Trends in mgt - Commerce III PDF

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Commerce III...

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Trends in Management In the Indian business scene, many changes have occurred due to the liberalization process of economy which began on 1991 and continues. Changes have taken place in Industrial Policy, International Trade Policy and led to structural adjustments. The new as well as emerging situations are posing challenges to Indian managers. 1. Globalisation of Economy: Globalisation links a country’s economy with world economy. This linkage affects a country both positively and negatively. It leads to economic, financial, technological, competitive and socio-cultural impact. Globalisation also created challenges due to cultural diversity, language diversity, workforce diversity and economic diversity. 2. Increasing Quality Consciousness: Organisations are becoming more conscious about the quality of the products. This is due to increase in competition and the expectation of consumers as well. Increasing quality consciousness has generated the adoption of quality techniques like Total Quality Management, Kaizen, Six Sigma and Quality Certification 3. Emphasis on Knowledge Management: Knowledge has become primary resource than other resources. It plays a dominant role in any type of organisation. There is increasing emphasis on practicing knowledge management in all types of organisations. Knowledge management is creation, distribution, and utilization of knowledge at the individual, group, organisational, and community level channelizing people, process and technology for the benefits of those involved and affected by it. In short knowledge management is creation, sharing and use of knowledge in every level of organisation. Managers face challenges like creator’s inability to describe the knowledge created, unwilling to share the knowledge and lack of mutual trust, cooperation, openness and empathy. 4. Mergers and Acquisitions: Every organisation strives for growth through expansion, diversification, or merger and acquisitions. Liberalization has led to merger and acquisitions of many companies and resulted in many challenges. It resulted in change in top management, financial reporting system, vision and values, structural reorganisation, integration of people and operations. In many cases of merger and acquisitions, rate of people attrition is very high. Managers have a big challenge to integrate the people of acquired company with the working pattern of the company as people of the acquired company tends to develop anxiety, fear of loss of jobs, transfer to new locations and so on. 5. Changing Workforce Profile: Indian workforce is more educated, skill oriented, comparatively younger and has high expectations. The changing profile has led to change in expectations both in terms of

compensation and working conditions. The increasing role of knowledge workers and women employees has created challenges to managers. The knowledge workers expect challenging jobs, empowerment, immediate feedback and rewards, and career development. Thus, a manager must recruit and select right man for the right job. He should also create an environment in which knowledge workers can work up to their full potential. There is increasing role of women employees, both in managerial and non-managerial positions. Women employees face problems like sexual harassment and discrimination at work place. 6. Newer Organisational Design: Organisational designs based on division of labour, departmentation, scalar-functional processes and span of control are outdated due to change in job and workforce profile. These must be moved from bureaucratic to adaptive structure and from tall to flat structure. Three newer organisational designs that have emerged are team-based organisations, virtual organisations and boundary less organisations. In a team based organisation, teams are created to perform various tasks. When the task of a team is completed, it is dispersed, and a new team is created with same members or different members. A virtual organisation is a temporary network of independent companies, linked by communication technology to share skills, costs and access to one another’s markets....