Contemporary issues in management


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This presentation includes as many as 22 pertinent universal issues governing management accompanied with examples from various sectors, followed by a brief case analyses of corporate culture at British Airways.

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Contemporary issues in management

  1. 1. CONTEMPORARY ISSUES IN MANAGEMENT Lecture Series 2013 by C P Rijal, PhD Associate professor Faculty of Management Studies Mid-Western University July 6, 2013
  2. 2. Our link for the discussion today… Nepal is in search of visionary institutional leaders and managers, more in numbers, for more sustainable transformation of the country. July 6, 2013
  3. 3. So, let’s talk about a few powerful managerial issues in Nepalese context. July 6, 2013
  4. 4. Please make sure each one of you have your say on each issue we discuss today… July 6, 2013
  5. 5. Our national bureaucracy, defense, politics, private and social sector – everywhere is an immense need of effective managers capable to respond with the effects of globalization. July 6, 2013 1
  6. 6. So many successful world class managers are time again charged for not being adequately accountable for what they are supposed to be. How often do you act by shouldering the responsibility of your team failure? Many people love ‘passing the failure’ onto others. July 6, 2013 2
  7. 7. Senior managers at BBC are time again blamed for not working with responsiveness towards the society for what they are expected to do. In any business, just earning is not the end; there starts your obligation to paying off to the society for what it allowed you to be there at that height; please be sincere of your responsibility for the society. July 6, 2013 3
  8. 8. July 6, 2013
  9. 9. Mostly, the western management is blamed for not being able to take a balanced approach in managing workforce diversity. What about the racial discrimination in the UK? Isn’t it true that the Nepalese managers are at cross-roads to empower people with equitable distribution of opportunities? July 6, 2013 4
  10. 10. Even Steve Jobs, one of the world’s ever innovative entrepreneur managers, was shacked from the position of CEO at Apple, which he created vesting his blood, toil, sweat and tears; He was charged for not being innovative; Responding to changing environment is always a daunting task for all managers. July 6, 2013 5
  11. 11. Senior management normally takes it as a cost adding proposition to improve quality and productivity; in fact, it reduces the cost, if managed effectively. July 6, 2013 6
  12. 12. Despite having the largest business networks throughout the country, Nepal Bank Limited and Rastriya Banijya Bank have been facing tough time for their survival. Corporate leadership is more than managing; it is rather all about stimulating innovation and change. July 6, 2013 7
  13. 13. Enron, the world’s one time largest power generator, and a UK based historic news agency collapsed for not being able to improve their ethical behavior. Momento Garments headed by one of the former FNCCI presidents in Nepal collapsed whilst doing an excellent business. Why? What about Necon Air? July 6, 2013 8
  14. 14. Do you know, why Rato Bangla School has been helping to transform all primary schools of Dailekh district? Whose ad theme is it – ‘Bhatta Khayau Sambidhan Deu’? Surya Nepal has supported in developing all school infrastructure in at least 10 VDCs around its cigarette factory at Simara. These are a few examples of institutional social responsibilities… July 6, 2013 9
  15. 15. Do you know, the patent rights of most of our natural medicinal herbs are already reserved by foreigners? So, what’s the problem? They have won us in knowledge management for which we will have to pay them very big cost while using our natural resources in the days to come. July 6, 2013 10
  16. 16. You may be surprised to know that most of our ministers and high rank officers in public institutions do not know how to work in computer-added working environment. How can you be sure about their likely contribution to come up with the proposition to managing with the world of ICTs, which is most essential today? July 6, 2013 11
  17. 17. As a result of excessive work stress and productivity focus of the top management, there exists the highest rate of corporate suicides in Japan. In US, the workplace violations are sometimes very much critical. Besides improving performance, top management today faces tough time to help employees balance their work and life conflicts. July 6, 2013 12
  18. 18. THANK YOU! July 6, 2013
  19. 19. All managers are bound to create positive tensions for innovation to happen, productivity to excel, and job satisfaction to prevail. Unfortunately, our NOC employees are put to be least bothered about operational innovation; it is a constantly loss making pubic entity that pays off with the highest rate of employee bonus every year! July 6, 2013 13
  20. 20. Ncell has gone far ahead improving customer services compared to Nepal Telecom. How long can NTC enjoy its market leadership this way? Ncell claims itself today as the largest happy family in the country… July 6, 2013 14
  21. 21. It is heard that Janga Bahadur Rana used to take the packaged lunch supplied by Rambhandar; Chaudhary Group was formed quite lately; So came in existence Khetan and Panchakanya groups. Ranas disappeared from the power, Rambhandar has been somehow surviving, and the later ones are on top of national corporate sector. Why such a disparity? May be because of difference in their capability to adapt and promote entrepreneurship… July 6, 2013 15
  22. 22. Normally, the corporate managers tend to take success as a permanent proposition, as a result they fail to survive in long run. For example, lack of commitment and vision to cope with temporariness might have resulted the demise of Hattichhap Chappal in Nepal despite its very strong market holding. July 6, 2013 16
  23. 23. Corporate managers are meant to be responsible for managing with multiple responsibilities to lead their institutions more successfully. Anil Keshari Shah has not reached to today’s position by just focusing on only banking; he acts with scores of responsibilities, everyday to sustain himself high up there! July 6, 2013 17
  24. 24. At IBM, improving people skills is regarded as one of the strongest corporate cultures. As a result, a penny invested on employee training and development today, goes on cashing in many dollars till 30 years down the road. Any cost incurred in employee training and development may serve as a safer source of sustainable returns forever. Unfortunately, not all leaders realize this fact. July 6, 2013 18
  25. 25. This is the age of working with business partnership, virtual organization systems and business process outsourcing. All corporate managers may not feel comfortable working in networked organizations. As a result, they fail in their missions. July 6, 2013 19
  26. 26. Despite his tremendous successful career graph for more than two decades as a VC of Kathmandu University, Prof. Dr. Suresh Raj Sharma was finally blamed for not developing the generation next to lead the institution in the similar way that he visioned; Now, the institution is at a cross-road. July 6, 2013 20
  27. 27. Emerging work teams in quality work environment 1.Leadership team 2.Motivation or employee morale team 3.Safety and environmental team 4.Employee wellness team 5.Culture and communication team 27 21
  28. 28. Responding to changing expectations of all stakeholders is a universal challenge today. July 6, 2013 22
  29. 29. Finally, dear graduates, if you are really concerned to transform yourself into more successful corporate managers, start counting on these twenty two tips that I have given you by now. Please follow the next slide for a quick recap. July 6, 2013
  30. 30. 1. Responding to globalization 2. Managing with accountability 3. Action with responsiveness 4. Managing workforce diversity 5. Responding to changing environment 6. Improving quality and productivity 7. Stimulating innovation and change 8. Improving ethical behavior 9. Managing institutional social responsibility 10. Knowledge management 11. Managing with the world of ICTs 12. Helping employees balance work and life conflicts 13. Creating positive tensions 14. Improving customer services 15. Promoting entrepreneurship 16. Coping with temporariness 17. Managing with multiple responsibilities 18. Improving people skills 19. Working in networked organizations 20. Developing the generation next 21. Managing innovative work teams 22. Responding to changing expectations July 6, 2013 To transform yourself as an effective manager, inculcate your professional VISION on these elements
  31. 31. Now, the question may arise in you… How can I act with all this? Yes, you can! Taking these issues more sincerely is enough…you don’t even need to look beyond that… It just requires you to act as a team! July 6, 2013
  32. 32. A Case Study on British Airways Culture
  33. 33. • British Airways (BA) is the national flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations. • BA's UK passengers originating at non-London airports must connect via London after British Airways discontinued all direct overseas flights from UK airports outside London following the sale of BA connect to British regional carrier Flybe in 2007. INTRODUCTION
  34. 34. • British Airways (BA) was created in 1974, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) were combined under the newly formed British Airways Board. • Following two years of fierce competition with British Caledonian, the second-largest airline in Britain at the time, the Government changed its aviation policy in 1976 so the two carriers no longer would compete on long-haul routes. BRIEF HISTORY
  35. 35. • Culture is highly important for an organization today for setting organization's direction and creating tradition, value, and belief for its employees to behave, and building harmony within and beyond the organization. • Organizational culture plays a central role to company's change and revitalization. When the environmental changes take place (for instance, the increase in competitive competitors), an organization must adapt its present culture in order to survive in the industry. CHANGING THE CULTURE AT BRITISH AIRWAYS (BA)
  36. 36. • Prior to privatization, BA’s culture was considered to be technically biased, authoritarian, bureaucratic, and the relationship between employees and management-level was impersonal. At that time, management levels usually encouraged formality within organization to keep themselves away from staff. This made the organization not believe in participative management. • Besides, employees such as pilots and managers were recruited from the Royal Air Force (RAF) which belongs to the government; therefore, most employees felt they were arrogant which was against the concept of customer-oriented approach. Importantly, the organization tended to focus only on safety operations and lacked of service and market orientation. • As a result, it resulted in run into crash and faced the financial problem. It was because not only corporate culture itself but also the competitors in the industry which enable to provide better service to customer superior compared to BA. BA’s Culture: Historical/Pre-Privatization Decision
  37. 37.  After privatization, BA replaced some of its main historical values and beliefs by new corporate culture and mission. BA tried to introduce new corporate and mission into the organization by launching many new training programs and new appraisal system to stimulate new changes in order to improve organization performance. New corporate cultures include informality innovation, customer/commercially- oriented, participative management, etc.  For example, BA tried to change corporate mission from, To be a safe airline to 'To be a competitive airline in responding to the change of the external environment. It is necessary for an organization to adapt itself when external environment changes in order to survive; hence, changes in culture and mission are done for transforming an organization to be the effective organization in the industry and for improving organization performance in order to overcome with fierce competitors. BA’s Culture: Prevailing/Post-Privatization Decision
  38. 38. Ups and Downs in British Airways
  39. 39. • Putting People First (PPF): This program urged participants to examine their interactions with other people. Implied in the positive relationship message was a strong emphasis on customer service. Approximately 40,000 BA employees went through the program. • Managing People First (MPF): This program stressed the importance of, among other topics, culture, trust, leadership, vision, and feedback. Education and Training
  40. 40. • The British Airways staff are represented by a number of trade unions, pilots are represented by British Airline Pilots' Association, cabin crew by British Airlines Stewards and Stewardesses Association (a branch of Unite the Union), other branches of Unite the Union represent other employees. • During Bob Ayling's management, strike action by cabin crew over a £1 billion cost-cutting drive to return BA to profitability in 1997; this was the last time BA cabin crew would strike until 2009; staff morale has reportedly been unstable since that incident. • To increase interaction between management, employees, and the unions, various conferences and workshops have taken place, often with thousands in attendance. INDUSTRIAL RELATIONS
  41. 41. • British Airways is the world’s leading airline which has a long history of organizational change. • Because of internal and external pressure, BA was forced to adapt with new corporate culture, value, belief, and company mission in order to improve the organization’s performance. • Organizational change gave a huge impact on organization both individual and organizational levels creating both positive and negative effects. The most popular tool to handle and facilitate change and resistance is HR policy. • Finally, the other ways to help any organization to facilitate change is to use the ‘Change Agent’ which it is better to use external consultant than internal one. Conclusions
  42. 42. Thank you! July 6, 2013