12 Changing role of management Changing role of management Making changes in business Empowerment of workers Total quality management Impact of technology on business

Chapter 12: Changing role of management Businesses need to change to stay competitive Management must respond to new situations to ensure survival of the business New technologies New markets Growth of competition Consumer demands Employees’ issues Manager is a facilitator of change, not a dictator Consultation and understanding are necessary for change

Making changes in business Manager’s role is to facilitate essential change Ensuring necessary skills for change Ensuring climate of trust Support and goodwill of workers is key Management must Be committed to change Consult with trade unions and employees Provide adequate training Offer rewards to match targets Communicate with employees continually. Ensure there is enough finance to fund changes Review the process so that problems can be addressed Set out a timescale for the changes to be implemented

Empowerment of workers Employees are important asset Employees are at ‘frontline’; managers in background Empowerment is not delegation Empowerment puts decision-making abilities in employees’ hands to fulfil their potential

Empowerment of workers Empowerment leads to Increased profits Better quality products Improved customer services Step-by-step approach necessary Clear communication and collaboration is vital What management skills are necessary? Enabling (training employees) Facilitating Consulting Mentoring Collaborating

Total Quality Management (TQM) Introduced in Japan to prevent productions errors, now worldwide Quality control procedures at every step of production process Aim is zero defects Aim to focus businesses on their customers’ needs Employees given responsibility: TQM is empowerment in practice TQM involves ongoing monitoring, consumer surveys, training assessment, benchmark standards and teamwork There is no penalisation for genuine mistakes made by employees Management treat staff as thought they were customers

Impact of technology on business (part 1) Businesses need to progress with technology to survive Opportunities for new business and new jobs in high-tech sector Installing and maintaining technology systems, and training staff costs money

Impact of technology on business (part 2) Financial savings (increased productivity, fewer staff required, travel costs reduced) Improves communication (email, mobile phones and video-conferencing) Enables employees to work from home International marketing and sales (through the internet)