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Content Macro Economic models<br />Welcome to the episode of Economic models. <br />Introduce yourself. I have a thing with the way we organize things mainly organizations which is more on micro level, but these organizations derive from bigger systems: political and economic systems we live in and often we don’t realize how great the impact of our macro system is. In order to comprehend where we come from and where other people come from its good to give you some details on macro economic systems. Especially since we know that the financial system we live in and from has shown some big fails with the credit crisis.<br />For this episode I use two main sources: an Interview I did with Jaap Peters ( http://www.jaappeters.nl and http://www.slowmanagement.nl/ /) and a documentary from Tegenlicht about the World’s Next Supermodel. (no its not about bitching and anorexia, and Tara Banks is not in it, its about money and sustainability) <br />Of course I have a trailer of the documentary which is btw sponsored by apple, check the scene: http://www.youtube.com/watch?v=CPvvDRJG3bo <br />Now, you might have an inkling of the contents presented, it’s about our systems, built upon social, historical and political values. These values are very much engrained in our beings, we aren’t even aware of it until we meet people with diff values. Teaching in Australia: Australian students were very assertive, not afraid to tell their opinion, their sentences often started with ‘I’, the Asian students were very modest, didn’t say much unless asked and their sentences often started with we. The students from Europe were very pleasant, being an European myself, as they only said something when it really contributed to the discussion. Very hard with group dynamics. We had a discussion on family values and I dared to state that Asian students cared more about family than in Western Countries. Of course hell broke lose until I explained that in Asia, at least at present didn’t have a word for elderly homes. In Asia they don’t put their mums and dads in elderly homes, they take care of them. Its an example of individualism versus the collective which is something we and they are brought up with. <br />Let’s go to the Learning goals. Little introduction of why we think students should know about these models:<br />Awareness of different cultural and social systems that influence the way we do business<br />These models meet eachother in a global world and can create tension<br />Each model has pros and cons of which students should be aware of and be able to link historic context to the way businesses are run.<br />Business ethics<br />Picture yourself in front of the mirror. You are standing there watching ‘you’. Who are you? What are your qualities, your flaws? Where do you come from? Do you feel Dutch? Do you feel Turkish? Do you feel like the best of both worlds? Do you feel Western? And what is that? Do you feel global? I think its already pretty hard to understand yourself. The human being is the smallest component on earth whereas the earth, the world itself is the biggest. As a human being we are parts of a system, a system within our family, our classroom, our education, our nation, of Europe, of the world. When you then think of the many different social systems we live in, with all its history, culture, hidden values and visible values we feel its good to understand a bit of these social and economic systems. <br />You have already seen that we also noted something about business ethics. I asked Jaap Peters what is the most important quality for students in Business Administration. He actually studies Business Economics himself so he has a right to say something. In the beginning he talks about chaos theory which means that from chaos self organizing and therefore more sustainable systems emerge. Would you rather be told what to do or would you rather figure it out yourself? Anyways, here is Jaap Peters answer: <br />Modesty. Bescheidenheid. Apart from the fact that Economics is not a science and opinions are often not facts, it is also good to know that Dutch in business do not have such a good image. We are considered rude, direct and impolite as we always say what we think. So you sit there, be modest while this presentation recaps the models that you already know. http://www.youtube.com/watch?v=zgmg3ueNbEU&feature=related <br />Since the second world war and the civil war in Spain, the Western part of Europe thrives on Democracy and Capitalism. For countries in which the river Rijn flows we have created a system that is built upon solidarity much more than we realize. Jaap Peters tells us something about the history of our Economic System, as he tells us, we cant escape a bit of history. (02:18)<br />I’m a bit older than you are, and do remember ‘the enemy’ Doe Maar wrote a song on it: De Bom. Our enemy were the communists, and it was not until the early nineties that was discovered that capitalism, like OUR camp, actually had different origins which was shown in the way businesses was operated. No why is this all so urgent? Awareness of of how capitalism works, and especially the Anglosaxon way, took a giant leap in 2008 due to the credit crisis. Here’s in a recap what happened, they talk about volatility which means beweeglijkheid (of the SE in this matter) : http://www.youtube.com/watch?v=mzJmTCYmo9g <br />Referring back to Jaap Peters I do think that ‘modesty’ for most bankers wouldn’t be too much to asked for. <br />We mentioned before that Business Administration is not a science, Taylor wrote The principles of Scientific Management’ which was the first research done in business. It is not a coincidence that 100 years after that first publication Jaap Peters republished this classic and tells why in the next fragment: (08:15) For HR students, now you finally know where it all happened that people are the lowest in organizational hierarchy. <br />Ford adopted his principles and revolutionized the automobile industry. All theories/examples you must have had in the first three years of your academic life. But try to picture the following time spirit and the American Dream on which in combination with Taylor the Anglo Saxon Way began. Its ironic to see how in this video you experience the rise of Detroit while we have witnessed all the decay of Detroit the last 5 years.. They started to make 4 cars every 5 minutes http://www.youtube.com/watch?v=QtYRLtT8bvY&feature=related This movement was one of a few that gave us the welfare we experience every day. It also started the Age of Consumption and Abundance as all systems develop. Lets go back to Jaap Peters who explains a bit more about where we are today. He talks about R en D, that’s research and development and a kpietje, a key performance indicator. I assume you have heard these terms before so if you all start laughing coz you know all these, I am glad you are all educated well. (24:55) <br />Apart from the Rijnland and Anglosaxon way there are many more Economic models, like the Asian (state capitalism) or the Brasilian. More are explained in the documentary of Tegenlicht. Before we go to Jaap Peters one more time I would like to stress the most important differences between the Anglosaxon and Rijnland way of doing business and running organizations. <br />You might think so what, but a friend of mine works at an international job hiring agency, an American Spreadsheet company as he calls it. When I did my studies in Australia I had to tell everyone about our successful Poldermodel: very famous abroad, very infamous at home. As another famous person always says: elk voordeel heb zijn nadeel. Jaap Peters tells more. (31:56) <br />As mentioned these are not the only models around. In 2009 Tegenlicht showed a documentary on macro-economic models: it is shown as a competition which, of course, is impossible. <br />http://tegenlicht.vpro.nl/afleveringen/2008-2009/de-toekomst/the-worlds-next-supermodel.html <br />Future models<br />And what about the future, my future, your future: maybe we will start movements globally built around the world we feel great to live in with social digital networks, or will we stick to our own local cultures. Paul Bessems believes in capitalism but no longer in financial capitalism but with human capitalism. He no longer believes in organizations but in communities and smart networks http://www.youtube.com/watch?v=y3g_4B_TZi0 Just think about it: all Hogescholen in the Netherlands and beyond develop educational material and we are not sharing it. While we are a learning community and should be able to share and use eachother’s material. Think of how much more productive we would become. This prezi presentation will become open source. I am curious to see if other Universities will pick this up and we can learn from them.<br />Price Water House Coopers did big research on future models. They came up with a green, blue and orange world<br />Orange, green and blue world http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf <br />