With the progress of the 21st Century, businesses are increasingly relying on skilled managers to achieve success within their organizations.
The need for organizations to hire flexible managers capable of leading is increased by issues like globalization and decentralization. In order to lead organizations effectively in the 21st century, managers should possess three traits and utilize them: the ability to stimulate change, excellent planning capabilities, and ethics. Henri Fayol's four functions of management - Planning, Organizing, Leading and Controlling - categorize what a manager does and how it is done. Through these functions, managers can act as catalysts for change or as change agents. Change, defined as an alteration in people, structure or technology, is an integral part of a manager's job regardless of the specific role they are performing.
(Robbins et al., 2000, p.437) Change is happening rapidly and with great complexity within and around organizations. It pres
...ents both threats and opportunities. The opportunities that arise from change are why managers must promote it. The manager has the ability to make changes in three distinct categories: people, structure, and technology. Adaptation to, or facilitation of, change can be achieved by making alterations in these areas.
The transformation of individuals includes altering attitudes, expectations, perceptions, and behavior. These modifications aim to enhance collaboration and productivity within organizations. The modification of structure pertains to job design, job specialization, hierarchy, formalization, and other organizational structural factors. These alterations must be dynamic and adaptable to change. Technological change involves modifying work processes, methods, and implementing new equipment.
Significant advancements have occurred in the realms of computing and communications, resulting in significant changes in this field. An organization's surroundings consist of specific and
general elements, known as micro and macro environments. Moreover, the organization possesses its unique character or culture. This environment and culture have the potential to incite change. Internally, the organization may experience demands that motivate change, known as internal forces for change.
The distinction between external and internal forces is often unclear as an internally induced change can be triggered by the perception of an external event (Barney, 1992, p. 755). Nowadays, organizations experience frequent disruptions in their environment. Internal factors like implementing a new strategy, adopting new technology, or changes in the employee mix or attitudes can all generate the need for change. For instance, introducing new equipment or technology can necessitate changes within the workplace, requiring staff to learn how to use the new equipment and potentially impacting their duties.
The jobs of employees may need to be redesigned due to new company strategies and changes in management practices. These changes will also impact enterprise agreements and industrial relations. Additionally, employee attitudes can play a significant role in creating the need for change. For instance, job dissatisfaction, poor team spirit, lack of commitment, and job insecurity can all lead to the development of new company strategies.
External forces have a significant impact on an organization, prompting the need for change to address both threats and opportunities. These forces can be observed in various aspects of the organization's external environment, such as the political-legal, technological, economic, marketplace, and sociocultural dimensions. The political-legal environment encompasses government bodies, pressure groups, and laws. It is crucial for companies to stay updated and adapt to changes in the political environment, as these changes can have a profound effect.
Changes in the political environment
can lead to the introduction of legislation that may pose feasibility or difficulty in selling or providing a product. Various political factors and laws can impact the business, including pricing, competition, fair trade packaging, labeling, advertising, product safety, and minimum wages. The marketplace serves as a significant driver for change, influenced by shifts in customer buying needs, expectations, and habits. Other factors include the removal of import tariffs or market deregulation. The technical environment is shaped by advancements in new products or processes that affect an organization's opportunities and operations.
These advancements in technology bring benefits and drive organizations to change. The first factor to consider for motivating change is whether the organization is facing obvious needs for change, such as increased competition, pressure on prices, changing customer needs/expectations, technological advancements, reduced external funding, or regulatory changes (Cummings, 1997, p. 81). The actual change only happens when the force for change exceeds the force resisting it. Even people who may not lose from the change still contribute to the resistance. Resistance to change is inherent as it creates uncertainty and ambiguity. Proper management can eliminate these uncertainties and ambiguities, reducing the resistance to change.
Planning is the process of defining an organization's objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities (Robbins et al., 2000, p. 247). One of the reasons for planning is to minimize the impact of change by creating an environment that is open to change and by accurately predicting it. Planning reduces uncertainty by forcing managers to anticipate change, consider its effects, and develop appropriate responses (Robbins et al., 2000,
p. 247). However, it should be noted that no amount of planning or anticipation can completely eliminate change. Planning alone cannot eradicate change.
Regardless of management's actions, changes will occur (Robbins et al., 2000, p.437). Planning allows us to better handle and control change. Change can be represented by two metaphors: calm-waters and white-water rapids. The calm waters model involves unfreezing, changing, and refreezing, which aligns with Lewin's model of change. We have observed that planning is a tool that can forecast change. In an environment where predictability exists, the calm waters metaphor serves as a suitable model. The organization operates in a stable environment and can anticipate change, thus undergoing a process of unfreezing, implementing changes to address differences and achieve new goals, and refreezing to maintain the changes and return to stability.
Total quality management, which uses the model mentioned, is essentially a continuous, incremental change program. It is compatible with the calm waters metaphor (Robbins et al., 2000, p.454). Total quality management constantly seeks out problems and implements changes to improve organizational efficiency and effectiveness. However, developing plans for a dynamic environment can be challenging. The calm waters metaphor has become obsolete in describing the current challenges managers face in today's organizations (Robbins et al., 2000, p.441). This metaphor is not helpful for those tasked with implementing change. Instead, the white water-rapids metaphor is now more prevalent in organizations.
This model presents a more comprehensive perspective, using the white water-rapids metaphor to illustrate how change is a constant and ongoing occurrence. The organization is portrayed as operating in an environment of uncertainty and constant flux (Barney, 1992, p.757). The disruption of the status quo is expected
to persist indefinitely.
Managers in this fast-paced world must promptly adapt to ever-changing circumstances. According to Robbins et al. (2000, p.351), organizing is the process of establishing the structure of an organization. By comparing the definitions of organizing and change, we can infer that organizing, as a managerial function, can significantly influence an organization's change through structural modifications. Technology advancements have introduced a level of uncertainty in the environment; however, they have also empowered managers to organize for increased efficiency and effectiveness.
Although work specialization is crucial for managing complex tasks and enhancing productivity, it does not promote an environment that is open to change. In order to tackle this issue, managers can implement a multi-skilling structure which enables a more adaptable workforce. Decentralization involves assigning decision-making power to lower levels in the organizational hierarchy (Robbins et al., 2000, p.359). This approach is often found in organizations operating in intricate and uncertain environments. Enhancing decentralization would facilitate faster decision-making throughout the organization.
This ability to make decisions quickly is more effective at responding to changes. Therefore, it is helpful for change. An organic organization is one that is well-designed for change. It has the mentioned structural characteristics, as well as others such as a wide span of control, cross-functional teams, a free flow of information, and low formalization.
Organic organizations have a highly adaptive and flexible organizational structure with minimal work specialization, formalization, and direct employee supervision (Robbins et al., 2000, p.362). They also incorporate teams with a flatter management design. The best-structured organization for change is a learning organization, defined as an organization where all members actively participate in identifying and resolving work-related issues, enabling continuous adaptability and
change (Robbins et al., 2000, p.376). To achieve this, the organization has a boundary-less structure. Leadership entails the ability to influence a group towards goal achievement.
According to Robbins et al. (2000, p.593), transformational leaders are the most suitable type of leaders for bringing about change. These leaders possess qualities such as individualized consideration, intellectual stimulation, and charisma that are conducive to change. Additionally, leadership plays a crucial role in enabling organizations to become learning organizations by facilitating the necessary vision (Robbins et al., 2000, p.617). By utilizing various strategies such as motivation, communication, participation, facilitation, negotiation, manipulation, and coercion, leaders can also reduce resistance to change by influencing people's attitudes, expectations, perceptions, and behavior. Control refers to the process of monitoring activities to ensure they align with plans and correcting any significant deviations (Robbins et al., 2000, p.683). It is essential for the control of the organization to be flexible enough to handle and adapt to change.
To drive organizational change, managers need to move away from a bureaucratic control style that relies on rules, regulations, procedures, policies, and hierarchical authority. Instead, organizations should adopt either a clan or market approach to control in order to create a supportive environment for change. However, integrating management functions with potential organizational changes into a change process poses a challenge. One option is for managers to consider using reengineering, which involves redesigning work processes for improved productivity and financial performance (Robbins et al., 2000, p.64). It is important to note that while this method brings about change, it can also cause significant stress within the organization.
Despite the significant stress and uncertainty experienced by employees, reengineering can provide significant benefits
(Robbins et al., 2000, p.717). Organizations that undergo reengineering obtain valuable experience and adaptability, enabling them to better face and embrace future changes. The environment we create through change and our efforts to promote it establish a favorable setting for inspiring innovation. It is crucial to establish flexible structures, effective communication, and a supportive culture that encourages new ideas. An organization's culture has the ability to either facilitate innovation or pose a serious threat to such endeavors. To successfully implement cultural change, management must possess leadership skills and provide a shared vision of the future.
In a world filled with chaos and constant change, it is crucial that we have the ability to generate new ideas and inventions in order to stay competitive in the global market. Those who excel at innovation are the ones who can gain a competitive edge. Change and survival go hand in hand as survival requires adaptation. Managers must have intuition and be able to analyze current circumstances, recognizing the ever-changing environment around them. They must then make informed decisions on resource allocation and work coordination (Graham, 1997, p174). We have previously discussed the concept of change, its representation, and the factors that drive and shape it.
Implementing change effectively can unlock the creativity and potential of employees, decrease bureaucracy and expenses, and continually enhance an organization. Considering these advantages, it is advisable to promote change. Ethics can be described as the evaluation of actions based on moral principles and values (Griffin, 2000, p289). Throughout history, individuals have grappled with the dilemma of balancing profit and morality. Some individuals may have achieved both objectives, but this often raises ethical concerns.
In order to
address matters of fairness, justice, and moral values within the business realm, ethical standards are essential. It is the foremost duty of management to establish these standards for corporations. Both individuals and corporations must abide by these principles, while also fulfilling social obligations towards customers, employees, and society. Nevertheless, the fundamental objective of any business should always be profit generation.
It is a difficult task to balance profitability and social responsibilities in corporations, as the desire for high ethical standards clashes with traditional norms. However, negative consequences may arise if a manager engages in unethical behavior by collaborating with a journalist. An instance of this took place in December 1995, when James J. Cramer, editor-at-large of Smart Money, wrote an article endorsing specific "orphan" stocks. Prior to the publication of the article, Cramer's firm had already acquired these stocks and made a profit exceeding $2 million.
Cramer's article mentioned that he purchased one of the stocks without revealing it (p. 42). It is clear that neither the management nor the editors displayed any concern for ethical conduct, resulting in harm to innocent investors. However, practicing ethics can also serve as a smart marketing strategy. Nowadays, consumers are increasingly influenced by "non-commercial" factors, such as whether a product negatively impacts the environment. Companies like Ben & Jerry's, an ice cream manufacturer, and Body Shop international, a cosmetics retailer, have strengthened their brands by promoting their ethical standards. Similarly, Calmins Engine, a diesel engine producer, made their product more environmentally friendly while advocating for stricter pollution laws.
Du Pont, a prominent producer of ozone-depleting CFCs, joined the anti-CFCs movement early on because it knew it was ahead of its competitors
in developing alternatives. However, engaging in ethical self-promotion can have negative consequences. For instance, the Body Shop faced public scrutiny and was required to revise a statement claiming its products were not tested on animals, which in turn led many consumers to question the company's ethical standards. Another noteworthy topic in corporate management is the concept of social responsibility. Social responsibility refers to the obligations that an organization has to protect and improve the society in which it operates.
There are several key components of social responsibility, including a business's responsibilities to its customers. The most important duty in this regard is ensuring that customers receive high-quality and safe products. Regrettably, not all businesses adhere to this principle. The tobacco industry, for instance, engaged in deliberate manipulation of nicotine levels in cigarettes. Despite claims by managers, thorough research revealed that the industry sought to maintain the addictive nature of nicotine. The motive behind this action was anything but altruistic - addicted smokers continued purchasing cigarettes, thereby ensuring the industry's prosperity and profitability.
There have been various instances of customer mistreatment, such as the sale of fruits containing excessive chemicals and providing faulty breast implants. While ensuring customer satisfaction is important for management, how managers treat employees is another aspect that reflects a company's ethical standing. Unfortunately, many managers prioritize their own job security over their employees' well-being. Additionally, equal employment opportunities remain a challenge. Despite efforts to dismantle barriers for women and minorities in top management positions, some corporations still perpetuate stereotypes and prejudices associated with white men. Women are often treated as mere accessories for men rather than being treated equally.
Generally, a firm's attitude towards its
employees influences how the employees perceive the company. Typically, a corporate code of ethics outlines the expected behavior of employees. The management of companies also has a responsibility towards stockholders, which can lead to an issue known as the "agent problem" (Dyckman, 1998, p.67).+
Managers have control over the property stockholders, but their interests may not align. Managers often prioritize gaining power and prestige, sometimes at the expense of profitability. Additionally, corporate officials may vote for high salaries and bonuses for themselves, reducing the dividends received by stockholders. Unfortunately, there is no one-size-fits-all solution to these problems. The only hope is that ethical standards and social responsibilities will guide every manager throughout their career. A code of ethics should govern professional conduct, reflecting positively on both the practitioner and managerial profession.
In summary, there should be no obstacles preventing a manager from upholding strong ethical values and social responsibility while striving for excellence and quality. To conclude, it is evident that the capacity to inspire change, effective planning skills, and ethical behavior are crucial attributes that a manager must possess and apply when leading organizations in the 21st century. These traits enable the manager to prioritize success for their organization, and are also qualities that subordinates seek in their leader. By embracing these qualities, a manager can position themselves on a trajectory towards success.
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