Manaerial Theories of He 21st Century
Join now to read essay Manaerial Theories of He 21st Century
Contents
Management vs Leadership
Management
Fig. 1 – Managerial Roles
Cross Cultural Diversity and Globalisation
Hofstede
Flexibility
Fig. 1
Shamrock Model
Managerial Theories of the 21st Century
Businesses are all around; they compile the backbone of society’s configuration. Without the innovations and opportunities that are brought by these companies, lifestyle, as we know it, would be a shadow of how it is today. Due to the importance of all businesses to the human race, it is vital that they are nurtured. The majority of businesses are profit driven and in order to achieve this they must have a sound internal managerial structure. As a result, many theories and concepts have arisen throughout the years to aid the management side of an organisation. The by product of such theories and concepts are, fundamentally, to get the maximum output from employees whilst creating a sense of cohesion and serenity. This essay will be looking at such theories and their importance to companies drive for success.
The global market is made up of a web of sub sectors. Businesses are competing with one another in these respective sectors to gain the largest market share. Examples of sectors include fast food, clothing, banking etc. However it is not just the managerial running of a company that defines its success. There are external factors that can influence the policies and decision making of businesses therefore, in order to compete they must be adopt a flexible approach to the demand of the market. These external factors are ever changing and therefore, it is important that that he are monitored and responded too accordingly by the business. An example of a business response to its environment was in the case of Northern Rock where the Bank Borrowed 26 billion pounds as a result of the subprime crisis in North America.
A Tool that can be used to monitor these external changes is a PEST analysis. A PEST analysis is an element of external analysis when performing market research and gives an overview of the different macro-environmental aspects that the company has to take into consideration (2). This form of analysis looks at the Political, Environmental, Social and Technological factors.
Fig.1
Political
Trading Policies
Funding and Grants
Local and International Pressure Groups
Government Policies
Wars and Conflict
Elections
Terrorism
Social
Consumer attitudes
Media views
Brand image
Law changes
Demographics
Ethnic/religious factors
Living standards
Health
Economic
Local and overseas economies trends
Taxation trends
Job growth/unemployment
Interest and Exchange rates
Inflation
Tariffs
Disposable income
Technological
Competing Technological development
Information and communications
Innovations
New discoveries
Internet
Technology patents
Research funding
Fig.1 shows some external factors influencing businesses decision making when producing their