Management 1.0

In the history, more than 90% of people were engaged in agriculture, which is more individual than organize. Meanwhile, the rest people worked in the organization had less then four members in each organization. Decades later, the size of the organization was increased rapidly that introduced the management to people. Management brings people together. It means getting things done through other efficiently and effectively. There are many tools for management such as pay for performance, capital budgeting, task design, divisionalization and brand management. Almost all the tools were invented before 1920 and this forms the management 1.0. In another words, principles, tools and methods of management are legacies from early innovation.

There are three main challenges faced by management science in the new country. Firstly, people nowadays are the first generation in history that has to cope with an accelerated rate of change. The change for current period is at exponential change such as the IT industry and automobile industry. Second challenge is the hyper competition. With the expense of industry, the competition between similar companies has become more and more intense. It is more difficult to make business now than that was before. Third challenge, also the most pressing one, is that, it is hardly to differential itself. Innovation now is the work of everyone at all the time everyday. Companies have to be fast enough to change to accommodate to the change itself. Changes in different field could easily drive changes in management science. If significant changes occur in social, economical, technological or cultural, the changes would also occur in management science. For example, when technology changes, it requires for new a management method which could absorb the technology efficiently and apply the skill timely.

According to Gary Hamel, many ways could be used to address challenges and to drive changes in management science. Major ways are to have...