Understanding the Global Understanding the Global Context of Business and Context of Business and

ManagementManagement

Summer Business InstituteSummer Business Institute

Villanova School of BusinessVillanova School of Business

OverviewOverview

A bit of historyA bit of history

The rise of globalizationThe rise of globalization

The modern organization The modern organization

What is management?What is management?

Managerial functionsManagerial functions

Managerial rolesManagerial roles

What do you need to succeed?What do you need to succeed?

Feudalism to CapitalismFeudalism to Capitalism

Feudalism: The absence of motivation on Feudalism: The absence of motivation on the part of the peasants gave rise to the part of the peasants gave rise to tenant farmers sharing in more of the till tenant farmers sharing in more of the till and toil of the landand toil of the landMercantilism: Merchants saw opportunities Mercantilism: Merchants saw opportunities to trade at a profitto trade at a profit Capitalism: Capitalism: Mercantilism has evolved Mercantilism has evolved into Capitalism today, as private into Capitalism today, as private industrialists produce, trade, and industrialists produce, trade, and distribute productsdistribute products

A Bit of History…A Bit of History…The industrial revolutionThe industrial revolution (1760-1830)(1760-1830)– End of feudalism, colonial expansion, steam power, cotton End of feudalism, colonial expansion, steam power, cotton

mills, ironworksmills, ironworks– Proliferation of factoriesProliferation of factories

Coordination of effort in continual production of goodsCoordination of effort in continual production of goods

Increasing change and the growth of capitalism, led to Increasing change and the growth of capitalism, led to technological progress and the most significant change in technological progress and the most significant change in the business systemthe business systemChange was pervasive in both farming and manufacturing Change was pervasive in both farming and manufacturing as the use of technology could be used more efficiently as the use of technology could be used more efficiently than labor such as steam power or interchangeable parts than labor such as steam power or interchangeable parts to build sewing machines to manufacture clothingto build sewing machines to manufacture clothingRise of capitalism—emphasis on efficiency!Rise of capitalism—emphasis on efficiency!The assembly line – The assembly line – Ford videosFord videos, , NissanNissan

A Bit of History…A Bit of History…

Workers

Structure of a Typical pre-1990 Organization

Middle Management

Top Management

CEO

A Bit of History…A Bit of History…

CEO, TMT, and Board of Dir.

SMWTs

Middle Management

WHY??

Structure of a Typical Modern Organization

The Modern OrganizationThe Modern Organization

Top Managers

Team Leaders and Managers

Operating Workers

Customers and Clients

support

support

serve

The Rise of GlobalizationThe Rise of GlobalizationIt has been said that arguing against It has been said that arguing against

globalization is like arguing against the globalization is like arguing against the laws of gravity.laws of gravity.

--Kofi Annan, former U.N. Secretary General--Kofi Annan, former U.N. Secretary General

From the streets of Davos to the streets of From the streets of Davos to the streets of Seattle, there is a growing consensus that Seattle, there is a growing consensus that globalization must now be reshaped to globalization must now be reshaped to reflect values broader than simply the reflect values broader than simply the freedom of capital.freedom of capital.

--John J. Sweeney, AFL-CIO president--John J. Sweeney, AFL-CIO president

The Rise of GlobalizationThe Rise of Globalization

Increasing importance on cross-Increasing importance on cross-cultural managementcultural management

The GLOBE studyThe GLOBE study

What Is Management?What Is Management?Management is…Management is…– Working with and through othersWorking with and through others– Achieving organizational objectivesAchieving organizational objectives– Balancing effectiveness and efficiencyBalancing effectiveness and efficiency– Making the most of limited resourcesMaking the most of limited resources– Coping with a changing environmentCoping with a changing environment

Business is like a car—it won’t run by itself Business is like a car—it won’t run by itself except downhill.except downhill.

--Unknown--Unknown

Management in YOUR LifeManagement in YOUR Life

Jay Wright

Greek life

VSB Dean Jim Danko

Your Parents

“The Office”

SBI

Jay-Z

Intramural Sports

Your job search

Wildcat Sports

Harry Potter

Yanks/Red Sox/Phils/Orioles

Your Planner

Your student club

Special Olympics

“Office Space”

Managerial Functions—the “do”Managerial Functions—the “do”

Efficiency / Effectiveness

Controlling Planning

DecisionMaking

Leading

Motivating Organizing

Communicating Staffing

Henri Fayol(1916)

The “Big 4”:

-Planning

-Organizing

-Leading

-Controlling

Functions of ManagementFunctions of ManagementPlanning - choosing the business model and Planning - choosing the business model and allocating resources and selecting goalsallocating resources and selecting goalsOrganizing - creating task, culture and reporting Organizing - creating task, culture and reporting relationships to coordinate and motive individuals relationships to coordinate and motive individuals to achieve the firm’s goalsto achieve the firm’s goalsLeading - creating a vision using power, influence, Leading - creating a vision using power, influence, and persuasion for individuals to followand persuasion for individuals to followControlling - evaluating the accomplishment of Controlling - evaluating the accomplishment of the planned goals and adjusting as neededthe planned goals and adjusting as needed

Managerial Roles—the “who”Managerial Roles—the “who”

InterpersonalInterpersonal InformationalInformational DecisionalDecisionalInteractions with Interactions with othersothers•FigureheadFigurehead•LeaderLeader•LiaisonLiaison

Information Information processing, processing, exchangeexchange •MonitorMonitor•DisseminatorDisseminator•SpokespersonSpokesperson

Decision makingDecision making•EntrepreneurEntrepreneur•Disturbance Disturbance handlerhandler•Resource Resource allocatorallocator•NegotiatorNegotiator

Henry Mintzberg—The Nature of Managerial Work (1980)

Efficiency and EffectivenessEfficiency and Effectiveness

Efficiency - “doing things right”; Efficiency - “doing things right”; focuses on resource usagefocuses on resource usage

Effectiveness – “doing the right Effectiveness – “doing the right thing”; focuses on the taskthing”; focuses on the task

What Do You Need to Succeed?What Do You Need to Succeed?

A X M X O = SA X M X O = S– A = Ability, Skills, CompetenciesA = Ability, Skills, Competencies– M = MotivationM = Motivation– O = OpportunityO = Opportunity– S = Success!S = Success!

Key personal competenciesKey personal competencies– Leadership, self-objectivity, analytic Leadership, self-objectivity, analytic

thinking, behavioral flexibility, oral and thinking, behavioral flexibility, oral and written communication, personal written communication, personal impact, resistance to stress, tolerance impact, resistance to stress, tolerance for uncertaintyfor uncertainty

Learning PointsLearning Points

Definition of managementDefinition of management

The “modern” organizationThe “modern” organization

Managerial functions vs. rolesManagerial functions vs. roles

What it takes to succeed as a What it takes to succeed as a manager!manager!Inspirational Management Quote of the Day:

A business that makes nothing but money is a poor kind of business.

--Henry Ford (1863–1947), American industrialist