Chapter 10 Revision

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Chapter 10 Revision

• Management in the 21st Century

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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 regulations
• Customer 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

3
Change Management

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

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Why People Resist Change

• Psychology- People find change hard? (Afraid)?
  Loss of job, demotion, loss of pay, status,
  reputation
• Confidence? 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 change
• Disagree with the reasons for the change

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How Management Assist Staff Handle Change

• Honest Communication- Avoids worries from office
  gossip
• Allow feedback
• Negotiate fair deals
• Training- 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

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From controller to facilitator

• From Theory X style Manger to Theory Y style
  manager

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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.

8
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 responsibility
• Worker input into decisions
• Example Volvo (See book Pg 151)

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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.

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Benefits Of Team Organsisational Structure

• No worker boredom- as tasks are rotated
• Workers learn wider variety of skills
• Creativity-
• Improved quality decisions- as staff cooperate
  consult each other
• Decisions are made quicker- staff dont have to
  ask up the chain of command for approval- make
  decisions themselves

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Disadvantages of Team O. S.

• Personality clashes- some people dont 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

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TQM

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

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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

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Benefits of TQM

• Quality- good reputation
• Sales profits
• Costs- reduced waste
• Motivation- challenging to workers
• Legal (Consumer Laws) SOG SOS act 1980

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Problems with TQM

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

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Aims of TQM- Quality

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

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Aims of TQM- Benchmarking World Class
Manufacturing

• Characteristics of the worlds top performing
  businesses
• Usually use TQM principles
• Benchmarking- Other firms compare their
  performance standards to that of a WCM company
• Improves quality, productivity, efficiency
  competitiveness.

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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

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Techologys impact on role of mgt

• A) Marketing
• B) Production
• C) Human Resources

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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

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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.

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

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

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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

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• 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.