1. Chapter – 8 Modern Management Concepts

2. BUSINESS PLAN In the Business Plan, the manager determines how the business will be established, what is the purpose of the business, description of the product, market and the financial details.

3. Benchmarking Benchmarking is a process of systematic and continuous measurement for the development of the company. Benchmarking is of three types: Internal benchmarking ( check between the departments and divisions) Competitive benchmarking (who are the competitors and measure company’s performance with them) Functional/generic benchmarking ( keep its eyes open to 'best practice' everywhere) What can be Benchmarked (Quality + Productivity + Time + Employee Satisfaction)

4. BUSINESS PROCESS REENGINEERING Business Process Reengineering ( or BPR) is one of the important tasks of a manager to ensure that all the processes are adding value or else be deleted. It is a process of rethinking and redesigning for a better value. BPR creates total customer satisfaction and best results.

5. CHANGE MANAGEMENT Every organization makes minor adjustment to face changes in its environment. Change management : to increase the ability of the organization to anticipate and learn from the changes that are occurring. The change may be Reactive or Proactive: Reactive change occurs due to the pressure of external forces Proactive change is initiated by the management itself to increase organizational effectiveness

6. PROCESS OF CHANGE The process of change involves the following: Unfreezing: It involves need for change and the people must accept the change. Changing: The change brings new values, new attitudes, new ideas. Refreezing: New pattern or new change is put into the new place.

7. Customer Relationship Management (CRM) Customer relationship management (CRM) solutions provide customer-oriented services like the Internet, mobile devices etc. CRM is a tool that can help organizations to meet the needs of customers better than their competitors. CRM measure, predict, and optimize customer relationships. E.g.: when the company sale any product like washing machine etc. and ask you about its performance by contacting you on your mobile, email about your satisfaction (customer satisfaction) with the product and thereby makes good profits.

8. EMPLOYEE EMPOWERMENT Empowerment means encouraging and allowing individuals to take responsibility and decisions, for improving the way they do their jobs and contribute to the achievement of organization's goals. The finest example of employee empowerment is Total Quality Management (TQM) Total Quality Management (TQM) which is an employee- driven process for ensuring the best possible quality products and services for the satisfaction of customers.

9. SIGNIFICANCE OF EMPLOYEE EMPOWERMENT Increasing pace of change in the company (makes the change faster) Decentralize the system (all the managers at all the levels can take decisions) Empowerment provides opportunities to employees to develop their competencies and talents.

10. GLOBALIZATION Globalization deals with the integration of various country-strategies and the subordination of these country-strategies to one global framework. Reasons for Globalization: For Internal Efficiency: For maximum efficiency, a company reduces costs and thus becomes more competitive and become global to gain more volume. Compete in markets: A company reduces costs and thus becomes more competitive.

11. INTERNATIONAL BUSINESS MANAGEMENT International business implies being engaged in transactions across national boundaries and include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. Examples are: Export of goods and services. Forming a joint venture Multinationals Companies (MNCs) setting up branches in the host country Thus, in developing a global strategy an international firm has many options.

12. Management by Objectives (MBO) The concept of 'management by objectives' (MBO) was introduced by Peter Drucker. MBO a process whereby the superior and subordinate of an organization jointly identify its common goals. Management by objectives is a comprehensive management planning and control technique which affect the entire organization structure, culture, and style. It stimulates meaningful action for better performance and higher accomplishment. It is closely associated with the concept of decentralization.

13. BENEFITS OF MBO It causes improvement in productivity due to the fact that management concentrates on the important tasks rather than wasting time on less important matters. It improves communication and organization structure which helps in locating weak and problem areas. It stimulates the subordinates' motivation.

14. OUTSOURCING Outsourcing can be defined as strategic use of outside parties to perform activities traditionally handled by internal staff and sources (because of too much work, so organizations take help of outsiders. REASONS FOR OUTSOURCING Increasing Competition Rapid Changes in the business world.

15. BENEFITS OF OUTSOURCING Outsourcing allows management to focus on important and strategic issues. Outsourcing enables companies to implement latest technologies. Best practices and improved business processes

16. QUALITY CIRCLE Quality circle is a small group of employees doing similar or related work who meet regularly to identify, analyze and solve product-quality problems and to improve general operations. The quality circles usually led by a supervisor and organized as work units. Quality circle is important to develop, improve, stimulate, motivate and also recognition of their achievements. The result of quality circle is improvement at all the levels, methods, products, and working conditions etc.

17. SUPPLY CHAIN MANAGEMENT The supply chain includes the organization and processes for the acquisition, storage, and sale of raw materials, intermediate products, and finished products It encompasses customer-supplier partnerships, new product development and introduction, and inventory management facilities.

18. TOTAL QUALITY MANAGEMENT (TQM) Total quality management (TQM) refers to meeting the requirements of customers consistently by continuous improvement in the quality of work of all employees. For achieving total quality, three things are essential: Meeting customers' requirements Continuous improvement through management process Involvement of all employees

19. ELEMENTS OF TQM TQM aims at satisfying the requirements of customers, which never remain constant but keep on changing with time, environments, circumstances, needs, fashion, etc. To improve the quality of work of all employees Total quality management is a dynamic concept as the quality standards do not remain the same forever. They are to be modified or changed to meet the requirements of customers and to make use of new technology. Example: ISO:9000 series standards have a provision of revision, modification or deletion of quality standards after every five years.