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in managing change； and give key participants some say in shaping
the change right from the start。 This will reduce the feeling that change
is being imposed and more brains will be brought to bear on the
problem。
。 Reward success early： Flag up successes as quickly as possible。 Don’t
wait for the year…end or the appraisal cycle。 This will inspire confidence
and keep the change process on track。
。 Expect resistance： Kurt Lewin； a German…born professor at the
Massachuse。。s Institute of Technology （MIT）； was one of the first researchers
to study group dynamics and how change can be best effected
in organizations。 In 1943 in an article entitled ‘Defining the Field at a
Given Time’ published in the Psychological Review； Lewin described
what is now known as Force Field Analysis。 This is a tool （see Figure
4。14） that you can use to anticipate resistance to change and plan to
overe it。
。 Recognize that change takes longer than expected： Three researchers
（Adams； J； Hayes； J and Hopson； B） explained in Transition： Understanding
and Managing Personal Change （1976； Martin Robinson； London） the six
stages that people go through when experiencing change and hence
the reason the process takes so long。 The stages are： immobilization or
shock； disbelief； depression； acceptance of reality； testing out the new
Organizational Behaviour 161
situation； rationalizing why it’s happening and then final acceptance。
Most major changes make things worse before they make them be。。er。
More o。。en than not； the immediate impact of change is a decrease in
productivity as people struggle to cope with new ways of working
while they move up their own learning curve。 The doubters will gloat
and even the change champions may waver。 But the greatest danger
now is pulling the plug on the plan and either adopting a new plan or
reverting to the status quo。 To prevent this ‘disappointment’ it is vital
both to set realistic goals for the change period and to anticipate the
time lag between change and results。
Figure 4。14 Force field analysis template
What is the problem/
change issue？
Where are we now？
Where do we want to get
to？
What/who are the main
forces at work？
Driving forces Neutral forces Resisting forces
What action can we take
to help driving forces；
encourage neutral forces
to help and to overe
resisting forces？
Monitoring staff morale
One way both to identify the need for change and to keep track of progress
while implementing changes is to carry out regular surveys of employee
a。。itudes； opinions and feelings。 HR…Survey （hr…survey 》
Employee Opinions） and Custom Insight （custominsight 》 View
Samples 》 Sample employee satisfaction survey） provide fast； simple and
easy…to…use so。。ware to carry out and analyse Human Resources surveys。
They both have a range of examples of surveys that you can see and try
before you buy； which； who knows； might just be enough to stimulate your
thinking。
Business history
。 The foundations of contract law
。 The first business gurus
。 Early accounting （and the death penalty！）
。 Stock markets and coffee houses
。 Limiting liabilities
。 Encouraging innovations
。 Banking beginnings
。 The world’s oldest ventures
‘Those who cannot learn from history are doomed to repeat it’； a quote
a。。ributed in several guises to the philosopher George Santayana； is just one
of a host of contradictory messages on the relevance of a study of history。
Henry Ford； the founder of the car pany； famously said： ‘History is
more or less bunk。 It’s tradition。 We don’t want tradition。 We want to live in
the present and the only history that is worth a tinker’s damn is the history
we make today。’
There are at least two reasons why an MBA student should acquire a
basic appreciation of the milestone events that have led up to the current
theories of how organizations； their constituents and their surrounding
environments currently operate。 The first is much the same reason as why
most people learn something of the history of their country； its neighbours；
its friends and enemies。 Such a study lends interest； context and an appreciation
of how we got to where we are today。 It is much easier to understand；
for example； the enmity between the French and the British with
a sma。。ering of information on the Hundred Years’ War； the Peninsula
War and the smouldering mercial and territorial disputes that ranged
around the world from the Americas to India as well as across the African
continent。
The second reason is perhaps even more important。 Harvard professor
Geoffrey Jones； who edited The Oxford Handbook of Business History （2008；
5
Business History 163
Oxford Handbooks in Business & Management） with University of
Wisconsin…Madison professor Jonathan Zeitlin； claims in his core history
text used at Harvard that： ‘Over the last few decades； business historians
have generated rich empirical data that in some cases confirms and in other
cases contradicts many of today’s fashionable theories and assumptions by
other disciplines。 But unless you were a business historian； this data went
largely unnoticed； and the consequences were not just academic。 This loss
of history has resulted in the spread of influential theories based on illinformed
understandings of the past。 For example’； Jones continues； ‘current
accepted advice is that wealth and growth will e to countries that open
their borders to foreign direct investment。 The historical evidence shows
clearly that this is an article of faith rather than proven by the historical
evidence of the past。’
HOW BUSINESS HISTORY IS STUDIED IN
BUSINESS SCHOOLS
If you had taken your MBA before 2000 you would have been unlikely to
find business history on the curriculum anywhere outside of the top dozen
or so business schools。 The subject； however； is fast being mainstream。
Even parative newers are embracing the subject。 Reading Business
School； for example； set up its Centre for International Business History
（CIBH） in 1997； Cardiff has established an Accounting and Business History
Research Group （ABHRG） and the Copenhagen Business School’s Centre
for Business History； established in 1999； is undertaking a long…term study
into the nature and consequences of banking crises。 The past few years
should give them plenty of material to work on！
Business history as taught in business schools has no single unified body
of knowledge in the manner in which； say； accounting； marketing or organizational
behaviour has。 It would be impossible to study accounting without
covering the principles underpinning the key financial reports and how
to interpret financial information。 While there may well be some unique
content in specialized electives； say on Financial Analysis of Mergers；
Acquisitions and Other plex Corporate Restructurings taught at the
London Business School； or Dealing with Financial Crime on offer at Cass
Business School； the core accounting syllabus in all business schools is near
identical – though the way in which it is taught may not be。
History is taught in school and university in eras or themes： the Tudors；
the Renaissance； the European World； for example。 In one of the premier
UK university history departments nothing much is covered a。。er 1720；
while at Harvard Business School nothing much before 1820 is included
in the syllabus！ At Copenhagen MBA students may have a thorough grasp
of Norwegian； Swedish and Danish banking in the interwar years without
164 The Thirty…Day MBA
even a passing reference to the Industrial Revolution； mercantilism or the
development of the great family business dynasties。 It is just that the subject
is too vast to be covered in a meaningful way except by narrowing down
the range。 Business history is taught eclectically and MBAs swapping notes
on their experiences of Business History may find very li。。le in mon。
Here； a broad sweep of the subject is taken； providing snapshots of
important milestones on ma。。ers of enduring significance to business。 The
content is divided into three eras that are to some extent homogeneous；
though the time periods covered in each are very different。 The subject
starts from 4000 。。。。； though the purists would argue that organization and
innovation started at least 8；000 years earlier when some munities gave
up foraging for farming； adopting fundamentally new tools and techniques
for making a living。 Unfortunately； li。。le or nothing survives in documented
form to make it possible to study such ancient business history。 The eras
covered range from 3；000 years down to a mere half…century。 You are
probably aware of the claim that 90 per cent of all the scientists that ever
lived are alive today。 Well； much the same claim can be made for business
innovations。 While many important and essential developments occurred
many hundreds and even thousands of years ago； the most recent era is the
best documented and the most prolific。
The three periods covered are representative samples of some important
milestones in business history； selected here as they are the eras least
familiar to most students who have at least a passing appreciation of the
post Industrial Revolution business world。 Although for teaching purposes
neat dates are o。。en ascribed to such eras； in practice there is considerable
overlap。 The Fuggers and the Hanseatic League extended beyond what is
monly regarded as Mediaeval； while patents began their life in that
period but didn’t have a serious impact until much later。
BABYLON AND BEYOND （4000 BC–1000 AD）
Two enduring legacies from the ancient business world are the foundations
of mercial law and the first efforts at accounting。 Both these areas were
subject to bursts of rapid development as new ideas took hold。 For example；
the introduction of coined money in about 600 。。。。 by the Greeks allowed
bankers to keep account books； change and lend money； and even arrange
for cash transfers for citizens through affiliate banks in cities thousands
of miles away。 The Greeks were less interested in accounting as a way to
influence business decisions than as a mechanism for citizens to maintain
real authority and control over their government’s finances。 Members of
the Athens Popular Assembly were responsible for controlling receipt and
expenditure of public funds and 10 state accountants； chosen by lot； kept
them up to the mark。
Business History 165
Although it was not until 。。。。 1080 that the first law school was established；
in Bologna； Italy； and incidentally still in business today； contract law governing
transactions and protecting consumer rights had already been
around for nearly 4；000 years。
One early example of a family…run business is included here to show
that the phenomenon is not peculiar to the Middle Ages and beyond。
Accountancy： single…entry bookkeeping
Sometime before 3000 。。。。 the people of Uruk and other sister…cities of
Mesopotamia began to use pictographic tablets of clay to record economic
transactions。 The script for the tablets evolved from symbols and provides
evidence of an ancient financial system that was growing to acmodate
the needs of the Uruk economy。 The Mesopotamian equivalent of today’s
bookkeeper was the scribe。 His duties were similar； but even more extensive。
In addition to writing up the transactions； he ensured that the agreements
plied with the detailed code requirements for mercial transactions。
Temples； palaces and private firms employed hundreds of scribes and； much
as with the accounting profession today； it was considered a prestigious
profession。
In a typical transaction of the time； the parties might seek out the scribe
at the gates to the city。 They would describe their agreement to the scribe；
who would take from his supply a small quantity of specially prepared
clay on which to record the transaction。
Governmental bookkeeping in ancient Egypt developed in a fashion
similar to the Mesopotamian。 The use of papyrus rather than clay tablets
allowed more detailed records to be made more easily。 And extensive
records were kept； particularl