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Recent Trends in Management

Recent Trends in Management

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Published by: Kanagalakshmi Meyyappan on Sep 27, 2013
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We look at five areas or trends which are emerging as the key influencers of business and management in the 21st

century and are also likely to spawn a good share of research in the domain.

Globalization

The melting of barriers among nations and their increasing interconnectedness, accelerated by technology, has led to a change in the world order that has had a profound impact on global business. The emergence of nations such as India and China has replaced the era of unquestioned dominance of the Western countries or any one particular region, paving the way for a flattened business arena where developments in one part of the other are certain to have a spiraling impact. Perhaps the best evidence of this is the recent financial crisis.

A recent 335-page study by the AACSB, the leading accreditation agency for business schools around the world, highlights the implications of this and asserts that rising expectations from business and society for graduates with global competencies, coupled with the increasing complexity and global connectedness of higher education, command the attention of business schools around the world.

Technology

If the current wave of globalization has been the driving force behind the most far-reaching and powerful changes in business, then information technology has indisputably been the facilitator. Drawing attention to the fact that four out of the top five companies in Businessweek's annual list of most innovative companies are technology-driven businesses, Professor Teresa Amabile writes in Working Knowledge, Customers are courted and supply chains are managed via websites, social media, and email; marketing, manufacturing, and distribution processes are managed by sophisticated real-time information systems; colleagues working 12 time zones apart can see and hear each other as they work at their desks-or in airport lounges on opposite sides of the planet.

our planet has to be sustainable . access to healthcare etc. companies have devised new models of extending a social footprint.this realization has hit businesses perhaps the hardest in recent times. Shifting steadily from corporate philanthropy to more direct and effective engagement. behavior and performance . and even profitable. satisfaction of business objectives requires effective analysis of both individual and institutional psychology. The Study of Psychology Speaking of interdisciplinary influences on business. managers will have the power to substantially improve both the practice of business and the welfare of society. Drawing attention to the Pepsi Refresh project. From employee management to customer satisfaction and social engagement. energy security.has become a key pillar of organizational management. Business Ecosystems . This will also underline the need for increased interdisciplinary interaction and influence on business management. Professor Amabile feels that with more evolved tools and access to evergrowing information databases. we are likely to see a lot of focus directed towards applying management principles to solutions of complex social issues such as environmental sustainability. A good amount of research is therefore likely to be focused on how psychological theory and research can be integrated into business academics and management practice. points out professor of marketing. the study of human psychology . HBS Dean Nitin Nohria feels that in the coming decade. One evidence of this growing engagement with issues of society and sustainability is the increase in number of companies who have intensified their CSR focus and the innovative ways in which they have engaged themselves. Michael Norton. motivation.Sustainability and Corporate Social Responsibility For business to be sustainable. Norton has highlighted how the company encouraged users to submit projects with social impact-from cleaning up a river to saving animals-and allowed other users to vote on which projects Pepsi should fund.probing into cognition.

This happens when a company lays off those workers with the least seniority. modular architectures. Management trends come and go. however. technology and telecommunication firms would be an apt contemporary example. efficient.defined as groups of firms which together provide complex products and related services to meet end-to. when done improperly. We have all been impacted. They are good or bad depending on many variables: industry. delayering and so on. crossorganization knowledge flows. courtesy of Dilbert. and good stewardship of legacy systems. As Professor Baldwin tells Working Knowledge.Professor Carlyss Y. company culture. restructuring.end requirements of users across the value chain. You know the names of the most recent batch. Brightsizing is downright dangerous and you need to protect your organization from it. complementary platforms. Every organization in the ecosystem has to be aware of the bigger picture. Re-engineering is a solid business management tool. While it provides more opportunity for comic relief. The integration between media. The new buzzword is brightsizing. Brightsizing is defined. by downsizing. Baldwin feels that one of the most notable trends in management has been the rise of business ecosystems . is appropriately called dumbsizing. in one way or another. The latest management buzzword isn't really a trend. This has important implications for management because innovation in business ecosystems has a character distinct from traditional. vertically integrated firms. Mostly. but its those young workers who are often the best trained and educated. re-engineering. by Paul McFedries' Word Spy. Downsizing." . but applied incorrectly it can cause more harm than good. it is no laughing matter. It is more a reaction to the last few trends. existing contracts and laws. as "corporate downsizing in which the brightest workers are let go. etc. education level of workers. It rests on multiple. they are good or bad depending on how well they are applied. Innovation in ecosystems requires collective action to both invent and appraise.

Don't just keep the tall people. by applying any other arbitrary measurement. for instance. . It is. Many companies have policy statements in their employee handbooks that state that in layoff decisions "among equally qualified candidates preference will be given to the employee with the greatest seniority. USA in 1981. If the company suffers as a result of poor personnel decisions on your part. which enforce seniority-based hiring/firing practices. it enjoys widespread application in many sectors of industry. Don't cripple it. Don't keep people just because they are friendly or dependable. As of 2010. either. your first obligation is to the health of your company." When faced with decisions that will result in a reduction in staff. such as length of time with the company. unfortunately. just as common in non-union companies. Six sigma Six sigma is a business management strategy originally developed by Motorola. it may result in further downsizing and more employees would have to be released. you can not sacrifice the company for any individual. not to any individual. ------- Remember. While it is important that you respect your employees as a group. and always treat them fairly. make sure you first evaluate the value of the employee to the organization and THEN look at other mitigating factors. or the blondes. Don't brightsize your company by keeping people with the greatest seniority. although its application is not without controversy. Make all your staffing decisions based on what is best for the company.Sometimes brightsizing is blamed on union contracts.

Quantum leaps in knowledge can be generated when experts collaborate. businesses that can share and multiply that expertise the fastest will win the race. The maturity of a manufacturing process can be described by a sigma rating indicating its yield. the sum is greater than the parts. but most people learn a lot from each other. competitive businesses want to protect this asset. An organization’s competitive advantage revolves around its most advanced talent . and creates a special infrastructure of people within the organization ("Black Belts". This is the fundamental driver behind the development of knowledge management systems . and this goal became a byword for the management and engineering practices used to achieve it. the application of highly specialized knowledge and expertise. Why Knowledge Management? In a knowledge driven era of highly specialized experts. including statistical methods. etc. Some people can only learn by trying to do things themselves.Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. more and more of what we do is knowledge work. The term six sigma originated from terminology associated with manufacturing. When people share expertise fully and openly.) who are experts in these methods. develop new products and take the business in novel directions. Time and other resources . As the world becomes ever more complex. Then there is simple efficiency. They can patent inventions and trademark brands but they can’t so easily nail down the expertise that mobile employees carry around in their heads. Motorola set a goal of "six sigmas" for all of its manufacturing operations. storing and sharing expertise across an organization.4 defects per million). Knowledge Management Benefits Experts get better at what they do by learning more.99966% of the products manufactured are statistically expected to be free of defects (3.those leading edge knowledge workers who solve challenging problems. Naturally. "Green Belts". Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase). or the percentage of defect-free products it creates. specifically terms associated with statistical modeling of manufacturing processes. It uses a set of quality management methods. ways of capturing. A six-sigma process is one in which 99.

When experts collaborate. What does it take to be world class? Richard Schonberger. created the term “world-class manufacturing. flexibility. Speed is the essence today.” According to Schonberger. purchasers. cost/price. progress can be made much faster than any one employee working alone. companies must change procedures and concepts. It means picking your battles—competing where and when you choose and on terms that you dictate. The pace of change and innovation is so great that one person cannot do it all. Enterprise automation is indispensable to manufacturing innovators who aim to gain market share. customer service and innovation. India is on the run.” To achieve world -class status. “manufacturing is gained by marshalling the resources for continual rapid improvement. speed of execution as well as that of innovation. country of origin or resources. How can your company become and remain world class? Knowledge Process Outsourcing No doubt the time is changing and can India remain unchanged? Definitely not. a leading manufacturing consultant.Six Sigma World Class Manufacturing What does it mean to be a world-class competitor? It means being successful in your chosen market against any competition—regardless of size.are wasted every time employees have to learn something through trial and error. It means you are in control and your competitors struggle to emulate your success. producers and customers. working in isolation. “Once upon a time there was a nation by name India which lived by doing data entry works for the whole world” is passed. if the “Wharton and Boston” consulting group’s report is any indication. operate at peak efficiency and exceed customer expectations so they can be world class in their industry. which in turn leads to transforming relations among suppliers. . Now that it is a nation which exports knowledge (as if it has got exportable surplus of knowledge!) and earns a trillion bucks. lead time. It means matching or exceeding any competitor on quality.

According to Evalueserve. with a total value of US$30.3 percent in deal value over the period 2000-2007 Global 500 list of the world’s largest companies includes 70 companies from emerging economies. In 2005 alone. Retail Management is a direct response to the Retail industry’s needs. patent research and publishing. up from just 20 a decade ago. cutting edge knowledge are the tools. According to analysis of data from Thomson Financial. Indian companies are moving up the ladder to value added tasks like market research. these retail chains have been looking for a comprehensive solution that will cater to their growing business needs. the knowledge process market in India is worth US$2. one of leading Indian KPO. This represents a compound annual growth rate (CAGR) of 28. This move represents major shift of Indian outsourcing companies from cheap call center services to lucrative markets dominated mostly by Western companies. For a long time. as many as 543 M&A deals were completed by Indian companies both at home and abroad in 2007. representing US$128 billion in value3.L Key factor behind the speed of global expansion by emerging market multinationals (EMMs) has been the adoption of mergers and acquisitions (M&A) as a means to rapidly access new markets. and is likely to grow to US$10 billion to US$12 billion by 2012.4 billion. assets and capabilities. Retail Management Retail Management provides an enterprise solution that helps retail operators to track and accelerate retail business process and point-of-sale. Retail business has been booming constantly and the number of large and mid-size retail chains has increased considerably. If knowledge is power as the adage goes India must be the most powerful nation in the world. call center jobs and other transaction intensive services to “KPO” (knowledge process out-sourcing) services where power of judgment. Retail Management offers end-to-end control and management of entire retail-chain for super markets. More than 1. hypermarkets and other retailers.They further claim that India’s outsourcing industry is traveling beyond traditional fields like medical-transcription. Indian companies have been active and visible players within this new M&A trend. Knowledge process outsourcing (KPO) is a new fad across India. the top 100 companies from emerging economies increased their foreign sales by 48 percent and foreign employment by 73 percent – this compares with about 10 percent growth in foreign sales and employment recorded by . convenience stores. pharmacy. Developed after thorough research on the retail industry requirements. discretion makings.5 billion to US$3 billion a year.100 mergers and acquisitions were conducted by EMMs in 2006.

It becomes imperative that we have a shot at what options and opportunities M&A provides .companies in developed markets2.

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