Week 3 Live! 2024 Print - Institutions and Business Context PDF

What are institutions? 1 Douglas North: “Institutions are the humanly devised constraints that structure political, economic and social interaction” Business in the Institutional Context 3 examples Game Neth...

What are institutions? 1 Douglas North: “Institutions are the humanly devised constraints that structure political, economic and social interaction” Business in the Institutional Context 3 examples Game Netherlands Weekend 3 4 What does this example tell you about what rules (“institutions”) do for the game? RSM - a force for positive change Example reveals… Without institutions there is not much of a game Easy to win if you understand the institutions better than competitor Wisdom not so useful without (knowledge of) institutions Origins of the rules of football One of the issues which plagued the sport of football was the lack of any consistent set of rules by which it was played. The Barnes Club, as already mentioned, is now known primarily as a rugby club, but in Morley’s day it would play according to any set of rules, depending on who the opponents were and what could be agreed between them. …Most of the representatives at the meeting were businessmen, and they were none too keen on the more violent aspects of the game game. The threat of injuries, which could keep players from working, had persuaded Morley to tone down some of the original suggestions. Source: Mark Goodge Ebenezer Morley 2023: Ajax - Feyenoord violent aspects of the game 2023: Ajax - Feyenoord 19.09.2024 Footer text (use for presentation title) 9 19.09.2024 Footer text (use for presentation title) 10  Which institutions were violated by Mislintat? 19.09.2024 Footer text (use for presentation title) 11 19.09.2024 Footer text (use for presentation title) 12 Protests by Ajax fans because of protests by police 2024: Feyenoord - Ajax 13 Example reveals… Institutions need continued human attention Institutions aim to constrain diverse groups (fans, players, managers…) Diverse stakeholders aim to shape institutions (fans, police, clubs) Subgroups in society can have distinct institutions that clash with those of others Business in the Institutional Context 3 examples Game Netherlands Weekend 15 3rd Tuesday of Sept: Start parliamentary year 1848: Constitutional reform Willem II Thorbecke Parliamentary democracy Netherlands Liberal Social-democrat Protestant Catholick Do you feel close to one of these groups? 1917 Universal suffrage/Kiesrecht End of WWI/Russian Revolution Liberal Social-democrat Protestant Catholick 26,1% 22.3% ~20% 31% The Dutch institutional context 1917 – Freedom of education * End of the “school struggle” De “zuilen” (–”verzuiling”) Pilarization Ideologically isolated groups; a kind of mini-societies within the Netherlands with their own trade unions, media, football clubs, etc. The institutional fault lines were between the pillars; much less so between the rich and the poor 1917-1960s But there was always a common enemy... water. The “Polder”-model The “Polder”-model What is the Polder Model? Who are the players in the A consensus model Polder Model? Deliberation instead of debate Social partners Recognition of diversity Employers (e.g., VNO) Collaboration despite differences Employees (e.g., FNV) Collaboration, even with Government enemies, to avoid sinking! But there was always a common enemy... water. New “Extraparliamentary” cabinet 26 27 Example reveals… Institutions have long histories, are path dependent Institutions change through local revolt (Veronica) or global changes, demands, threats Changing instutions is a process of “meaning giving” by different camps (e.g., political parties, social movements) Business in the Institutional Context 30 Quizzz Quizzz Negative and positive externalities Business in the Institutional Context 3 examples Game Netherlands Weekend 34 The Weekend The Weekend! Dance Drink Go to church Shop Read Wat zijn instituties? Study Wat doen instituties? Waar komen instituties vandaan? Exercise/Sports Hoe ontwikkelen instituties zich? Sleep May 1, 1926, Henry Ford approves a 40-hour workweek  The Weekend! What are institutions? Leisure Practice Develop What do institutions do? Structure social Clarify work Gives meaning and work expectations to the week interactions Where do institutions come from? Employers & Politicians Church leaders employees How do institutions develop? Saturday Sunday Saint Monday ? afternoon Businesses in Context I. Environmental context Module 2: Globalization, regionalization, localization, digitalization Module 3: Institutional frameworks Module 4: Cultural frameworks II. Organizational context Module 5: Organization 5 & 6 switch! Module 6: International organization III. Strategic context Module 7: The manager, leader, owner, entrepreneur Module 8: Strategy 7 & 8 switch! Module 9: Business ethics Module 10: Sustainability