Challenges for Management in 21st Century

Table of Contents Introduction Purpose of the Study Collection and Analysis of Data Findings Interpretation of Data Conclusion Works Cited Introduction The concept of management has been evolving for almost a century and is based on a complex mixture of assumptions and paradigms that were formed as reactions to the emerged challenges.Advertising We will write a custom report sample on Challenges for Management in 21st Century specifically for you for only $16.05 $11/page Learn More In the 21st century, management issues have become more urgent because of a profound transition of business and world economy. In this respect, to define problems and obstacles to management development, specific emphasis should be placed on the analysis of shifts in the world economy, as well as on changes occurred to the practice of management. To analyze these dimensions, it is important to define new realities and conditions under which business issues are formed (Druc ker 2). Specific attention should also be given to evaluation of current policies and strategies that company and organizations adopt to deal with these challenges. The transition in management and leadership skills correlate with such aspects as competition, leadership styles, teamwork, and diversity that have a potent impact on social, economic, and democratic realities. However, these issues do not derive from political tensions. On the contrary, although they deal with politics, their underpinnings are more associated with free market, as well as how it affects the emerging economies (Drucker 3). The origin of management issues is debated and developed, but their resolutions take place predominantly within business organization through analysis of individual knowledge. In its turn, received experience has a direct influence on human resources that continue change management paradigms. So far, management dealt with theory and practice that identity right ways of managing, as well as right approaches to controlling employment.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Practical issues were connected with technical insurance, internal development, legacy, and ecology of management and enterprise (Drucker 3). Currently, these assumptions have become absolute in front of the challenges introduced in the new century. Purpose of the Study With regard to the conceptual framework of management, the purpose of the report is to define new realities and dimensions in which issues are debated, discussed, and resolved. The second purpose lies in defining what strategies, models, and approaches should be implemented to face management challenges in the 21st century. Collection and Analysis of Data While collecting information, online databases and libraries have been used to find necessary materials related to the topic under analysis. Specific attention has been paid to the recent researchers and articles dedicated to the contemporary problems of management. Most of the resources found (Raskin 25, Drucker 3, Wilmot and Paish 384) discuss the challenge of the globalization that poses serious problems for development. Some researchers are dedicated to the analysis of human resources management as the main underpinning of successful performance within an organization, should it be for profit or not. In addition, the data collection has also involved consideration of practical and theoretical implications for management, as well as how these implications and recommendations help alleviate management challenges in the 21st century. All these approaches will allow for quantitative statistics of qualitative information and will provide a better picture of new management paradigms. In other words, the collected data will shed light on the frequency of the discussed topics, as well as on the contexts within which these topics are discussed.Advertising We will write a custom report sample on Challenges for Management in 21st Century specifically for you for only $16.05 $11/page Learn More Findings To define the new realities and paradigms of the new century, reference to the past should be made. The previous century has left rich ancestry of challenges and conditions under which management issues had been shaping. In this respect, Raskin focuses on such issues as management and market distribution, outcomes of automation, job flexibility, and consideration of the role of government in private and public sector formation, as well as recruitment policies (25-30). To begin with, the author argues, â€Å"the magnitude of the nation’s problems will cause us to seek democratic solutions based on the reestablishment of a foundation of trust in the adaptability of our institutions and the integrity of our leaders† (Raskin 27). Therefore, high performance of business organization cannot be reached unt il it focuses on the principles of effectiveness and virtue. In addition to redistribution of resource, Raskin places an emphasis on the effects of automation leading to obsolescence of equipment and resistance of human resource managers to restructure organizations (28). Adding flexibility, therefore, should be the main principle prevailing the 21st century. However, job opportunities were too narrow to stand the political pressure in the post-war are because the central role in managing resources was held by the government. Finally, the previous century gave rise to the development of effective social schemes that could improve the retention culture and introduce the optimal pension age for the employees. Today, the world is more focused on establishing beneficial opportunities for younger generation. To ground to the above-presented discussion, Drucker refers to the identification of management with business issues (5). Such a definition is largely explained by the times of Great Depression when business and business executives were not encourage by the government.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Instead, public management sector was confined to public administration as a separate branch of power. Specialized, narrow-focused vision of management, however, became an obstacle in understanding management issues, as well as obstacle that the government might face while planning the country’s economy. Failure to distinguish between two different disciplines – school of management and business school – has led to serious challenges, despite the emergence of management structures and hierarchies in non-profit establishments in such spheres as education, legislature, and divinity schools. Although, today’s business activities are more focused on overcoming and adjusting to change, which is possible through integration of risk management schemes. What is more important is that similar models should be practiced by the government so as to face challenges in a timely manner. The ability of the government to handle risks and contingencies will have a potent i mpact on the future of development of various organizations. Governmental approach to managing resources and people can set a mode of introducing new paradigms to both profit and non-profit organizations. In this respect, Wilmot and Paish argue, â€Å"risk can be considered as a function of change and risk management may thus be described as a technique for coping with the effects of change† (384). The necessity to consider risk management as the basic of management strategies is identified by an intensive competition on the global arena. Moreover, new solutions can be introduced due to the rapid development of communication networks and information technologies. In addition, risk management provides a greater opportunity for the government to succeed in developing cost-effectiveness of the public policies that could foresee and prevent future crises. As it has been mentioned before, the government should implement risk management modes to regulate cost-effectiveness. More im portantly, the new century’s establishments have invented new frameworks that advance strategic cost management as well. In this respect, Kumar and Kumar insist on the necessity to introduce effective strategic cost management which lies in effective control of quality management, employee management, business process reengineering, and continuous improvement (118). In addition, researchers state, â€Å"cost management is fare more concerned with management’s use of cost information for decision-making† (Kumar and Kumar 119). Therefore, it should not be confused with cost accounting. Management should not be limited by business terms only and, therefore, there is a false assumption that management must be identified with business management, which prevents the organization from practicing the approaches and models to guiding, monitoring, and sustaining effective business strategies. As a result, Drucker argues that non-business organizations, along with public i nstitutions, borrow similar managerial structures to develop leadership skills and introduce efficient distribution of responsibilities among the employees, or members of a community. Previous outlooks on organizations rely on static and hierarchical systems of development. Within a context of complex global transition, this type of management is not acceptable. According to Crossan and Fernando recognize the necessity to integrate cross-enterprise leadership because it define the idea that â€Å"†¦managers operate in a complex world in which the boundaries are fluid and dynamic, cutting across functional designations, departments, business units, companies, geographies and cultures† (1). This new type of management is more congruent with the realities of the new millennium because it identifies wider boundaries of action, as well as reopens the previously existing limits. The term cross-enterprise leadership closely relates to interaction between organizations that goes beyond the static-oriented one because enterprises create a new action-oriented value. The new value, therefore, discovers new fields and spheres of influence in terms of leadership, competition, and human resources management. So far, educational approach to learning management was confined to accumulating knowledge and experience that could be applied to solve problems. Today, the acquired knowledge is efficiently used in action schemes whose primary function is transform organizations with regard to the external conditions. In this respect, Crossan and Fernando justify the ideas represented in Drucker’s research. They agree that any organization, should it be profitable or not, must work on encouraging value-creating activities. These strategies contribute greatly to dealing effectively with real-to-life, dynamic situations. Despite the type of organization, human capital stands at the core of successful management. With regard to existing global context, diversity comes to the forth because it identifies new trends in constructing management issues in the 21st century. Hence, Egerovà ¡ emphasizes, â€Å"this phenomenon has always existed in the human society, be it age, gender, race, ethnicity, mental and physical abilities, sex orientation or any other qualities† (5), Therefore, managers should realize that their organization could fail to sustain a competitive advantage unless they take into consideration the diversity issues, which is also important of economic success. The researcher also notes that the organization that strives to be successful should â€Å"†¦develop heterogeneous teams in which employees are represented regardless of their personality differences and with respect to the rules concerning equal employment opportunities† (Egerovà ¡ 6). Therefore, a shift to a person-oriented management within an organization can improve significantly business activities and create new values. Drucker’s withdrawal of b usiness management concept applied to the management it broader context is also supported by the assumption that management can also be connected with non-profit issues, such as knowledge management. In this respect, Gunasekaran and Ngai underline the importance of information technology in managing various issues (2392). The technological shift predetermined by globalization provides another reason for integrating effective knowledge management schemes. Interpretation of Data In-depth analysis of collected data and findings reveals a number of interesting and important conclusions and implications. To begin with, management should be regarded as a discipline and practice that surpasses the previously existed theoretical and empirical boundaries. This is of particular concern to considering management as a part of business activities. A narrow-focused, one-dimensional vision prevents from understanding the challenges and realities in which management issues prevail. The course taken on new paradigms in management should enlarge a vision of how challenges and constraints could be alleviated. Further, management issues should be considered and discussed to build a strong and consistent network through which conceptual frameworks of various organizations could be formed. In other words, organizations should not be limited to a single rule of administrating and distributing resources within the employed environment. Rather, they should be more concerned with the strategies that would permit manager to face and adjust to challenges emerging in the new century. A set of new assumption in management based on cooperation, cross-organizational leadership, cultural diversity, and competition will provide a new set of conditions under which an organization can enhance its performance. All these aspects are valid with regard to the rapid globalization process that triggers technological advancement and creation of new communication channels. As a result, the role of econo my and government is enormous provided management strategies and approaches deal with political issues. Finally, management challenges in the 21st century are closely connected with human resource management. Human factor plays an important role in defining the patterns, ideologies, and strategic directions of both profit and non-profit organizations and, therefore, it is important for these establishments to work out efficient social and bonus mechanism for employees. Conclusion The analysis of management challenges in the 21st century has revealed significant changes in considering pattern, approaches, and modes by means of which various organization control business and non-business activities. It has also been defined that management should not be concerned with business activities only because its strategies can be applied to other spheres including education, public administration, and church establishments. Numerous research studies and theoretical analysis have provided a re alistic vision of evident shifts in the world economy, as well as changes to the practice of management. Much attention has been given to the globalization process that triggered culturally diverse environments and presented a new image of how an organization should be managed. Works Cited Crossan, Mary and Olivera Fernando. â€Å"Cross-Enterprise Leadership: A New Approach for the 21St Century.† Ivey Business Journal 70.5 (2006): 1-7. Print. Drucker, P. F. (2007). Management Challenges for the 21st Century. New York: Routledge. Print. Egerovà ¡, Dana. â€Å"Diversity Management as a Crucial Issue of Management in 21st Century.† Problems of Management in the 21St Century 3 (2012): 5-7. Print. Gunasekaran, A., and E. W. T. Ngai. â€Å"Knowledge Management In 21St Century Manufacturing.† International Journal of Production Research 45.11 (2007): 2391-2418. Print. Kumar, Ashvine, and Shafabi Kumar. â€Å"Strategic Cost Management — Suggested Framework for 21St Century.† Journal Of Business Retail Management Research 5.2 (2011): 118-130. Print. Raskin, A.H. â€Å"Management Challenges In the 21St Century.† Advanced Management Journal (03621863) 44.4 (1979): 25-32. Print. Wilmot, Tom, and Tony Paish. â€Å"Need For Risk Management By Governments: A Challenge For The 21St Century.† Geneva Papers On Risk Insurance – Issues Practice 24.3 (1999): 383. Print. 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