FHTM

Delivered by:
musliha.ahmed@mnu.edu.mv

CURRENT TRENDS AND ISSUES IN

MANAGEMENT

Challenges to Managing

Ethics
Rules and principles that define right and wrong
behaviour
Increased emphasis on ethics education seen in
university and college curriculums
Increased creation and use of codes of ethics by
businesses currently

Challenges to Managing

Workforce Diversity
The mix of people in organizations in terms of
gender, race, ethnicity, disability, sexual
orientation, age, demographic characteristics
such as education and socio-economic status

Challenges to Managing

Globalization
Management in international organizations
Political and cultural challenges of operating in a
global market

Challenges to Managing

Managing in an E-Business World

The work performed by an organization using

electronic linkages to its key constituencies
E-commerce: the sales and marketing component
of an e-business

Categories of E-businesses

E-businessenhanced organization
E-businessenabled organization
Total e-business organization

Exhibit 1.8 Categories of

E-Business Involvement
E-BusinessEnhanced
Organization
E-business units within
traditional organization

E-BusinessEnabled
Organization

Total E-Business
Organization
Organization s entire
work processes revolve
around e-business model

E-business tools and

applications used
within traditional
organization
17

Challenges to Managing

Customers
Customers have more opportunities than ever
before
Delivering consistent high-quality service is
essential
Managers need to create customer-responsive
organizations

Challenges to Managing

Innovation
Nothing is more risky than not innovating
Doing things differently, exploring new territory,
and taking risks
Managers need to encourage all employees to be
innovative

Challenges to Managing

Knowledge Management
The cultivation of a learning culture where
organizational members systematically gather
and share knowledge with others in order to
achieve better performance

Learning Organization
An organization that has developed the capacity
to continuously learn, adapt, and change

Exhibit 1.9 Learning Organization vs.

Traditional Organization

LETS MOVE ON TO MORE

DETAILS..

Globalisation

This is the integration of economies, industries, markets, cultures and policymaking around the world.

Globalisation describes a process by which national and regional economies,

societies, and cultures have become integrated through the global network of
trade, communication, immigration and transportation.

In the more recent past, globalisation was often primarily focused on the
economic side of the world, such as trade, foreign direct investment and
international capital flows, more recently the term has been expanded to include
a broader range of areas and activitiessuch asculture, media, technology,
socio-cultural, political, and even biological factors, e.g. climate change.

Global trade has grown enormously since

WWII, international trade in manufactured
goods alone has grown an estimated 100
times from $95 billion to $12 trillion in the
50 years since 1955. However,
globalisation is much more than just trade.

In the last twenty years the breadth and

depth of links between nations and
between regions has grown enormously.

Communications costs have declined

dramatically allowing easy daily contact
via the web and telephone, enabling the
outsourcing of IT and other services, to
India for example, and the rise in global
work teams.

Other critical links are immigration and

transportation, particularly airlines.

The International Organisation for Migration

estimates that there are two hundred
million migrants around the world today,
they have largely immigrated from the
emerging to the developed countries,
particularly to the U.S., Canada, Australia,
the U.K. and Continental Europe.

Though there are tensions at times in

Europe and elsewhere this immigration has
changed the face of these regions and
increased the personal links across borders
very considerably.

Finally the transportation of people and

goods has increased very substantially in
the last few decades with great growth on
the number of flights across borders.

During the 80s and 90s growth rates in the

number of airlines seats offered of 5% a
year were not uncommon, in 2010 there
are over 2.3 million flights per month.

With this great growth in flights, this has

allowed stronger business and personal
links. Today we see a world much more
interlinked than in the past.

Ethics

Ethics The science of morals in human

conduct ( from the Greek Ethos
characteristic spirit or attitudes of a
community, people or system.

While the ethics of a manager will always

reflect the cultural values, including
morality, of his or her professional and
personal worlds ( Agenda
A and Agenda B ), the ethics of agenda A
are best described by the concept of
business ethics.

Business ethics

A form of applied ethics that examines ethical principles

and moral or ethical problems that arise in a business
environment

Relies on the assumption that ethical operation of a

private business is at least possible

Business ethics is seen nowadays as essential for healthy

management. Behaving ethically is an integral part of long
term career success, whilst there is a strong business
case for ethical behaviour in a global environment with
greater availability of information and greater competition

Reasons to behave
ethically

From the point of view of internal customer:

improves organisational morale, culture and staff
motivation, and ethical behaviour of management
sets a good example to the employees leading
to recruitment and retention of better staff
From the point of view of external customer:
Improves the public image of the organisation, may
raise inward investment , sales and profitability of
the organisation besides adding to the overall
development of ethical behaviour in the society

Ethical decision making

The UK Institute of Business Ethics suggests a
simple 'test' for ethical decision-making in business:
1. Transparency - am I happy to make my decision
public - especially to the people affected by it?
2. Effect - have I fully considered the harmful effects
of my decision and how to avoid them?
3. Fairness - would my decision be considered fair by
everyone affected by it (consider all stakeholders the effects of decisions can be far-reaching)
If you can honestly answer Yes to each of the above
questions then you are likely to be making an
ethical decision.

Workforce Diversity

Workplace diversity is a people issue, focused on

the differences and similarities that people bring to
an organization.

It is usually defined broadly to include dimensions

beyond those specified legally in equal opportunity
and affirmative action non-discrimination statutes.

Diversity is often interpreted to include dimensions

which influence the identities and perspectives that
people bring, such as profession, education,
parental status and geographic location

As a concept, diversity is considered to be inclusive

of everyone. In many ways, diversity initiatives
complement non-discrimination compliance
programs by creating the workplace environment
and organizational culture for making differences
work.

Diversity is about learning from others who are not

the same, about dignity and respect for all, and
about creating workplace environments and
practices that encourage learning from others and
capture the advantage of diverse perspectives.

Diversity is otherness or those human

qualities that are different from our own and
outside the groups to which we belong, yet
present in other individuals and groups.

It's important to understand how these

dimensions affect performance, motivation,
success, and interactions with others.

Consequences of Ignoring Diversity

Ignoring diversity issues costs time, money,

and efficiency. Some of the consequences
can include unhealthy tensions; loss of
productivity because of increased conflict;
inability to attract and retain talented
people of all kinds; complaints and legal
actions; and inability to retain valuable
employees, resulting in lost investments in
recruitment and training.

Entrepreneurship

Entrepreneurship is the act of being an

entrepreneur or "one who undertakes
innovations, finance and business acumen in
an effort to transform innovations into
economic goods".

This may result in new organizations or may

be part of revitalizing mature organizations
in response to a perceived opportunity.

The most obvious form of entrepreneurship

is that of starting new businesses (referred
as Startup Company); however, in recent
years, the term has been extended to
include social and political forms of
entrepreneurial activity.

When entrepreneurship is describing

activities within a firm or large organization
it is referred to as intra-preneurship and
may include corporate venturing, when
large entities spin-off organizations.

Entrepreneurship is the engine that drives

any successful industry or economy. In the
rapidly evolving hospitality, tourism and
leisure sector worldwide this is particularly
true.

Try this

http://mashable.com/2013/02/11/entreprene
ur-test/

Managing in an E-world

Nowadays, everywhere you look,

organizations (small to large, all types,
global and domestic, and in all
industries) are becoming e-businesses.

Todays managers must manage in an

e-business world! In fact, as a student,
your learning may increasingly be
taking place in an electronic
environment. What do we know about
this e-business world?

E-business (electronic business)

Its a comprehensive term describing the

way an organization does its work by using
electronic (Internet-based) linkages with its
key constituencies (employees, managers,
customers, suppliers, and partners) in order
to efficiently and effectively achieve its
goals. Its more than ecommerce, although
e-business can include e-commerce.

E-commerce (electronic commerce)

Its any form of business exchange or

transaction in which the parties interact
electronically. Firms such as Dell
(computers), Varsity books ( ), and PC
Flowers and Gifts (flowers and other gifts) are
engaged in e-commerce because they sell
products over the Internet. Although ecommerce applications will continue to grow
in volume, they are only one part of an ebusiness.Not every organization is or needs
to be a total e-business.

The Internet has become the new

medium for interactions previously
carried out through different means: it
has allowed the direct interaction
between customers and suppliers; it is
impacting on the role of traditional
intermediaries and has favoured the
entry of new e-intermediaries.

There has been a general trend towards

the integration and concentration of the
various players in the sector value
chain that includes tour operators,
carriers and hotels.

E-business opportunities
E-business offers opportunities for enhancing
customer relationship through the
implementation of innovative electronic
Customer Relationship Management (e-CRM)
systems. Examples are frequent flyers clubs.
Tourism companies can rely on long-existing
customer databases and the content of those
can be fully exploited for marketing purposes.
Considering the opportunities of CRM, the
diffusion rate of 13% appears to be rather low
compared with the all-sector average of 16%.

E-business risks

E-business poses new challenges to the

players who are more directly threatened by
the process of dis-intermediation.
Traditional intermediaries, such as travel
agencies, will have to enhance their ability
to propose tailored services such as help in
selection, personal contacts, trust and
proximity.

E-business enablers

Dis-intermediation and the resulting cost effects

are drivers of e-business. The Internet can be
used as a complementary sales channel, offering
the possibility of selling most of the services
directly to the final customer, from air tickets to
hotel stays, from all inclusive packages to
theatre tickets and events.
Re-intermediation takes place in the form of the
entry of new e-intermediaries that use the
Internet as a costreducing communication channel
between customers and, for example, tour
operators.

E-business barriers

Despite the results achieved, it will be

necessary to make further efforts to
increase the adoption of new technologies
in the tourism sector. This applies
particularly to SMEs which are important for
the industrial structure but are mostly held
back by the limits deriving from little
available investment resources, an
unfavourable managerial culture and a lack
of ICT know-how

Tourists and enthusiasts have quickly

adopted the Internet as a preferred
means of shopping for excursion and
destination venues which allow them to
quickly compare accommodations,
aesthetics, services offered, and
prices.
An online presence provides a
convenient way for new customers to
find out about you and access further
information.

Here are some service guidelines to consider:

Promptness:People expect as prompt a

response to a Web query as they would to a
telephone call - a 24-hour response time is
probably the maximum.
Quality:Since you are competing in a "hot" area
of World Wide Web activity, good quality
photographs and a professional tone to your site
are essential.
Consistency:Your customer service and
professional image must be consistent in order to
meet these expectations.

Current Organizational Culture Issues Facing

Managers

Creating an Ethical
Culture
High in risk tolerance
Low to moderate
aggressiveness
Focus on means as
well as outcomes

Creating an Innovative
Culture
Challenge and
involvement
Freedom
Trust and openness
Idea time
Playfulness/humour
Conflict resolution
Debates
Risk-taking
243

Tips for Managers:

Creating a More Ethical Culture
Be a visible role model.
Communicate ethical expectations.
Provide ethics training.
Visibly reward ethical acts and punish
unethical ones.
Provide protective mechanisms so
employees can discuss ethical dilemmas
and report unethical behaviour without fear.

Current Organizational Culture Issues

Creating a Customer-Responsive Culture

Hire the right type of employees

Have few rigid rules, procedures, and
regulations
Use widespread empowerment of
employees
Encourage good listening skills
Provide role clarity to employees
Have conscientious, caring employees