Manaerial Theories of He 21st Century

Contents

Management vs Leadership 3

Management 4

Fig. 1 – Managerial Roles 5

Cross Cultural Diversity and Globalisation 6

Hofstede 6

Flexibility 8

Fig. 1 8

Shamrock Model 9

Managerial Theories of the 21st Century

Businesses are all around; they compile the backbone of society’s configuration. Without the innovations and opportunities that are brought by these companies, lifestyle, as we know it, would be a shadow of how it is today. Due to the importance of all businesses to the human race, it is vital that they are nurtured. The majority of businesses are profit driven and in order to achieve this they must have a sound internal managerial structure. As a result, many theories and concepts have arisen throughout the years to aid the management side of an organisation. The by product of such theories and concepts are, fundamentally, to get the maximum output from employees whilst creating a sense of cohesion and serenity. This essay will be looking at such theories and their importance to companies drive for success.

The global market is made up of a web of sub sectors. Businesses are competing with one another in these respective sectors to gain the largest market share. Examples of sectors include fast food, clothing, banking etc. However it is not just the managerial running of a company that defines its success. There are external factors that can influence the policies and decision making of businesses therefore, in order to compete they must be adopt a flexible approach to the demand of the market. These external factors are ever changing and therefore, it is important that that he are monitored and responded too accordingly by the business. An example of a business response to its environment was in the case of Northern Rock where the Bank Borrowed 26 billion pounds as a result of the subprime crisis in North America.

A Tool that can be used to monitor these external changes is a PEST analysis. A PEST analysis is an element of external analysis when performing market research and gives an overview of the different macro-environmental aspects that the company has to take into consideration (2). This form of analysis looks at the Political, Environmental, Social and Technological factors.

Fig.1

Political

• Trading Policies

• Funding and Grants

• Local and International Pressure Groups

• Government Policies

• Wars and Conflict

• Elections

• Terrorism

Social

• Consumer attitudes

• Media views

• Brand image

• Law changes

• Demographics

• Ethnic/religious factors

• Living standards

• Health

Economic

• Local and overseas economies trends

• Taxation trends

• Job growth/unemployment

• Interest and Exchange rates

• Inflation

• Tariffs

• Disposable income

Technological

• Competing Technological development

• Information and communications

• Innovations

• New discoveries

• Internet

• Technology patents

• Research funding

Fig.1 shows some external factors influencing businesses decision making when producing their