Accordingly, there are factors that had been around for a long time as part of management tool such as the design of work flow, annual budgeting, paying attention to ROI, managing projects, creating division to make the work manageable, working with a particular brand etc. that are all part of the four managerial functions. The question that needs addressing is, how would the recent recession affect them? Would the effect be similar with earlier elements the world economy used to pull itself out of in earlier similar recession incidents or they will introduce new phenomenon that would require revamping?
This was what led a group of business leaders to come together and try to find answers to questions posed by innovative forces that led to the idea that there is a need to equip organizations with tools that would enable them to tackle not only this recession that had already caused a damage, but the future of the economy that could require some kind of revolutionizing, as far as how management is doing its job is concerned, especially in an environment the coming into the fore of new industries is not abating.
There is an assumption that says the main reason why
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The above two functions require effective controlling method, because wherever there is a need to produce complex goods and services, especially for mass consumption, there has to be such a systematic way of doing things since the business could grow (Putten 2008). Still, the old effective tools that used to synchronize efficiency and scale such as bureaucracy should remain intact so that they will continue to introduce hierarchical structures, goals that are cascading, role definitions backed with rules and procedures that are clear to follow.
There are still many questions that will haunt management in the coming 5-10 years even if it is possible that businesses would be able to pull through the current recession. The economy also would recover, as there are many sources at work to bring about the badly needed recovery although it could take time. Coming out of the recession would not change the volatile nature of products and services and it cannot bring about a change on the environment by its own.
Because of that, questions such as: • Given that the changes occurring are rapid, how would organizations would be able to be adaptable and resilient where they will be in a position to do what they are doing efficiently? • Considering that there are destructive forces created by the fierce competition, management should also ask, what kind of speed and boldness they have to blend together to be profitable?
• Considering that what makes a big difference is entrepreneurial acumen, how could management inspire their workers to come up with inputs that are indispensable and have to report to work everyday in spite of the difficulties they are facing according to what Stark and Flaherty (2009) discuss in their book? • There is also a need for management to realize that how they are going to meet all the stringent requirements of running a business with all its difficulties, while at the same time meet the expectation of the stakeholders.
It might also be important for the management to realize that: • They might have to change their priorities that used to be grounded on the principles of standardizing what they are doing; • Specializing on certain aspect of the business they are in, in order to excel and to get a better market niche, • To look at carefully the kind of hierarchy they create, as part of the four managerial functions that makes its priority the interest of the stakeholders.
There are areas that require the focus of management more and the most important ones among them are consumers, because whatever a given company is out to accomplish, unless it has a good knowledge of its customer base it would be producing for a non-existent market or customer. Factors such as what are becoming the new values of the consumers that are coping with the recession should shape their thinking in the future.
Because the obvious presence of recession-wary consumers would linger into the future until there is a full-blown recovery no matter how long it will take. In a situation like this knowing when exactly the buying habit of consumers that are cutting back or postponing would change is crucial for the management in the coming few years, because it is only when they see that sign of things picking up that they can hike up their productive activity, till then all they can do is try to survive by utilizing similar tactics Bate (2008) outlines .
Other problems such as the fading interest of once popular brands at a time of recession are common as witnessed from earlier recessions. When there is such obvious sign that is conspicuous and consumption is decelerating that is not the time to introduce a new brand. It has to wait for the right opportune time and when such changes indicting the opportune time is around the corner, it would be advisable to either come up with new brands, or extensions or to incur cost for reviving lagging brands (Hart 2008)