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CHAP… 1O. MANAGEMENT IN THE 21 ST CENTURY. 1. REASONS FOR CHANGING ROLE OF MANAGEMENT. EMPLOYEE Workers are now more educated and are seeking more favourable work conditions, working hours etc. Employees want to contribute their skills and abilities. . Customer

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chap 1o



1 reasons for changing role of management

Workers are now more educated and are seeking more favourable work conditions, working hours etc. Employees want to contribute their skills and abilities.


Expectations amongst customers are higher than ever. Businesses must be able to provide innovative goods and services to a quality standard if they are to succeed.

  • Technology

Is constantly being developed in products such as mobile phones, computers etc

The internet continues to offer a massive marketing opportunity for businesses.


The emergence of trading blocks such as EU, NAFTA, Pacific rim and powerful TNC’S can make firms more competitive on a world market.

  • Government laws & regulations

As the stakeholders involved in business are getting more knowledgeable in their rights, responsibilities (employee welfare, consumer legislation, health and safety procedures etc).

The governments of the world have to adapt to the new laws and regulations to match the needs of the stakeholders where they see fit.


“Change management is the process of anticipating and adapting to the changing world of business”

2 how have changes in it changed the role of management
2. How have changes in IT changed the role of management

IT has changed how businesses manage

  • Marketing
  • Production
  • Human Resources
a marketing
A- Marketing
  • Market research can now be completed with the aid of the internet. For the price of a local phone here in Ireland call businesses can check all sorts of products and companies world wide. This is a relatively low cost method of gathering information on products, markets, competitors.

Businesses use the internet to sell themselves to potential customers. This can provide companies with the visual shop front logo than can work out far cheaper than the continuous printing and distributing of leaflets and brochures.

The use of credit and laser cards means that goods can be sold over the internet without the customer having to leave their premises.

Product Design

Computer Aided Design (CAD) programs are used to speed up the design process. EG Building Plans

Car Designers

Clothes Designers

b production
b- Production
  • Electronic Data Interchange (EDI) is an automated stock ordering system that allows purchase orders to be made between computers in two different organisations.

An EDI system acts to

  • minimise paperwork and
  • to speed up transactions
  • Reduce costs
  • Improve customer satisfaction
c human resources
C- Human Resources
  • Technological devices such as computers are used increasingly to educate and train people.
  • Teleworking staff members to work from home using a technologies such as PC, modem, faxes, phones.
  • The development of IT has increased productivity amongst staff, however this has also made many office jobs unnecessary and resulted in staff redundant.
3 how can managers help their staff adapt to change
  • Communicate

Talk honesty to staff about business developments. This helps to reduce worry and unnecessary gossip amongst employees

  • Encourage employee creativity

Management to empower employees, let them share in the decision making process. This should help to motivate staff and innovate the business.

On going training and education

This is necessary in order to let staff members adapt to changes that a business may be introducing.

  • Create a team organisational structure

This can allow for flexibility in the layers of a business. People work across different departments towards a specific goal.

  • Create a change culture

A positive attitude to change should be fostered amongst staff. This can done by introducing a system of job rotation. Employees get a broader view of the work done in the company.

What is the matrix structure?
  • This is a team based organisational structure where each team is responsible for achieving a business goal. The personnel of the team are specific to the different skills needed for each project.
how are successful teams formed
How are successful teams formed

They are formed through the following four stages

FORMING:The skills needed in a successful team include, marketing, finance, production etc
  • Other skills such as problem solving, being innovative and a good communication are requirements of an efficient matrix team.
  • STORMIMG:This is the assigning of roles within the group, eg team leader, person who delivers presentations.
  • Each member is on equal merit regardless of role within the group.
NORMING:This is the ability of the group to work together. Team leaders should ensure that any conflict within the group should be minimised.
  • PERFORMING:The reality that the team must work together to get results they set up to achieve.
5 how can businesses improve its quality
5)How can businesses improve its Quality

Quality control is the checking of goods and services produced by companies to see are they reaching the desired quality.

Companies that achieve high quality standards can be awarded through the following:
  • ISO 9000 Award – This is a series of certificates that are internationally recognised. This is a major advantage to the firms trying to attract foreign customers. The quality control assessment is carried out by a independent assessors. They examine every aspect of the firms operations. 1
  • Q Mark – similar to the one mentioned above but is not a internationally recognised. Irish companies with the Q Mark quality award do attract IRISH customers.
  • QUES:
    • What is TQM?
    • LIST 5 benefits of TQM?
    • How to create a TQM business?