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Y Economic liberalization in India along with rapid
technological advances has changed the way business is
done in India.
Y These changes present a lot of challenges before the
managers.
Y For example: Arun Bharat Ram (M.D. SRS Ltd.) believes
that nearly 25-30% of existing companies might be forced
to stop their operations in our country in the next 2-3 years
Y This view can be supported by the fact that many
companies such as Hind Cycles ltd., Orkay Silk Mills ltd.
etc. which were once leaders in their respective businesses
almost do not exist today.
 








Y INCREASING QUALITY CONSCIOUSNESS
Y EMPHASIS ON KNOWLEDGE
MANAGEMENT
Y MERGERS &ACQUISITIONS
Y CHANGING WORKFORCE PROFILE
Y GLOBALISATION OF ECONOMY
Y OUTSOURCING
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Y In a simple way, knowledge management is creation,
sharing and use of knowledge organisation-wide
through people, process , and technology.
Y The three basic elements in knowledge management
is: knowledge creation, knowledge sharing and
knowledge utilisation.
Y The challenges are:-
1. In many situations, the knowledge creator is not in
a position to describe fully how he created knowledge.


2. People who create knowledge may be unwilling
to share it with others.
3. Managers should be able to create a learning
organisation. A learning organisation is one which
is competent in creating, acquiring and sharing
knowledge through mutual trust, respect and
cooperation.




 m
 In merger, one organisation merges another
organisation in its entity while in acquisition,
acquires the control of another organisation.
 They create the challenge of proper integration
between the acquiring and acquired companies.
 Integration of non-human dimensions is easier,
problems come in people integration because of
two reasons:-
 1. People Attrition
 2. Difference in Management Practices
 





Y Over the period of time , there has been a tremendous
change in Indian Workforce profile.
Y The challenges before managers due to changing
profile of people are:
1. To fulfill the expectations of knowledge workers.
2. Create an environment in which knowledge workers
can work up to their full potential.
3. For women employees, creating a balance between
career and family life, prevention of sexual
harassment, and prejudices against women.
  m  m
m  m
Y An increasing global connectivity and
integration of economy, culture and
technology.
Y A growing economic interdependence of
countries worldwide through increasing
trade of products and services, free
international capital flow and more rapid
and widespread diffusion of technology
 m


 

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Y CULTURAL DIVERSITY
Y ECONOMIC DIVERSITY
Y LEGAL AND POLITICAL CHANGES
Y WORKFORCE DIVERSITY
Y TECHNOLOGICAL ADVANCES
 m


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Y National culture is the values and attitudes shared by
individuals from a specific country that shape their
behavior and their beliefs about what is important.
Y National culture has a greater effect on an
organization's employees than their organization's
culture.
Y Getting information about a countryǯs cultural
differences isnǯt quite that easy!
Y For example if you were an American raised in the
United states, how would you characterize U.S culture?
Geert Hofstede identified four dimensions of national
cultures:
1. Individualism versus collectivism
2. Power Distance
3. Uncertainty avoidance
4. Quantity versus Quality of life

  

m
Y A global manager has economic concerns that a
manager who operates in a single country doesnǯt.
Y Three of the most obvious economic concerns are :-
Y Fluctuating currency
Y Exchange rate
Y Inflation rate
Y Diverse tax policies

 m 

Y Some countries have a history of unstable
governments.
Y With new government comes new rules.
Y The goal of one government may be to nationalize the
countryǯs key industries whereas the goal of the next
may be to encourage free enterprise.
Y For instance, many large businesses have postponed
doing business in China because the Chinese
government still has too much control over what these
organizations do and how they do it.
 © 

Y GOOGLEǯS EXIT FROM CHINA:
Cost them millions of dollars
to shift their operation from China in terms of
infrastructure which in turn lead to the loss in
productivity

employee workforce loss in terms of recruitment cost

and cost of training and knowledge transfer.
 




m
Y Workforce is the building block of an organization.
Y But there is workforce diversity in global companies.
Y Workforce diversity implies that various categories of
employees bring not only their skills and expertise but
also their attitudes, motivation to work or not to work
and the personal characteristics.
Y It is a challenge before managers, how to integrate
these diverse employees with the organization.
 m
 

Y Communication and information technology has
facilitated exchanging information and conducting
transactions quickly and cheaply
Y The flow of information, in turn, accelerates the
diffusion of innovation between countries
Y Diffusion occurs at different rate in different countries,
and business leaders need to be concerned about the
rate of transfer of technologies between countries.
 © 

MICROSOFT has been able to open a new development
centre in Bangaluru(after one in Hyderabad) because
of the seemless transfer of information and technology
within the organization.
A similar operation in China may seem a little difficult
even though it is cheaper to operate from China.
Ê     Ê 

 
1. EMPHASIS ON CORE COMPETENCE:- the business is
organized on the basis of core competence, it is likely to
generate competitive advantage.

2. REORGANISATION:- Many companies are restructuring

their organization structure by thinning their
management levels and expanding span of control. They
have also created need for additional skills on the part of
the organizational human resources which can be met by
appointing new talents.


Y DEVELOPING HIGH PERFORMING CULTURE:-
organizational culture has an enduring effect on the
behavior of the organizationǯs member. Therefore, the
organization should develop sound organizational
culture which induces its members for high
performance.
COLLINS and PORRAS have provided guidelines
for developing high performing culture:-
1. encourage experimentation and accept mistakes
2. preserve core ideologies while allowing for change.
  
MANAGER SHOULD HAVE:
1.Ability to convert the facts,statistics and information
into appropriate decision in time.
2.Have a deeper understanding of the local market
which includes local laws and customs.
3. To be able to create a congenial working environment
with the right set of work practises which takes into
consideration the cultural values and attitudes that the
various individuals carry with them.
OUTSOURCING
 OUTSOURCING ???
Outsourcing is any task, operation, job or process
that could be performed by employees within an
organization, but is instead contracted to a third
party for a significant period of time. In addition,
the functions that are performed by the third party
can be performed on-site or off-site.
u
OUTSOURCE?
 REASONS OF OUTSOURCING
Traditional
 Reduction and control of costs
role -  Avoid large capital investment costs
reaction to  Insufficient resources available
problem

Modern  Allows company to focus on their core competencies

role ²  Keeping up with cutting-edge technology
business  Creating value for the organization and its customers
 Building partnerships
strategy
 T
ES OF OUTSOURCING
Outsourcing is divided into three types×

echnology Services Outsourcing
2
usiness Process Outsourcing
3
nowledge Process Outsourcing
 TEC NOLOG
SERVICES
OUTSOURCING
he fast emerging business world of today requires companies to
use sophisticated and fast computer systems and software.
herefore it is imperative to choose the right associate for
developing these technologies.
Different categories under SO×
-Commerce
Software/ Applications development
 îUSINESS ROCESS
OUTSOURCING
he new global scenario requires that each company finds its own
niche field that can add value to the world economy. hus
companies now try to focus their resources on areas that give
maximum yield. hus the term usiness Process Outsourcing
(PO
came into being«
Categories of services that come under PO×
Customer Relations
Finance/ Accounting Processes
 |NOuLEDGE ROCESS
OUTSOURCING
his involves advanced research, analytical, and technical skills
which means that providers are expected to work independently. It
is also important to note that in PO, all processes are still laid out
by the client whereas PO specialists are given managerial control.
Among the three types, PO is the older form of outsourcing and
PO however is considered as the most popular among the three
types«
 îENEFITS OF OUTSOURCING
oTake advantage of the cost-advantages
oGet access to specialized services
oConcentrate more on your core business
oIncreased efficiency
oMake faster deliveries to customers
 C ALLENGES OF
OUTSOURCING
Ñ
oss Of Managerial Control
2 idden Costs
3 Threat to Security and
Confidentiality
4 Business environment
5 ependency on provider
 Ou TO OVERCOME T ESE
C ALLENGES
oBe Specific
oStay in Touch Where it Matters
oave a special Expertise Team
oKnow Each Other's Culture
oRegular reviews