K. Cole, Management: Theory and Practice 4e Chapter 1 PPT

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Chapter 1Chapter 1

The Changing

Work Environment

Cole: Management 4e © 2010 Pearson Australia2

Thinking ahead

Are you aware of the major trends in our rapidly changing world?

Are you aware of the forces driving our national economy and how these affect organisations?

Do you know how the workforce has changed over time and is still changing?

Are you aware of the skills needed to manage in this changing world?


The five major trends affecting organisations


Changes: the major trends

Climate Change

Environmental changes

Environmental risks

Environmental opportunities

Environmental responsibilities



Globalisation

No national borders

Large world-wide market

Tougher competition

Greater opportunities


Change: the major trends

The Knowledge Economy

Change from mostly manual labor to services and mental work

High levels of knowledge and skill needed



Society

Australians are:

living longer

getting older

reproducing less

becoming more diverse through immigration



Information Technology

Rapid change

New technology products

New ways of working through technology


New ways of working

Casualising jobs

Workers change jobs and careers more frequently than in the past

Full time permanent jobs are replaced by many casual, part-time and temporary jobs


New ways of working

Outsourcing

Contracting out work to independent providers is now common to save money

This is a global, national and local trend


New ways of working

Telecommuting

More people are working from home

Time is saved traveling and hours are flexible

Organisations save rent on city office blocks


A new workforce

The Changing Employee Mix

The Australian workforce of mostly full time male employees has become

part-time

casualised

culturally diverse


A new workforce

A More Disgruntled Workforce

Downsizing has

increased workloads

caused insecurity

caused friction


A new workforce A Shrinking, Greying Workforce

A severe labor shortage is looming

As 7 Baby Boomers retire only 1 new entrant will join the workforce


A new workforce A More Skilled Workforce

Jobs have moved from “growing and making” to “thinking and helping”

Today’s employees have to be

multi-skilled

flexible

independent workers


A new workforce

Outsourcing

Contracting out work to independent providers is now common to save money

This is a global, national and local trend


A new workforce

A New Way of Assessing Organisations

The triple bottom line

People (human capital)

Planet (natural capital)

Profit (the bottom line).

Employees prefer environmentally friendly organisations


Australia – half way there

Becoming a knowledge economy is now essential for developed economies to grow and prosper.

According to The Work Foundation, Sweden leads the world in investment in knowledge and it is at the top of the table of knowledge economies. Portugal is at the bottom.

Australia ranks in the middle of the table.


Wanted: highly skilled managers

Conceptual Skills

Personal and Interpersonal Skills

Technical Skills



Conceptual Skills

The world is changing rapidly

Managers must be able to:

see “the big picture”

make plans

make decisions

solve problems

lead



Personal and Interpersonal Skills

Managers without these skills won’t last long

Managers must be able to:

Understand themselves

Understand others

Form effective working relationships



Technical Skills

Managers need to understand the jobs of people they lead (methods, procedures)

They have credibility if they understand the work of their employees

Information Technology skills are also essential technical skills for managers


The manager’s changing environment

Every decade has its defining characteristics.

1920’s Assembly lines, mechanisation and paternalism. The stock market grows.

Mary Parker Follett calls for participatory management - “power with” not “power over” but this call is ignored for decades.



1930s The human relations movement begins, led by Elton Mayo and the Hawthorn experiments.

The Great Depression hits.

Trade unions challenge management.



1940s Abraham Maslow provides a framework for gaining employee commitment through the hierarchy of needs.

Women temporarily take non-traditional roles as the men go off to war. Production rises rapidly.



1950s. Middle managers gain power; the ‘organisation man’ becomes the model.

Peter Drucker emphasises management by objectives over human relations.

Statistical quality control is widespread and PERT is introduced.

Corporate growth and confidence soar.



1960s. Douglas McGregor advocates a ‘softer’ management style with Theory X and Theory Y.

Group facilitation and sensitivity training.

Frederick Herzberg advises that fully using people’s skills, not sensitivity training, boosts job satisfaction and productivity.



1970s. A rapid rise in oil prices produces a recession.

Henry Mintzberg finds that managers rely heavily on intuition and personal contacts.

Service management and quality circles grow as industrial conflict escalates.



1970s. Quality of work life, social responsibility, the environment and women’s issues gain attention.


The manager’s changing environment 1980s Large-scale lay-offs and extensive use

of contract workers.

Growth of Information Technology.

Continued focus on customers, diversity and equality of employment opportunities.


The manager’s changing environment 1980s Open-plan offices, total quality

management and lean just-in-time manufacturing flourish.

ISO standards and benchmarking are introduced.

Mergers and acquisitions occur.


The manager’s changing environment 1990s. Downsizing, increased

responsibilities, empowerment, flatter organisations, job insecurity and outsourcing occurs. Overworked employees emerge.

The service sector becomes the main producer of GDP.

The importance of learning organisations, process reengineering, strategic alliances and supply chain management grows.


The manager’s changing environment 1990s.

The triple bottom line begins to shift management’s attention to ethics and corporate governance.

The first virtual organisations appear.


The manager’s changing environment 2000s. An increasingly casualised workforce,

continuing job insecurity, organisation change and outsourcing occur.

The service, information and knowledge economies take hold.

Adding value, attracting and keeping valuable employees in the face of a looming labour shortage, leadership, vision and workforce flexibility all become critical.


The manager’s changing environment 2000s. Society expects companies to

demonstrate their contribution to society as well as their ability to increase shareholder value.

Ethics becomes an increasingly important consideration.


Survival in 21st century

Build a fun, informal, learning and coaching culture that retains employees and continually updates and makes use of their skills.

Develop a strong employer brand that attracts the people you need from the evaporating employment pool.



Develop effective talent management and succession processes, particularly for leaders to replace the retiring Baby Boomers.

Develop a flexible range of reward and incentive systems to appeal to all.



Find ways to engage casual, part-time and contract workers and make them feel part of the whole.

Help anyone who leads and manages people to provide the sort of leadership and management needed.



Offer learning and development opportunities so workers can contribute positively.

Provide the flexible working conditions most employees want, to retain their skills and experience.

Encourage Baby Boomers to work on beyond retirement age.



Identify and respond rapidly to potential opportunities and threats from the environment and competing organisations.

Meet customer demands for ever higher quality and service.



Meet or exceed stakeholders’ evolving expectations.

Make the most effective use of emerging technologies.


Thinking back

Are you aware of the major trends in our rapidly changing world?

Are you aware of the forces driving our national economy and how these affect organisations?

Do you know how the workforce has changed over time and is still changing?

Are you aware of the skills needed to manage in this changing world?

Documents

K. Cole, Management: Theory and Practice 4e Chapter 1 PPT