Management Techniques in Contemporary Business

In the context of corporate business, the application of business ethics is confronted with issues that include; Processes, people and technology. At the level of the process, business ethics deals with classical issues such as cash flow, personal network, quality, competition, and endurance. In people, business ethics is faced with insufficient quality of human Resources entrepreneur motivation and willingness to succeed quickly.

Similarly in technology, business ethics is confronted with technology, which requires fast-paced and total efficiency in the work system to achieve a purpose in business. Managers use the following techniques to implement the company’s strategy for achieving success in the company in contemporary business. The techniques are:

Benchmarking

The process by which the company identifies critical success factors, learns about best practices undertaken by other companies to find these critical success factors and then makes improvements in the company’s process to achieve even better performance with its competitors .

Total Quality Management

Total Quality Management is a technique in which management develops policies and practices to ensure that the company’s products and services meet customer expectations. This approach involves enhancing product functionality, reliability, robustness, and improved product improvements.

Continous Improvement

Continuous Improvement is a management technique in which managers and workers are committed to continuous improvement programs in terms of quality and success factors.

Activity-Based Costing and Activity-Based Management

Many companies can improve the planning, product costing, operational controls and management controls by using activity analysis to develop a detailed picture of the specific activities undertaken in the company’s operations.

Reengineering

Reengineering is a process for creating a competitive advantage in which companies reorganize organizational and management functions, often resulting in modified, combined or eliminated orders or jobs.

  1. Theory of Constraints

The Theory of Constraint is a strategic technique to help companies to convert materials into products effectively improve facto success. The main concept in Theory of Constraint is throughput, which is the company’s ability to generate cash through sales or equal to sales minus the materials needed in a product sold . The through put can be fixed directly by increasing the speed of the processed product until it is sold.

Bulk Customization

Bulk customization is a management technique in which marketing and production processes are designed in such a way that it can handle the increasing variations that arise from delivering order and service products to customers.

Target Costing Calculation

Target Costing is a management technique that determines the expected cost for a product based on a competitive price, so that the product will be able to earn the expected profit. So the cost is determined by the price.

Life Cycle Costing Life Cycle Costing

Management techniques used to identify and monitor product costs during the product life cycle. The product life cycle includes stages: Research and development, Product design including prototype and testing, Production / manufacture, inspection, packing and warehousing, Marketing, promotion and distribution, and Sales and service.

Just In time system

Comprehensive Production and Supply Management systems where purchasing or processing of raw materials and other parts are only made when needed and appropriate at the time of use at every stage of the production process.

The Balanced Scorecard

To emphasize the importance of using information, both financial and non-financial, it is now often accounting to report company performance based on success factors in four dimensions: