emerging trends in management [compatibility mode]

Dr. Harry CD [email protected]

Research Interests include Globally distributed teams / Virtual teams Behavioral patterns of distributed teams Software teams (WGX, TMX, LMX) Cross culture

Loyola School of Management, September 15, 2012

Part 1-The world in its form – Global Management

Part 2-Trends in Management

Emerging Trends in Management -2012 by Dr.Harry CD

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World on the edge

Emerging Trends in Management -2012 by Dr.Harry CD 3

In recent times, a series of mass protests are gripping notably UK, Spain, Italy, Greece, Egypt, Israel, India and numerous other countries around the world.

My considered opinion is that this is the outcome of accumulated anger stoked up by perennial poverty, deprivation, disparity, exclusion and marginalization in societies. The outburst is overtly directed against the persons in power for their misrule, corruption, nepotism, arrogance and denial to provide for the minimum. The unprecedented riots across England are found to be caused by the "social selfishness" of the "insulated haves... and their regular denigration of the poor."


Changing Management Scenario

Current trends include managers that manage the work and not the people. Work is more predictable than people . Rather than trying to manage people so strictly, managers are living in the light and kindness with employees as they are real

people; their own neighbors.


Contemporary Management styles 1. Micro and Macro management 2. Virtual and Open source management 3. Globally distributed management 4. Global and International Management 5. Business ecosystems –Networked Management 6. Green Management 7. Smart Management 8. Sustainability management

International and Global Management is concerned with the techniques and practices that are involved in directing and controlling international organisations.

Green management measures such as certified environmental management systems (EMS) or tools like life cycle assessment activities are considered to improve corporate environmental performance directly by mandating companies to introduce environmental goals and management structures as well as programs to achieve them 2(Coglianese and Nash, 2001; Johnstone, 2001)


S.M.A.R.T. Management includes (specific, measurable, achievable, realistic, and time-based.) methods of implementation

Sustainable management takes the concepts from sustainability and synthesizes them with the concepts of management. Sustainability has three branches: the environment, the needs of present and future generations, and the economy


The micro-manager keeps you under scrutiny, questioning your moves. S/he gives advice on your work whether or not you think it's necessary. At times you don't feel trusted. You may appreciate his/her concerns when needed, but also think s/he doubts your capabilities when you're doing a capable job. Pro: They're there when you don't need them Con: They're there when you do need them

They engage the lowest frequency emotion, FEAR, in the workplace. Fear ----> frustration -----> Depression ---->Sabotage ----> Accidents ----->or Lack of Productivity . Too much micromanagement can cost a company its best and brightest.


The macro-manager is the opposite : S/he may be absent often, leaving you to make all/most of the decisions, s/he isn't abundant with advice, but expects a certain level of competency, whether or not the few directions given are completely understood. His/her absenteeism be a relief for awhile, but his/her lack of direction can come across as detached and apathetic, and may be frustrating when you're left with even the responsibilities s/he should be making.

Pro: They aren't there when you don't need them Con: They aren't there when you do need them


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New trend in management propose the presence of three psychological states that could result in a highly motivated and productive worker. The worker must experience: 1. Meaningfulness or significance of their job 2. Responsibility for outcomes 3. Feedback on the work performed Wise management never underestimates people's pride and dignity for work. Recognition goes a long way. When the environment is happy, work translates to play. Money matters but that's not all there is.


Emerging Trends in Management -2012 by Dr.Harry CD Name of

Organization Total

revenue FY 2010 (In

USD-Billion)

Employees strength

Geographical locations

(Countries)

Overall number of

offices

TCS 8.26 198000 42 200

Infosys 6.35 133560 30 63

Wipro 6.0 100000 70 100

HCL Technologies

5.9 80000 31 60

IBM 100 426751 170 ___

Gap Gemini --- 110000 40 136

Ness 0.5 6900 18 36

Information on Technology Companies

Source: Harry CD, 2012, OCB of distributed teams: A study on the mediating effect of organizational justice in software organizations

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Electronics Companies

Countries Operating in

Flextronics 30

Sony 183

Canon 44

LG 40

Samsung 100

Automobile Companies

Countries Operating in

Ford 70

GM 157

Toyota 28

Benz & BMW 35 & 150 respectively


Trends in Management


The 5 Most Prominent Management Trends of the 21st century – Working Knowledge - the Harvard Business School publication

Globalization The melting of barriers among nations and their increasing interconnectedness, accelerated by technology , has led to a change in the world order that has had a profound impact on global business. The emergence of nations such as India and China has replaced the era of unquestioned dominance of the Western countries or any one particular region, paving the way for a flattened business arena where developments in one part of the other are certain to have a spiraling impact. Perhaps the best evidence of this is the recent financial crisis. Technology If the current wave of globalization has been the driving force behind the most far-reaching and powerful changes in business, then information technology has indisputably been the facilitator. Emerging Trends in Management -

2012 by Dr.Harry CD 14

Sustainability and Corporate Social Responsibility For business to be sustainable, and even profitable, our planet has to be sustainable - this realization has hit businesses perhaps the hardest in recent times. HBS Dean Nitin Nohria feels that in the coming decade, we are likely to see a lot of focus directed towards applying management principles to solutions of complex social issues such as environmental sustainability, energy security, access to healthca re etc. This will also underline the need for increased interdisciplinary interaction and influence on business management. The Study of Psychology Speaking of interdisciplinary influences on business, the study of human psychology - probing into cognition, motivation, behavior and performance - has become a key pillar of organizational management. From employee management to customer satisfaction and social engagement, satisfaction of business objectives requires effective analysis of both individual and institutional psychology.


Business Ecosystems Professor Carlyss Y. Baldwin feels that one of the most notable trends in management has been the rise of business ecosystems - defined as groups of firms which together provide complex prod ucts and related services to meet end-to- end requirements of users across the value chain . The integration between media, technology and telecommunication firms would be an apt contemporary example.


The Latest Trends in Business 1. Shareholder Value as a Strategy. 2. IT as a Utility. The cloud. 3. The Customer Chorus. Brought to you by

social networking. 4. Enterprise Risk Management. None too

soon. 5. The Creative Organization. Innovation

matters. 6. Open Source. Community resources

beyond software. 7. Going Private. SOX workaround. 8. Behavioral Economics. Freakonomics,

anyone? 9. High Potentials. Nurture, nurture, nurture. 10. Competing on Analytics. Well beyond the

gut level. 11. Reverse Innovation. R&D closer to global

markets. 12. Sustainability. Green is good.

“Unless you are networking, you will soon be not working” Dr Denis Waitley


ENABLERS

Challenges at work Environment conducive to continuous learning Recognition for work done High degree of autonomy Free flow of information / Communication Timely feedback Opportunities to exercise initiative and

creativity Opportunities for expansion of sphere of

expertise High pay and perks, ESOPs Creating a ‘Communal Culture’ – Striking

balance between an individualistic task focus and a social club.

Sub contract and fragmented projects Insecurities and threats due to rapid pace of

change in area of expertise Ambiguity and uncertainty in software

organisation. Role of Politics. Difficulty to have face to face contact with the

customer to clarify project requirements. Lack of human touch and care Dearth of management expertise at middle and

top management level

INHIBITORS Some Enablers and Inhibitors affecting Performance in Indian Software Industry

♦ Core competency ♦ Innate goodness ♦ Adapting to changes rapidly ♦ Positive Attitude ♦ Enhanced quality of work ♦ Team Spirit and teamwork

♦ Alienation and burnout ♦ Attrition ♦ Selfishness ♦ Unaccountability ♦ Loss of trust

Performance



- Is viewing the world solely through one’s own eyes and perspectives. –Is not recognizing that others have different ways of living and working. –Is a significant obstacle for managers working in a global business world.

–Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is better

than theirs” to foreign cultures.

Red tapeism / Protectionism

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Emerging challenges

• Coping with the sudden appearance of new competitors • Acknowledging cultural, political, and economic differences • Dealing with increased uncertainty, fear, and anxiety • Adapting to changes in the global environment • Avoiding parochialism

Adopting a Global Perspective

Ethnocentric Attitude The parochialistic belief that the best work approaches and practices are those of the home country. Polycentric Attitude The view that the managers in the host country know the best work approaches and practices for running their business. Geocentric Attitude A world-oriented view that focuses on using the best approaches and people from around the globe

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Political Regrouping for Business

The European Union (EU) A unified economic and trade entity Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland, and Sweden North American Free Trade Agreement (NAFTA) Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees) United States, Canada, and Mexico U.S.-Central America Free Trade Agreement (CAFTA) Free Trade Area of the Americas Southern Cone Common Market (Mercosur) Association of Southeast Asian Nations (ASEAN) Trading alliance of 10 Southeast Asian Nations African Union South Asian Association for Regional Cooperation (SARRC)

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World Trade Organization (WTO) • Evolved from the General Agreement on Tariffs and Trade (GATT)

in 1995.

• Functions as the only global organization dealing with the rules

of trade among nations.

• Has 149 member nations and 32 observer governments.

• Monitors and promotes world trade

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The way IT industry is identified

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Managing in a Global Environment The Legal Environment �Stability or instability of legal and political systems �Legal procedures are established and followed �Fair and honest elections held on a regular basis �Differences in the laws of various nations �Effects on business activities �Effects on delivery of products and services The Economic Environment - Economic Systems - Free market economy - An economy in which resources are primarily owned and controlled by the private sector. - Planned economy - An economy in which all economic decisions are planned by a central government. - Monetary and Financial Factors •Currency exchange rates

•Inflation rates

•Diverse tax policies 24


The Cultural Environment – Localisation of culture Is the values and attitudes shared by individuals from a specific country that

shape their behavior and their beliefs about what is important.

May have more influence on an organization than the organization culture.

Challenges and Risks •Giving in to a culture of collaboration •Avoiding protectionism •Openness associated race, colour and culture

•Accepting leadership styles and management approaches

Risks �Loss of investments in unstable economic environment

�Increased terrorism

�Economic interdependence

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What Are Americans Like

Americans are very informal.

Americans are direct.

Americans are competitive.

Americans are achievers.

Americans are independent and individualistic.

Americans are questioners.

Americans dislike silence.

Americans value punctuality.

Americans value cleanliness. Sources: Based on M. Ernest (ed.), Predeparture Orientation Handbook: For Foreign Students and Scholars Planning to Study in the United States (Washington, DC: U.S. Information Agency, Bureau of Cultural Affairs, 1984), pp. 103–05; A. Bennett, “American Culture Is Often a Puzzle for Foreign Managers in the U.S.,” Wall Street Journal, February 12, 1986, p. 29; “Don’t Think Our Way’s the Only Way,” The Pryor Report, February 1988, p. 9; and B.J. Wattenberg, “The Attitudes behind American Exceptionalism,” U.S. News & World Report, August 7, 1989, p. 25.

Contacts:

[email protected]

+91 9845713736

Thank you
