Contemporary Management Concepts PDF

CONTEMPORARY MANAGEMENT CONCEPTS PART 3A MODERN MANAGEMENT IN THE 21ST CENTURY Management: Science or Art? The Science of Management  Assumes that problems can be approached using rational, logical, objective, and systematic ways.  Requires technical, diagnostic, and decision-making...

CONTEMPORARY MANAGEMENT CONCEPTS PART 3A MODERN MANAGEMENT IN THE 21ST CENTURY Management: Science or Art? The Science of Management  Assumes that problems can be approached using rational, logical, objective, and systematic ways.  Requires technical, diagnostic, and decision-making skills and techniques to solve problems. The Art of Management  Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights.  Requires conceptual, communication, interpersonal, and time- management skills to accomplish the tasks associated with managerial activities. Traditional vs Modern Management  Traditional style of management is more comparable to the military style of management - very hierarchical, organized, disciplined, and sort of - "I am the boss, I tell you, you do. No questions asked".  Strictly follows the direct chain of command.  The ability of management is derived from the power of the position (not much of a management). Not much, if any, of soft skills required either. Traditional vs Modern Management  In today's world of management, it is used in the military and countries like India, China, Japan and some European companies. However, it only works in the military.  Most of the western world (outside the military) has moved away from it due to the long-term downsides to the business in the areas of workforce morale etc. Traditional vs Modern Management  Modern style of management largely depends on soft skills - consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you. The "manager" in this case may or may not have any actual power to adversely affect his/her followers, if they do not follow. Traditional vs Modern Management  The power of a manager is derived from the people who the manager manages (the managed) - and the managed give that power willingly to the manager.  It is more comparable in modern day to a matrix organization and pure project management at its best. This is the best form of management in the long run, because it builds moral, participation, and sense of ownership among the managed. The Top Strengths and Challenges of Modern Managers Recently analysed the top strengths and challenges of approximately 200, 000 managers. Here are the very interesting results in rank order: Strength  Results Focus  Problem Solving  Customer Focus  Teamwork  Decision Making Challenge  Developing Others Conflict Resolution  Managing Performance  Delegating Responsibility  Work - Life Balance Traditional vs Modern Management  The two distinct sets of results remind us that commonly managers and organizations focus strongly on performance and results which is clearly appropriate. However sometimes there can be an overemphasis on outcomes at the expense of neglecting the people related issues.  Organizations need to emphazise how they develop people to attract and retain the best young talent in an increasingly competitive marketplace. Traditional vs Modern Management  It is also interesting to note that some of the people challenges relate to some of the more difficult people management issues such as conflict resolution and performance management.  From experience, managers shy away from these more complex areas. However the avoidance tactic creates longer term cultural issues for the organization. Managers need to find the right balance between managing the people issues as well as achieving great outcomes.  Delegating responsibility and work-life balance no doubt relate to the common complaint that managers feel over burdened and feel they cannot delegate to staff as they are also busy. Recent Changes in Management Practices Restructuring: Downsizing an organization by eliminating the jobs of large numbers of top, middle, and first-line managers and nonmanagerial employees Modern IT has increased each person’s ability to process information and make decisions more quickly and accurately 1-10 Recent Changes in Management Practices Outsourcing: Contracting with another company, usually abroad, to have it perform an activity the organization previously performed itself Increases efficiency because it lowers operating costs, freeing up money and resources that can be used in more effective ways 1-11  Recent Changes in Management Practices MANAGING GL OBALLY First Outsourcing, Now Insourcing 1-12 Empowerment The expansion of employees’ knowledge, tasks, and decision-making responsibilities Companies use their reward systems to promote empowerment IT is being increasingly used to empower employees because it expands employees’ job knowledge and increases the scope of their job responsibilities 1-13 Empowerment 1-14 Self-Managed Teams A group of employees who assume responsibility for organizing, controlling, and supervising their own activities and monitoring the quality of the goods and services they provide Assume many tasks and responsibilities previously performed by first-line managers, so a company can better utilize its workforce 1-15 Global Organizations Organizations that operate and compete in more than one country 1-16 Challenges for Management in a Global Environment Building a competitive advantage The ability of one organization to outperform other organizations in producing goods or services more efficiently and effectively Companies can win or lose the competitive race depending on their speed and flexibility Innovation: Process of creating new or improved goods and services or developing better ways to produce or provide them 1-17 Challenges for Management in a Global Environment 1-18 Challenges for Management in a Global Environment Maintaining ethical and socially responsible standards Pressure to increase performance can be healthy— it leads managers to question how the organization is working Too much pressure to perform - induces managers to behave unethically 1-19 Challenges for Management in a Global Environment „What goes around comes around”: How dishonest top managers can corrupt any organization – even a court 1-20 Challenges for Management in a Global Environment Managing a diverse workforce Age, gender, race, ethnicity, religion, sexual preference, and socioeconomic composition of the workforce presents new challenges for managers Establish procedures and practices that are legal, fair, and equitable 1-21 Challenges for Management in a Global Environment 1-22 Challenges for Management in a Global Environment Utilizing new information systems and technologies Managers have to continually find efficient and effective ways to utilize new IT to better perform jobs 1-23 Challenges for Management in a Global Environment 1-24 Challenges for Management in a Global Environment Practicing global crisis management involves making important choices about how to: Create teams to facilitate rapid decision making and communication Establish the organizational chain of command Recruit and select the right people Develop bargaining and negotiating strategies to manage conflicts 1-25 The Organization and its Environment