Management trends are changing with every passing day and it 21’s century and people are freely asking for 21st-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 the 21st century today, every concept has obtained a modern shape, and so is the business. Apart from other factors of the business, the most effective modern trends are associated with management.
Before 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?
21st-Century Management Trends
This page covers almost all aspects of understanding managerial ethics and social responsibilities along with answers to the above-raised questions through the 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 nowadays in the 21st century, such as globalization, entrepreneurship, and e-business world management.
1. Organizational Social Responsibilities
Before the 1960s, the question was raised by a few people as to what is the role of a business organization regarding social responsibility. Though time has changed, it is important to know what social responsibility is. At present, there are two different views of what social responsibility is.
2. Classical View
According to the Classical Views, the management’s only social responsibility is to enhance the profit at a maximum point. Milton Friedman is known as the frankest advocate of the 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.
3. Socioeconomic View
According to the socioeconomic view, along with maximizing profits, it is also the social responsibility of management to improve and protect the welfare of 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, the following are 6 major arguments against social responsibility.
- The 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 connection 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 society.
Social Obligation: refers to such an obligation associated with the business to fulfill certain legal and economic responsibilities.
Social Responsiveness: refers to the capacity of a corporation to adjust to 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 the social involvement of the corporate, whereas caution is also necessary.
4. Managerial Ethics
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 the ethical dimensions of 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, 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 to “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 decisions.
5. 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 the 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 that comprises the ultimate rules and primary values of an organization. Organizations expect employees to follow the code of ethics. Besides, decision rules can be formed to help managers to handle the state of uncertainty by making a firm and accurate decision. It’s the responsibility of top management to keep ethical behavior around, therefore leadership and commitment of management possess 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, the organization must mention it in the appraisal process.
- Ethical Training is necessary to teach ethical problem-solving and meet certain critical situations. Even if it does nothing, 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 to help employees with 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 newspapers, general magazines, 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 is.
Entrepreneurship has become the most important management trend in the 21st century. It is the process in which an individual or a few individuals together utilize organized efforts to create opportunities to enhance value and growth by delivering innovative and unique services that are the needs of today’s people.
No matter, how many resources, entrepreneurs might have, they try to rise and shine. Entrepreneurs explore opportunities and resources that will lead them to success. The definition of entrepreneurship involves three key themes.
7. 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-1990s, Jeff was a successful programmer at a Wall Street Investment Firm.
At that time, the statistical data showed a 2300 percent net increase in the users of the 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 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 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 to gain constant growth in the business.
Whatever the world order will be, still entrepreneurship will be possessing the same importance as it has today.
8. E-Business World Management
About a few years ago, WWW and the internet were just gauds 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 a certain company; those days are now known as ancient days that went long ago.
Today, everywhere, organizations whether small or large, local or international, all types, any industry, and field, are getting e-businesses. Currently, managers must manage in an e-business world. But truly, what is E-Business World?
9. E-Business World
Another option in the 21st-century management trends is E-Business. E-Business refers to electronic business, which is a compound term that defines electronic or internet-based ways obtained by an organization to accomplish certain tasks 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 that 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 that comprises e-commerce capabilities along with marinating its traditional shape.
According to studies, most Fortune 500 Companies are getting into e-business by using this way. These companies are utilizing internet services for growing their traditional approaches to doing business.
For example, traditional bricks and mortar retailer, Sears has started an e-business worldwide to make it an ultimate online destination for the home. Sears.com is called the internet division of Sears 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, Mcdonald’s 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, and it is in an agreement with 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. 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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