Management Trends & Challenges

Principles of Management -
Useful for Anna University & Madras University Syllabus

1. Management Trends & Challenges - R.Shyam Prasad

2. Syllabus Unit - IX Management in Future - Management Challenges. Impact of changes on the Future Managers - Meeting Challenges.

3. Challenges Globalization Technology Social responsibilities Change management Cultural diversity Employee empowerment Knowledge Worker

4. Globalization Today the goods & services produced in one country are used by some other country , more than one fourth of all goods produced worldwide cross the national boundaries. Companies are increasingly competing against one another to attract the same customers, who are spread across the globe. Hence companies have not only to compete against their competitors in their own country but also have to compete against foreign companies.

5. Technology Development of new technology has brought quickness, simplicity and effectiveness in managerial works. The rapid change in the technology has made new companies to emerge out of nowhere & established companies to fall within a span of months. Android, Twitter, Samsung, Face book are some of the companies which benefitted from the rapid change of Technology. Kodak, Nokia, Motorola, Yahoo are some companies which could not withstand the rapid change of Technology & are either closed or struggling to survive.

6. Social responsibilities In earlier days, the primary responsibility of a business is to make profit for their owners. Much thought was not given to the parties affected by the business. These exploited parties are employees, customers, society and nation. In the current generation, businesses are not only expected to make profit for their owners but also to satisfy employees, customers, society and nation. Now-days social responsibilities has become compulsory not a subject of discussion.

7. Change management In today’s conditions a business has to change itself constantly according to their External Environment. Hence a business has to look out for a change in Competitors, Technology, Laws of the country, etc., Change management is an approach to shifting individuals, teams, and organizations from a current state to a desired future state .

8. Cultural diversity Cultural diversity has increased cross-cultural contacts but may be accompanied by a decrease in the uniqueness of once-isolated communities Negative effects of cultural diversity: Diversity can cause competition among workers. Failure to Respect Others When lot of cultures gets mixed then there is of course risk of vanishing your culture.

9. Employee empowerment Employee empowerment means that an employee is given a chance to be enterprising, take risks without compromising with the organizational goals, mission and vision. His say in the process of decision making in increased. This can be for one particular individual or for the entire organization. In the latter case it is called participative management .

10. Employee empowerment Pros of Employee Empowerment It leads to greater job satisfaction, motivation, increased productivity and reduces the costs. It also leads to creativity and innovation since the employees have the authority to act on their own. There is increased efficiency in employees because of increased ownership in their work. Lesser need of supervision and delegation. Focus on quality from the level of manufacturing till actual delivery and service of goods. Employees when empowered become more entrepreneurial and start taking more risks. Greater the risk, greater are the chances to succeed.

11. Knowledge Worker Knowledge workers are workers whose main capital is knowledge . Typical examples may include software engineers, architects, engineers, scientists and lawyers , because they "think for a living". What differentiates knowledge work from other forms of work is its primary task of "non-routine" problem solving that requires a combination of convergent, divergent, and creative thinking.

12. Knowledge Worker Knowledge workers bring benefits to organizations in a variety of important ways. These include: analyzing data to establish relationships assessing input in order to evaluate complex or conflicting priorities identifying and understanding trends making connections understanding cause and effect ability to brainstorm, thinking broadly (divergent thinking) ability to drill down, creating more focus (convergent thinking) producing a new capability creating or modifying a strategy