The purpose of this article is to evaluate the statement above and discuss the skills a manager might need to be successful in a increasingly fast changing and growing complexity business environment.
No matter what form of the organization that you work for, for example, a profit making company, a public sector bodies or voluntary charitable group. We all have been experiencing the impact of the environment that surrounding organization. Accordingly, studying the environment and managing the impact are essential to survive or gain competitive advantage.
Changing School of Management Thought
Before we talk about the environment, I would like to briefly exploring some of the major schools of management thought. This is important to know that not only the environment is changing rapidly, but also the way we see the world is shifting. Each of the schools of thought, in their day, represents the major paradigms and reflects the business environment surrounding them in their eras.
These schools of thought are the ‘paradigms’ of management referred to by Clarke and Clegg in their book “Changing Paradigms – The Transformation of Management Knowledge for the 21st Century.”(Clarke & Clegg, 2000) . Since “Clarke and Clegg define paradigms as models or frameworks that we use to help us perceive, perceive, understand and interpret the world around us.” (R A Cowe B&miC Lec1, 2008). We can understand the change happens in business world by studying different schools of thoughts and paradigms in different time. Thus we can compare the complexity of nowadays environment with early year environment.
The major schools of management that we need to recognize are Scientific
Systems and contingency approaches
Scientific School views management as a science and belief that there is only ‘one best way’ to run a business, whilst mangers are able to identify and prescribe the one best way.
Classical School seeks universal truth about management through specialization of work, unity of command, scalar chain of command and co-ordination of activities.
Behavioral School emphasizes the ‘people factor’ and it does not view people as machines.
These three major foretime schools of management have certain command feature. They just emphasize one aspect of management only, like Scientific management focus on work, Classical management focus on organization structure and Behavioral management focus on people. They believe that there is only one best way to manage a business and only one single factor drive the change. This emphasis tends to ignore the ‘environment factor’. These theories treat management as an internality rather than externality. According to their assumptions, environment seems to be a constant rather than a variable. We suggest that these foretime paradigms, in their time, have much more stable, predictable and parochial environment, therefore they do not see the problem of ignoring the ‘environment factors’.
Nowaday environment, however, is no longer stable and predictable. The most recent school of management, System approach, implies that present day organization exist in highly dynamic and turbulent environment.
Systems approach represents an organization as an Open System. They believe organization do not exit in isolation, on the contrary, organization exist within environment. We will detailedly discuss system approach and apply it for analysis of the environment in latter part of this article.
Cause of Dynamic and Turbulent
Nowadays, highly dynamic and turbulent environment was caused by such...