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Unit V

This document discusses several contemporary issues and challenges in management, including internationalization, digitalization, workforce diversity, democracy, sociocracy, entrepreneurship, innovation, and holistic measures of firm performance. Internationalization provides benefits like a wider customer base but challenges like cultural differences. Digitalization benefits include automation and innovations. Workforce diversity is both an opportunity and challenge that requires management support. Democracy and sociocracy involve applying democratic principles and self-organization within organizations. Entrepreneurship involves identifying opportunities and converting ideas into reality, while innovation involves new processes and products. Holistic performance measures firm impact on people, planet and profit.

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184 views17 pages

Unit V

This document discusses several contemporary issues and challenges in management, including internationalization, digitalization, workforce diversity, democracy, sociocracy, entrepreneurship, innovation, and holistic measures of firm performance. Internationalization provides benefits like a wider customer base but challenges like cultural differences. Digitalization benefits include automation and innovations. Workforce diversity is both an opportunity and challenge that requires management support. Democracy and sociocracy involve applying democratic principles and self-organization within organizations. Entrepreneurship involves identifying opportunities and converting ideas into reality, while innovation involves new processes and products. Holistic performance measures firm impact on people, planet and profit.

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UNIT V: SALIENT DEVELOPMENTS AND

CONTEMPORARY ISSUES IN MANAGEMENT


DR. PADMASAI ARORA
UNIT V

 Management Challenges of the 21st Century


 Factors reshaping and redesigning management purpose, performance and reward perceptions –
Internationalization
 Digitalisation
 Entrepreneurship and Innovation
 Values and Ethics, holistic purpose and measures of firm performance
 Workforce diversity
 Democracy and Sociocracy
 Subaltern management ideas from India
FACTORS RESHAPING AND REDESIGNING MANAGEMENT PURPOSE,
PERFORMANCE AND REWARD PERCEPTIONS –INTERNATIONALIZATION

 Changing nature of Workforce


 Ethics
 Globalisation
 Digitalisation/Technology
 Workforce Aspirations
 Workforce Diversity
 Customer Service and Relationship
 Innovation
INTERNATIONALISATION

 Reasons for going International:


 Saturation in domestic market or low growth potential
 Advances in technology and communication
 Support from government
 Availability of financial resources for expansion
 Expectation that new innovative product may find customers in the foreign markets.
INTERNATIONALISATION

 Benefits
 Wider customer base
 Economies of scale
 Growth
 Reputation
 Wider talent pool of employees
INTERNATIONALISATION

 Challenges and Issues


 Cultural Differences
 Relocating employees
 Employing workforce from the host country
 Different tax structure
 Localising the products
DIGITALIZATION

 Benefits
 Automation
 Innovations
 Satisfied customers
 Process streamlining
DIGITALIZATION

 Rise in E-Commerce and M-commerce platforms


 New business models
 Transforming business processes
 Changing business Domains
WORKFORCE DIVERSITY
 It is concerned with the similarities and differences in characteristics such as age,
gender, ethnic heritage, physical abilities, disabilities, race, caste among the employees
in the organisation.
 It is both a challenge and an opportunity for business.
 Different viewpoints
 Serve the customers better
 Communication problem
 Mistrust
 Cultural differences
WORKFORCE DIVERSITY: MANAGEMENT

 Support from top management


 Change in employment policies
 Creation of a support group
 Organising a diversity training programme
 Establishing a diversity monitoring mechanism
DEMOCRACY

 Industrial or workforce democracy means the application of democratic principles in


managing industrial units.
 It can be implemented in a variety of ways:
 Workers’ participation in decision making
 Valuing the opinions of workers
 Consulting the workers
SOCIOCRACY

 It is a governance method based on collaboration, self-organisation, and distributed


authority.
 It is designed for transparency, inclusiveness and accountability. Democracy does not
have a governance structure guaranteed to ensure them.
 Any member of the organisation at any level can propose new initiatives in their
respective circles.
 It produces greater commitment, higher levels of creativity, distributed leadership,
deeper harmony and dramatically increased productivity.
 It supports both unity and respect for the individual.
SUBALTERN MANAGEMENT

 The term ‘subaltern’ refers to the marginalised sections of the society.


 In the colonial era, very few Indians were appointed as managers in the multinationals
managed by the Europeans. They were considered inferiors and were at the lowest
level of management hierarchy.
 They were denied the rights and privileges enjoyed by the European counterparts.
 They were insulted and humiliated.
RISE OF SUBALTERN MANAGERS

 Because of the exceptional intelligence and higher aspirations, despite their


marginalisation, some Indians entered the European corporations and rose to high
positions due to their hard work and professionalism.
 Example: Prakash Tandon became the first Indian CEO of Hindustan Lever Ltd.
ENTREPRENEURSHIP

 Scouts for entrepreneurial opportunities


 Generates business ideas
 Converts ideas into reality
INNOVATION

 It is the process of doing new things or doing old things through new techniques.
 Examples: discovering a new market
 Introducing a new product
 Locating a new source of raw material
 Introducing a new manufacturing process not yet commercially exploited.
HOLISTIC PURPOSE AND MEASURE OF PERFORMANCE
 It emphasises that the business should be concerned with humanity, nature and society.
 Holistic purpose of business should focus on sustainability and triple dimensions namely people, planet
and profit.And performance should be measured against the benchmarks in these three areas.
 People: respect for everyone, workforce diversity, gender equality, shared values, equity and justice
 Planet: use of environment friendly products, reduction of use of plastics, chemicals
 Reuse of packaging material
 Recycling paper, aluminium
 Conserving electricity and water
 Profit: innovation, ROI, EVA, efficiency
 Holistic Score Card Approach:
 Improvement over the Balanced Score Card
 Developed by Suresh Chander and Leisten in2005
 Identifies 6 parameters: financial, customer, business process, intellectual capital, employees and social perspectives

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