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Wednesday, August 02, 2006

Modern Management

I wonder what business culture would be like if the MBA had not been invented? Even twenty years ago, the MBA was beginning to have a real impact on the way that businesses and other large organizations were managed. Today, using MBA graduates has become so essential that large corporations have their own MBA programs, or organize MBAs under their own banner.

Before this multi-subject education, most managers came from either a financial or an engineering background - the two major areas in product oriented organizations in the pre-marketing days. This meant that what we refered to as management was largely about administration and control.

Modern management is much more about planning and enabling, allowing people to know their role in the organization and then giving them the resources and the space to get on with it - well this is the ideal anyway. MBA education gives graduates the tools to do this job, and the understanding to be able to implement it in the organization they are working in.

# posted by Mary @ 2:29 PM  
Comments:
I think you’ve captured something important there not just about MBA programs but how the whole of corporate management has changed.Or at least the ideal which it is moving towards.
Before the rise of the MBA management was indeed the preserve of those who were experts in their field, engineers or accountants perhaps, promoted upwards.
Nowadays, management is seen much more about finding and promoting those experts: to positions where their expertise can be used. What’s the point to taking a great aerospace engineer and making him responsible for the accounting? Far better to have a specialist manager (like an MBA) making the resource allocation decisions so that, as you say, the others in the organization are empowered and resourced to employ their specialist skills.
# posted by failingeconomist : 1:26 AM
 
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