Understanding the Global

Context of Business and

Management

Summer Business Institute

Villanova School of Business
 Overview
A bit of history
The rise of globalization
The modern organization
What is management?
Managerial functions
Managerial roles
What do you need to succeed?
 Feudalism to Capitalism
Feudalism: The absence of motivation on
the part of the peasants gave rise to
tenant farmers sharing in more of the till
and toil of the land
Mercantilism: Merchants saw opportunities
to trade at a profit
Capitalism: Mercantilism has evolved
into Capitalism today, as private
industrialists produce, trade, and
distribute products
 A Bit of History
The industrial revolution (1760-1830)
End of feudalism, colonial expansion, steam power, cotton
mills, ironworks
Proliferation of factories
Coordination of effort in continual production of goods
Increasing change and the growth of capitalism, led to
technological progress and the most significant change in
the business system
Change was pervasive in both farming and manufacturing
as the use of technology could be used more efficiently
than labor such as steam power or interchangeable parts
to build sewing machines to manufacture clothing
Rise of capitalismemphasis on efficiency!
The assembly line Ford videos, Nissan
 A Bit of History
CEO

Top
Management

Middle
Management

Workers

Structure of a Typical pre-1990 Organization

 A Bit of History

CEO, TMT, and Board of Dir.

Middle Management

SMWTs

Structure of a Typical Modern Organization

WHY??
The Modern Organization

Customers and Clients

serve

Operating Workers

support

Team Leaders and Managers

support

Top Managers
 The Rise of Globalization
It has been said that arguing against
globalization is like arguing against the
laws of gravity.

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

From the streets of Davos to the streets of

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

--John J. Sweeney, AFL-CIO president

 The Rise of Globalization
Increasing importance on cross-
cultural management
The GLOBE study
 What Is Management?
Management is
Working with and through others
Achieving organizational objectives
Balancing effectiveness and efficiency
Making the most of limited resources
Coping with a changing environment

Business is like a carit wont run by itself

except downhill.
--Unknown
 Management in YOUR Life
Office Space SBI
Jay Wright
Your job search
Intramural Sports Your student club
The Office Harry Potter
Yanks/Red Sox/Phils/Orioles Greek life
Special Olympics Your Parents
Wildcat Sports Jay-Z
VSB Dean Jim Danko Your Planner
Managerial Functionsthe do
The Big 4:
Controlling Planning -Planning
-Organizing
Leading
Decision -Leading
Making
Efficiency /
-Controlling
Effectiveness
Motivating Organizing

Henri Fayol
(1916)
Communicating Staffing
 Functions of Management
Planning - choosing the business model and
allocating resources and selecting goals
Organizing - creating task, culture and reporting
relationships to coordinate and motive individuals
to achieve the firms goals
Leading - creating a vision using power,
influence, and persuasion for individuals to follow
Controlling - evaluating the accomplishment of
the planned goals and adjusting as needed
 Managerial Rolesthe who
Interpersonal Informational Decisional
Interactions Information Decision making
with others processing, Entrepreneur
Figurehead exchange Disturbance
Leader Monitor handler
Liaison Disseminator Resource
Spokesperson allocator
Negotiator

Henry MintzbergThe Nature

of Managerial Work (1980)
 Efficiency and Effectiveness
Efficiency - doing things right;
focuses on resource usage
Effectiveness doing the right
thing; focuses on the task
What Do You Need to Succeed?
AXMXO=S
A = Ability, Skills, Competencies
M = Motivation
O = Opportunity
S = Success!
Key personal competencies
Leadership, self-objectivity, analytic
thinking, behavioral flexibility, oral and
written communication, personal
impact, resistance to stress, tolerance
for uncertainty
 Learning Points
Definition of management
The modern organization
Managerial functions vs. roles
What it takes to succeed as a
manager!
Inspirational Management Quote of the Day:
A business that makes nothing but money is a poor kind
of business.
--Henry Ford (18631947), American industrialist