The management trends are changing with every passing day and its 21’s century and people are freely asking for the 21’st century management trends. The constant change in the world order has introduced a great range of new inventions and trends. From the classical period of the world till 21st century today, every concept has obtained a modern shape, so is the business. Apart from other factors of the business, the most effective modern trends are associated with management. Prior to defining it in depth, asking what the professionals are today and what is being shaped by present management concepts and exercises may enhance the consciousness of a professional. Are they shaping tomorrow’s history?
21’st Century Management Trends
This page covers almost all aspects of understanding managerial ethics and social responsibilities along with answers to above raised questions through introduction of multiple management trends and issues, which comprise an enormous impact on the manager’s duties. These management trends will cover all the management trends, which are common now days in 21’st century, such as globalization, entrepreneurship and e-business world management.
Organizational Social Responsibilities
Prior to 1960’s, the question was raised by a few people as what is the role of a business organization regarding social responsibility. Though, the time has changed, yet it is important to know what a social responsibility really is. At present, there are two different views of what social responsibility is.
According to the Classical Views, the management is one and only social responsibility is to enhance the profit at a maximum point. Milton Friedman is known as the most frank advocate of classical view. He states that the manager’s basic responsibility is to keep operating the business in a smooth way and according to the interests of the stockholders that are the true owners of an organization.
According to the socioeconomic view, along with maximizing profits, it is also social responsibility of management to improve and protect the welfare of the society. There was a big argument behind the socioeconomic view that corporations are not free entities associated with shareholders only. While on the other hand, modern companies are not only economic institutes, but also socioeconomic corporations.
The following are 10 arguments in favor of social responsibility.
- Public Expectations
- Ethical Obligation
- Long-run profits
- Public Image
- Discouragement of additional government regulations
- Better Environment
- Power and Responsibility Balance
- Shareholders’ Interests
- Resources Possession
- Authority to prevent over cures
Besides, following are 6 major arguments against social responsibility.
- Violence of Profit Maximization
- Purpose Dilution
- Over the limit, power
- Lack of accountability
- Lack of skills
The following are the definitions of key terms used in connections with social responsibility, for referring to a specific factor.
Social Responsibility: is an important duty or obligation as per law and economics, with a purpose to accomplish long-term tasks that are for the betterment of the society.
Social Obligation: refers to such an obligation associated with business to fulfill certain legal and economics responsibilities.
Social Responsiveness: refers to the capacity of a corporation to adjust in changing social conditions.
There was an issue or more properly a question, raised in several studies that whether activities connected with social responsibility affect the economic conditions of the organization. Later, the majority of studies confirmed that there is a positive relation between economic performance and social involvement of the corporate, whereas caution is also necessary.
Before learning managerial ethics, professionals should know the basic concept and definition of ethics. Ethics are simple rules or principles that define whether the conduct is right or wrong. Managerial ethics refers to ethical dimensions to managerial roles, actions and decisions. Following are 4 views of Ethics.
01- The Utilitarian View defines that ethical actions and decisions are made as per consequences or outcomes.
02- The Rights View refers to such ethical decisions that are associated with protecting and respecting the liberties of an individual, i.e. rights of choice, rights of privacy, freedom of speech, and freedom of conscience, free life and safety.
03- The Theory of Justice View says that decision makers need to impose rules impartially and fairly.
04- The Integrative Social Contracts Theory states that ethical decisions should be according to empirical and normative factors. The term empirical means “what is” and normative refers “what should be”. The view is according to the integration of two contracts, i.e. the general social contract & a specific contract between members of a particular community, which might get affected by certain decision.
Improving Ethical Behavior
What sort of activities can be performed to improve ethical behavior? There are many things that an organization can do easily, for cultivating ethical behavior between employees or members. Following are the 7 factors that help in improving ethical behavior.
- The hiring process of new employees can be viewed as an opportunity to learn basic facts about level of an individual, such as moral development, ego strength, personal values and self control.
- The Code of Ethics is known as a formal document which comprises ultimate rules and primary values of an organization. Organizations expect employees to follow the code of ethics. Besides, decision rules can be formed with the purpose of helping managers to handle the state of uncertainty by making a firm and accurate decision. It’s the responsibility of top management to keep an ethical behavior around, therefore leadership and commitment of management possesses a great importance.
- Job goals of employees should be realistic and perceivable; it is because when goals are clear, then they help in reducing ambiguity and motivating others as well. At some point, job goals are a key term in performance appraisal.
- Some organizations want their employees to keep high ethical standards. In such cases, it is necessary for the organization to mention it in the appraisal process.
- Ethical Training is necessary in order to teach ethical problem solving and meet certain critical situations. Even if it does nothing, yet it will provide awareness of ethical issues.
- Independent social audits can help determine unethical behavior and not following the code of ethics.
- Eventually, organizations are capable of providing protective mechanics in order to help employees of ethical dilemmas and then the employees will be able to do something.
Typically, there are songs of entrepreneurs around every corner of the world and possibly every second professional might have heard about entrepreneurs. In newspaper, general magazine or on blog websites, there is at least a single story about the achievements of an entrepreneur or a group of entrepreneurs. In short words, entrepreneurship has become one of the most important topics across the globe, yet people are unaware of what it really is.
Entrepreneurship has become the most important management trends in the 21’st century. It is the process in which an individual or a few individuals together utilize organized efforts to create opportunities in order to enhance value and grow by delivering innovative and unique services that are needs of today’s people. No matter, how many resources, entrepreneurs might have, yet they try to rise and shine. Entrepreneurs explore for opportunities and resources that will lead them to success. The definition of entrepreneurship involves three key themes.
Pursuit of Opportunities
Entrepreneurship is about inventing such environmental changes and trends that nobody might have seen. Jeff Bezos is the best example of entrepreneurship. He is the founder of Amazon, which is surely the biggest marketplace on the internet. In the mid-1990’s, Jeff was the successful programmer at a Wall Street Investment Firm. At that time, the statistical data showed the 2300 percent net increase in the users of World Wide Web, which gave birth to a new idea in Jeff’s mind, so he opted to quit the job and obtained what he thought, will be much beneficial in the upcoming years. Today, it is written in the history books that are in the library of the hall of fame. Currently, Amazon deals in selling books, home products, music, cameras, furniture, cars, jewelry, and a wide range of most of the products that are used regularly.
Innovation is the second important theme of entrepreneurship. Entrepreneurship requires changing, transforming, revolutionizing, and introducing new products and services or new ways of doing certain things such as business.
The third and last important theme is the growth. Entrepreneurs follow growth. They do not wait for the right opportunity to come for the sake of development; instead they follow the strategies of growth and work very hard to introduce new trends and products in order to gain a constant growth in the business.
Whatever the world order will be, still the entrepreneurship will be possessing same importance as it has today.
E-Business World Management
About a few years ago, WWW and the internet were just gaud to managers and organizations. E-mail was such a form of communication that was spreading like fire in the forest. Soon, people started seeing web addresses in the advertisement of certain company; those days are now known as ancient days that gone long ago. Today, everywhere, organizations whether small or large, local or international, all types, any industry and field, are getting e-businesses. Currently, it is necessary for managers to manage in an e-business world. But truly, what is E-Business World?
Another option in the 21’st century management trends E-Business. E-Business refers to electronic business, which is a compound term that defines electronic or internet based ways obtained by an organization in order to accomplish the certain task effectively and efficiently. To do so, the organization involves key roles such as managers, employees, partners, customers and suppliers. E-Business is not e-commerce, but it contains e-commerce as a part. E-Commerce by definition is a transaction which is going to be done electronically between any two parties. For example, Dell Computers, Varsity Books and PC Flower and Gifts deal in selling their products over the internet. No matter how much e-commerce gets developed, still it is just a single part of e-business.
Not every corporation needs to be an e-business entirely. The e-business involvement has been divided into three categories, i.e. e-business enhanced, e-business enabled and total e-business. The first one is known as e-business enhanced organization. It is termed as a traditional organization which comprises e-commerce capabilities along with marinating its traditional shape. According to studies, most of Fortune 500 Companies are getting into the e-business by using this way. These companies are utilizing internet services for growing their traditional approaches of doing business. For example, traditional bricks and mortar retailer, Sears has started an e-business worldwide with a goal to make it an ultimate online destination for the home. Sears.com is called as the internet division of Sear that tends to expand the company’s primary source of revenue.
E-business enhanced, e-business enabled and total e-business organizations require updated insights and new perspectives for managing in an e-business world.
National borders can no longer hold back the management. A German firm, BMW, manufactures cars in South Carolina. A US firm, McDonalds deals in hamburgers across China. A Japanese firm, Toyota builds cars in Kentucky. Lend Lease Corporation, a leading real estate of Australia, constructed The Blue Water shopping mall in Kent, England, whereas it is in an agreement with the Coca-Cola to make soft-drink maker bottling plants around Southeast Asia. ABB Limited, A Swiss Company has built power producing plants in South Korea, Malaysia, Indonesia and China. Definitely, the world has become a global village.
Managers face challenges and chances of working in the global market. Generally, these managers work in organizations of all types across the globe.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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