, and the CEOs at prominent U.S. businesses nervously looking over their shoulders at the global competition.' Louis Galambos, The Institute for Applied Economics, Global Health, and the Study of Business Enterprise, Johns Hopkins University 'In this fascinating book Locke and Spender show us what is wrong with managerialism and what might be done to ensure more participative and long term approach to running organizations.' Martin Parker, Warwick University Business School, and author of 'Against Management' 'Business Schools are one of the most important institutions of our times; managerialism perhaps the dominant ideology of those times. How strange, then, that the relationship between the two has not been exposed to much serious analysis. In this excellent volume, Locke and Spender do just that and through a combination of historical and comparative international analysis explain the complex and often malign enmeshment of business schools with modern society. Written by acknowledged experts in the area, this is an important book for those who work in business schools; but an even more important book for those who don't and will be informed, astounded or perhaps appalled to discover what goes on within them.' Christopher Grey - Professor of Organizational Behaviour, Warwick Business School, University of Warwick and Visiting Fellow, Judge Business School, University of Cambridge 'In a brilliant and compelling narrative, Locke and Spender trace the decline of American business after World War II to the extinction of socially-responsible management by an amoral 'managerialist' caste of professional business school graduates trained to view reality through arcane mathematical tools of abstract decision making, not through the lens of concrete relationships linking humans to each other and to the planet they inhabit. This is a truly important book . . . definitely a must read.' H. Thomas Johnson, Professor of Sustainability Management, Portland State University
Robert R. Locke is Emeritus Professor at the University of Hawaii at Manoa. He is the author of numerous books and articles, including The End of the Practical Man (2006), The Collapse of the American Management Mystique (1996), and The Entrepreneurial Shift (2004). J.-C. Spender is the author of Industry Recipes (1989) and, with Burton-Jones, the editor of The Oxford Handbook of Human Capital (2011).

Table of Contents

Section Title Page Action Price
About the series\r i
About the authors ii
Tables and figure viii
Table 1.1 Membership in operations research societies in \rEurope and the USA 29
Acknowledgments ix
Preface x
Introduction | Managerialism and business school \reducation, 1920–1970 1
Business school education 6
British and American OR and educational traditions 12
1 | The failure of management science and the US business school model 22
The OR experience: the new paradigm in postwar business schools 24
Table 1.1 Membership in operations research societies in Europe and the USA 29
Crumbling epistemologies: a critique of the new paradigm 32
Business school response to major economic events 46
The information technology revolution and business schools 50
2 | US managerialism and business schools fail to find their moral compass 61
Managerialism’s missing moral compass 62
Islam 65
Confucianism 71
Christian morality, the feudal heritage, and codetermination in Germany 77
The moral basis of US managerialism post World War Two 81
The breakup of moral order after 1980 83
Table 2.1 Christianity in the USA 86
Figure 3.1 Big Three mass production process – post World War Two 111
Academia and business school education 93
3 | Managerialism and the decline of the US automobile industry 106
Table 3.1 Units of production – Japanese automobile firms, 2005–2006 109
Table 3.2 Japanese auto parts manufacturers in North America 110
Managerialism in US automobile manufacturing 110
Figure 3.1 Big Three mass production process – post World War Two 111
The Japanese production system 113
Table 3.3 Production behavioral values – Big Three and the Toyota Production System 116
Table 3.4 Comparative performance of major automobile firms, \r2006 118
Table 3.4 Comparative performance of major automobile firms, 2006 118
The response of US managerialism to the Japanese automobile challenge 119
German automobile firms’ response to the Japanese challenge 122
Conclusion 131
4 | Managerialism, business schools, and our financial crisis 133
Agency conflict versus managerialism 139
Germany and Japan 142
Table 4.1 German firms on the 2007 Fortune World 500 list 146
Table 4.2 Japanese firms on the 2007 Fortune World 500 list 147
US managerialism and finance capitalism 153
Business schools and the derivatives market 156
Constructing the vehicle of greed 158
Denouement 168
Conclusion | Back to balance 174
How about reform? 184
References 193
Index 208