Week 1: Welcome and Intro to Management (9/12) Professor Payal Sharma

Class Agenda Welcome Syllabus Review Video: HubSpot Lecture: Introduction to Management Takeaways Next Time

Contacting Me Email: payals@wharton.upenn.edu Office Hours: Tuesdays 3pm-5pm. Sign-ups on Canvas (see Calendar  Scheduler for 15-minute time slots). Begin 9/20 Office: 3014 SH-DH (3rd floor, take elevator up, walk through main doors and down a corridor, looking at room signs/#s) Also available to meet by appointment (request via email) Student-faculty lunches. Sign-ups on Canvas beginning next month – stay tuned.

Syllabus Highlights Class roadmap (schedule) Simulation – available for purchase beginning Monday 10/3, must be purchased by Friday, 10/28 Team project (TA-reviewed) Exam resources (Canvas)

Course Grade Individual Course Engagement Individual Assignment Midterm Exam Final Exam 15% 30% 25% 20 points 30 points 60 points 50 points Team Project 70 points TOTAL: 100% 230 points

Management Defined According to the American Heritage Dictionary on Dictionary.com: The act or manner of managing; handling, direction or control The person or persons controlling and directing the affairs of a business, institution, etc.

Why Management Matters According to the U.S. Department of Labor, American adults spend nearly half of their waking hours at work On a daily basis, employed Americans spend more time with coworkers and clients than with family (Jacobs & Gerson, 2004; Kahneman, Krueger, Schkade, Schwarz, & Stone, 2004).

Organization Defined A collective oriented toward a common goal Can be understood as a system with a set of subsystems within it Has multiple levels, which we examine in this class and use as an organizing frame for course content

Inputs Environment = all external factors with potential to impact organization (including markets-clients or customers, suppliers, governmental and regulatory bodies, labor unions, competitors, financial institutions and special interest groups) Resources = various assets which the organization has access to, including human resources-employees, technology, capital and information History = patterns of past behavior, activity and effectiveness that may affect current functioning

Inputs (cont’d) 4. Strategy = stream of decisions about how organizational resources will be configured to meet demands, constraints and opportunities within context of organization’s history Variance in Business Performance Decomposed (McGahan & Porter, 1997, 2002; Misangyi et al., 2006) Industry 8-18% Corporate Strategy 4-12% Business Unit Strategy 35-41%

Transformation Process Given an environment, a set of resources and history (inputs), how do we take a strategy and implement it to produce effective performance (outputs) in the organization, in the business unit/department, and among individual employees? Refers to four components of: The task (work to be done) The individuals (employee preferences and background) The formal organizational arrangements (processes and policies) The informal organization (rules and procedures)

Outputs Goal attainment: How well the organization meets its objectives Resource utilization: How well the organization makes use of available resources Adaptability: Whether the organization is capable of changing and adapting to environmental changes

“Fit” Matters In order for organizations to be effective, “their subparts or components must be consistently structured and managed—they must approach a state of congruence” (Nadler & Tushman, 1980) Congruence refers to consistency or “fit” between components (for example, the task and the individual) Facilitates problem analysis

Video: HubSpot https://www.youtube.com/watch?v=EXOtTvb5OFE

Hubspot Discussion Questions Identify two (2) specific and non-overlapping examples from the video which illustrate components from the input, transformation process, or output parts of the congruence model. Based on your responses above, would you want to work at HubSpot? Why or why not?

Takeaways Management = the practice of formulating and implementing strategies across multiple levels in the organization Our course adopts a system lens and weaves together concepts across different levels (starting with the individual, then dyad, team, business unit and organization) Congruence model refers to inputs, outputs and the transformation process According to the congruence model, fit -- or congruence between systems at different levels of the organization – matters for effective performance

Next Week Week 2 (9/19): Motivation and Rewards For lecture: Reading: Retaining Younger Workers (Canvas) For recitation: Reading: On the Folly Case #1: Whole Foods (Canvas)