Changing Environment Ppt

8/11/2019 Changing Environment Ppt

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CONTEMPORARY

MANAGEMENT

Prof. Naik

MET IOM

Session 2 Changing Environment of Management



Content Outline

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Influencing Forces

External Environment

Direct Forces

Indirect Forces

Internal Environment

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You will learn about:



Objectives

Analyze the impact of the internal forces of organization

on managerial performance/functions

Identify the effects of the external forces of organization

on managerial performance/functions

Investigate the various trends in Human Resources

affecting the management of an organization

At the end of this session, you will be able to:

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CHANGING

ENVIRONMENT OF

MANAGEMENT

Prof. Naik

MET IOM



Changing Environment

An organization's ability to learn, and translate thatlearning into action rapidly, is the ultimate competitiveadvantage.

Globalization has changed us into a company thatsearches the world, not just to sell or to source, but to findintellectual capital - the world's best talents and greatestideas.

Strong managers who make tough decisionsto cut jobs provide the only true job security

in today's world. Weak managers are the

problem. Weak managers destroy jobs.

What is the change?

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Forces

Objective: To identify the external and internal forcesaffecting

an organization

Task: Choose a group leader for your group

The group leader will present the points aboutthe external and internal forces discussed in the two

articles given you’ll in the earlier class

Time: Each group- 5 mins

Get Ready Discussion

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http://www.oppapers.com/essays/Internal-External-Factors-Management/150272?topic



Managers and EnvironmentImportance of Knowing the Environment

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The managers job cannot be accomplished in avacuum within the organization.

There are a number of factors both internal aswell as external which jointly affect managerialdecision-making.

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Important for the manager to understand and evaluatethe impact of the business environment due to thefollowing reasons :

1. Businesses may be doomed or be non starters due torestrictive business environment

Examples:

Rigid government laws ( no polluting industry can everbe located in around 50 Km radius of the Taj) ,

State of competition ( Car manufacturing capacitypresently in the country is far in excess of demand)

etc.


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2. The present and future viability of an enterprise isimpacted by the environment

Example:

No TV manufacturer can be expected to survive bymaking only B&W television sets when consumerpreference has clearly shifted to colour television sets.

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3. The cost of capital and the cost of borrowing - two keyfinancial drivers of any enterprise are impacted by theexternal environment.

Example:The ability of a business to fund its expansion plan byraising money from the stock markets depends on theprevalent public mood towards investment in stockmarkets.

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4. The availability of all key inputs like skilled labour ,trained managers , raw materials , electricity ,transportation , fuel etc are a factor of the businessenvironment.

Example:

Mahindra and Mahindra- Igatpuri Plant- Unhealthywork culture, Long production cycle

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M d E i t




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5. Increasing public awareness of the negative aspects ofcertain industries

Example:

Hand woven carpets (use of child labour) ,Pesticides (damage to environment in the form ofchemical residues in groundwater),

Plastic bags (choking of sewer lines) have resulted in

the slow decline of some industries.

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M d E i t




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6. The environment offers the opportunities for growthand profits .

Example:

When the insurance and aviation industry was thrownopen to the private sector , the new entrant couldeasily build on the expectations of the public- Low Cost

Airlines.

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M d E i t



Forces influence managerialperformance/functions

Managers and EnvironmentInfluencing Factors

External

Internal

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I t l E i t




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Which Forces are these?

Objective: To identify the forces in the internal environmentaffecting the performance of Managers

Task: Brainstorm about the forces within anyorganization you are familiar with

Time: 10 mins

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E t l E i t









Includes all the forces acting on theorganization from the outside

Direct Forces

Indirect Forces


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E t l E i t



Direct Forces


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The

Managerand the

organiza-

tion

Customers:

Present and

Future

Competitors

•Intratype

•Intertype

Suppliers

•Raw

materials

•Funds

•Energy

•Equipment

Human

Resources

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E t l E i t



Customers (Present & Future)

Most Vital direct force

Most important job- find a customer (Peter Ducker)

Preferences-may change Complaint books

Telephone enquires

Individual difference (differ in age, sex, income)

Organisations (service, quality, delivery)

Direct Forces


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E t l E i t



Competitors

Organization’s opponents, the companies against which

the organization competes for customers and needed

resources in the external environment

Intra type :

Produce same/similar type of products/ services,

e.g. Acer and Dell

Maruti Suzuki and Tata Motor Company

Air India and Kingfisher Airlines

IIM and MET

Direct Forces


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E t l E i t



Competitors

Organization’s opponents, the organisations against

which the organization competes for customers and

needed resources in the external environment

Inter type :

Distinctly different and competing organizations

e.g. Birla Sun Life Financial Services and HDFC

Mutual Funds

Hewlett-Packard Company and Microsoft

Corporation compete against the Indian Naval

forces for talented computer software

programmers

Direct Forces


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E ternal En ironment



Suppliers

Resource Suppliers

Funds

Energy

Equipment

ServicesMaterials

Direct Forces


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to

produce




Human Resources- Recent Trends

Cultural/ Social Diversity

Managers have to balance wants,needs, perceptions,

attitudesUrban/Rural Educated

Own values, Cultures

Direct Forces


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Cultural/ Social Diversity

Direct Forces


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Diversity

Race and

Ethnicity

Country

of Birth

Country

of Birth

Age

Gender

Economic

Backgroun

dEducation

Backgroun

d

Skill Level

Sexualpreference

Religious

Affiliation

Experienc

e





Downsizing/outsourcing

Jobs being phased out

Loyalty to company is weakening

Anxiety- Low trust

Low job security has created not closer but arms length

relations between manager & workers

Direct Forces


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Flexitime- Flexible Working Hours

Workplace flexibility

Direct Forces


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WOMEN in Workforce

Direct Forces


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Let’s Debate


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Objective: To analyze the changing trend of women inworkforce

Task: WOMEN are hidden engine of WORLDGROWTH

Debate about:WOMEN and Management- in positions of

Power

Does it affect the working of an organization?

Time: 20 mins




Direct Forces


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Indra Nooyi

CEO Pepsico

Neelam Dhawan

Managing Director,

Microsoft India

Chanda Kocchar

Deputy Managing

Director of ICICI

Bank Limited

Mallika Srinivasan

CEO of Chennai, India-

based Tractors and Farm

Equipment (Tafe),

Shobhana Bharatiya

Vice-Chairperson and EditorialDirector of the Hindustan Times group




May affect managers in 2 ways :

(1) Outside organizations

Direct influence on an organization or an indirect

influence through a direct force.Example: Times of India campaign against Corruption

(2) Inside organizations

Influence climate in which organization must work

Example: Economy-contracts or expands organization

Indirect Forces


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Indirect Forces


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The

Managerand the

organiza-

tion

Customers:

Present and

Future

Competitors

•Intratype

•Intertype

Suppliers

•Raw

materials

•Funds

•Energy

•Equipment

Human

Resources

Inter

national

Economic

Political,

Legal

regulatory

Cultural and Social

Technological

The

Managerand the

organiza-

tion

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Indirect Forces


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Economic:

Interest rates,

Funds from capital marketing

Recession

Technological:

Power of computer system in the organisation

Ultra sound treatment in hospitals

Political, Legal & Regulatory:

Minimum wages Act

Pollution Control




Indirect Forces


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Cultural & Social:

Festivals

Pitrupaksh

Drinking/ smoking due to peer pressure

International/ Global:

MNC’S entering Indian Markets

Indian organisations going abroad





Day to day forces within the organization setting in

which Manager works and carries on activities

Skill requirements & role performance are importantforces for the manager in the internal environment.

Levels in management-Three levels(seen earlier)

Managerial Roles and Skills(We will see later)

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Recap



Recap

Changing environment of Management and the

affecting Forces

Internal Forces

External Forces

Direct

Indirect

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In today’s session we discussed about:

Assignment



Objective: To identify forces affecting environment an organization

Task: Analyze the recent case of Air-India Strike1. Which forces affected the working environment of Air

India

2. Who all were affected by the decisions3. What role did management play in this case4. What were the problems raised5. How was the case sorted out and what were the

solutions6. In your opinion did the management take correct steps.

Justify

Assignment

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In today’s session we discussed about:



THANK YOU

Session 1- Management- Science Theory and Practice

Prof. Naik

MET IOM

Documents

Changing Environment Ppt