In this tutorial, we will learn about recent trends in management, which help in total quality management, risk management, crisis management, resistance to change, change through management hierarchy.
Recent trends in management refer to the latest managerial practices that managers use to manage their employees effectively. As the market situation evolves, the organizational patterns also develop and change. These changes are subject to the market conditions of that period. The most important recent management trends are total quality management, risk management, crisis management, etc.
May your organization undertakes projects or initiatives to improve performance, seize opportunities, or address critical issues, they often require changes, changes to processes, job roles, organizational structures, and types and uses of technology.
Meaning Of Change And Its Causes:
Change refers to the variation in the traditional way of life to which people are accustomed to in the organization. It is a natural phenomenon. Change may take place in the external or internal environment of an organization. The management of every enterprise must anticipate change and deal with it effectively.
Resistance To Changes:
If resistance to change is the action taken by individuals and groups when they perceive a change occurring as a threat to them. Keywords here view and threat. The threat need not be real or significant for resistance to occur.
Most of the organizations and their members resist changes.
- Overt: the threat to go on strike.
- Implicit: increased errors or mistakes.
- Immediate: it results in direct response to changes.
- Deferred: response to change is deferred, or stockpiled for sometimes.
Types Of Resistance To Change:
Arises due to the time and effort required to adjust the change. It involves rational objections. The time needed to improve, Extra effort to relearn, Possibility of less desirable conditions, Economic cost of replacement, questioned technical feasibility of change.
It is logical about the attitudes and feelings of individual employees. It is based on emotions, sentiments, and views.
It is logical in terms of group interests and values. Management can face active resistance if the change is likely to alter the existing informal group composition.
Crisis management refers to the management and coordination of an organization’s responses to an incident that threatens to harm or has harmed its people, structure, or reputation. It aims to minimize the damage.
Definition Of Crisis Management:
It is the process of responding to an event that might threaten the operations, staff, customers, reputation, or the legal and financial status of an organization.
Types Of Crisis:
These are acts of God, eg. Earthquake, volcanic eruptions, etc.
These caused due to human application of science and technology.
These are caused due to the dissatisfied individuals or groups for the non-acceptance of their demands.
This is caused by one employee committing violence against other employees on organizational grounds.
Any rumor or false information about the organization or its products causes harm to its reputation.
Total Quality Management (TQM)
Quality is one of the essential factors in determining the success or failure of an organization. Good quality generates satisfied customers. The growth of the service sector has increased the requirements of Total Quality Management (TQM). It involves the use of various items like:
Interrelated set of plans, policies, procedures, people, and technology required to meet the organization’s objectives.
It consists of policies, steps technology, and personnel needed to carry out a significant segment of operation within an organization.
It refers to the formal and informal organization, that develop to perform an individual process or set of tasks.
It means a systematic approach, procedure, and associated technology required to carry out a task.
TQM is composed of two related systems:
- Technical system
- Management system
Principles Of TQM:
- Quality must manage; problems must be realized and effectively controlled.
- Processes, not people, are the problem, first processes should correct, then people should be trained.
- Quality improvements must be continuous; it has to take place continuously for increasing customer satisfaction.
- Don’t treat symptoms; look for the cure solution for the problem that has to be searched from the real source of the problem.
- Quality must be measurable; this system is sufficient if the results can be quantified.
Risk has its origin from the field of corporate insurance. It refers to the identification of opportunities and avoiding or mitigating losses. It is considered a structured approach to managing the uncertainty related to a threat. Risk management occurs in the departments whore core objective is to protect the environment and public health and safety. It is a systematic approach for setting the best course of action.
Characteristics Of Risk Management:
- It provides a system of making choices.
- Potential liability can be understood better.
- Guide for responding to undesirable events.
- Systematic discipline for dealing with the problem of uncertainty.
Objectives Of Risk Management:
- Minimize the firm’s cost of risk as well as society’s value of risks.
- Improved level of accountancy.
- Optimum use of resources.
- It improves organizational efficiency and effectiveness.
- Maximizing opportunities and minimizing losses.
- It improves decision making and communication.
- It supports the overall vision, mission, and objectives of an organization.
- To provide a structured framework for effective strategic planning.
- It is just not about preventing the risks but also to manage them.
Merits\Benefits Of Risk Management:
- Helps the company in meeting its business objectives.
- It improves the company’s credit rating.
- Makes the company flexible and responsive to changing customer’s need.
- Protects the reputation and public image of the organization.
- It provides a clear and structured approach to identifying risks.
- Prevents and reduces legal liability and increases the stability of operations
- It saves the company’s valuable resources.
STEPS INVOLVED IN RISK MANAGEMENT PROCESS:
All the risks that may affect the business, either positively or negatively have to be identified.
All the identified risks must attain, and it is required to generate awareness among employees.
Risk Measurement And Analysis:
It helps in making decisions about committing resources to control the risks. It helps to find out the most cost-effective treatment.
It helps in preparing a prioritized list of risks by comparing various risk levels.
Identified risks treated and controlled to eliminate the negative consequences and to reduce the probability of adverse occurrence. It aims at enhancing positive outcomes.
Risk Monitoring And Review:
Treatment plant Selected have to be reviewed periodically to determine its effectiveness. Few risks remain static.
Responsibilities Of Risk Management:
Board Of Directors (BOD):
BOD has a role to play in formulating strategies, high-level objectives, and broad-based resource allocation. They see if management is responding correctly or not.
Chief Executive Officer:
He provides leadership and direction to senior managers and reviews the work of other managers.
He works with other managers to establish and maintain risk management in their areas of responsibility. He monitors its progress.
They improve performance quality. It assists both the management and board by monitoring, examining, and evaluating, and recommending improvements.
Global Practices\International Business:
It refers to the practice of managing business operations in more than one country. Their professionals know other country’s languages, culture, etc. it involves all commercial transactions. In private companies usually do it for-profit purposes. The government does it for profit and political goals. It includes all business activities involving cross border transactions.
Features Of International Business:
- Large scale operations
- Integration of economies
- Dominated by developed countries and MNC
- Sensitive in nature
- Rigorous competition.
- Benefits to participating countries.
Importance\Merits Of International Business:
- Foreign exchange earnings
- Optimum utilization of resources
- Achieving objectives
- Spreading business risks
- It is improving an organization’s efficiency
- Increases competitive capacity
- We get benefits from the government.
- Expand and diversity
Role Of An International Manager:
He has to decide as to how a business has to be global and closely monitor the global environment.
It has to be responsive to foreign customers, employees, and suppliers. It has an open communication system where problems and grievances of employees have to be quickly heard.
The company has to go through global structural stages:
- Pre international stage
- International division stage
- Global structure stage
Employees should hire and trained carefully. Management should be familiar with the country’s labor laws.
Cultural differences make principal function different, and language barriers make communication difficult.
Controlling is a crucial function for multinational managers. It becomes difficult due to geographical and language differences.