Recent Changes in Management Practices

Recent Changes in management practices • can be done by: eliminating Product teams, shrinking departments and reducing levels in hitrarchy= Restructuring: downsizing, simplifying, shrinking an org the loss of large no. jobs (top.mid. H.s) a negative: reduce the morale by eliminating the jobs of large numbers of top, middle, and of remaining employees who who worry abeut job security first-line managers and non-managerial employees to downsized Too far and employees complain theyre overworked + t no. of poor service complaints. lower operating costs. such as marketing, manufacturing or customer service. outsourcing: contracting with another company (in a Ion cost country) to have it perform an activity the organisation previously performed itself. • outsourcing increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways a such as developing new produces has pressured many orgs co identify better Was to ise their resources and improve performance Challanges for management in a Global Environment. There is a rise in Global Organisations: orgs that operate and compete in more than one country. • managers who make no attempt to learn and adapt to change in global envitonment - react rather than innovate they are often uncompetitive and fail. 5 major challanges for managers: • building a competative advantage © maintaining ethical Standards © mandging a diverse workforce ® utilising new information systems and technologies © Practicing global crisis management. Building a competitive advantage: competitive advantage: the ability of one organisation to out perform other orgs because it produces desired goods or services more efficiently /effectively than they do. 4 building blocks of competitive advantage are superior: *efficiency * innovation * responsiveness to coustomers * quality •cross training = employees a new set of Skills: improve productivity. • organisations increase their efficiency when they reduce the quantity of resources (people/raw mats) they use to produce gis • pressure from global orgs has increased pressure on companies to increase quality to companies can winnese the competetive race depending on Speed (new products to market) or flexibility (how easily they can change the way they perform their activities to respond to actions of competitors • innovation: the entrepreneurial focus that 100ks at a new thing or a new way of doing things. The process of credting new or improved gis • companys have to devote resources to innovation achieving competitive advantage requires that managers use all cheir sains and expertise + companies other resources to find new and better ways to improve efficien cy, quanty quatity, innovation and responsive to customers. orgs compete for customers with their gis, so training employees to be responsive to customers is vital • About being diert and aware of the needs of customers and to act fast in providing a value solution to the need that will ensure that your customers don't become former customers. • Many orgs are empowering their customer service employees and giving them the auchority to take lead in providing high-quality customer service. (leads to more efficicient use of organisational resources) this pressure can be heathy for an orgas, it leads managers to question how org is werking, and encourages them to find new ways to pian/orgliead and control Maintaining Ethical and socialy responsible standards • Top managers feel pressure from snareholders to increase the performance of entire organisation to boost stock price. improve profits or raise dividends. • in turn, top managers may pressure middle managers to find new ways to use organisational resources to increase efficiencylquality:. attract new customers, more revenue. age gender, race, ethnicity, religion, sexudi preference and socio economic composition of the workforce presents ner challenges for managers. organisations must take advantage et talents of a diverse work force. wallowe for diverse customers. human: global warming winbensifies natural disarters managing a diverse workforce • major challange for managers everywhere is co recognise che ethical need and legal requirements to treat human resources fairly and equitably, To credte a highly trained and motivated workforce must establish human resource management (HRM) that are legal and fair do not discriminate against any org members utilising technology and E-commerce •an important ohalange is to continually utilise efficient and effective new technology that can link and enable managers and employees to better perform their jobs. • new technology enables self-managed teams giving them important information and allowing virtual interactions around globe using the internet. Practicing Giobal crisis management. global crisis or disasters fall into 2 catagories: naturdl human Le hurricanes, tsunamis, L industrial pollution, earthquakes, famines inattention to employee safety and disease destruction of natural habitat lenvi geopolitical tension, terrorism (war)