Challenges for Management in 21st Century Report

Introduction
The concept of management has been evolving for almost a century and is based on a
complex mixture of assumptions and paradigms that were formed as reactions to the
emerged challenges.

In the 21st century, management issues have become more urgent because of a

profound transition of business and world economy. In this respect, to define problems
and obstacles to management development, specific emphasis should be placed on the
analysis of shifts in the world economy, as well as on changes occurred to the practice
of management.

To analyze these dimensions, it is important to define new realities and conditions under
which business issues are formed (Drucker 2). Specific attention should also be given to
evaluation of current policies and strategies that company and organizations adopt to
deal with these challenges.

The transition in management and leadership skills correlate with such aspects as
competition, leadership styles, teamwork, and diversity that have a potent impact on
social, economic, and democratic realities. However, these issues do not derive from
political tensions.

On the contrary, although they deal with politics, their underpinnings are more
associated with free market, as well as how it affects the emerging economies (Drucker
3). The origin of management issues is debated and developed, but their resolutions
take place predominantly within business organization through analysis of individual
knowledge.

In its turn, received experience has a direct influence on human resources that continue
change management paradigms.

So far, management dealt with theory and practice that identity right ways of managing,
as well as right approaches to controlling employment.
Practical issues were connected with technical insurance, internal development, legacy,
and ecology of management and enterprise (Drucker 3). Currently, these assumptions
have become absolute in front of the challenges introduced in the new century.

Purpose of the Study

With regard to the conceptual framework of management, the purpose of the report is to
define new realities and dimensions in which issues are debated, discussed, and
resolved.

The second purpose lies in defining what strategies, models, and approaches should be
implemented to face management challenges in the 21 st century.

Collection and Analysis of Data

While collecting information, online databases and libraries have been used to find
necessary materials related to the topic under analysis. Specific attention has been paid
to the recent researchers and articles dedicated to the contemporary problems of
management.

Most of the resources found (Raskin 25, Drucker 3, Wilmot and Paish 384) discuss the
challenge of the globalization that poses serious problems for development. Some
researchers are dedicated to the analysis of human resources management as the main
underpinning of successful performance within an organization, should it be for profit or
not.

In addition, the data collection has also involved consideration of practical and
theoretical implications for management, as well as how these implications and
recommendations help alleviate management challenges in the 21 st century.

All these approaches will allow for quantitative statistics of qualitative information and
will provide a better picture of new management paradigms. In other words, the
collected data will shed light on the frequency of the discussed topics, as well as on the
contexts within which these topics are discussed.
Findings
To define the new realities and paradigms of the new century, reference to the past
should be made. The previous century has left rich ancestry of challenges and
conditions under which management issues had been shaping.

In this respect, Raskin focuses on such issues as management and market distribution,
outcomes of automation, job flexibility, and consideration of the role of government in
private and public sector formation, as well as recruitment policies (25-30).

To begin with, the author argues, “the magnitude of the nation’s problems will cause us
to seek democratic solutions based on the reestablishment of a foundation of trust in the
adaptability of our institutions and the integrity of our leaders” (Raskin 27).

Therefore, high performance of business organization cannot be reached until it focuses

on the principles of effectiveness and virtue. In addition to redistribution of resource,
Raskin places an emphasis on the effects of automation leading to obsolescence of
equipment and resistance of human resource managers to restructure organizations
(28).

Adding flexibility, therefore, should be the main principle prevailing the 21 st century.
However, job opportunities were too narrow to stand the political pressure in the post-
war are because the central role in managing resources was held by the government.

Finally, the previous century gave rise to the development of effective social schemes
that could improve the retention culture and introduce the optimal pension age for the
employees. Today, the world is more focused on establishing beneficial opportunities
for younger generation.

To ground to the above-presented discussion, Drucker refers to the identification of

management with business issues (5). Such a definition is largely explained by the
times of Great Depression when business and business executives were not encourage
by the government.

Instead, public management sector was confined to public administration as a separate

branch of power. Specialized, narrow-focused vision of management, however, became
an obstacle in understanding management issues, as well as obstacle that the
government might face while planning the country’s economy.
Failure to distinguish between two different disciplines – school of management and
business school – has led to serious challenges, despite the emergence of
management structures and hierarchies in non-profit establishments in such spheres as
education, legislature, and divinity schools.

Although, today’s business activities are more focused on overcoming and adjusting to
change, which is possible through integration of risk management schemes. What is
more important is that similar models should be practiced by the government so as to
face challenges in a timely manner.

The ability of the government to handle risks and contingencies will have a potent
impact on the future of development of various organizations. Governmental approach
to managing resources and people can set a mode of introducing new paradigms to
both profit and non-profit organizations.

In this respect, Wilmot and Paish argue, “risk can be considered as a function of change
and risk management may thus be described as a technique for coping with the effects
of change” (384). The necessity to consider risk management as the basic of
management strategies is identified by an intensive competition on the global arena.

Moreover, new solutions can be introduced due to the rapid development of

communication networks and information technologies. In addition, risk management
provides a greater opportunity for the government to succeed in developing cost-
effectiveness of the public policies that could foresee and prevent future crises.

As it has been mentioned before, the government should implement risk management
modes to regulate cost-effectiveness. More importantly, the new century’s
establishments have invented new frameworks that advance strategic cost
management as well.

In this respect, Kumar and Kumar insist on the necessity to introduce effective strategic
cost management which lies in effective control of quality management, employee
management, business process reengineering, and continuous improvement (118).

In addition, researchers state, “cost management is fare more concerned with

management’s use of cost information for decision-making” (Kumar and Kumar 119).
Therefore, it should not be confused with cost accounting.
Management should not be limited by business terms only and, therefore, there is a
false assumption that management must be identified with business management,
which prevents the organization from practicing the approaches and models to guiding,
monitoring, and sustaining effective business strategies.

As a result, Drucker argues that non-business organizations, along with public

institutions, borrow similar managerial structures to develop leadership skills and
introduce efficient distribution of responsibilities among the employees, or members of a
community.

Previous outlooks on organizations rely on static and hierarchical systems of

development. Within a context of complex global transition, this type of management is
not acceptable.

According to Crossan and Fernando recognize the necessity to integrate cross-

enterprise leadership because it define the idea that “…managers operate in a complex
world in which the boundaries are fluid and dynamic, cutting across functional
designations, departments, business units, companies, geographies and cultures” (1).

This new type of management is more congruent with the realities of the new
millennium because it identifies wider boundaries of action, as well as reopens the
previously existing limits.

The term cross-enterprise leadership closely relates to interaction between

organizations that goes beyond the static-oriented one because enterprises create a
new action-oriented value. The new value, therefore, discovers new fields and spheres
of influence in terms of leadership, competition, and human resources management.

So far, educational approach to learning management was confined to accumulating

knowledge and experience that could be applied to solve problems. Today, the acquired
knowledge is efficiently used in action schemes whose primary function is transform
organizations with regard to the external conditions.

In this respect, Crossan and Fernando justify the ideas represented in Drucker’s
research. They agree that any organization, should it be profitable or not, must work on
encouraging value-creating activities. These strategies contribute greatly to dealing
effectively with real-to-life, dynamic situations.
Despite the type of organization, human capital stands at the core of successful
management. With regard to existing global context, diversity comes to the forth
because it identifies new trends in constructing management issues in the 21 st century.

Hence, Egerová emphasizes, “this phenomenon has always existed in the human
society, be it age, gender, race, ethnicity, mental and physical abilities, sex orientation
or any other qualities” (5), Therefore, managers should realize that their organization
could fail to sustain a competitive advantage unless they take into consideration the
diversity issues, which is also important of economic success.

The researcher also notes that the organization that strives to be successful should “…
develop heterogeneous teams in which employees are represented regardless of their
personality differences and with respect to the rules concerning equal employment
opportunities” (Egerová 6).

Therefore, a shift to a person-oriented management within an organization can improve

significantly business activities and create new values.

Drucker’s withdrawal of business management concept applied to the management it

broader context is also supported by the assumption that management can also be
connected with non-profit issues, such as knowledge management.

In this respect, Gunasekaran and Ngai underline the importance of information

technology in managing various issues (2392). The technological shift predetermined by
globalization provides another reason for integrating effective knowledge management
schemes.

Interpretation of Data
In-depth analysis of collected data and findings reveals a number of interesting and
important conclusions and implications. To begin with, management should be regarded
as a discipline and practice that surpasses the previously existed theoretical and
empirical boundaries.

This is of particular concern to considering management as a part of business activities.

A narrow-focused, one-dimensional vision prevents from understanding the challenges
and realities in which management issues prevail. The course taken on new paradigms
in management should enlarge a vision of how challenges and constraints could be
alleviated.

Further, management issues should be considered and discussed to build a strong and
consistent network through which conceptual frameworks of various organizations could
be formed.

In other words, organizations should not be limited to a single rule of administrating and
distributing resources within the employed environment. Rather, they should be more
concerned with the strategies that would permit manager to face and adjust to
challenges emerging in the new century.

A set of new assumption in management based on cooperation, cross-organizational

leadership, cultural diversity, and competition will provide a new set of conditions under
which an organization can enhance its performance.

All these aspects are valid with regard to the rapid globalization process that triggers
technological advancement and creation of new communication channels. As a result,
the role of economy and government is enormous provided management strategies and
approaches deal with political issues.

Finally, management challenges in the 21 st century are closely connected with human
resource management. Human factor plays an important role in defining the patterns,
ideologies, and strategic directions of both profit and non-profit organizations and,
therefore, it is important for these establishments to work out efficient social and bonus
mechanism for employees.

Conclusion
The analysis of management challenges in the 21 st century has revealed significant
changes in considering pattern, approaches, and modes by means of which various
organization control business and non-business activities.

It has also been defined that management should not be concerned with business
activities only because its strategies can be applied to other spheres including
education, public administration, and church establishments.
Numerous research studies and theoretical analysis have provided a realistic vision of
evident shifts in the world economy, as well as changes to the practice of management.

Much attention has been given to the globalization process that triggered culturally
diverse environments and presented a new image of how an organization should be
managed.

Works Cited
Crossan, Mary and Olivera Fernando. “Cross-Enterprise Leadership: A New Approach
for the 21St Century.” Ivey Business Journal 70.5 (2006): 1-7. Print.

Drucker, P. F. (2007). Management Challenges for the 21st Century. New York:

Routledge. Print.

Egerová, Dana. “Diversity Management as a Crucial Issue of Management in 21st

Century.” Problems of Management in the 21St Century 3 (2012): 5-7. Print.

Gunasekaran, A., and E. W. T. Ngai. “Knowledge Management In 21St Century

Manufacturing.” International Journal of Production Research 45.11 (2007): 2391-2418.
Print.

Kumar, Ashvine, and Shafabi Kumar. “Strategic Cost Management — Suggested

Framework for 21St Century.” Journal Of Business & Retail Management Research 5.2
(2011): 118-130. Print.

Raskin, A.H. “Management Challenges In the 21St Century.” Advanced Management

Journal (03621863) 44.4 (1979): 25-32. Print.

Wilmot, Tom, and Tony Paish. “Need For Risk Management By Governments: A
Challenge For The 21St Century.” Geneva Papers On Risk & Insurance – Issues &
Practice 24.3 (1999): 383. Print.