According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals can cooperate towards the attainment of group goals”. As a manager, one has to effectively manage the employees to get better outcomes. Practices implemented by the managers for better management are known as Recent Trends in Management.
Emerging Trends in Management
Managerial trends keep changing from time to time based on dynamic market conditions. Some of the emerging trends in management are :
Total Quality Management
Total Quality Management (TQM) is a systematic approach followed by the entire organization to efficiently achieve the company's objectives to provide services and products with a high level of quality that satisfies the customer. TQM aims at continuous improvement of practices in the organization.
The Principles of TQM are as follows:
Customer Focussed- Customer satisfaction is the basis for determining the quality. An organization may perform various methods to promote better quality but ultimately quality is determined by the customer.
Continual Improvement- Continuous improvement steers an organization towards creativity to find more ways and become more competitive and meet the stakeholder expectation.
Total Employee Involvement- All employees are committed to perform and accomplish common goals when an appropriate environment is provided for them.
Process-Centric- The processes are well defined in this approach and are continuously monitored to find variations.
Systematic and Strategic Approach- A systematic and strategic approach is involved to accomplish the mission, vision and goals set by the organization.
Decision Making- Data collection and analysis play an integral part in performance evaluation and decision making.
A crisis is any situation that poses a threat to an organization or its stakeholders. Such situations are something that cannot be predicted or prevented. However, what organizations can control is how they respond to the crisis. Crises can be grouped as follows:
A risk is an uncertain event happening in an organization which may lead to a positive or negative result. It is a future event that has not occurred. A risk that has already taken place is considered as an issue.
Risk Management is a process of identifying, assessing and prioritizing risks followed by the application of resources to minimize or control or monitor the impact of negative future events or to take maximum advantage of positive risks.
Change is to modify or make something different from the previous state of a thing or a condition. Change management is a process in which the organization implements change by preparing and supporting the employees, taking necessary steps for change, etc. Monitoring the activities before and after the change is implemented to ensure its success.
Change often includes many different entities in an organization. A systematic approach is to be followed to bring in the transition and alleviate disruption. There can be resistance to change by people or processes or systems that are outdated.
Due to globalization, various global business practices have emerged. Global management refers to practices followed to manage international business.
When a business runs in different countries, its managers face challenges in such global scenarios. There is a need to have proper planning, decision making, controlling and organizing because of the differences in time zones, distances and cultural factors. Communication is the key to lead the employees across borders.
Global managers must have a thorough understanding of environmental and competitive issues.
Apart from the generic trends, there are specific trends related to operations, human resources and marketing management. A few are mentioned below.
Recent Trends in Operations Management
Supply Chain Management- Supply chain managers have the responsibility to fulfil the end-user needs at a quick pace because of shorter product life cycles, demanding customers and technology expansions. Supply chains are now revamped to incorporate digitalization along with traditional physical operations to create improvement in business outcomes.
Shrinking Product Life Cycle- In contrast to the earlier years where a product developed would stay in the market for a longer period has, the need to rapidly change in a short period due to the fast-expanding technologies can be seen nowadays.
Organizations are forced to bring in the rapid development of products to be more competitive and innovative, thus a product gets replaced by a new one quickly.
Recent Trends in Marketing Management
Customer Relationship Management- This plays a very important role in retaining customers by maintaining a good relationship with them by addressing their grievances on time and offering them desired products and services.
Emphasis on Quality, Customer Satisfaction, and Retention- Marketers emphasize providing the best quality to customers and also intend to “offer more for less” to give utmost satisfaction to their customers. This helps in retaining their customers for the long term.
Recent Trends in Human Resource Management
Workforce diversity is the inclusion of people in an organization based on various aspects such as age, gender, cultural background, physical abilities, and disabilities, etc.
Organizations that embrace workforce diversity will have a wide pool of applicants to choose from as their employees. When people from different backgrounds collaborate, they bring in innovation and new ideas to solve organizational problems and promote business growth. A problem will be dealt with in different perspectives from different people in contrast to a homogeneous group or an individual's perception which may be limited.
Different people think differently because of the experiences they come from, different backgrounds and having solved problems in different manners in the past. It also attracts diverse customers.