Bachelors in Business Administration

Unit - V

STRATEGIC MANAGEMENT

Session 4

Trends in Management II

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 Session Objective

• By the end of this session you will be

able to understand:
– Meaning of Management Change

– Crisis Management

– Total Quality Management (TQM)

– Stress Management

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 Content Outline

• Management Change

• Management of Crises

• TQM

• Stress Management

• International Management

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 Types of
Organisational
Change

Transformational Revolutionary Evolutionary Developmental

Change Change Change Change

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 Factors of Change

• Vision

• Organising Arrangements

• Social Factors

• Physical Settings

• Technology

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Lewin’s Three Step Change Model

Unfreezing Moving Refreezing

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 Unfreezing
• Is referred to as status quo

• Individual resistance to change is found

• Two forces are generated

– Status quo

– Equilibrium stage

• The state tries to overcome the pressures

of individual resistance

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 Moving

• The change once introduced is made

accepted by the employees

• The employees encounter the change

• The actual change to the desired

stage of change is practiced

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 Refreezing

• The change is accepted and

implemented here

• Is a process where the change is

sustained or maintained

• The change becomes temporary due

to lack of Refreezing

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Organisational Resistance to Change

• Factors for Organisational resistance to

change are:

– Structural Inertia

– Interdependence of Sub-Systems

– Group Inertia

– Threat to Expertise and Established Resource

Allocations

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 Crisis Management

• A relatively new field of Management

• Includes activities like forecasting and

planning

• Includes identification of crises and

interventions to minimise damage

• Includes strong focus on public relations

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 Benefits of Crisis Management
• Ability to asses the situation better

• Techniques to direct actions

• Rapidly trigger Business Continuity

Management

• Better Organisation Resilience

• Compliance with regulatory and ethical

requirements

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Benefits of Crisis Management

• Better Management of incidents

• Improved Staff Awareness

• Increases Ability and Morale

• Enhanced Risk Management

• Protected and Enhanced Reputation

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Total Quality Management (TQM)

• Is an approach that motivates, supports

and enables quality management

• Focuses on the needs an d expectations of

internal and external customers

• All members participate in improving

processes, products, services & culture

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 ELEMENTS
TQM

Prevention Customer
Universal Benefits
of Defects Focus
Responsibility of Crisis
for Quality Management

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 Benefits of TQM
• Reduction in Quality Costs

• Increase in Profitability & Productivity

• Reduced Cost of Rework

• Improved Market Share

• Reduced Service Expenses

• Satisfied customer

• High Employee Morale

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 Deming’s 14 Points of Quality

1. Create constancy of purpose toward

improvement of product and service
2. Adopt New Western Philosophy
3. Cease dependence on inspection to achieve
quality
4. End the practice of awarding business on the
basis of price tag
5. Improve constantly the system of production and
service
6. Institute training on the job

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 Deming’s 14 Points of Quality

7. Drive out fear, to work effectively

8. Break down barriers between departments
9. Eliminate Slogan
10. Eliminate Work Standards (quotas)
11. Encourage right to joy of workmanship
12. Institute vigorous program of education
13. Start Transformation in every job
14. Institute Leadership and Supervision

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 Stress Management
• The word ‘Stress’ is defined as ‘a state of
affair involving demand on physical or
mental energy’

• It’s a condition of circumstance which can

disturb the normal physical and mental
health of an individual

• Stress at work can cause serious risk of

litigation for employees and Organisation

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 Causes of Stress at work

• Bullying or Harassment

• Feeling Powerless & Uninvolved

• Continuous unreasonable Performance

demands

• Lack of Conflict Resolution

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 Causes of Stress at Work

• Lack of Job Security

• Long Working Hours

• Excessive time away from Home & Family

• Office Politics

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 Steps to Reduce Stress
• Work Should be Planned

• Regular off to personnel employed on shift

duties

• Improvement in working Conditions

• Two-way Communication System

• Encouragement of Annual Sports &

Awards

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 Steps to Reduce Stress

• Encouragement of Unit/Squadron

• Anniversary and other Programms

• Regular Welfare Meeting

• Proper Leave Sanction Method

• Realistic Goal Setting

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 International Management

• Is the practice of managing business

operations in more than one country

• Involves management of Cross-Cultural

Issues

• Requires careful assessment of

International Environment

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 Factors Evaluated in International
Management

• Cultural Factors

• Economic Factors

• Political Actors

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 Cultural Factors
• Culture is a complex environmental
influence on:
– Knowledge
– Believes
– Values
– Morals & Customs

• Culture influences attitudes of individuals

concerning:
– Work
– Authority
– Time & Profit
– Decision Making

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 Economic Factors
• Economic factors influence the
performance of MNCs

• Economic factors influencing an

Organisation are:

– Income Levels
– Economic Growth
– Inflation Rates
– Balance of Payments

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 Political Factors

• Political factors can influence functioning

of an Organisation

• The major factors to be considered are:

– Governments Attitude

– Efficiency of Government

– Government Stability

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Read the topic from the handout

10 minutes

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 Review Questions

• What are the major reasons for the

individual resistance to change

• Explain with diagram the Lewin’s three

step model and process of resistance to
change

• Enumerate the reasons for the

Organisational resistance to change

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