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Open Research Online The Open University’s repository of research publications and other research outputs Business schools and the construction of management knowledge: an analysis of the MBA Thesis How to cite: Esland, Karen Victoria (2007). Business schools and the construction of management knowledge: an analysis of the MBA. PhD thesis The Open University. For guidance on citations see FAQs. c 2007 The Author https://creativecommons.org/licenses/by-nc-nd/4.0/ Version: Version of Record Link(s) to article on publisher’s website: http://dx.doi.org/doi:10.21954/ou.ro.0000e97a Copyright and Moral Rights for the articles on this site are retained by the individual authors and/or other copyright owners. For more information on Open Research Online’s data policy on reuse of materials please consult the policies page. oro.open.ac.uk BUSINESS SCHOOLS AND THE CONSTRUCTION OF MANAGEMENT KNOWLEDGE: AN ANALYSIS OF THE MBA KAREN VICTORIA ESLAND BA (Hons) Sociology University of Kent MA Cultural Studies Lancaster University Submitted in accordance with the requirements for the degree of Doctor of Philosophy The Open University Centre for Research in Education and Education Technology September 2006 4-5 - ýsltý, z ,ýo: ta Ski,, as ýý OJL ýt` ýl Sao S -2 i Contents Abstract 2 Introduction 5 Chapter 1 The institutional formation of business schools and their cultural and political significance 21 Chapter2 Political and economiccontext of the development of the business school 59 Chapter3 Rise of the businessschool 94 Chapter 4 The cultural significance of the business school 137 Chapter 5 The MBA 183 Chapter 6 The business school and its external relations 232 Chapter 7 The social construction of management knowledge 276 Conclusion 311 References 321 Appendices 361 2 -ý Abstract The focus of this thesis is the expansion of business education in the UK over the past two decades. The reasons for the expansion are tied to the political and economic agendas of the New Right. The economic crises of the 1970s, resultant labour market instability and growing international competition led to the emergence of a political strategy around the promotion of management, to improve employment discipline, economic efficiency and national competitiveness. The dismantling of the post-war welfare settlement and consequent marketisation of the public sector resulted in the role of management being elevated within the public sector. The state- sponsorship of management within private and public sectors involved a confluence of interests around the growth of management education: increased demand was created which the tertiary sector was favourably predisposed to supply. The political articulation of public sector policy and practice in terms of a management discourse constitutes a distinct cultural and ideological transformation. The movement of a managerialist discourse into non-business spheres has involved business schools becoming important cultural intermediaries, contributing to a reconstitution of society. Given the political emphasis upon and cultural prevalence of management discourses, the factors influencing the construction of management knowledge and the ideologies it favours are of significance. This study examines the MBA curricula of business schools, focusing on the induced tension between business values, based on the broad acceptance of capitalist principles, and the academic requirement for critical analysis of business practice. This potential 3 tension is explored in interviews with a number of academics. The responses indicate that balancing academicand businesspriorities can be a complex process with consequences for identity management. This study traces the implications of the political promotion of managementknowledge and the role of the business school in the emergence of a new political settlement. 4 ,1 Introduction A measureof the successof our first ten years is that we have restored management to its proper place in society. Kenneth Clarke, Secretary of State for Education (1992)1 This study is about the role of the business school within the UK. Since the late 1980s, there has been a massive expansion in management education, not only in the quantity of students involved, but also in the number of courses and institutions providing them. Handy et al (1988) note that in 1986,1200 students graduated with an MBA in the UK; 10,000 students now graduate annually with an MBA (Association of Business Schools 2006). According to the Higher Education Statistical Agency (HESA 2005), Business and Administrative Studies remain consistently the most popular courses with students of all ages. In 2003/4, the combined undergraduate and postgraduate population was 245,527,12 per cent of the total student body. Clearly there has been a sizable increase in both the supply of and the demand for management education. The question is why? This expansion cannot be adequately explained in terms of internal developments within business schools themselves. The activities of business schools need therefore to be situated within their social and political context in order to explore the reasons for the expansion. This study sets out to examine the links between the 1Kenneth Clarke was interviewed on theToday programme, BBC Radio4,12.3.92, quoted in Clarke andNewman 1993. 5 growth of the management education sector and the political and economic agendas of the state, and to assessthe implications of these links. As many commentators have noted, the last quarter of the twentieth century saw a major transformation in the political economy of the UK. The post-war settlement based on social democracy and universal state welfare foundered on the failure of British governments to sustain the national economy following the world oil crises which began in the early seventies and whose influence continued for the rest of the decade. The consequent massive rises in inflation and their knock-on effects on an increasingly militant labour force fostered a popular discourse of political crisis. This sense of crisis was captured by Crozier et al (1975) in their influential book The Crisis of Democracy. The fear of social breakdown and disorder was attributed by some to what was felt to be the `licence' of the trade unions to undermine industrial stability in their pursuit of workers' interests -a fear captured in the much publicised statement made by Michael Edwardes, the managing director of the British Leyland car company, that `managers should have the right to manage'. It is possible to identify two major political strategies which grew out of the political destabilisation of the 1970s: the first was the development of a new international later described economic order -a process as the pursuit of globalisation; and the second, the massive investment in business management designed to meet the skill needs of those required to manage the new globalised economy. The incoming Thatcher government placed economic restructuring and labour market reform at the centre of its political agenda, to address the perceived uncompetitiveness of British 6 industry. There was governmental concern that the UK was suffering from a failure to supply a sufficiently skilled, educated and organised workforce to compete effectively in an increasingly global economy. Post-compulsory education and training policies and practices came to be articulated in terms of the discourses surrounding economic globalisation from the mid-1980s on: the pursuit of national competitiveness was linked to a need for educational and vocational reform. Alongside the New Right's strategy to address the apparent inadequacies of the UK's both skills base was a concomitant drive to reinforce the position of management, legislatively through economic deregulation and the delimitation of trade union influence, and through encouraging the development of managerial expertise and low authority. A number of reports published during the 1980s emphasised the levels of training managers received and the inadequacy of existing management education provision. The view developed within government and among employers' organisations that the economic regeneration sought would be enhanced not only by the repositioning of management practice but through greater emphasis upon management education and training. In this way, business schools may be seen as integral to the Thatcherite project of promoting the cultural and economic position of management and fostering a closer degree of synchronicity between the education system and national economic requirements. There are a number of accountsof the dismantling of the post-war welfare settlement by the New Right and the resultantmarketisation of the public sector2. The changes introduced, overhauling the institutions, governance, relationships and culture of the 2 SeePollitt (1993 ); Leys (2001); Clarke and Newman (1997); and Maidment and Thompson(1993). 7 public sector, have been argued to constitute part of a reinvention of the state. In his book TheDecline of The Public, Marquandsuggests that this political transformation amounted to a form of Kulturkampf in the UK polity, pointing out that: De-regulation, privatization, so-called public-private partnerships, proxy markets, performance indicators mimicking those of the private corporate sector, and a systematic assault on professional autonomy narrowed the public domain and blurred the distinction between it and the market domain. Public functions of all kinds were farmed out to unaccountable appointed bodies, dominated by business