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Introduction to management Resume
CLASS 1 INTRODUCTION
People aspire to a variety of goals, the pursuit of this goals is give rise to needs, which can be satisfy through economic activity that is by producing and consuming a variety of goods. A need is define as the necessity of a good, product or services, there are two types of needs, natural or physiological and social, natural needs are product of human biology, they can be for example food or sleep, social needs can be also called ethical, aesthetical and religious needs and they are affected by the fact that individual interact with other individuals and groups, natural and social needs can be classified as essential or primary needs and non-essential or secondary needs. needs can be classified in a hierarchical way kind a pyramid and there are the most basic needs but also there is some limitative one of the highest, This is the Maslow’s hierarchy of needs:
The first four levels are often referred to as deficiency needs and the top level is known as growth or being needs. 1. Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sex, sleep. If these needs are not satisfied the human body cannot function optimally. Maslow considered physiological needs the most important as all the other needs become secondary until these needs are met.
- Safety needs - Once an individual’s physiological needs are satisfied, the needs for security and safety become salient. People want to experience order, predictability and control in their lives. These needs can be fulfilled by the family and society (police, schools, business and medical care). 3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. The need for interpersonal relationships motivates behavior, examples include friendship, intimacy, trust, and acceptance, receiving and giving affection and love. 4. Esteem needs are the fourth level in Maslow’s hierarchy - which Maslow classified into two categories: esteem for oneself (dignity, achievement, mastery, independence) and the desire for reputation or respect from others (status, prestige). 5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential, self-fulfillment, seeking personal growth and peak experiences. Goods can be product or services they are one the requirements for satisfying needs, there are two type of goods: economic and non- economic, economic are goods and services that are useful to satisfy people’s needs and scares with the respect to people’s demand, non- economic or free goods are available in sufficient quantity and quality to meet the demand. Goods can be also divided in private goods which are produce by no profit and companies and public goods which are produced by public organization, some goods can be both also public and private like healthcare, transportation and education. The purpose of a firms is to produce revenues for two categories of people, workers and shareholders who are essential to the existence of the governance of the firm. Shareholders are stakeholders but stakeholders are not shareholders. because economic production is the mean to firm’s ultimate purpose of producing revenues in the form of compensation for work and equity capital. Economic production in undertaken by combining certain production factors which are labor and equity capital originated by savings, labor is an attribute of humans and economic activity is most clearly in that, labor of every kind is a primary, capital equity, is originated by savings,
last key features is the typical economic process as for example consumption, work and study.
- Firms primary economic goals is the production of monetary and non-monetary rewards that contribute to the income and assets of the families of employees and of the shareholders, they have an economic fundamental purpose, the core stakeholders of firms are employees and shareholders, there are also non-core stakeholders which can be suppliers, others capital providers and costumers which are stakeholders because they buy product or services, the last key features is the typical economic process as for example technical transformation and credit transactions.
- Public administration primary economic goals are to producing and consuming goods as well as generating rewards for employees, have a social and moral fundamental purpose, the core stakeholders of PA are all the members of political bodies and employees, industrial representations which are the organization of the owners of the companies, there are also non-core stakeholders which can be suppliers, capital providers and others public bodies, the last key features is the typical economic process as for example production and consumption of public goods and tax collection. In general PA are different in fact there is no market price.
- No profit organizations primary economic goals is to have a various combinations of goals entailing production rewards and producing and consuming goods by members of the organizations, have a social, moral and cultural fundamental purpose, the core stakeholders of no profits are various mixes of members, employees, donators and the state, there are also non-core stakeholders which can be suppliers capital providers, state and customers, the last key features is the typical economic process as, production or production and consumption of goods. No profit are in between public and private, because they are private but sell public issues.
CLASS 3 ECONOMIC SPECIALIZATIONS
The three level of economic specialization, specialization is a key word in the new competitive area, organization try to become more and more
specialized, for this reason we have this three level of specialization: the first level is the specialization on macro class of organizations, firms produce and sell, families consumes PA produces and consumes, The second level is the specializations within each macro class, the different types of firms, the different types of PA and no profit too, but families are not included because are not that differentiated, the third level analyzing the economic activities in fact each single organization is different and unique, because people working in that are different like ideas and because each organizations carries out different economic activities.
CLASS 4 FIRMS
How shell we analyze each single organization? We can analyze an organization within the stylized model, which is composed by six part:
- Stakeholders and governance structure
- Economic activities
- Organizational structure and mechanisms
- Personnel
- Resources and liabilities
- Physical and technological arrangements Absolutely important is to have economic activity in the center because is the core our prospective of analysis and we analyze from the firms, here we have the process from the inputs (raw material, labor savings..) to outputs.
structure, defines how task are be allocated, who reports to whom, the formal coordinating mechanisms and interaction patters to be followed, more simply it define the institution’s organizational unit, the task and responsibilities assigned to each unit and the relationship among such units, a company has to be organized and the organizational structure is the way the company is organized. We can notice that any organigram are different because each single organization is unique. Operating mechanisms, goes hand in hand with the organizational structure, they making the organization work, operating mechanisms are a wide set of rules, program and procedures that complement the organizational structure in guiding personnel behaviour, they can be divide in two main group:
- personnel management systems that shape institution’s personnel and determine their rewards.
- goals and information systems that set goal and allocate resources and provide information to decisions makers.
- Personnel is defined as the set persons working in the institution, the main features are individual variable relating to individual workers: value, needs, skill and competencies and social variables relation among the individuals: size compositions and dynamics, International companies have to pay attention of a lot of social variables. There is somebody in a company that do the job of the Human Resources Manager (HRM), or talent acquisition manager, he or she has to support the directors (CEO,CFO,COO) for this reason is a stuff unit, has 5 function hiring the right number of employees with the right skills, talent development training, career planning and performance management, safety protecting employees, a safe environment for workers improves their productivity, compensation with rewards received by who is employed and labor relations.
- Assets and liabilities, this is accounting dimension, in a company you must have somebody in charge to keeping the cost under the control, paying the taxes, collecting credits and so on. assets are resources that at given point time are controlled by and valuable to the institution. Liabilities can be defined as either the claims of creditors and other third parties or the sources obtained from outside parties and used to acquire the assets. Equity can alternatively define as the difference between the values of its assets and liabilities, the sources other than liabilities to acquire assets and in firms the residual claims of equity investors.
- Physical and technological arrangements, physical can be define as where the firms is, it’s the logistic part and technological arrangements can be the transportation of raw materials. The environment, is the relation with other entities that are present in the same ecosystem or business (ecosystem environment and business environment), the environment is defined as the set of condition and events that are external to the institution but significantly affect it, the environment has an economic and non-economics components, the economic component can be viewed as the network of the relevant institution’s economic relations with other institutions, these relation can be classified into five groups: o competition with other competitors. o exchange with suppliers and customers. o institutional with primary stakeholders. o implicit in the present of externalities, which are something positive or negative that other people do and affects you, like a vantage or a disadvantage. o liberality for example donations. Those are the relationship that a company has with the business environment.
CLASS 5 FIRMS STRUCTURE
How shell we organize a company? Could we classify the organigram? We can organize the company and classify the organigram in three different models:
- Divisional, the divisional model can be divided by products and by markets The divisional model by product, have all the function related to one product, the idea of this divisional model is to brake all the silos that are presented in the functional models, here we have people coming from different back grounds.
This divisional model organized by markets, divisions could also be created geographically, with a company having divisions in North America, Europe, East Asia, etc. This type of structure offers greater flexibility to a large company with many divisions, allowing each one to operate as its own company with one or two people reporting to the parent company’s chief executive officer or upper management staff. Instead of having all programs approved at the very top levels, those questions can be answered at the divisional level .A downside to this type of organizational structure is that by focusing on divisions, employees working in the same function in different divisions may be unable to communicate well between divisions. This structure also raises issues with accounting practices and may have tax implications.
- matrix The matrix structure is the combination of the previous two models, we have vertical with function and horizontal with divisional. In the matrix structure, employees may report to two or more bosses depending on the situation or project, for the duration of that project, the employee would also report to that project’s manager, as well as his or her boss for all other daily tasks. The matrix structure is challenging because it can be tough reporting to multiple bosses and knowing what to communicate
the so called monopolies but they also provide the services that nobody is willing to provide could be services in a rural area or rapid mountain, they regulate some key activities for example healthcare, public utilities meaning electricity, gas and so on. Specifies, PA are strange compare to companies because there is no market price for many goods, usually there are monopolies, defense and security for example and also they have this strange actors which are politicians, which are usually elected Why public management is important? How shell we measure the quality of the performance of the PA? because we have to analyse their performance, meaning the efficiency (definition), effectiveness (definition) and the economy or financial viabilities (definition), are this criteria the same for the firms? Yes, it also important analyse the performance of a firm, meaning to be financially sound in the long run. Business government relations, Business, public and government are three actors which are able to be influence by others in fact business and government are related, for example business lobby the government, In order to have a specific law, but also the public or the individuals, influence the government, because they vote for example, and business influence individuals for example using influencer, advertising.
CLASS 8 NO PROFIT AND FAMILIES
Who/What are no profit organization? They are all the associations, defending the environment, analyzing for a specific disease or human rights or sports or some clubs, , not for profit, can be profitable, the profit can be reinvested, but cannot be distributed to the members there are no the shareholders in not for profit, but there are members some example of no profit are: Bocconi, UNICATT (they are private but shell public education), WWF, red cross, amateur sports team, Lyons rotary and so on.. Why do they matter? Unlike the Public administration which have general interest, no profit has specific interest, they are values based organization, they can provide public service as well for example healthcare and education, they defend some specific value: environment, climate and other, some of them are very small and some others are very big. When we analyze a no profit we have to take consideration to where we are, there are three different international scenarios:
- the Us, which is like Australia, have a different approach, the degrees didn’t have a legal value, it’s kind a marked based society, healthcare is an individual good, you have the insources. When we have the so call market failure, you need some treatment and you’re outside from health care system in this situation the not for profit can helps you. In the Us there is a small government, no taxation and you are on your own.
- Scandinavians countries, are exactly the opposite of the Us in fact there are very high taxation and everything is public and the public sector have a very good welfare system, the public sector has to provide the services, the role of not for profit in this scenario is to collecting money and funds to help.
- In Italy/Southern Europeans countries, the taxation is very high and a huge amount of population didn’t pay taxes, for this taxes are not always the equalities of services. How do they work? From a personnel point of view they have workers and volunteers, volunteers are not paid while employees worker are paid, no profit organization works as a found raising, they can be international which are called non-governmental organizations or NGO’s, for example: emergency, amnesty international which defend human rights immigration, green peace, red cross and some others. They have a completely different approach, are unique, those receiving the goods of the services provided by not for profit usually not paid and those who are paid usually do not use the good or the services, they use something
- Management The management is the part which includes all the manager, because the point is ‘’which are the relations between CEO and the top manager and the shareholders?’’ CEO, chief executive officer CFO, chief financial officer COO, chief operating officer This is our framework relationships between the borad and the manager the ‘’decision making process of a company’’
Governance distinguish from management, governance means the work of the board of directors or other governing body, management is the work of the executive management team. Can we analyze what the board does? Yes, there are 4 different activities The board of director could define the strategies, we use the matrix, made of two dimension, first composed by outward-looking and inward- looking, outside or inside the companies, second dimension composed by present and past focused and future focused, are they focus on the future or on the past or the present, we can combine this two dimension and If we do this we can have all the quadrant. There are four possible alternatives:
- Outward looking and past and present focused, accountability.
model is typical of second generation of family business. An example is any.
- The majority non-executive director board, there are 8 members, 5 of them are non-executive, from outside, they don’t work for the company but are very well paid and there are 3 executive directors which are CEO, CFO, and COO, is different because in this case the majority of the board are non-executive directors and they don’t work for the company but for someone else.
- The all non-executive director board, nobody from inside, everybody from outside, it’s good for family business and small startups, they have supervisory function only, networking, controlling and no managerial implications, in this case you have a large group of people in order to meeting ideas and supervisory.
- The two-tier or supervisory board and management board, this is a combination model from ‘’everybody from outside’’ the fourth model and the previous two, the second model and the third.
Some also found that advisory boards, although they had no informal executive authority, assumed an independence that created complications by making policy recommendations which were consistent with group-wide needs. Business startup entrepreneurs and small companies get advice and counsel from an impartial and experienced group. Diversity, in the last few years because of the laws and because of the sensibilities, there is a new topic that has taken two consideration, when we talk about the board is the ‘’board diversity, in term of gender the two gender have to be represent, stakeholders are represent and society in the bord should reflect the impact that a company may has on society and its representatives.
