In­tro­duc­tion to Man­age­ment Stud­ies: Tour­ism and Hos­pit­al­ity

Course content

The aim of this course is to provide a holistic understanding of the business firm, its development and managerial decisions throughout the organizational life-cycle by integrating economic theory of the firm and behavioural economics. The course also seeks to further the understanding of how we judge prospects and make decisions. Theories and models that assume we are fully rational (“the economic man”) are compared with theories that assume we are bounded rational and biased. Hence, we focus on two analytical levels – the individual decision-maker and the firm – and two theoretical assumptions – the model of the efficient decision-maker/firm and explanations of why we deviate from the norm of rationality and efficiency.

Students will be introduced to 5 core themes within the field of management studies:

1) The organizational biography of the firm
2) The horizontal and vertical boundaries of the firm
3) Corporate governance
4) Business unit and corporate strategy

5) Appropriation strategies and innovation activities

In the first theme on the organizational biography of the firm we will try to understand the transformations that take place in the organization of the firm as the firm grows and gets older. On one hand we study the structures and processes and on the other hand will try to understand the differences between entrepreneurial and managerial decision making.

In the theme on the horizontal and vertical boundaries of the firm (related to
outsourcing, cooperation, integration and diversification) we discuss some of the factors and forces that from an economic perspective determine the size, growth of the firm and changes within a firm. We also discuss motives and managerial decision making in relations to growth through e.g. acquisitions.

In the third theme we focus on the “agency problem” and corporate governance. We view the firm as a bundle of contractural relationships and analyse how conflicts of interests are handled between shareholders and top management and between management and employees.

In the fourth theme on business unit and corporate strategy we present some basic strategy models and discuss the role of long-term planning and organizational self-control. While some models focus on the external environment of the firm - the industry - others focus on the internal environment of the firm - its resources and capabilities.

The final theme target appropriation strategies and the impact on innovation performance and organizational forms.