Contemporary Management Issues in 21st Century (Essay Sample)

Contemporary Management Issues in 21st Century
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Contemporary Management Issues in the 21st Century
In contemporary management practices, the idea of managing organizations has evolved to include more complex principles. This might have been influenced by various factors, including technology and consumer preferences. Particularly in management and economics research, most scholars in their studies have assumed the importance of the existence of artefacts like organizations, markets and firms. Their values have been downgraded for a while, and the full potential and positive effects from an economic and management perspective have not been considered. Focusing on causation to consider an entrepreneurial focus on the goals and attempting to reach them, and effectuation to define the desired end effects, it is undeniably correct that such firms and market organizations require a new approach to the concept of management and venture creation in contemporary management practices.
In today's management practices, the underlying business management dynamics necessitate the need for a well-defined and goal-oriented approach to venture creation. As researched by Hovig, Pettersen, and Aarstad (2018) and Sarasvathy (2017), a novel approach to the process of turning a new idea into a profitable business to succeed and attract investors is particularly essential. This can be built upon the foundations of business management which include rapid technological changes, consumer testing and preferences and political factors. As studied by Seetharaman (2020), the technical and innovative aspects of a product or service provision alter the operations of any firm regarding how it should produce and market its products and services. As such, most organizations and firms work in synchrony with technological advancements. This impacts the sales and marketing strategy for a particular service or product. Organizations should keep their operations up to date with technological advancements.
No organization can resist the wave of change in the tastes and preferences of its consumers. Consumer tastes and preferences are dynamic and the only way to respond and meet them appropriately. Customer preferences determine consumer demand for a product or service (Tajeddini, Martin, and Ali, 2020). For an entrepreneur craving tremendous success, there is a need for an operational approach that will cater to the changing conditions in the business environment. When starting a new venture, an entrepreneur must understand customer behaviors to regulate to adapt to them and create a sustainable competitive strategy. Additionally, having enough understanding of the political performance of the area in which a business venture is domiciled is essential in influencing its success. Political factors are also dynamic, and they largely influence the economic policies formulation, and hence affecting the performance of the area in which a business venture is domiciled.
A novel approach to entrepreneurial management should first seek to identify and solve contemporary management issues. In the 21st century, a diverse range of management issues in relation to business management occur. These issues, as researched by Andrei, Panait and Voica, (2018) are presented in three major forms: organizational human resource management, financing and marketing and operational and production challenges. Firms, markets, and organizations need to consider the emerging human resource management challenges and develop a novel approach to handle them. For a while now, Doppelt and McDonough (2017) notes that most organizations have had operational principles and leadership styles that are meant to only focus on productivity and profit, not the welfare of the workers. Hence, in a change management approach, emerging entrepreneurs should consider such leadership practices as transformational and democratic leadership to cater for the welfare of the employees. 
The human resources departments in most of today’s organizations are not the same as the human resources departments of a decade ago. Due to the continually changing employment market, policy compliance difficulties and regulatory expectations, human resource managers have been compelled to become agile participants in the strategic growth of enterprises (Trost, 2020). Automation and innovation have been a challenge in the human resource sector. Employee training has to support these automations and innovations to employ positive changes. Additionally, dynamic regulatory issues challenge the human resource development sector. Compliance with regulatory requirements is a fundamental responsibility of human resource managers. As contented by Randel et al. (2018), considering diversity and inclusion has also been a challenge in contemporary human resource management.
Challenges in financing and marketing are also another set of contemporary issues in business management across the globe today. This calls for strategic management principles. Presently, technological developments have placed many organizations at risk of almost failing to eliminate data breaches and keep up with technology in financial management (Whitler and Farris, 2017) Harsch and Festing (2020) in their research about dynamic talent management found that most firms have considered retaining the old marketing methods, which has put them behind in meeting dynamic consumer needs. Coupled with this challenge is how firms and organizations comply with regulatory requirements. This is a contemporary critical issue considering that international business law has set regulations that govern the operations of every business organization. Such regulations include protecting the environment from pollution and protecting consumers from practices that endanger their health and those which are meant to exploit them economically. It is crucial to implement leadership styles like transformational leadership that observe such rules as a manager.
The recent management changes have had effects of varying intensity and magnitude on the decision-behaviors of leaders, how human capital is generally perceived and controlled, and the configuration of organizational systems. As found in the study by Griffin (2021), managers are continuously driven by the need to have creative decision-making processes. Such innovative approaches to business decision making have been mainly aimed at keeping firms and organizations on the right track, as noted in research by Björkdahl, (2020). For instance, organizations such as Amazon have leveraged creative decision-making to fully utilize technology to develop e-commerce websites to boost their marketing. The decision behaviors of managers of various organizations and firms have been geared towards focusing on a new approach to keep up with technology changes and consumer demands, which accounts for more significant transitions to e-commerce and e-marketing.
The perception of human capital today is somewhat different from the ancient perceptions. Many organizations have primarily utilized the economic value of workers and their knowledge, skills and experience not only to realize high profits abut also to facilitate employee career development. Stank et al. (2019) in their research note that many firms have long been confined to the conventional notion and the dominant paradigm that education and training are purely for investments and making individuals more productive. This is contextually relevant considering how most organizations have been investing a lot in human resources through training programs and the provision of mentoring and coaching programs to increase productivity. A recent example of such an organization is the Coca-Cola Company, which provides training on the job to its employees. Ultimately, many firms and organizations have developed a new approach to heavily investing in their human resources by giving practical employee training and mentoring programs not only to benefit the organizations but also to foster employee empowerment and career development. Amazon is also not an exception.
The general organizational structure of firms and organizations has seen significant changes through novel management approaches. As per the research by Rosenthal (2021), most organizations struggle to attain a high-performance work culture while also maintaining good employee-manager relationships through leadership styles such as the transformational style. Structurally, most organizations employ a hierarchical organizational structure with a chain of command arranged in order of seniority from top to bottom. The system has largely been embraced in recent times following various benefits, including the proper definition of authority levels and responsibilities, and a focus on employee motivation and specialization in the workplace. The structure has also eased the management process since there is delegation of responsibilities. In coming up with a new venture, the definition of an appropriate organizational structure is critical.
To realize an improvement in the organizational situation, there is a need to have a set of operations in place to focus on a novel and highly innovative approach to executive leadership and management. Performance improvement and value enhancement depend on the leadership style and practices within the organization (Liao et al. 2017). As noted, leadership contributes largely to organizational success by influencing employee performance. Since the present era is purely defined by freedom and democracy, considering a democratic form of business executive leadership can help in improving organizational performan...