The document discusses various concepts and trends in management including entrepreneurship, globalization, organizational diversity, business ethics, corporate social responsibility, total quality management, and quality of work life. It defines these terms and discusses their significance and implementation. The document is presented over multiple pages and sections with definitions, explanations, and examples of new management concepts and trends.

1. NEW CONCEPTS AND
TRENDS IN MANAGEMENT
CHAPTER-12
AUTHORS:
DR. KIRAN NERKAR
DR. VILAS CHOPDE

2.  Entrepreneurship is about taking risks and the behavior of the
entrepreneur reflects a kind of person who wishes to put his
career and financial security on the line and take risks in the
name of an idea, spending much time as well as capital on an
uncertain venture. ---- Frank H. Knight and Peter Drucker
 The function of foreseeing investment and production
opportunity, organizing an enterprise to undertake a new
production process, raising capital, hiring labor, arranging for
the supply of raw materials, and selecting to managers for the
day-to-day operation of the enterprise. ---- Benjamin Higgins
DEFINE ENTREPRENEURSHIP
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3.  Raises productivity through technical and other forms of
innovation
 Generates employment opportunities by establishing new
enterprises
 Facilitates the transfer of technology
 Plays a strategic role in commercializing new inventions and
products
 Facilitates the proper utilization of resources
 Improves the standard of living
 Plays a crucial role in the restructuring and transforming
economy
 Facilitates a balanced economic development
 Brings dynamism in industries by launching innovative products
and services
 Creates new markets and facilitates expansion into international
markets
SIGNIFICANCE OF ENTREPRENEURSHIP
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4.  An entrepreneur is the agent who buys means of production at
a certain price in order to combine them into a product that is
going to sell at prices that are certain at the moment at which
he commits himself to his costs. ---- Richard Cantillion
 Entrepreneurs are people who have the ability to see and
evaluate business opportunities together with the necessary
resources to take advantages of them and to intimate
appropriate action to ensure success. ---- International Labor
Organization
DEFINE ENTREPRENEUR
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5.  Creativity
 Innovation
 Dynamism
 Risk Taking and Decision Making Ability
 Self-Motivation
 Self-Confidence
 Time Management
 Persistence
 Problem Solving
 Flexibility
 Vision
 Leadership
 Technical Knowledge
TRAITS AND CHARACTERISTICS OF A
SUCCESSFUL ENTREPRENEUR
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6.  Globalization has special meaning within Proctor & Gamble. It
means that we will continue to change from a United States
based business into a truly world company. A company that
thinks of everything it does in terms of the entire world. ----
CEO of Procter & Gample, Edwin Artzt
 Globalization is the process of whereby the world’s people are
becoming increasingly interconnected in all facets of their
lives cultural, economic, political, technological, and
environmental. ---- Lodge
DEFINE GLOBALIZATION
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7. •Involves large research and development cost incurred on a new product.
New Product Development Cost
•Reduces the overall cost of production in an organization.
Cheap Labor and Economies of Scale
•Refers to transferring the expertise and experience from one country to another
country.
Experience Transfer
•Acts as an important force. The organizations that are in the declining stage in one
country enter into another country to get into the introduction or growth stage.
Product life cycle consideration
ORGANIZATION-SPECIFIC FORCES OF
GLOBALIZATION
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8. Competition
Forces the organizations to go global. If an organization cannot
increase its sale because of tough competition in the domestic
market, then it can venture into global market to increase its sale.
Technology
Helps organizations to lower their overall cost of production.
BUSINESS-SPECIFIC FORCES OF
GLOBALIZATION
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9. •Arises in an organization due to its in depth understanding of cultures and behavior of
customers and competitors across the globe.
Competitive Advantage
•Refers to the one of the most important advantage of global organizational behavior.
Diverse Culture Management
•Involves analyzing the processes and characteristics of formal organizations that
influence the modern societies, to develop business strategies.
Organizational Analysis
•Examines how individuals interact and justify their relationships under conditions of
power and resource inequalities across societies.
Cultural Analysis
STRATEGIC IMPORTANCE OF GLOBAL
ORGANIZATIONAL BEHAVIOR
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10.  Managers should work toward balance between short and
long-term thinking, listening and speaking. Similarities and
diversity need to coexist as well. It is time to listen to others,
to listen to ones self, and to challenge the imbalances
existing today. ---- Newstrom
 The concept of diversity encompasses acceptance and
respect. It means understanding that each individual is
unique, and recognizing our individual differences. These can
be along the dimensions of race, ethnicity, gender, sexual
orientation, socio-economic status, age, physical abilities,
religious beliefs, political beliefs, or other ideologies. ----
Queens Borough Community College
DEFINE ORGANIZATIONAL DIVERSITY
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11. Demographic
Factors
Refer to the factors,
such as race, age,
color, and gender of
employees, which
make the workforce
of an organization
diverse.
Globalization
Provides an
opportunity to
organizations to
enter in other
countries.
Government
Policies
Oppose any type of
discrimination in
any field, whether
in society or
businesses.
High
Competition
Compels the
organizations to
look for new,
innovative, and
fresh ideas to gain
edge over
competitors.
FACTORS RESPONSIBLE FOR
ORGANIZATIONAL DIVERSITY
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12. Commitment of senior management
Refers to the assurance of top management to
promote and support diversity.
Linking Diversity with Strategic Plan
Refers to integrating the diversity with the
organizational plans and goals.
Involvement of employees
Helps in reducing their feelings of suspicion and
uneasiness regarding the diversity program.
MEASURES TO MANAGE DIVERSITY
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13.  Ethics is a moral philosophy that guides individuals to decide
what is wrong or right, good or bad, and what comprises
desirable behavior in a particular set of social circumstances.
 Business ethics is defined as written or unwritten codes of
principles and values that guide decisions and actions within
organizations.
 It helps organizations decide the actions which are legally and
morally right.
 The aim of an organization should be to follow a code of
ethics based on logic, facts, and general acceptability.
BUSINESS ETHICS
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14.  When organizations involve in global business, ethical issues
arise mainly due to different political systems, law, economic
development, and culture of nations.
 Ethical issues in the global or international business setting
are mainly related to employment practices, human rights,
environmental regulations, corruption, and other moral duties
of global organizations.
INTERNATIONAL BUSINESS ETHICS
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15. Primary
Factors
•Refer to the factors that comprise external stimuli and
compel people to move in a particular direction
without thinking about ethical parameters.
Personality
Factors
•Refer to the prominent characteristics of an individual.
Defensive
Factors
•Refers to the attempts of an individual to find easy
ways to escape from an act of violation of a law or a
duty.
CAUSES AND ISSUES OF UNETHICAL
BEHAVIOR
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16.  CSR refers to the obligation of an organization towards the
society.
 Some of the important objectives of CSR are as follows:
 Protecting the environment and community from harmful effects of
industrial operations, such as dumping of hazardous waste materials
and emission of noxious gases
 Making contribution to the society, in return of the services and
resources provided by the society to the enterprise
 Gaining the social power in the society to sustain in the market for a
longer period
 Converting the threats of the environment into an opportunity for the
business with the help of gaining trust of the public by the way of
CSR activities
 Sharing the responsibility of the government to alleviate social
problems
CORPORATE SOCIAL RESPONSIBILITY
(CSR) AND ITS IMPORTANCE
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17.  Improving relationship with stakeholders
 Refers to the fact that CSR activities help an organization to develop
the relationship with stakeholders.
 Attracting the investors
 Refers to draw the attention of investors through CSR activities.
 Improving financial performance
 Refers to enhance the financial performance of an organization
through CSR activities.
 Increasing public credibility
 Refers to improving the credibility of an organization through CSR
activities.
 Utilizing the resources effectively
 Refers to the optimum usage of scarce resources.
BENEFITS OF CSR
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18.  Lack of Transparency
 Imposes a major hindrance in the authentic implementation of CSR programs
when organizations do not disclose the information regarding the CSR programs
and funds allocated to implement these programs.
 Lack of Community Participation
 Hinders the prospect of CSR activities.
 Lack of Non-Governmental Organizations (NGOs)
 Leads to a lack of CSR activities as these activities are largely implemented
through NGOs.
 Lack of CSR Guidelines
 Implies that many countries do not have clear guidelines related to CSR
activities.
 Narrow View towards CSR Initiatives
 Refer to the limited perception of an organization towards CSR activities.
 Importance to Visibility Factor
 Implies that sometimes NGOs involve themselves in the CSR programs to gain the
media attention but fail to achieve the goals at the grass root levels.
 Lack of Budget
 Poses a major constraint for organizations that wish to practice CSR activities.
CHALLENGES FACED BY AN
ORGANIZATION IN CSR IMPLEMENTATION
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19.  TQM aims at minimizing errors occurred at the time of
producing goods and providing services.
 TQM includes the following three aspects:
 Meeting Requirements of Consumers and Customers
 Refers to producing standard quality goods and services to fulfill the
needs of the customers and consumers
 Continuous Improvement
 Refers to continuous upgrading quality and product standards
 Employee Involvement
 Refers to encouraging participation from all employees working at any
level
TOTAL QUALITY MANAGEMENT(TQM)
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20.  Including quality assurance in the objectives and policies of
an organization
 Developing a clear understanding of the TQM concept among
all the employees in the organization
 Encouraging the participation of all the employees in
maintaining and improving quality
 Designing the TQM program to fulfill the requirements of the
customers
 Acknowledging the areas and processes where managers can
implement TQM
IMPLEMENTATION OF TQM
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21.  Quality circle is a quality control and problem solving
approach used by the grass-root level employees in an
organization.
 The effectiveness of a quality circle can be improved by
adhering to the following guidelines:
 Encouraging all employees to contribute in quality improvement
 Training the members of the quality circles
 Developing a problem-solving approach among all members
 Encouraging participation and providing freedom to discuss a
problem and suggest corrective measures
 Securing top managements’ trust to run the meetings of quality
circles smoothly
QUALITY CIRCLE
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22.  Quality of Work life (QWL) can be defined as the quality of
correlation between employees and their total work
environment.
 A process by which an organization responds to employee
needs for developing mechanisms to allow them to share fully
in making decisions that design their lives at work. --- Walton
CONCEPT OF QUALITY OF WORK LIFE
(QWL)
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23. Attitude of the employee
Fair compensation and job security
Personal and career growth opportunities
Balance between personal and professional life
Nature of job
Level of stress
Risk and reward
Participative style of leadership
Career prospects
Fun at workplace
Alternative work arrangement techniques
EIGHT CRITERIA/CHARACTERISTICS THAT
INFLUENCE QWL
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24.  The growing complexities and dynamic changes in the
business environment are giving way to the development of
new trends in management.
 For example, globalization has completely changed the way of
conducting businesses.
 CSR is an approach that seeks to address various ethical,
social, and environmental concerns of an enterprise.
 Ethics is a moral philosophy that guides individuals to decide
what is wrong or right, good or bad, and what comprises
desirable behavior in a particular set of social circumstances.
 It aims at identifying unjust business practices and their
impact on an enterprise.
RECAP
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