Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright 2015 ORGANIZATIONS, MANAGEMENT BEHAVIOR& ECONOMICS Lecture I Introduction & Overview of the Course 1

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright 2015 Introduction to Organizations, Management Behavior and Economics Organizations: Why do they exist? Do they need core values? (SLIDE 11) Can they produce outstanding results? –In the short-term? Why? –In the long-term? Why? Does experience (history) balance with the need to react to volatility (change)? (Facebook – Google- Amazon.com) 2

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Organizations (continued) Can organizations learn? How? Fast enough? –Training vs. learning Can organizations be efficient? –Consensus = mediocrity? Do organizations stifle stars? Can they take advantage of radical thinking and individuals? (Knowledge Business, Intellectual Property,.coms) Protecting disruptive ideas! GE & dot coms, IBM & PC

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Organizations (continued) What causes organizations to commit to wrenching change: Downsizing, Reorganization, Outsourcing? Why is it often ill timed? Are there alternatives to organizational models? Do we have a vision? Should an organizational objective be to preserve itself? Should organizations fail and disappear?

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Structure of Course Review Syllabus Diversity –By continent –Source of insight in course –Assign Groups Group assignments & responsibilities Lead discussion of articles. Major issues raisesd– Contribution of insights for our consideration COASE Assignment (Lecture 2) (online)

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Structure of Course Questionnaire – Do I have all Experience and Interests of Students – Name, home country, interest/experience with course topics (Introduce), Professor

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Management Behavior Management: Responsible for outcomes beyond their own Oversight of knowledge they don’t have Organize resources to produce outcomes (meeting objectives) Put in place and monitor decision making process

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Management Behavior – cont’d Autocratic Charismatic Team Leader Other? Directive Collegial Manager -Are management styles a determinant of outstanding results?

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright What gave “Middle Managers” the reputation that they impeded organizational effectiveness? Is technology the solution? What should managers focus on? Management Behavior – cont’d Core Values Culture Team Building Outcomes Discipline Incentives “Leadership” “Efficiency Shareholder Value Profit Their Own Rewards - Other -

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Does Management require continuous learning? Why? What kind? Managing what? Issues related to volatile markets: –Exploiting new opportunities –Abandoning prior success –Enabling & Disruptive Technologies Management Behavior – cont’d Knowledge Workers v. Asset Management

Lecture 1 – ECON.S-1620 Prof. Charles Moran – Copyright Core Values Group 1-3M: To solve unsolved problems innovatively Group 2-SONY: To experience the sheer joy of innovation and the application of technology for the benefit and pleasure of the general public. Group 3-NIKE: To experience the emotion of competition, winning and crushing competitors Group 4-MERCK: To preserve and improve human life Group 5-WAL-MART: To give ordinary folks the chance to buy the same things as rich people Group 6-WALT DISNEY: To make people happy. BASED ON THESE CORE VALUES: SUGGEST WHAT THE ORGANIZATION, MANAGEMENT BEHAVIOR and CREATION OF ECONOMIC VALUE might look like