Management: Inventing and Delivering Its Future

325 Pages·2003·12.66 MB·English

by  Thomas A. Kochan

Management
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The MIT Sloan School of Management: 50thAnniversary
Management
Inventing and Delivering
Its Future
Edited by
Thomas A. Kochan and
Richard L. Schmalensee
The MIT Press
Cambridge, Massachusetts
London, England
© 2003 Massachusetts Institute of Technology
All rights reserved. No part of this book may be reproduced in any form by any elec-
tronic or mechanical means (including photocopying, recording, or information storage
and retrieval) without permission in writing from the publisher.
This book was set in Palatino by SNPBest-set Typesetter Ltd., Hong Kong.
Printed and bound in the United States of America.
Library of Congress Cataloging-in-Publication Data
Management : inventing and delivering its future / edited by Thomas A. Kochan and
Richard L. Schmalensee.
p. com.
“MIT Sloan School of Management: 50th anniversary.”
Includes bibliographical references and index.
ISBN 0-262-11282-5 (hc. : alk. paper)
1. Management. 2. Organizational change. 3. Corporate governance.
4. Personnel management. 5. Human capital. 6. Technological innovations—
Management. I. Kochan, Thomas A. II. Schmalensee, Richard. III. Sloan
School of Management.
HD31.M2928 2003
658—dc21 2003044503
Contents
Foreword ix
Charles M. Vest
Preface xi
Alex d’Arbeloff
Acknowledgments xiii
1 Introduction 1
Richard L. Schmalensee and Thomas A. Kochan
2 Challenges and Responsibilities 15
2.1 Corporate Citizenship in a Global Society 17
KofiAnnan
2.2 Restoring Trust: Corporate Responsibility and the CEO 25
Carly Fiorina
3 Globalization 37
3.1 The Promise and Perils of Globalization:
The Case of Nike 39
Richard M. Locke
3.2 Case Discussion: Questions and Answers from Alumni 71
4 Human Capital and Twenty-First-Century Organizations 75
4.1 Navigating the Future: The Networked Organization
Phil Condit 77
vi Contents
4.2 Beyond McGregor’s Theory Y: Human Capital and
Knowledge-Based Work in the Twenty-First-Century
Organization 85
Thomas A. Kochan, Wanda Orlikowski,
and Joel Cutcher-Gershenfeld
4.3 Panel Discussion: Meg O’Leary, James Goodnight,
and Peter Senge 115
5 Marketing 121
5.1 Innovation and the Constancy of Change 123
Rick Wagoner
5.2 Consumer Power and the Internet 127
David Gagnon, Susan Lee, Fernando Ramirez,
Siva Ravikumar, Jessica Santiago, and Telmo Valido,
under the direction of Professor Glen Urban
5.3 Panel Discussion: Vince Barabba, Jeff Katz,
and Melanie Kittrell 161
6 Governance 165
6.1 Corporate Governance 167
Stewart C. Myers
6.2 European Corporate Governance: AChanging
Landscape? 171
Giovanni Carriere, Andrew Cowen, José Antonio Marco,
Donald Monson, Federica Pievani, and Tienko Rasker
6.3 Financial Reform and Corporate Governance
in China 213
Erika Leung, Lily Liu, Lu Shen, Kevin Taback,
and Leo Wang
6.4 Panel Discussion: Rolf Breuer and Victor Fung 251
Contents vii
7 Technology 257
7.1 The Next Technological Revolution: Predicting the
Technical Future and Its Impact on Firms, Organizations,
and Ourselves 259
Ellen Brockley, Amber Cai, Rebecca Henderson,
Emanuele Picciola, and Jimmy Zhang
7.2 Panel Discussion: Robert Brown, Rodney Brooks, Rebecca
Henderson, Linda Griffith, and Susan Lindquist 287
Postscript: Moving Forward 291
Contributors 293
Index 295
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Foreword
The 50th anniversary of the MIT Sloan School of Management offers
an auspicious moment to look to the past with pride and to the future
with boldness and confidence. It also is a moment to celebrate the deep
and important synergies of the Sloan School and the other elements
that comprise MIT.
The beginning of management education at MIT predates 1952,
when the Sloan School opened its doors as the School of Industrial
Management. Its roots reach much further back in time. MIT’s first cur-
riculum in 1865 included subjects that today’s MBAs would find famil-
iar—economics and statistics, principles of industrial development,
business law, taxation, and banking.
As the industrial world developed in the early 1900s, the concept
of providing business training in the academic environment gained
popularity. So did the demand for these courses, prompting MIT
to create Course XV—Engineering Administration—in 1914. For
the next three decades, the relevance and demand for programs
in management only continued to grow. And in 1952, the MIT Sloan
School was born.
The concept of the school was the idea of MIT alumnus and inno-
vator Alfred P. Sloan, Jr., Class of 1895—the man credited with the
invention of the modern corporation. Mr. Sloan sought to solve the
complex problems of modern industry through the sort of rigorous
research that MIT has always been about, and his generosity made it
possible for MIT to create the new school.
For MIT, with its long history of working on practical problems
affecting society and the economy, this progression was natural.
The MIT Sloan School was shaped by bringing MIT’s quantitative
approach to the management of organizations, and through the strong
traditions of innovation that have been the hallmark of MIT.