UNIT IV- RECENT TRENDS IN

MANAGEMENT
This concept was originated by “Peter F. Drucker” in the
year 1954 in his book – The Practice of Management and
he is also known as the Father of MBO (Management by
Objectives).
Definitions of Management by Objectives (MBO)

• According to Koontz and Weihrich,“Management by Objectives is a

comprehensive managerial system that integrates many key
managerial activities in a systematic manner and it consciously
directed toward the effective and efficient achievement of
organizational and individual objectives.”

• According to George Odiorne“MBO is a process whereby the

superior and subordinate managers of an organization jointly identify
its [the organization’s] common goals, de- fine each individual’s major
area of responsibility in terms of the results expected of an individual,
and use these measures as guides for operating the unit and
assessing the contribution of each of its members.”
Features of Management by Objectives (MBO)

i. Goal-oriented
ii. Participation of all
iii. Focuses on KRA
iv. Dynamic
v. Managerial philosophy
vi. Serve as a criterion
vii. Continuous process
Objectives of Management by Objectives (MBO)

i. To aid employees in realizing their responsibilities at

work
ii. To make employees feel valuable in the organization
iii. To guarantee the effectiveness among employees
iv. To produce clearly specified hierarchies
v. To set a benchmark for every employee
vi. To serve as a device for organizational control and
integration.
vii. To serve as a basis for judgements about salary and
promotions.
Management of Crisis
Management of Crisis

• Management of Crisis refers to the structured and

proactive approach taken by organizations to effectively
navigate and mitigate the impact of unexpected an
potentially damaging events or situations. It involves the
timely identification assessment, and response to crises,
with the overarching goal of minimizing harm to
stakeholders, preserving the organization's reputation,
and facilitating a swift recovery.
• Crisis management encompasses various activities,
including risk assessment contingency planning,
communication strategies, and coordination of resource. It
requires clear leadership, decisive decision-making, and
collaboration across a levels of the organization.
• Effective crisis management involves not only reacting to
immediate threats but also anticipating and preparing for
potential crises before they occur.
• By implementing robust crisis management protocols,
organizations can enhance their resilience, maintain
stakeholder trust, and emerge stronger from challenging
situations.
Importance of Crisis Management
• Preservation of Reputation
• Minimization of Damage
• Risk Mitigation
• Protection of Stakeholders
• Legal and Regulatory Compliance
• Organisational Learning and Improvement
• Maintain Business Continuity
• Strategic Advantage
Total Quantity Management (TQM)
Total Quality Management (TQM)
• According to Philip B. Crosby, Total Quality Management
(TQM) is "an approach to management that is aimed at
embedding awareness of quality in all organizational
processes. TQM requires that the company maintain this
quality standard in all aspects of its business.“

• According to W. Edwards Deming, Total Quality

Management (TQM) is "a systematic approach to
continuous improvement, emphasizing the importance of
statistical methods and teamwork to achieve
organizational goals and satisfy customer needs."
• According to Joseph M. Juran, Total Quality Management
(TQM) is "a philosophy that focuses on meeting or
exceeding customer expectations by emphasizing quality
throughout all organizational processes, from planning to
delivery."

• According to Kaoru Ishikawa, Total Quality Management

(TQM) is "a management approach that emphasizes the
importance of employee involvement, process
improvement, and customer satisfaction to achieve
organizational success."
The Key Players in Total Quality Management:
Customers, Suppliers, and Employees
What are the Principles of Total Quality
Management (TQM)?
• Customer Focus
• Leadership Commitment
• Employee Involvement
• Process-Oriented Approach
• Continuous Improvement
• Evidence-based Decision Making
• Supplier Relationships
The Seven Basic Tools of Total Quality
Management
• The American Society of Quality (ASQ) attributes
attributes “the basic seven” tools of quality, sometimes
known as 7 QC (Quality Control) tools, to Kaoru Ishikawa.

• These quality management tools are instrumental in

analyzing data, identifying problems, understanding
processes, and making informed decisions to improve
quality within an organization.
Visual tools to identify
and analyze potential
causes contributing to
a specific
problem or outcome.
Simple forms or charts
to collect and organize
data systematically,
facilitating easy analysis.
Statistical
graphs monitor
variations and
track process stability
over time,
distinguishing between
common causes and
assignable causes of
variations.
Common graph for
data distribution,
helping users identify
variations and
patterns in a dataset.
• Pareto distribution to display factors in descending
order of frequency or impact, useful to highlight the
most significant issues.
• A scatter plot visualizes the relationships between two
variables to identify correlations or trends.
Diagrams illustrating
the sequence of steps
or processes, aiding in
understanding and
optimizing workflows.
Examples
Toyota Production System (TPS)

Often cited as a prime example of TQM, introduced by

Toyota in 1961, it emphasizes continuous improvement,
elimination of waste, and respect for people. It includes
practices like Just-in-Time manufacturing and Kaizen
(continuous improvement) to enhance quality and efficiency
in manufacturing processes.
Motorola’s Six Sigma
• Motorola developed the Six Sigma methodology in 1986.
It is a quality management technique focused on reducing
defects and variation in processes. This management
system and approach to process thinking have been
widely adopted by other industries to drive quality
improvement
• Healthcare Sector
Hospitals and healthcare institutions implement TQM
principles to enhance patient care, reduce medical errors,
and streamline processes. For example, using Lean Six
Sigma methodologies improves efficiency in emergency
room operations or in reducing pa
tient waiting times
Advantages/Merits of TQM
Improved Product Quality
Enhanced Customer Satisfaction
Increased operational Efficiency
Empowered Employees
Competitive Advantage
Better Decision Making
Stronger Supplier Relationship
Demerits/ Disadvantages of TQM
Implementation Costs
Time Consuming
Resistance to Change
Overemphasis on Metrics
Risk of Burnout
Cultural challenges
Inflexibility
Unrealistic expectations
Significance/Importance of TQM
• Customer Satisfaction
• Improved Product Quality
• Enhanced Organisational Efficiency
• Employee Engagement and Empowerment
• Competitive Advantage
• Sustainable Growth
• Stakeholder Confidence
 Stress Management
• What is Stress?
• Stress can be defined as a state of worry or mental
tension caused by a difficult situation. Stress is a natural
human response that prompts us to address challenges
and threats in our lives. Everyone experiences stress to
some degree. The way we respond to stress, however,
makes a big difference to our overall well-being.
Stress Management
• The concept of stress management revolves around
understanding, coping with, and alleviating the negative
effects of stress on an individual's physical, emotional,
and mental well-being.
• Stress management encompasses various strategies and
techniques aimed at reducing stress levels, enhancing
resilience, and promoting overall health and productivity.
Principles of Stress Management
• Managing Stress involves adopting various principles and
techniques to cope with and reduce its impact on mental and
physical well being.
• 1. Awareness
• 2. Healthy Life Style
• 3. Time Management
• 4. Relaxation Techniques
• 5. Social Support
• 6. Boundaries and Assertiveness
• 7. Problem Solving Skills
• 8. Cognitive Restructuring
• 9. Humour and Laughter
• 10. Self Care Practices
• 11. Seeking Professional Help
Advantages of Stress Management
• Improved Physical Health
• Enhanced Mental Well-being
• Increased Productivity and Performance
• Better Relationships
• Enhanced Coping Skills
• Increased Resilience
• Improved Sleep Quality
• Enhanced Quality of Life
Demerits of Stress Management
• Overemphasis on Coping
• Potential for Avoidance
• Misuse of Strategies
• Dismissal of underlying issues
• Individual Variability
• Time and Effort
• Stigma or Resistance
• Cost Considerations
• False Promises
• Dependency Risk
Significance of Stress Management
• Healthy Promotion
• Mental Well-being
• Enhanced Coping Skills
• Improved Relationships
• Increased Productivity and Performance
• Better Quality of Life
• Prevention of Burnout
• Longevity and Aging
Knowledge Management- Meaning,
Merits, Demerits
Meaning:
• Knowledge management (KM) is the process of
identifying, organizing, storing and disseminating
information within an organization.

According to Peter Drucker, "Knowledge Management is

the coordination and exploitation of organizational
knowledge resources, in order to create benefit and
competitive advantage."
Types of Knowledge
• Tacit Knowledge
• This is personal knowledge that comes from experience.
• It’s hard to explain or write down.
• Examples: Knowing how to ride a bike, recognizing faces,
or being a good leader.
• Problem: It’s tricky to share with others because it’s
mostly in your head.
• Implicit Knowledge
• This is "hidden knowledge" that’s not written down yet
but could be.
• It’s part of the way you do things or the steps in a process.
• Examples: How you fix a machine or how you solve
problems at work.
• Problem: It’s not always obvious, so it needs to be
documented to share.
• Explicit Knowledge
• This is written-down knowledge that’s easy to share.
• It’s stored in things like manuals, reports, or online guides.
• Examples: A company’s training manual, a user guide for
a device, or a database.
• Benefit: It’s easy to teach others and pass on to new
employees.
Benefits/ Merits of Knowledge Management
• Identification of the skill gaps
• Make better informed decisions
• Maintains enterprise knowledge
• Operational efficiencies
• Increased Collaboration and communication
• Data Security
Demerits of Knowledge Management
• Resource Intensive
• Resistance to Change
• Technology Dependence
• Technology Dependence
• Quality Control
• Information Overload
• Knowledge Hoarding
• Lack of Alignment with Strategy
• Cultural Barriers
• Privacy and Security Concerns
Cross Cultural Management
• Cross-Cultural Management is the study and practice of
managing a workforce composed of individuals from
diverse cultural backgrounds. It focuses on understanding
cultural differences and leveraging them to foster effective
communication, collaboration, and productivity within an
organization operating in a globalized environment.
• Cross-cultural management is the art of recognising,
comprehending and navigating cultural differences within
the business world. It requires an in-depth exploration of
the complex network of beliefs, values, behavioural
norms, communication styles, and business customs
across different cultures. The managerial approaches in
cultural management will change to suit different settings.

• Cross-cultural management focuses on accepting and

utilising these differences to cultivate an environment
where diversity is applauded
Key Elements of Successful Cross-
Cultural Management
• Recognising Cultural Variances
• Efficient Communication
• Encouraging Inclusivity
• Modifying Management Approaches
• Training and Growth
Importance of Cross Cultural
Management
• Facilitates Global Expansion
• Enhances Communication
• Promotes Innovation
• Boosts Employee Satisfaction and Retention
• Improves Performance and Productivity
Agile Management
• Agile management is a way of working that helps teams
finish tasks step by step instead of all at once. It focuses
on being flexible, working together, and delivering results
quickly. Teams break down big projects into smaller parts,
check their progress often, and make changes as needed
to meet customer needs better.
Advantages of Agile Management
• Quick Results: Work is delivered in small pieces, so
customers see progress faster.
• Adaptability: Plans can change easily to fit new ideas or
needs.
• Teamwork: Encourages open communication and
collaboration between team members and customers.
• Customer Satisfaction: Regular updates and feedback
help create a product or service that fits what the
customer truly wants.
• Continuous Improvement: Teams learn from their work
and improve processes along the way.
Disadvantages of Agile Management

• Can Be Confusing: Without proper planning, teams

might lose direction.
• Not for Every Project: Some projects need a fixed plan,
so Agile might not work.
• Needs Discipline: Teams need to stay focused and
organized to avoid chaos.
• Time-Consuming Meetings: Regular check-ins and
discussions can feel excessive.
• Difficult to Scale: Managing Agile in large organizations
or teams can get tricky.