Emerging horizons of management in the changing environment
Emerging horizons of management in the changing environment BY Arvind Kumar and Pranav Kumar Ojha MBA 1st Semester MONIRBA , University of Allahabad
HORIZONS- mean a line at whichthe earth and the sun appear tomeet just imminent or apparent
Why to study?• Uncertainty of environment• Competitive edge.• Better services to consumers.
Points to be Covered under the topic,“Emerging horizons of management in the changing environment” Developments in the Field of Management Contemporary Management Theory Contemporary Management Challenges Challenge of International Management Management Challenges in the international/ Global Economy Focus of Attention For Future Managers Challenges in The Management Arena Issues involved in Future Managment Qualities Of The Future Managers
Contemporary Management Theory Theory z-• American style of Management (Type A)• Japanese style of Management(Type B) Excellence Movement Theory-• Getting things done on Time• Staying Close to The Customer• Promoting Autonomy And Entrepreneurship• Maximizing Productivity through People• Using A Hands on Approach to Managing• Doing What The Company Knows Best• Maintaining A simple, lean, Organizational Structure• Promoting both Centralization and Decentralization simultaneously
• Globalization• Quality And Productivity• Ownership• Environment• Strategy Formulation• Ethics and Social Responsibility• Workforce Diversity• Change• Empowerment• Information Technology
1. Economic Environment2. Political and Legal Environment3. Cultural Environment
2.Political and Legal Environment• Political stability.• Incentives(reduced interest on loans, tax subsidies, market protection etc.) to attract foreign business.• Reduced international trade barriers imposed on international trade( in the form of tariffs, quotas, export restraint agreement and by-national laws).
3. Cultural Environment• Value systems• The social and Ethical beliefs• Understanding and interpretation of various symbols and different languages spoken by people of different cultures
Management Challenges in the international/ Global Economy1.Planning2.Organizing3.Staffing4.Directing5.Controlling
1.Planning(A) At domestic level Local market conditions The technological factors The growth of products and markets The strength and weaknesses of domestic and foreign competitors(B) At the international level Economic, political and legal stability of an economy The availability of required technology and finance The ease of formation of business enterprise or their strategic alliances Understanding of environmental circumstances
2.organizing Reorientation of organizing ability Project or Matrix Organizing Structure Managing organizational structure and design Managing people Managing change Enough authority to local managers in each country
o(3) Staffing-Selection of competent employeeReduction in training and developmental expenditure(4) Directing-Understanding the cultural factors of indivusalsVariance in motivational factors and communication across cultureUse of democratic style of leadership with the people of same communityNon- financial motivationTwo way communication techniques.
5.ControllingOperation managementProductivityQualityTechnologyInformation systemsConcern for distances, time zones and cultural differences in case of international management
Focus of Attention For Future Managers System theory Development of organizational structures- 1. The ever-changing environment 2. Its increasing size and complexities 3. The changing needs of its employees 4. Multiple goals to be mutually satisfied rather than satisfying a single goal
Increased emphasis on human behaviors-o Job analysiso Transaction analysiso Management by Objectiveso Management by exceptionIncreased attention on Management of change
Changes in The Management ArenaChanges in knowledge , information and techniques.Changes in scope of Management.Changes in the issues and problems facing managers.Change in the Environment- (a)Demographic change (b)Pollution (c)Depletion of resources
Issues involved in future management Increased Employee Participation Increased Social Consideration Increased Technological Developments Increase in International Business- Managers should be able to analyze- (a) Potential of foreign buyers to buy the company’s products (b) The Political climate of the Host country (c) The capital requirements to set up the business in the foreign country
Qualities of the future managers He, besides being a specialist in his area of specialization, must also posses requisite knowledge about other areas of management. Without emphasizing on a single goal, he must maintain a balance among the multiple organizational goals keeping in the mind the impact of the various environmental changes. Various managerial skills should be possessed by managers at all levels Manager’s vision should be clear, he must be able to absorb future information, distribute it throughout the organization , make and implement the decisions based on this information.
a• According to Adrien Furnham,a professor of Psychology at the University college of London, “ Good managers in the 21st century should understand conditions and human needs.”• They should realize that frequently the heart rules the head and should know what this means for an organization.