Contemporary Management Issues in the 21st Century

This essay explores the dynamic business management issues present in the global environment and delves into a critical evaluation of contemporary management issues through aligning with relevant theories. It discusses the concepts of causation and effectuation and their impact on entrepreneurial mindset, and how entrepreneurs are changing their ways of performing business activities by focusing more on strategies in regards with leadership, commercialisation as well as bringing innovative practices in dealing with the issues of contemporary management in 21st century.

Contemporary
Management Issues in the
21st Century

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Contemporary business management practices are considered as a modern approach in
regards with overseeing the organisational activities such as planning, organising and decision-
making (Braun and Sieger, 2021). These practices are important as it ensures to establish varied
objectives which are aligned with the interests of differential stakeholders. In 21st century,
management practices are principally focused on creating value for customers rather then
generating huge profits. Organisations are periphery and their future is essentially dependent on
future outcomes in regards with creation of value for customers. Causation and effectuation are
considered as essential concepts which supports entrepreneurial ideas of bringing new innovative
practices in business operations.
This essay demonstrates an understanding of dynamic business management issues which
is present in global environment. It also delves into a critical evaluation of contemporary
management issues through aligning with relevant theories.
MAIN BODY
Professor Sarasvathy had published a ground-breaking journal on the topic of
effectuation and causation which comprises of their definitions, use, objective and their impact
on entrepreneurial mindset (Sarasvathy, 2001). In order to perform effectively, entrepreneurs
essentially performs their task with effectuation approach rather causation aspect. These both
showed a positive correlation in a strategic manner. It has been found that mostly entrepreneurs
hate market analysis and research. They believe in working with having controlling power in
their hands whereby they can change their objectives rather than means. Expert entrepreneurs use
effectual approach for lowering the risk of their venture in a strategic manner. For example,
managers of Davison's Canners use varied effectual approaches through creation of their means
and objectives, spreading risks, getting reviews as well as feedbacks in an effective manner.
Varied principles which are contemplated by entrepreneurs are bird-in-hand, crazy quilt
principle, affordable loss, lemonade and pilot-in-the-plane aspects.
Bird in hand principle implies that entrepreneurs initiate their workings with what they
have. It also comprises of negotiating with stakeholders who can make effective commitments
regarding a project in an effective manner (Braun and Sieger, 2021). Affordable loss principle is
concerned with committing in advance about the entrepreneurs loss rather than making expensed
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calculations. Crazy quilt principle is concerned with building a network whereby entrepreneurs
choose their stakeholders by further emphasizing on creation of new practices and ways for
attaining differentiated goals. It also helps in minimizing the level of uncertainty and avoiding
global dislocations in a strategic manner. Pilot-in-the-plane principle implies that entrepreneur is
a prime force which can help in grabbing opportunities as well as put their efforts for attaining
specified goals.
Causation is an approach whereby concentration of entrepreneurs in regards with
contemporary business management is principally towards on determining selected objectives
ans then discovering ways or methods for attaining it in an effective manner (Grégoire and
Cherchem, 2020). In business parlance, causation can be understood as an emerging effect of an
incident. In contemporary business world, organisations are adopting diverse technologies for
attracting massive number of customers. They are also adopting varied tools and applications for
making their customer experience better and provide value.
In context to contemporary management practices, causation is considered as significant
for entrepreneurs in order to gain insights about emerging issues and developing strategic plans
in an effective manner. Concept of causation essentially relies on predictions and assumptions
which can help entrepreneurs in making strategies for risk management as well as assessment
(Hauser, Eggers and Güldenberg, 2020). It also focuses on enhancing opportunities which are
concerned with increased competition and making effective relationships with customers as well
as other stakeholders in a strategic manner.
Entrepreneurs are also changing their ways of performing business activities by more
focusing on strategies in regards with leadership, commercialisation as well as bringing
innovative practices in dealing with the issues of contemporary management in 21st century. For
example, managers of Davison's Canners has changed their ways and focus more on becoming
sustainable as well as creating value for customers. Entrepreneurs are enhancing their skills such
as problem-solving, organisational, risk-averse, teamwork competencies in an effective manner
for overcoming the issues of uncertainty in contemporary management practices (Chen, Liu and
Chen, 2021). Entrepreneurs are adopting varied strategies for their development such as self-
assessing their ways, seeking financial support from government bodies, attending development
activities in an effective manner.
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However for changing their ways, entrepreneurs have to strategise change management
strategies effectively and develop insights for bringing innovative products or services. It is
imperative for entrepreneurs to strategise their business operations in such a way so that it can
effectively overcome varied challenges.
Contemporary business environment is essentially dynamic in its approach which led to
make changes in market conditions, current trends and customer's perception (Sioukas, 2022).
Entrepreneurs are not in a position to curb the impact of contemporary management practices in
regards with uncertainty as well as global dislocations in a strategic manner. In order to
overcome the difficulties which are caused to them through the concept of effectuation as well as
causation. Pre-determined objectives can help entrepreneurs in minimizing the scope of
uncertainty in an effective manner. Causation guide entrepreneurs in bringing new as well as
innovative products or services in market.
Concept of effectuation is concerned with setting means and focus on selection among
possible effects which can be produced through set objectives (Hubner and Baum, 2018). It can
be understood as a logic of thinking regarding decision-making process in an effective manner.
In regards with entrepreneurship, it is a process theory which encapsulates entrepreneurs to bring
innovative ideas in order to create new ventures.
Professor Saraswarthy had given theories of causation and effectuation through evaluating
entrepreneurial as well as leadership skills in an effective manner. Professor has conducted a
study and observed that managers can be considered as a casual thinkers as they plan and
organise their actions by forecasting an idea or task of its outcome in a strategic manner.
Professor has encapsulates four basic principles which can be used by entrepreneurs in
overcoming the issues of contemporary management practices.
U-haul is a practice which helps organisations in stimulating the sharing needs with
relevance with equipment as well as machineries with others in an effective manner. Concepts of
causation and effectuation are considered as effective and are similar in advocacy. As these help
in understanding the term of entrepreneurship in an effective manner. This theoretical model of
entrepreneurship can impact little in regards with contemporary business management practices
as these are uncertain as well as can be influenced in a significant manner by global dislocations.
These models can aid entrepreneurs in solving varied issues however, their uncertainty
can be pose as a threat for them. With concept of effectuation, entrepreneurs forecast future
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which can not be accurate and relevant in its approach. Entrepreneurs are most likely to
implement non-predictive control over their operations for transforming their means towards
new outcomes. There are two approaches for which is adopted by entrepreneurs for acquiring the
means to attain the desired objective in an exponential manner. Entrepreneurs who follows their
workings through causation effect tend to select the goal and then try to choose means for
accomplishing objectives in a strategic manner.
Effectual entrepreneurs allows others to determine which goals they have to pursue which
help them in creating new venture or markets. They operate effectively by assimilating the risk
while depending on ideas and thought process of others. While entrepreneurs who focuses on
goal-orientation led the risk of focusing narrowing the risk of uncertainty by exploiting
beneficial contingencies. Casual entrepreneurs run their operations by becoming too committed
in respect with their original ideas and decisions. This theoretical framework has impacted the
decisions of the entrepreneurs in an effective manner. Effectuation can provide a fuzzy as well as
boiling environment for enacting with creativity in an effective manner. In relevance with high
uncertainty, entrepreneurs can create opportunities by determining their decisions based on
affordable loss principle rather than maximizing expected returns in a strategic manner.
CONCLUSION
From the above essay, it has been assessed that concept of causation initiates with proper
planning and then tools as well as techniques are determined to complete the task in an effective
manner. At the contradictory to this, in effectuation concept varied tools and methods are
determined first and then tasks along with targets are set. These concepts are considered as
essential for entrepreneurs in solving varied issues in relevance with contemporary management
practices. These concepts are used for contemplating entrepreneurs for evaluating varied issues
in relevance with their new ventures in a specified manner. Effectuation can be used for short-
term survival of entrepreneurial decisions. It also help in acting on the prescribed decisions based
on their knowledge and capabilities in an effective manner.
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REFERENCES
Books and Journals:
Braun, I. and Sieger, P., 2021. Under pressure: Family financial support and the ambidextrous
use of causation and effectuation. Strategic Entrepreneurship Journal. 15(4). pp.716-
749.
Chen, J., Liu, L. and Chen, Q., 2021. The effectiveness of effectuation: a meta-analysis on
contextual factors. International Journal of Entrepreneurial Behavior & Research.
Grégoire, D. A. and Cherchem, N., 2020. A structured literature review and suggestions for
future effectuation research. Small Business Economics. 54(3). pp.621-639.
Hauser, A., Eggers, F. and Güldenberg, S., 2020. Strategic decision-making in SMEs:
effectuation, causation, and the absence of strategy. Small Business Economics. 54(3).
pp.775-790.
Hubner, S. and Baum, M., 2018. Effectuation, entrepreneurs' leadership behaviour, and
employee outcomes: a conceptual model. International Journal of Entrepreneurial
Venturing. 10(4). pp.383-411.
Sioukas, A., 2022. Effectuation and causation in the entrepreneurship classroom: learning
obstacles of college students. Entrepreneurship Education, pp.1-19.
Online:
Sarasvathy. S. D. 2001. Causation and Effectuation: Toward A Theoretical Shift from Economic
Inevitability to Entrepreneurial Contingency. [Online]. Available through: <
file:///C:/Users/user/Downloads/Causation__1724266625%20(2).pdf>
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