Week 1-2 Introduction to PBM.pptx it is a very helpful

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1. Prepared by Olivia Satori Principles of Business Management International School of Commerce and Digital Economy   Week I: Welcome and introduction to the course Academic Year 2025/26

2. Business Foundations – The Big Picture 

3. Olivia Satori, PMP® [email protected]

4. Human Bingo: Business Edition Human Bingo: Business Edition

5. The purpose and scope of business What is business? (value creation, exchange, innovation, employment). Types of business: For-profit vs. non-profit Local businesses vs. global corporations

6. The purpose and scope of business Function s of business (marketing, operations, finance, HR, strategy). Why businesses exist: to solve problems and create value. Big question: “Is business only about profit?” sustainability & ethics.

7. Why Study Management? Título de la videolección

8. Business Organizations “A systematic arrangement of people brought together to accomplish some specific purpose” Título de la videolección Copyright ©2017 Pearson Education, Ltd.

9. What is Management? “ The process of getting things done, effectively and efficiently , through and with people ” Process : A set of ongoing and interrelated activities / functions Título de la videolección

10. Título de la videolección Relationship between results achieved and resources used (without waste of material, time or energy) The extend to which planned results are achieved (doing things right, the process. It is a quality metric. Achieving the goal.

11. Who are managers? They are responsible for leading a team of employees to meet goals and achieve performance metrics. Managers are responsible for accomplishing work through others by using the key managerial functions of planning, organizing, leading, and controlling.  Título de la videolección

12. Activity “Business in My Life” Mapping Draw a quick diagram of all the businesses you interacted with this morning (e.g., alarm on iPhone, coffee shop, Spotify, university cafeteria). In pairs: compare maps and find overlaps. Businesses are embedded in daily life, and managers are the people shaping those interactions.

13. Course Syllabus Título de la videolección

14. Requirements Be Punctual Be Respectful Participate Be prepared for every class Meet deadlines Título de la videolección

15. eStudy Go through e-study, to check access All have access to laSalle email? Please log in now to check Título de la videolección

16. Text Book Título de la videolección https://open.lib.umn.edu/principlesmanagement/

17. Título de la videolección In the past, leadership was called “management,” with an emphasis on providing technical expertise and direction. In the industrial economy’s traditional, command and control organization, leaders focused exclusively on maximizing value for shareholders and had three roles:  planners  (who develop strategy, then translate that strategy into concrete steps),  directors  (who assign responsibilities), controllers  (who ensure people do what they’ve been assigned and plans are adhered to). (McKinsey, 2024)

18. Planning, Organizing, Leading, and Controlling ( Henryi Fayol) Título de la videolección

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21. Roles Título de la videolección

22. Management Traditional management was revolutionary in its day and enormously effective in building large-scale global enterprises that have materially improved lives over the past 200 years. (McKinsey, 2024) Título de la videolección

23. The Five Sectors of the Economy The primary sector involves getting raw materials from the earth, like farming and mining. The secondary sector makes products using materials from the primary sector, like factories and builders. The tertiary sector offers services, like retail and health, instead of making or gathering goods. (Rosenberg, 2025) Título de la videolección

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25. The Five Sectors of the Economy Quaternary Sector includes: intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.  Quinary Sector: includes the highest levels of decision-making in a society or economy. This sector is comprised of top executives or officials in fields like government, science, universities, non-profits, health care, culture, and the media. (Rosenberg, 2025) Título de la videolección

26. However, as the 21st century marches on, this approach is reaching its limits (McKinsey, 2024) Título de la videolección

27. For organizations operating in today’s complex business environment, a more effective approach to leadership has emerged. Leaders have begun to focus more on building agile, human-centered , and digitally enabled organizations that are able to meet the needs of a broader range of stakeholders: that is, customers, employees, suppliers, and communities, as well as investors. (McKinsey, 2024) Título de la videolección

28. Leadership by McKinsey 2024 Leadership is a set of mindsets and behaviors that aligns people in a collective direction , enables them to work together and accomplish shared goals , and helps them adjust to changing environments . Título de la videolección

29. 10 Most Important Leadership Skills For The 21st Century Workplace  by Forbes Motivating others Fostering potential Inspiring trust Taking on and giving up responsibility Thinking strategically Título de la videolección

30. 10 Most Important Leadership Skills For The 21st Century Workplace  by Forbes Setting goals and expectations for everyone Giving (and receiving) feedback Team building Positivity Authenticity Título de la videolección

31. Successful managers will have both managerial and leadership skills Título de la videolección

32. Leadership Styles Título de la videolección 4. Transformational Leadership: The leader inspires and motivates followers to exceed their own interests for the good of the organization. 1. Autocratic Leadership: The leader makes decisions without consulting others 2. Democratic Leadership: The leader involves team members in decision-making processes. 3. Laissez-faire Leadership : The leader allows team members to make their own decisions with minimal interference.

33. Pacesetting : This leader leads by example and sets a fast pace toward the end goal. Coaching : A coaching leader takes the time and effort to develop each team member’s abilities. Affiliative : Creates emotional bonds and harmony within a team, focusing on people firs Commanding/Coercive: Demands immediate compliance and can be useful in a crisis, but often negatively impacts morale.  Authoritative (Visionary): Mobilizes people toward a vision, providing a clear goal and direction for the future Democratic: Builds consensus by involving the team in decision-making, fostering commitment and participation.  Título de la videolección

34. Richard Branson (Virgin Group) → Famous for saying, “Take care of your employees and they’ll take care of your business.” Sundar Pichai (Google/Alphabet) → Emphasizes consensus-building, open communication, and collaborative innovation. Jeff Bezos (Amazon) → Vision-driven leadership, focusing relentlessly on customer obsession and long-term goals. Título de la videolección

35. Steve Jobs (Apple, in his early years) → Famous for his tough, perfectionist, and authoritarian approach when driving innovation. Sheryl Sandberg (Meta/Facebook, during her COO tenure) → Known for setting high performance standards and driving execution. Bill Campbell (“The Trillion Dollar Coach”) → Mentored leaders at Google, Apple, and Intuit, focusing on growth and development . Título de la videolección

36. Take the leadership style quiz https://www.umassglobal.edu/blog-news/what-type-of-leader-are-you-quiz https://www.verywellmind.com/whats-your-leadership-style-3866929 Personality: https://blossomup.co/quiz/personality-types/# Título de la videolección

37. Leadership Skills/Mindsets in the Digital Era Título de la videolección Adaptability Creativity, Curiosity, Comfort with Ambiguity Living Values with Conviction Life‐Long Learning / Personal Transformation

38. Activity Your Leadership Style? Título de la videolección

39. “ Being a great leader means recognizing that different circumstances call for different leadership styles”. Knight, R. (2024) Título de la videolección

40. Top 4 Leadership Characteristics by HBR 1. Integrity & Authenticity 2. Self-Awareness & Humility 3. Empathy & People Orientation 4. Resilience & Courage Título de la videolección

41. Fayol’s POLC Framework in Action Case Study – Starbucks Expanding to China

42. Starbucks in China The Challenge Coffee was not common, tea culture dominated Starbucks wanted to expand into a high-risk but high-potential market Key question: How to succeed where coffee drinking wasn’t a habit?

43. Planning Long-term goals: Enter big cities first (Beijing, Shanghai) Introduce coffee culture gradually Build a premium brand Risks: Cultural resistance to coffee Competition from tea shops

44. Organizing Partnerships: Joint ventures with local companies Workforce: Hired local managers, trained in Starbucks culture Supply chain: Local sourcing where possible

45. Leading Vision: Create a “third place” between home & work Empowerment: Local managers adapted menus & store design Motivation: Strong training & better working conditions

46. Controlling Store profitability Customer feedback Quality control checks Adjustments: Introduced green tea lattes & mooncakes Adapted to local tastes while keeping global brand

47. Activity Now it’s your turn! Apply POLC to your scenario project (See handouts)

48. Summary What is Business The activity of creating value through the production, distribution, and exchange of goods and services. At its core, business exists to satisfy needs and wants, while generating profit and ensuring long-term sustainability Título de la videolección

49. Summary value for stakeho lders includes not only owners and shareholders but also employees , customers, suppliers, governments, and society at large. Título de la videolección

50. Summary Types of Businesses: By ownership (sole proprietorship, partnership, corporation), By activity (manufacturing, services, retail), By size (small, medium, large). Título de la videolección

51. Summary Successful businesses rely on several interconnected functions: Marketing: Identifying customer needs and delivering value through products and services. Management: Planning, organizing, leading, and controlling resources to achieve goals. Título de la videolección

52. Summary Operations: Producing goods or services efficiently. Finance: Managing money, investment, and risk. Human Resources : Recruiting, developing, and supporting people Título de la videolección

53. Summary Management functions: Título de la videolección Leading stage consists of directing and motivating employees toward achieving organizational objectives Organizing is managing and aligning human, physical, and financial resources to achieve organizational objectives. Planning is a systematic activity that determines when, how, and who will perform a specific job Controlling function is used to measure the progress towards the organizational goals

54. Business Environment : Businesses operate within an external environment that includes economic trends, technology, competition, legal systems, and cultural expectations. Understanding this environment is essential for survival and growth. Título de la videolección

55. Summary Ethics and Responsibility: Modern businesses face increasing pressure to act responsibly. Business ethics, corporate social responsibility, and sustainability are central to long-term success and reputation. Título de la videolección

56. Henri Fayol´s 14 principles Título de la videolección

57. 1. Division of Work Título de la videolección Specialization improves efficiency Each worker focuses on a specific task: Fitting tires, painting, testing electronics Leading to speed and consistency in car

58. 2. Authority and Responsibility Título de la videolección Managers must have authority to give orders, and responsibility to ensure results Amazon warehouse managers have authority to assign shifts and optimize workflow, but they are also held responsible for on-time deliveries.

59. 3. Discipline Título de la videolección Rules and agreements should be respected Delta Airlines pilots and crew must follow strict safety procedures. Failure to comply can lead to suspension because safety depends on discipline.

60. 4. Unity of Command Título de la videolección Each employee should have one direct boss At McDonald’s, a crew member reports to the shift manager only — avoiding confusion from multiple supervisors giving contradictory orders

61. 5. Unity of Direction One head and one plan for a group of activities with the same objective Título de la videolección Tesla’s EV projects are all directed under Elon Musk’s strategic plan to accelerate the world’s transition to sustainable energy, rather than separate unrelated directions.

62. 6. Subordination of Individual Interest to General Interest The company’s goals come before personal interests Título de la videolección At Johnson & Johnson, during the Tylenol crisis (1982), the company prioritized customer safety over short-term profit, recalling millions of bottles.

63. 7. Remuneration Fair pay for work done Título de la videolección Google not only pays competitive salaries but also offers perks (free meals, wellness programs) to keep employees motivated and productive.

64. 8. Centralization The degree to which decision-making is concentrated Título de la videolección Apple under Steve Jobs had highly centralized decision-making — Jobs personally oversaw product design and key launches.

65. 9. Scalar Chain A clear line of authority from top to bottom Título de la videolección In the U.S. Army, orders flow down the chain of command — from the general to colonels, majors, captains, and then soldiers.

66. 10. Order Materials and people should be in the right place at the right time Título de la videolección IKEA warehouses are designed so that items are easy to find (flat-pack system, self-service layout), ensuring efficiency for both staff and customers

67. 11. Equity Managers should treat employees fairly Título de la videolección Patagonia promotes fairness with equal benefits for part-time and full-time employees, including on-site childcare.

68. 12. Stability of Tenure of Personnel High employee turnover is inefficient; stability matters Título de la videolección Toyota invests in lifelong training programs and career development, leading to very low employee turnover in Japan

69. 13. Initiative Employees should be encouraged to take initiative Título de la videolección   3M’s “15% rule” allows employees to spend 15% of their time on personal innovative projects — Post-it Notes came from this policy

70. 14. Esprit de Corps Team spirit and unity strengthen the organization Título de la videolección Southwest Airlines builds a strong team culture through fun traditions and a family-like atmosphere, which reflects in their customer service

71. Activity Scenarios Scenario 1: A worker receives conflicting instructions from two managers about how to complete a task. Scenario 2: Employees are constantly quitting, and new staff keep joining, causing inefficiency. Scenario 3: The marketing and sales teams are working with different strategies and confusing customers. Scenario 4: A manager refuses to listen to suggestions from staff, even though employees see problems first-hand. Scenario 5: Salaries are very unequal, and workers feel unfairly treated. Título de la videolección

72. References Forbes, (2022, July 26). 10 Most Important Leadership Skills For The 21st Century Workplace (And How To Develop Them) https://www.forbes.com/sites/bernardmarr/2022/07/26/10-most-important-leadership-skills-for-the-21st-century-workplace-and-how-to-develop-them/ McKinsey. What is leadership? https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-leadership Rosenberg, M. (2025, May 11). The 5 Sectors of the Economy. Thought Co. https://www.thoughtco.com/sectors-of-the-economy-1435795 Título de la videolección