Chapter 10 Revision

Management in the 21st Century

Reasons for changing role of Managment

Technology-constantly changing-mobile phones, robotics, internet, workers working away from traditional workplace

Government laws & regulations- Consumer rights, environmental laws, worker regulationsCustomer expectations-innovative products of high quality

Competition-(EU) to compete with global rivals must continually strive for improvements in product design, customer service etc

Employee expectations- job conditions, highly educated workers, use talents & skills

Change Management

The process of anticipating & adapting to the changing world of business. Mgt must ensure their organisations are adaptable to cope with:

Why People Resist Change

Psychology- People find change hard (Afraid) Loss of job, demotion, loss of pay, status, reputationConfidence Mgt may lack the confidence in workers ability to cope with change. Workers themselves might not have the confidence in their own ability. Communciation Staff may be unaware of the reasons for changeDisagree with the reasons for the change

How Management Assist Staff Handle Change

Honest Communication- Avoids worries from office gossipAllow feedbackNegotiate fair dealsTraining- so workers are comfortable with changes.Create positive corporate culture towards change-implement work rotation where workers try all tasks (also avoids boredom)Employee Particiaption- Ecourage workers to take on more responsibility & be involved in decisions that effect them

From controller to facilitator

From Theory X style Manger to Theory Y style manager

Employee Empowerment

Providing staff with the power to make their own decisions about what jobs to do and how they should do them as long as it improves the performace of the firm.

Team Organisational Structure

Where staff work together in teams to achieve goals. There are no supervisors, instead there are team leaders & this role is rotated. The team is made up of different types of workers with the different skills needed to achieve the team goals.Workers given responsibilityWorker input into decisionsExample Volvo (See book Pg 151)

Forming Successful Teams

Forming- Form team with the right combination fo skills, technical knowledge, problem-solving & communication skills.

Storming-Members are given roles- e.g. Team leader, person to record decisions etc. All members of team have equal say.

Norming- Establish good ground rules so team can work well together. Conflicts will arise but should be centered around task & not personality clashes.

Performing- Once formed, the team needs to work together to achieve the goals it was set up to achieve.

Benefits Of Team Organsisational Structure

No worker boredom- as tasks are rotatedWorkers learn wider variety of skillsCreativity- Improved quality decisions- as staff cooperate & consult each otherDecisions are made quicker- staff don’t have to ask up the chain of command for approval- make decisions themselves

Disadvantages of Team O. S.

Personality clashes- some people don’t work well in teams. Initial changeover from assembley line take time to get used to. Some team members take a back seat & allow others take the slack

TQM

Total Quality ManagementStyle of management which tries to create a culture of quality throughout every part of the organisationEg high quality raw materials, treat collegues as if they were customers, good customer service, high quality prodcuts.

Creating TQM

Recruitment- employ conscientious workers

Training- Quality mgt training courses

Reminders – notices around workplace

Rewards & incentives- Employee of the month, bonuses

Leadership- Mgt should lead by example

Quality Circles

Benefits of TQM

Quality- good reputationSales = profitsCosts- reduced wasteMotivation- challenging to workersLegal (Consumer Laws) SOG& SOS act 1980

Problems with TQM

Slow to implement- employees resist changeRisk of Failure- only work if staff are motivated and willing to improve quality, if not a wasted investment

Aims of TQM- Quality

Quality Control- Process of checking standards of goods & services are produced to the highest & desired qualityQuality assurance-aim of quality control ISO 9000 international series of certs given to frims who achieve very high quality control standardsQ mark - Irish

Aims of TQM- Benchmarking World Class Manufacturing

Characteristics of the worlds top performing businessesUsually use TQM principlesBenchmarking- Other firms compare their performance standards to that of a WCM companyImproves quality, productivity, efficiency & competitiveness.

Quality Circles (Japan)

Discussion groups of workers who meet to identify quality problem areas and consider solutions and recommend solutions to management. Benefits:Ideas from front line staff (factory floor workers)Worker motivation as workers feel valued as their opinions are taken into consideration

Techologys impact on role of mgt

A) MarketingB) ProductionC) Human Resources

A) Marketing

Market Research- (collecting, recording & detailed analysis of information about a market)- use of internet for info about market & similar firms, onl-line questionnaires

Advertising- Low cost advertising (shop front on line) own website, advertise on popular websites, email customers advertisements, text message ads. Cheaper than printing & posting ads. Sell on line with credit card

B) Production

Computer Aided Design- computer programme to speed up design process e.g. Car companies can simulate wind tunnel tests on cars electronically without leaving their desks.

EDI (electronic data interchange) allows businesses to be connected by computer. automatic stock ordering system where RM are ordered electronically & automatically when needed from suppliersAdvantages: Speed, no human error, no paper work, no stock outs, invoices sent out on time, improved customer satisfactionDisadvantages: initial set-up costs (hardware, software, training of staff), must persuade your suppliers to introduce EDI

CIM (Computer Integrated Manufacturing) uses IT to control the whole production process from design, raw materials management to production & quality control

C) Human Resources

Recruitment- on-line recruitment agencies

Training- multimedia computers e.g. ECDL

Teleworking- working from home with internet, fax machines, video-conferencing

Redundancies- IT has made some jobs unnecessary

Electronic Clock- in systems

Create an organsiational structure to allow for flexibility (Theory Y Approach)Employee Empowerment- Give workers goals & allow them achieve the goals however they see fit.