Page 51 - Chapter One

Why it is Time Now for The Management Shift 19

table 1.3 A comparison of the key concepts, terms and theories used in the
traditional and new management paradigm
Traditional management New management paradigm
paradigm
Management 1.0 The Management Shift, Management 2.0,
Management 3.0, radical management, agile
management, conscious capitalism, customer
capitalism, stakeholder capitalism, reorganizing for
resilience, the power of pull, employees first, the net
promoter system, Wiki- management, Scrum, etc.
Newton’s theory “New science”- based theories used/applied to

management: complexity theory, chaos theory,
systems level analysis, quantum theory, field theory,
multilevel theory, connectionist theory, general
systems theory, living systems theory, process theory,
social evolution theory, theory of complex responsive
processes, Wilber’s theory of everything, etc.
Newtonian machine paradigm Complex adaptive systems paradigm
Scientific or mechanistic Human- oriented management
management
Taylor- based management Drucker- based management
Industrial/production economy Knowledge/creativity economy
Vertical leadership Horizontal leadership
Shareholder value maximization Stakeholder value, shared value maximization
Non- actionable research Actionable research.
Agency theory Focus on customers and long- term growth

Transaction cost economics Delegating responsibilities, distributing authority and
(leads to command- and- control decision- making
based management)
Porter’s five forces Forming partnerships with suppliers, customers,
employees and regulators
“Scientific model” of research, Holistic, social science- based approach, inductive and

deductive reasoning iterative reasoning
“Liberalism”- based ideology; Analyzing corporate behaviors in terms of the choices,
pessimistic view on human actions and achievements of individuals; positive
nature; focusing on weaknesses psychology; focusing on strengths; pluralism
Causal (based on statistical Intentional explanations (mental phenomena focused
estimates of aggregate on ethics)
outcomes) and functional
(based random process of
evolution) explanations
(continued )