History – you’re standing in it(!) Industrial Revolution 1760 – 1840 ( approx.) Shift from manual labour to use of water power / steam power based on coal and then oil. Rise of factories and low skill work to replace declining use of labour on farms. Massive increases in productivity / mass production begins / prices drop Labour used to be skilled artisans (now competing with machines) or low skilled labour (now competing with / working with machines).

Key Impact of First Industrial Revolution Labour (people) now part of a production system involving human capital, (people skill, learning and experience), physical capital (money and machinery), natural capital (resources, land, water, energy), Social capital (relationships, organisations, etc). People as part of the machine had to be managed.

Online Research Break – 15 min F. W. Taylor Who was he ? What was his contribution to our understanding of the world? Hero or villain?

Scientific Management

World War 1 “intervenes” Industrial warfare seen for the first time Machine guns / nerve gas / tanks / aerial warfare / etc Very different to previous wars Seasonal, cavalry, infantry, artillery.

Impact of WWI (the ‘great’ war, war to end wars) Massive loss of life and mental health impact of war seen for first time in UK society. Many affected soldiers were officers. Online research - 10 minutes Find the link between “Officer and a gentleman” to “great man theory of leadership” How did the impact of war affect this idea?

So it turns out we are not that simple(!) People are not only part of the machine – they have lives Life = emotional experiences such as love & hate. Life = ambition, dreams, goals, etc. Life = heartache, pain, excitement, ecstasy.

Online research Break -5 minutes What is the purpose of life? How could this affect our work ?

Beginnings of Leadership theory in Hawthorne experiment with Mayo Workers do better when their bosses are interested in them. Groups Theory Workers do better when they are involved in decisions that affect them. KEY FACT People appear to work better when managed as people (rather than part of the machine)

Break

Ages of Economic Development Agricultural revolution 1650 Industrial revolution1 (steam & water power, food & fibre) 1750 Industrial revolution 2 (manufacturing, mechanical processes) 1850 Industrial revolution 3 (advanced manufacturing, electronics) 1950 Information revolution 1 (computers) 1975 Information revolution 2 (internet) 1995 Information revolution 3 (cloud – SAAS –big data) 2015

Undeveloped/Developing Economies (UDC) Low income levels Large agricultural sector Unequal income distribution Lack of investment capital Unemployment & underemployment High birth rate /low death rate (in demographic shift) Market and subsistence economy side by side Low level of technology (textiles, food, basic manufacturing)

Developed Economy (DC) High income levels Large services sector More equal income levels (changing now) Large capital base from historic earnings High employment based on exports /service economy Low birth rate (demographic shift has occurred) Market economy dominates High technology levels in export and service economy

Leadership Implications of UDC and DC DC economies Highly skilled workers operating in hypercompetitive global markets Human creativity and team work are competitive advantage. Leadership not management UDC economies Lower skill level in mostly domestic economies Export economy based on low labour cost Management not Leadership

Summary: The last 100 years of economic history... Gary Hamel on Mgt 2.0

Modern Leadership Theories Trait theory Behaviourial theories Situational theories 1970 – 80 Path-Goal Theory 1970 Fiedler Contingency Theory 1990 Transactional & Transformational theories 1980 – 90