Lectures zelfstudie Block 1:
OT: Intro module 1: The world of contemporary organization:
There are 3 key issues here:
1. What are the major societal developments affecting contemporary organizations?
2. What is hypercompetition?
3. What are the characteristics and needs of the millennial workforce?
1 . What are the major societal developments affecting contemporary organizations?
Major societal shifts that affect contemporary organizations:
- Social inequality → income inequality.
- The rich and the well-educated are more likely to go to universities and get richer
- The poor are the less educated and are less likely to get richer, but more likely to get
poorer
Is inequality a problem?:
There are two types of arguments you can give on that:
Argument 1: Inequality is here, but is not really a problem
- Inequality serves to motivate entrepreneurial action: when people are under
pressure they come up with better ideas → stimulates innovation
- Reducing inequality too much decreases economic efficiency
- Trickle-down economics reduces inequality quasi-naturally
Argument 2: Inequality is a problem
- Inequality reduces trust and in other state institutions
- Inequality increases social unrest: more revolts and protests
- Inequality reduces political consensus with a society
- Inequality is self-reinforcing
Grand challenges:
Massive social and environmental issues that have potential or actual negative effects on
large numbers of people, communities and the planet as a whole.
,For profit organizations are increasingly held accountable for inequality
2. What is hypercompetition?
Hypercompetition:
Is an environment characterized by intense and rapid competitive moves, in which
competitors most move quickly to build advantages and erode the advantages of their rivals
→ Speeds up the dynamic strategy interactions among competitors
→ Firms react much quicker and have no strategic plan for over 10 years. They make
decisions on the spot
By implication, it becomes increasingly more important for organizations to able to adapt
quickly, to be agile, while it becomes less relevant to have a well thought-out plan
3. What are the characteristics and needs of the millennial workforce?
Millennials & zoom rising:
- Millenials are people born between: 1980-1995
- Zoomers are people born between: 1995-2010
They have characteristic needs and wants:
1. Tech-savy
2. Work life balance
3. Longing for safety and purpose
4. Many job changes
5. Assertive
They are in short supply (ageing population)
Contemporary organizations need to be prepared to win the war for talent:
- Purposeful jobs
- Cater to highly diverse WLB-needs
- Provide opportunities for development
,The learning objectives of this video:
1. What are the main challenges that managers of contemporary organizations face
today?
- The inequality problem
2. How do so called grand challenges affect the management of contemporary
organizations
- Massive social and environmental issues that have potential or actual
negative effects on large numbers of people, communities and the planet
as a whole.
- The for profit organizations are therefore held accountable for these
issues, however they just are producing the products and aiming for
profit with no intention of causing problems for the earth
3. Why is it so important for contemporary organizations to cater the needs of Millenials
and zoomers?
- They are short in supply, we're living in a world of a aging population
- The actual generation that are able and willing to work is getting smaller,
while the older generation is getting bigger
, OT: Intro module 2: Digital turn:
There are 2 key issues here:
1. How does digital technology change organizations?
2. How does digital technology change management practices?
1 . How does digital technology change organizations?
Platform based business models:
- Business model: value proposition that an organization makes to its customers
- Basic rationale for how to make money of services and products this company offers
- An important part of the value that is created by organizations, has traditionally been
eaten up by the high transaction costs that are related to many services
Transaction costs: the total costs of making a transaction possible
- x-anti costs: to make the transactions possible and likely (bringing the buyer and
seller together
- x-post costs: costs that arise after the transaction has taken place (transportation or
control costs)
Digital technologies can often help reduce transaction costs, thereby allowing for
platform-based business models
- x-anti costs: now the seller can just post an advertisement
- x-post costs: transactions are now digitally
To be successful with a platform-based business model organizations need to become more
open and accessible, drive more collaborative vision, and create an attractive ecosystem
In the platform business it is very important to attract consumers, when these businesses do
not attract enough people it will not be successful
OT: Intro module 1: The world of contemporary organization:
There are 3 key issues here:
1. What are the major societal developments affecting contemporary organizations?
2. What is hypercompetition?
3. What are the characteristics and needs of the millennial workforce?
1 . What are the major societal developments affecting contemporary organizations?
Major societal shifts that affect contemporary organizations:
- Social inequality → income inequality.
- The rich and the well-educated are more likely to go to universities and get richer
- The poor are the less educated and are less likely to get richer, but more likely to get
poorer
Is inequality a problem?:
There are two types of arguments you can give on that:
Argument 1: Inequality is here, but is not really a problem
- Inequality serves to motivate entrepreneurial action: when people are under
pressure they come up with better ideas → stimulates innovation
- Reducing inequality too much decreases economic efficiency
- Trickle-down economics reduces inequality quasi-naturally
Argument 2: Inequality is a problem
- Inequality reduces trust and in other state institutions
- Inequality increases social unrest: more revolts and protests
- Inequality reduces political consensus with a society
- Inequality is self-reinforcing
Grand challenges:
Massive social and environmental issues that have potential or actual negative effects on
large numbers of people, communities and the planet as a whole.
,For profit organizations are increasingly held accountable for inequality
2. What is hypercompetition?
Hypercompetition:
Is an environment characterized by intense and rapid competitive moves, in which
competitors most move quickly to build advantages and erode the advantages of their rivals
→ Speeds up the dynamic strategy interactions among competitors
→ Firms react much quicker and have no strategic plan for over 10 years. They make
decisions on the spot
By implication, it becomes increasingly more important for organizations to able to adapt
quickly, to be agile, while it becomes less relevant to have a well thought-out plan
3. What are the characteristics and needs of the millennial workforce?
Millennials & zoom rising:
- Millenials are people born between: 1980-1995
- Zoomers are people born between: 1995-2010
They have characteristic needs and wants:
1. Tech-savy
2. Work life balance
3. Longing for safety and purpose
4. Many job changes
5. Assertive
They are in short supply (ageing population)
Contemporary organizations need to be prepared to win the war for talent:
- Purposeful jobs
- Cater to highly diverse WLB-needs
- Provide opportunities for development
,The learning objectives of this video:
1. What are the main challenges that managers of contemporary organizations face
today?
- The inequality problem
2. How do so called grand challenges affect the management of contemporary
organizations
- Massive social and environmental issues that have potential or actual
negative effects on large numbers of people, communities and the planet
as a whole.
- The for profit organizations are therefore held accountable for these
issues, however they just are producing the products and aiming for
profit with no intention of causing problems for the earth
3. Why is it so important for contemporary organizations to cater the needs of Millenials
and zoomers?
- They are short in supply, we're living in a world of a aging population
- The actual generation that are able and willing to work is getting smaller,
while the older generation is getting bigger
, OT: Intro module 2: Digital turn:
There are 2 key issues here:
1. How does digital technology change organizations?
2. How does digital technology change management practices?
1 . How does digital technology change organizations?
Platform based business models:
- Business model: value proposition that an organization makes to its customers
- Basic rationale for how to make money of services and products this company offers
- An important part of the value that is created by organizations, has traditionally been
eaten up by the high transaction costs that are related to many services
Transaction costs: the total costs of making a transaction possible
- x-anti costs: to make the transactions possible and likely (bringing the buyer and
seller together
- x-post costs: costs that arise after the transaction has taken place (transportation or
control costs)
Digital technologies can often help reduce transaction costs, thereby allowing for
platform-based business models
- x-anti costs: now the seller can just post an advertisement
- x-post costs: transactions are now digitally
To be successful with a platform-based business model organizations need to become more
open and accessible, drive more collaborative vision, and create an attractive ecosystem
In the platform business it is very important to attract consumers, when these businesses do
not attract enough people it will not be successful
