Contemporary management is subject to a variety of macro factors which force businesses to adjust their strategies and tactics. One of the main macro factors affecting modern businesses is the worsening economic situation. The growing inflation and unemployment cause companies to have fewer resources to spend on the development of the business. As a result, contemporary managers need to be able to navigate complex economic settings and utilize efficient methods of running a company. Contemporary managers also must realize how economic instability affects consumers and their needs and thus offer products and services which successfully respond to them.
Another notable macro factor affecting contemporary management is the advancements in the sphere of technology. The recent decades have been characterized by rapid technological progress. As a result, businesses have adopted numerous innovative solutions which enable them to enhance their operations and processes. Companies which fail to integrate new technologies eventually lose the competition and no longer can offer relevant products to consumers. Thus, contemporary managers must effectively utilize the available technological solutions to improve business processes (Turkmenoglu & Cicek, 2020). For instance, technologies in the field of teleconferencing allow employees to work from home and enable modern companies to save costs of renting offices.
Sociocultural macro trends affect the way contemporary management is done. One of the factors in the sociocultural sphere is the demand for social justice and equality in the workplace. Modern managers should integrate the principle of equality into their business practices to create an environment which eradicates any form of discrimination (Griffin, 2021). For instance, managers need to be particularly aware of gender and racial biases in their companies’ human resources practices. One of the examples of possible responses to such as a sociocultural trend is the offering of positions in the company for African American or female candidates and an open commitment to diversity.
Political and legal macro factors make a considerable impact on contemporary management. One of them is the regulations which often change as new laws are adopted by countries. For instance, fossil fuels are an industry which is set to experience major political and legal changes in the coming years due to the climate agenda of many nations. Therefore, managers of companies active in the industry must develop effective plans to tackle the possible negative outcomes of the current and future regulations. In certain cases, laws may disrupt the operations of the business and managers must find ways to reorient the company and discover a new direction.
My company operates in the fertilizer industry and it encounters many management challenges and opportunities. First of all, fertilizer companies face the need to integrate new technological solutions which require considerable investments. As a result, managers of such companies have to find innovative approaches to attracting investors’ funding. Another challenge for contemporary managers in the fertilizer industry is the growing prices of raw materials (Lal, 2020). Such a market situation forces managers to utilize strategies which would enable their companies to keep prices competitive by reducing the costs of the business and running it in an efficient way. At the same time, fertilizer industry stakeholders have numerous opportunities which require contemporary managers to act more effectively. For instance, the issue of decreasing arable land causes agricultural companies to use more fertilizers (Lal, 2020). Thus, fertilizer industry managers can use the situation to the advantage of their companies and increase the volumes of fertilizers produced by them to satisfy the existing market demand. Essentially, contemporary managers of fertilizer businesses need to be able to solve challenges creatively and capitalize on the current market situations.
In other words, the fertilizer industry is in a position where its products are projected to stay in high demand in the coming years. At the same time, the management of fertilizer businesses has to embrace a strategy the purpose of which is the further expansion of the production and improvement of the quality of the products. In order to achieve such a purpose, managers should rely on the recent technological advances which can help them enhance the operational efficiency of their companies and build structures which are more competitive. Additionally, the strategy of contemporary managers must always be adjusted to correspond to the current trends and needs of the end-consumer, and agricultural businesses, to keep the company and its products relevant (Bratton, 2020). Subsequently, contemporary managers who work in the fertilizer industry encounter numerous challenges and opportunities which they, nevertheless, can address by using a proper strategy and identifying the purpose of one’s actions.
Management Skills
The current management theory places a considerable focus on managerial skills and attributes. Conceptual skills are the first group of qualities which managers should possess according to contemporary theory. Conceptual skills imply being able to analyze and diagnose various situations and distinguish between causes and effects (Bratton, 2020). Such skills are essential for managers since their primary task is to identify new opportunities for the business. Additionally, conceptual skills can help managers to plan appropriately by taking into consideration all important factors such as the resources available to the company. Conceptual skills are essential for those managers who need to learn new approaches and competencies to implement novel business strategies effectively. Essentially, conceptual skills are important for managers because they allow them to see a fuller picture and state of affairs and thus make more relevant decisions based on the situation.
The contemporary management theory also promotes the necessity for managers to have proper human skills. During their work, managers interact with hundreds of people including employees, contractors, suppliers, and even customers. As a result, they need to find a personal approach to every individual they communicate with. Otherwise, the lack of human skills can cause managers to fail to establish a beneficial relationship with partners which may entail negative consequences for the business. Basic human skills involve the capacity of the manager to lead, understand, and control the conduct of other people and groups they interact with (Griffin, 2021). Specifically, managers should be able to organize, coordinate, and encourage others to perform their responsibilities in a more effective manner. Such skills are vital for managers when they are tasked with creating teams and achieving synergy among members. Essentially, managers must possess the ability to mold individuals into cohesive groups and thus enable them to work together to achieve organizational goals.
Finally, technical skills are another significant element highlighted in contemporary management theory. Since managers operate in specific business settings, therefore, they should possess appropriate knowledge about their primary sphere. For instance, fertilizer companies’ managers have to be able to understand the production process of fertilizers. At the same time, managers who are heads of certain departments such as IT or accounting can have limited knowledge about their company’s operations which are outside of their specific field. Department managers are also responsible for the formation of the core competency, set of departmental knowledge, skills, and experience allowing the organization to outperform competitors (Bratton, 2020). Technical skills constitute the foundation on which managers can build professional relationships with employees. Essentially, technical skills can enable managers to have a better understanding of the all challenges their company faces and all of the opportunities it can potentially utilize. Additionally, technical skills allow managers to ensure better accountability and oversight in the company since they will be able to identify the existing problems.
Managers have a key role in the process of executing strategy and they perform several tasks during it. First of all, managers need to create a strategic plan in collaboration with all stakeholders to ensure that the strategy has a clear roadmap. Another role of the manager when executing strategy is to ensure that all jobs align with the strategic goals, as well as there are enough professionals who occupy those positions (Griffin, 2021). Moreover, managers have to communicate clearly the goals of the strategy its key aspects, and the main milestones which need to be achieved by the team. Another important element of the strategy execution process is the measuring and monitoring of the performance of the team and the company. Managers should act quickly to address possible shortcomings and poor performance. Finally, managers must be able to adjust the strategy in accordance with the current circumstances and factors affecting the organization.
Managers are also responsible for the improvement of performance and need to drive it further to achieve better organizational efficiency. For instance, managers should analyze possible innovative approaches which can enhance the operations of the business and contribute to its performance. Additionally, managers can be tasked with implementing such approaches and monitoring their effectiveness. Moreover, managers should seek to establish favorable relationships with investors and attract funding to expand the business and thus increase its performance. In terms of human resources, managers must create new opportunities for employees to keep them motivated to continue working for the company (Turkmenoglu & Cicek, 2020). For instance, managers can create a system of rewards for workers who demonstrate exceptional performance. Managers need to improve communication among employees who are part of the same teams.
Management Systems
Change is one of the key elements of any business environment and at some point, all companies undergo it. As a result, in order to make the process of change more seamless and positive, businesses need to employ change management theory. One of the most detrimental issues for every company is the inability to adapt to market circumstances and produce relevant responses to the existing demand. Change management theory helps companies to move away from their current state to a position which it would prefer to have (Bratton, 2020). The ultimate goal of every change should be the improvement across key business metrics including organizational efficiency and performance. Every change is accompanied by numerous problems which change management seeks to address through theoretical and practical guidelines.
According to theory, the first stage of every change process is the assessment of the current need for change. Managers must possess the expertise to identify the areas of the business which require changes and adjustments (Griffin, 2021). Essentially, managers should recognize that their company faces a problem which stalls its performance and prevents it from fully realizing its potential. Next, managers need to have the skill to identify the source of the problem which disrupts organizational efficiency. In order to detect that there is a gap between the desired performance and the actual one managers need to consider the relevant performance metrics. Based on the results of the analysis, managers should understand that there is an opportunity for improvement.
The next step in change management is the process of deciding on which changes should be made in order to achieve better performance results. First of all, managers should determine the ideal state for which the company should try to strive. Such an issue involved deciding on the products and services which the company will produce in the future, once the change is complete. Additionally, managers have to establish the levels such as divisional and departmental at which the change needs to happen (Bratton, 2020). Moreover, managers must identify the potential obstacles, as well as a source of resistance which may arise during the change process. For instance, some departments may be less inclined to participate in change due to possible resource limitations for them in the future.
The third stage of change management involves the process of implementation of the innovation. In the case of implementation, one of the key issues managers face is the need to determine the model of how the change will occur. Managers can either choose a top-down or bottom-up approach. The former involves conducting a quick change where only managers designate the area which needs to be reformed and do it (Griffin, 2021). The latter method is more complex since it requires managers to work alongside heads of departments and other employees to adhere to the change plan. Nevertheless, no matter which model managers choose, they must be able to outline a clear goal for the entire organization.
Finally, the last step in change management involves tracking the results of the change and evaluating its effects on the company’s performance. The ultimate goal of every change is the improvement of the quality of the operations and business processes of the company (Turkmenoglu & Cicek, 2020). Thus, managers need to assess whether the change actually produced any positive impact on the organization. For instance, managers can compare the performance metrics of the company before and after the introduction of change. Additionally, managers have to rely on benchmarking which implies comparing the company’s performance results with those of the leading competitors. Only a thorough analysis of the effects of the change can allow managers to understand whether their strategy was beneficial.
Change management has considerable implications for adaptive management systems and processes. Essentially, adaptive management constitutes the ability of the company to respond to the ever-changing market circumstances and commit to continuous adjustment to stay relevant and competitive. Change is inherent to active management and therefore people who work for companies which embrace such an approach, need to be able to successfully manage all changes (Griffin, 2021). Flexible decision-making is the skill which all managers need to possess to monitor the performance of the company, identify new opportunities, and find new ways to adapt to market situations. Managers who want their companies to be adaptive need to create systems and processes which would be conducive to quick and seamless changes whenever necessary. Such systems must form the foundation on which the entire company can rely during the period of change.
Management Style
The management style is a phenomenon which varies depending on numerous circumstances including the company’s country of origin. As a result, it is important to analyze how management style and practice interact in the context of organizational culture. According to research, management style and organizational culture can affect each other in different ways (Griffin, 2021). For instance, an established culture of an organization which relies on clear values can influence the behavior of the managers. Yet, such an arrangement is usually more common among companies which have been in existence for a considerable period of time. Nevertheless, the organizational culture of start-ups and generally those organizations which emerged only recently depend on the managerial style of the people who run them (Griffin, 2021). Essentially, in new companies, managers have the capacity to create values and promote them among the staff members through certain practices. At the same time, the process of change in the organizational culture can be extremely difficult to conduct especially in large companies. Therefore, it is important to embrace managerial styles which are targeted at the creation of an effective organizational culture.
There are many manifestations of how managerial styles and practices affect organizational culture. For instance, managers of certain companies may utilize a strict hierarchical model which is based on complete subordination of the low-rank rank employees (Bratton, 2020). As a result, the company’s organizational culture will involve the promotion of the principle of subordination in all employee interactions. Another possible organizational culture which is particularly common in European countries is the people-oriented management style (Griffin, 2021). Companies which use such a model do not focus on the performance of the business as much as on the individual employees’ well-being. As a result, managers may refuse to lay off poorly-performing employees and prefer to support them instead to help them improve their performance. Essentially, the people-oriented management style manifests itself in a more relaxed organizational culture and lax management practices. At the same time, in the United States, the management style is oriented towards higher profits and effectiveness which implies a strict organizational culture which does not tolerate poor performance from employees. Thus, it is clear that management styles and organizational culture can affect each other.
Another important element which is impacted by management style and practices is the issue of workforce empowerment. The idea of employee empowerment may be perceived as counterproductive for managers who wish to strengthen their leadership position in the organization (Griffin, 2021). Nevertheless, empowerment is widely utilized by managers and it constitutes a process of providing employees with authority to enable them to make decisions independently. As a result, employees also must be responsible for the implication of their decisions. It is clear that workforce empowerment is a phenomenon which is possible in a setting with a more liberal management style leadership. Giving an employee autonomy is an action which is unlikely to take place in strict and hierarchical management style contexts. Empowerment always implies allowing employees to assume responsibilities and authority which officially reside with the manager. For instance, employees can be granted the right to reject parts offered by suppliers which do comply with the established quality standards. The practice of empowering subordinates to make important decisions still remains a relatively uncommon phenomenon which requires a horizontal management structure and a high degree of trust between managers and employees.
Empowerment of the workforce is of the most effective management practices which can be introduced in an organization with a horizontal culture which promotes trust and equality among all employees. Empowerment can improve the ability of managers to perform their responsibilities more effectively since they will have the support and help of employees who may possess unique knowledge and expertise (Turkmenoglu & Cicek, 2020). Additionally, empowerment can positively affect workers’ involvement in the organization’s activities, increase their motivation, and improve their commitment to the company’s goals and strategy, thus ensuring that they bring more benefit to the organization.
One of the most common forms of management styles which employ workforce empowerment is transformational leadership. The concept of transformational leadership implies encouraging and inspiring employees to innovate and create positive change (Griffin, 2021). Managers who use such a management style adhere to the idea that employees can perform better when they are given freedom and the right to be creative. The practice of workforce empowerment aligns with the basic principles of transformational leadership and thus is extensively used by the proponents of such a management style.
Management Insights
The process of learning about contemporary management enabled me to discover numerous insights which I plan on implementing in my professional practice. The main idea which I have adopted as a result of the study is that modern managers need to be flexible in their approaches and avoid adhering to one management model (Griffin, 2021). Every workplace environment and situation challenges managers to demonstrate their creative skills and find appropriate solutions. It is important to remember that there are no solutions which could be considered universal. Therefore, contemporary managers need to be aware of a variety of approaches and the conditions which are conducive to them. For instance, at my company, I plan to propose an idea to the top leadership on how department managers can introduce workforce empowerment to achieve better organizational efficiency.
Another crucial insight which I gained is the correct approach to change management. Previously, I did not realize that there were ready-made frameworks which could facilitate the process of planning and implementing change in the corporate setting. Nowadays, I understand that the process of change can be divided into four stages which can enable managers to embrace a structured approach to achieve success. I have already identified several areas in my workplace which can be changed to ensure performance improvement. For instance, I want to introduce brainstorming sessions in my workplace and encourage all employees to share their ideas. Currently, our department has several weekly meetings which, nevertheless, do not produce the desired results. Through change management practices, I will try to make brainstorming sessions a new activity with the goal of improving performance.
Transformational leadership is another significant idea which I derived from reading about contemporary management. Transformational leadership is a powerful tool which espouses an unconventional approach by providing employees with autonomy and independence. Additionally, transformational leadership implies explaining to employees how important their jobs are which can increase their motivational and organizational commitment (Turkmenoglu & Cicek, 2020). I plan on implementing transformational leadership principles in the future to provide my subordinates with more independence in their work. The practice of workforce empowerment will be the primary tool which I will use as part of transformational leadership. Simultaneously, I will try to build a horizontal organizational structure where all employees could easily access managers and communicate with them directly. I am certain that the use of transformational leadership, employee empowerment, and the creation of an appropriate organizational culture can provide any company with a proper foundation based on which it will achieve success.
Finally, the course reading provided me with an understanding of the importance of integrating sociocultural factors into the management style. Essentially, I discovered how the public demand for diversity affects workplace ethics and human resource management practices (Turkmenoglu & Cicek, 2020). Such knowledge enables me to realize the need to promote inclusion in the workplace and strive to offer equal opportunities to all people, irrespective of their immutable characteristics. Moreover, contemporary management should imply forming special mechanisms which would be conducive to workforce diversity.
References
Bratton, J. (2020). Work and organizational behaviour (4th ed.). Bloomsbury Publishing.
Griffin, R. (2021). Management (13th ed.). Cengage Learning.
Lal, R. (2020). Soil and fertilizers: Managing the environmental footprint. CRC Press.
Turkmenoglu, M. & Cicek, B. (2020). Contemporary global issues in human resource management. Emerald Group Publishing.