Management is an important organ of the modern society. The decisions of management in government, business and other organizations constitute a powerful social force which is vital to the effective functioning of the contemporary society. Management is that organ of the society which is given the responsibility of making the productive use of resources for the betterment of the society. The term ‘management’ is also used to represent an organized body of knowledge which enables the ambitious executives to acquire and master the skills needed to discharge their responsibilities effectively. This body of knowledge should not be taken as static. It should be studied in the light of socio-economic, political, educational and other changes. These changes make it appropriate (even mandatory) to re-examine the role of modem managers. Modern managers have the responsibility to devise the management practices to meet the new challenges and make use of the opportunities for growth of the organization.
Change is an important feature of modern organizations. Significant changes take place every day in social, technological, political and other aspects of modern world. However, the recent spate of changes in the economies of the world caused, by creation of World Trade Organization (WTO), economic liberalization and trend towards globalization of economies have brought many opportunities and threats for the modern organizations. No manager can afford to ignore such changes; rather he has to make use of them to his advantage. In other words, he has no option, but to accept the challenges. To be successful, the manager must try to forecast the changes because of the following reasons:
(i) The changes in business environment will have a considerable impact on the theory and practice of management. Experience that once provided a sense of security to preceding generations of managers may be of little comfort to future managers. New problems will arise which may render the old principles and practices of management obsolete and call for evolving new theories and practices.
(ii) The effective handling of change calls for latest information and new skills on the part of managers. Those who prepare themselves for challenges in the future will find many opportunities for growth and expansion of their business.
CHANGING ENVIRONMENT AND MANAGEMENT CHALLENGES
During the last two decades, there has been a phenomenal growth in Size and complexity of organizations in every field, be it Government, religious, educational, medical, military or business. In fact, an increasing proportion of all our activities occurs within the boundaries of these complex organizations and in that sense, we have become truly a ‘organizational society’. Management concepts and practices, organization structure and behavior have responded to these changing influences. This chapter aims at sketching out a framework for looking at the future of management of organizations and analyses the important forces at work in this regard.
The important areas which would create challenges for the management are as follows:
1. Social environment.
2. Economic environment.
3. Technological environment.
4. Physical environment.
5. Political environment.
6. International environment.
The trends of these environments and their relevance for the future manager are discussed below :
1. Changes in Social Environment
Social factors which will shape future management practices are as follows :
a. Population Explosion. Population of our country and of the world is increasing rapidly. This will require new jobs, more product’s, new methods of production and distribution and new modes of living. The population mix will also change. There will be an increase in the proportion of older people due to increase in the average life span. This will affect the demand for products of many...