Discuss five (5) factors that have important consequences for managing an organization in the 21st Century. (20 marks)
Management is the process of administering and coordinating resources effectively, efficiently and in an effort to achieve the goals of the organisation. There were many changes in the economy and its society, there will continue to change be changes , and the rate of changes continue to increase. Importance factors that have changed considerably, some in a very short time and some that continue to change. They all have importance consequences for manging an organisation. The factor are the internet and information technology, increasing globalization, increasing diversity, intellectual capital and increased emphasis on ethics.
Internet and information technology
Internet and information technology has changed some of the aspects of how business is conducted. Organizations can have almost instant feedback about result with sophisticated information systems. For example a business who sell a good equip with a website or an email that will receive a feedback from customer and also supplier will know all the news instantly.
They also can give needed information to people throughout the organization so that they can perform better, for example the general manager want to give an information to his/her subordinate during her/his absent, so that he/she can sent through an email or video conference. Beside that very thight links can established between suppliers and organizations that can exchange information to coordinate their operations. Customers can get information about product and service on the internet. They can make comparison between the price from several shop on the internet. The internet also makes the market for many products and services global.
Globalization, there continues to be more companies moving various parts of their operations to a larger number of countries. For example many companies have located research labs in china. Globalization also continues on another front: the combinations and partnerships between businesses from various countries.
Closely connected to the globalization of business has been the globalization of the labor market. Just as goods and services flow relatively freely across national boundaries, so do human resources. The result has been increased diversity of the population. Diversity is defined as differences or variety. That applies to all types of differences. Diversity refers to the heterogeneity of the population and workforce, mostly in terms of gander and race. Diversity presents new challenges for business and managers. It may be more difficult for diverse groups to reach a consensus on common goals and on the methods for achieving those goals. Many organisation today have established training programs to help employees develop an appreciation for diversity and to foster cooperation among culturally diverse group. Most of these programs focus on valuing, even celebrating, diversity and the breadth of thought and experience that result from diverse work groups. Some organisations have implements such programs because they feel it is “politically correct” to do so. Many other organisations however, have implemented aggressively diversity- training programs because they believe that a diverse workforce provides a significant competitive advantage.
In the 21st century intellectual capital is becoming a critical resource. More and more products will become intellectual or knowledge based and may be better referred to as services. Intellectual capital refers to the total of organisations knowledge what its people know, experiences, relationships, processes, discoveries, innovations, market presence and community influence. The three major categories of intellectual capital are:
• Structural capital: the accumulated knowledge and know...