1. Contemporary Issues in Management
Learning Unit 5
Contemporary Issues in Management

2. Outcomes
Identify & discuss 5 major contemporary issues for managers in SA
Possible impact of these issues on SA organisations

3. Introduction Our lives influenced by decisions made by businesses.
Interact with businesses everyday
Businesses have a major responsibility towards it’s stakeholders.

4. Stakeholders Business Customers Suppliers Shareholders
Larger Community
Government
Employees

5. Shareholders vs. Stakeholders
Claims
Shareholders
Dividends, capital growth of shares
Employees
Job security, promotion, training and development, salaries benefits, work environment
Customers
Value for money, safe products, customer service
Suppliers
To be paid promptly
Community
Clean air, local investment
Government
Tax
Other
Trade unions, pressure groups

6. Focus on issues Ethics and social responsibility Globalisation
New technology
New world of work
Increased power and demand of customers
Learning in a new organisation

7. Ethics and social responsibility
Moral principles and values
Guide behaviour of individual or group
What is acceptable or unacceptable behaviour
Social responsibility:
Part of bigger community (system theory)
Protect society’s interests
Decisions lead to wealth creation

8. Ethical behaviour Example of required ethical behaviour:
Honest, integrity, best of you ability
Fair, courteous, sensitive, respect rights
Accountable for actions and decisions
Behave above reproach
Comply to rules, procedures and regulations

9. Ethical behaviour
Use info the business in the manner which it was intended
Treat assets and property with respect. Do no waste resources or time
Share and declare info with possible conflict of interest
Refuse gifts as an attempt to influence you
Challenge others’ unethical behaviour and report it

10. Social responsibility
Interest group:
Indirectly influenced by management decisions.
Example:
ISS = Institute for Security Studies
Research human security issues in Africa
SAPS use information in ISS reports
Thus, SAPS is an interest group of ISS
ISS responsibility: Ensure correct info for interest groups to use

11. Social responsibility
King 3 report on Corporate Governance:
Sound management decisions in SA
Company aware and respond to social issues
Place high priority on ethical standards
Non-discriminatory, non-exploitative and responsible towards the environment and human issues
If guidelines followed, business will experience increased productivity

12. Globalisation Compete in any market globally/world-wide Examples:
Coca cola: Globally to reach their goals
SA company expand to Africa
Relocation due to crime
Unskilled labour, look abroad

13. Globalisation Philosophy = World is becoming homogeneous.
World is the marketplace not just locally

14. Key forces that drive globalisation
Search for new markets
Strike action in own country
High labour cost in own country
Goal of reducing production cost
Extension of the product life cycle
High transport costs in own country

15. New Technology More and more advanced Work from home E-mail and Skype
Challenges:
Motivate when you don’t see?
Ensure delivery on time?

16. Technology breakthroughs
Internet
Electronic commerce
Mobile computing
Managers and employees more mobile
Customers order and buy 24/7

17. The INFORMATION worker!
New world of work
New world of work due to information technology
World is interconnected (systems and networks)
Increased access to info, org performance and other activities
Rise in technology  Rise of new class worker
The INFORMATION worker!

18. New world of work Information worker = Always on, always connected
Pressure to be ‘always available’
Cell phone
Skype
Other connections

19. New world of work Manage  Stress-related illnesses
Knowledge-based work favours:
Strong non-routine cognitive skills
Problem solving
Communication
Collaboration
Training and education = life-long process

20. Increase power and demand of Customers
Customer can easily compare price, quality and availability.
Set criteria in terms of:
Cost and quality - Convenience
Speed of delivery - Innovation
Safety when shopping - Customisation
Range of products
Availability and service

21. Increase power and demand of Customers
Criteria has a direct influence on the business
Satisfy needs of the customer!
Traditional view = OUT!
Interactive and creative websites

22. Increase power and demand of Customers
Cheaper to retain than find a new customer!
Increase power and demand of Customers
CRM = Customer Relationship Management
Methodologies and tools that helps business
To manage relationships with their customers
Includes:
Identify and target profitable customers
Generate sales leads
Individualise relationships with customers
Aware and act on future requirements
Altering behaviour of consumers

23. Other contemporary SA management issues
Education
Development/
infrastructure
Land issue
Brain drain
Build houses
Other
Unemployment/job creation
Crime
Poverty
HIV/Aids
Health in general
Corruption