Managerial Challenges in 21st Century - Term Paper Example

Managerial Challenges in 21st Century Managerial Challenges in 21st Century Organisational managerial responsibilities are typically defined by setting objectives, organizing, communicating with and motivating the human resource, setting up measurements of performance, and developing people, including the managers (Drucker, 2009). However, in the 21st century, this generally conventional approach is faced with challenges as organizations are getting more global, characterised by employee groups that are increasingly getting diverse. This is even further compounded by technological advances unmatched in any other business era, which present unprecedented challenges. According to management consultants, rigidity will only result in decay and organisational bankruptcy, and flexibility is proposed as the only way to move with the dynamic times (IABMP, 2009). Management practices in the 21st century have had to change with the times as organizations are become more complex. Managers cannot afford to continue with the old managerial practices because 21st century workers can easily be unproductive if their needs are not taken into consideration. This paper will discuss some of the challenges managers face in the 21st century. Most organisations are aligning themselves with the appeal of the globalised business platform of the 21st century (Molinsky, 2012). Globalisation is characterised by the multi-national integration of technology, perspectives, culture, products and ideas. Therefore, it becomes an inevitable managerial requirement to incorporate the trend within organisational strategies. However, the pace at which technological, transportation and communication advances are driving globalisation is a major challenge to managers, charged with leveraging the technologies appropriately within their systems and structures (IABMP, 2009). Further, the very nature of being a multinational organisation translates into the need for a comprehensive international awareness by managers. A specific managerial challenge posed by globalisation is that of conflicting cultures (Gomez-Mejia, Balkin Cardy, 2009). While the essence of globalisation includes enabling some procedures to be conducted worldwide and universally, managers must acknowledge that some must be localised in their respective areas to ensure regional and cultural adherence. Managers will exploit any business opportunity that presents itself, but they are challenged by the need to not appear as if they are championing international culture at the expense of locally established regional ones (IABMP, 2009). Just as is the case with the challenge caused by the information society, globalisation also dictates mandatory changes to employment and production protocols. Employees will need to be handled with respect to their domestic cultures and beliefs. This is as opposed to the global culture fronted by a global economy that basically motivates consumerism. The information society presents a key challenge to management (Gomez-Mejia, Balkin Cardy, 2009). It is evident that advances in technology have resulted in a qualitatively different era, changing the global business landscape. Tasks that need mental labor have surpassed the customary set up of offices, because they can typically be located and executed over the cyber space. Essentially, this directly challenges employment and production designs and protocols globally and managers must acknowledge that sticking to customary assumptions will not lead to success. Emphasis was previously placed on how information was collected, stored, retrieved, transmitted and presented. However, with the dynamics of the 21st century, the focus shifts to how tasks need to be redefined through information as well as how the businesses executing those tasks ought to be redefined, still using information (Gomez-Mejia, Balkin Cardy, 2009). Here, the most strained aspects of management will be organising and setting up measurements of performance. Unlike the 20th century, where production equipment was a business’s highest-value asset, knowledge is the most priced asset in the 21st century (Drucker, 2009). To this end, business managers must innovate ways to incorporate change in their companies, because they will be forced to lead people, not manage assets. This challenge, however, is further complicated by the concept of generational leadership, which entails managing both a digital generation of employees and an older one within the same organization. It, therefore, becomes the responsibility of management teams to define how management, as a social discipline, will relate with human institutions and the behavior of employees. However, the challenge is in the form of the natural resistance employees always have towards change, most of whom have a bias towards continuity Molinsky, A. (2012). From this perspective, the two aspects of management that will be challenged include motivating employees and developing them. As their organisations’ change leaders, managers will inevitably be committed to taking full advantage of any opportunities to grow business, but they must find means of communicating that organisational culture requires change as a desired and positive objective (Drucker, 2009). The first step towards instituting change would involve that the managers themselves acknowledge the existence of more than a single organisational structure and ways to lead employees. Another challenge that no 21st century manager can overlook is that presented by the environment. Environmental issues such as global warming, emission of toxic gases, pollution and environmental degradation among others have been taking centre stage during the 21st century. Global warming is scientifically acknowledged to be a real global problem and threat to the world and its inhabitants (IABMP, 2009). The sooner business managers incorporate critical changes in their production processes, the better. The modern industrial world may have gone through enormous development, but environmental safety and protection measures did not grow in tandem with it. Although policy and regulatory authorities have set minimum standards, managers have a more critical role to play by re-examining the manner in which their businesses, especially those in production, impact nature (Gomez-Mejia, Balkin Cardy, 2009). It will be a challenge to them but they must minimise the environmental damage caused by their organisations as much as possible. Sustainability can only be achieved when the environment is sufficiently protected and consumer needs are at the same time addressed. In conclusion, globalisation may appear to be the underlying managerial challenges of the 21st century, but others also occur in the form of information, knowledge, change and environmental ones. It also becomes clear that the 21st century demands that the traditional view held on management as an art be shifted, because addressing these challenges require that it be considered as a science (IABMP, 2009). Stretching this view, it also becomes necessary to view management in the 21st century outside of commercial organisations, because that would be limiting the concept to business administration, and include the public sector and charities. People in all organisations must be led and technology and processes managed differently from traditional assumptions in order to achieve optimum effectiveness. Management practice should be aware of criticisms of a globalised society, especially when it comes to environmental and ethical issues. References Drucker, P. (2009). Management challenges for the 21st century (Revised ed.). Oxford: Routledge. Gomez-Mejia, L., Balkin, D., & Cardy, R. (2009). Management: People, performance, change. London: Mc-Graw. International Association of Business Managers and Professionals (IABMP). (2009). Major challenges for business and management professionals for the 21st Century. California: Author. Molinsky, A. (2012). Three skills every 21st-century manager needs. New York: Havard Business Publishing. Read More