Emerging horizons of

management in a changing
environment
Emerging horizons of management in a
changing environment
• Contemporary Management Theory
• Contemporary Management challenges
• Challenges of international management
• Management challenges in the international or global economy
• Focus of attention for future manager
• Challenges in the management arena
• Issues involved in future management
• Qualities of the future managers
Contemporary Management Theory
Theory Z:
• American style of Management:
• individual freedom, risk taking, quick decision-making etc.
• Japanese style of management:
• job security, group decision-making, social cohesion, holistic concern for
employees, etc.
• Example: After collaboration between Japanese and Indian
companies, some experts have suggested application of this theory in
India, in Maruti Udyog, which has collaboration with Suzuki motors of
Japan an attempt has been made to apply Theory Z.
• Excellence Movement Theory:
• Getting things done on time
• Staying close to the customer
• Maximizing productivity through people
• Doing the things what company knows best
• Maintaining simple and clear organizational structure
• Promoting both centralization and decentralization simultaneously
Contemporary Management challenges

• Globalization
• Quality and productivity
• Ownership
• Environment
• Strategy formulation
• Ethics and social responsibilities
• Workforce diversity
• Change
• Empowerment
• Information Technology
Challenges of international management
Economic environment
• Economic system of a country
• Demand and preference of customers
• The system of ownership( private or Public)
• Availability of Natural resources (oil, iron, coal, natural gas)
• Infrastructural facilities ( Roads, schools, hospitals, transportation,
communication system etc.)
Political or legal environment
• Political stability
• Incentives (reduced interest on loans, tax subsidies etc.) to attract
foreign business.
• Reduced international trade barriers imposed on international
trade( tariff, quotas, export restrain agreement.
Cultural environment
• Value system
• 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 or global economy

Planning
At domestic level:
• Local market conditions
• The technological factors
• The growth of products and markets
• The strength and weakness of domestic and foreign competitors
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 alliance
• Understanding of environmental circumstances
Organizing
• Reorientation of organizational structure
• Project or matrix organizational structure
• Managing organizational structure and design
• Managing people
• Managing change
• Enough authority to local managers in each country
Staffing
• Selection of competent employee
• Reduction in training and developmental expenditure
Directing
• Understanding the cultural factors of individuals
• Variance in motivational factors and communication across culture
• Use of democratic style of leadership with the people of same
community
• Non-financial motivation
• Two way communication techniques
• Controlling
• Operation management
• Productivity
• Quality
• Technology
• Information system
Focus of attention for future manager
• System theory
• Development of organizational structures:
• The ever changing environment
• Its increasing size and complexities
• The changing needs of its employees
• Multiple goals to be mutually satisfied rather than satisfying a single
goal
• Increased emphasis on human behaviors:
• Job analysis
• Transaction analysis
• Management by objective
• Management by exception
Challenges in the management arena
• Challenges in knowledge, information and techniques
• Changes in scope of management
• Changes in the issues and problems facing managers
• Change in the environment
Issues involved in future management

• Increased employee participation

• Increased social consideration
• Increased technological developments
• Increase in international business
Qualities of the future managers

• Manager should possess specialized knowledge in his specialized area

as well as any other areas.
• He must maintain a balance among the multiple organizational goals
keeping in mind the impact of various environmental changes
• Various managerial skills should be possessed by managers at all the
level
• Manager’s vision should be clear, he must be able to absorb future
information, distribute it through organization, implement the
decision based on this information.