Contemporary Management Issues: Causation and Effectuation Report

This report explores contemporary management issues in the 21st-century global business environment, focusing on the challenges and opportunities that companies face when expanding internationally. It examines the concepts of causation and effectuation as novel approaches to venture creation, highlighting issues such as lack of transparency, coordination, communication barriers, and resistance to change. The report discusses the importance of effective communication strategies, decision-making processes, and conflict resolution techniques for managers in a globalized setting. It also touches upon the impact of organizational culture and the need for cultural training to facilitate team building and collaboration. The report concludes by emphasizing the significance of adopting appropriate management styles and theories to address these challenges and enhance organizational effectiveness. Desklib provides access to this report along with a wide range of study tools and solved assignments to support students' academic success.

Contemporary
Management
Issues in the 21st
Century

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
In this fast running world, there is various kind of business issues are facing by the
companies & most of the companies are facing the specific contemporary issues while company
is looking forward to the globe expansion. In order to maintain the business operational activities
on international basis, companies enter in the global business environment &then companies are
facing various contemporary business issues (Balkin and Lenz, 2021).It is determined that
contemporary management challenges generally define as an unique concerns &opportunities
that are significant to a company's current existence as well as assisting them in meeting their
goals in the most specific way. These concerns are also significant in conducting successfully in
the international business environment of the twenty-first century. This can assist the
management in efficiently controlling the organization's many operations, technologies, &
capabilities in order to accomplish their objectives within the constraints of the current situation.
The article discusses current management problems in a global company climate in the twenty-
first century. The primary concern of this report is to focus on the statement which is all about
the novel approaches related with the various venture creation. Furthermore, causation and
effectuation concept and identify various business management issues in context of the
contemporary international business environment.
Main Body
Basically , business is considered as the separate and legal entity through which
entrepreneurs are mainly formulate new business with create ideas and improve it on the
international basis in order to gain more competitive advantages and profitability. It is analysed
that there are two approaches are mainly highlighted in the given statement of this report like
Causation & effectuation, both approaches are different with each other and define the specific
prospective in context of business. Generally, a causality approach mainly states that
businessmen should concentrate on a set of predetermined objectives & seek out the most
effective and appropriate tactics in order to achieve these goals and objectives. Those businesses
use the effectuation approaches mainly focus on the path ahead of them, which they want to
materialise into one maybe more targets that aren't always predetermined. Previously, businesses

operated inside the confines of a major metropolitan area, but in the twenty-first century, every
firm seeks out new prospects to efficiently internationalise their operations (Erokhin and Gao,
2019). There are various kind of dynamic contemporary management issues are experiencing by
the organisations like Commodity/stock market related implications on the economy, cyclical
character of recession & growth and decline of economies, Impact of banking sector's on the
economy, regulations, monetary & fiscal policies & government's role in business. In context of
the presents a challenge to the industry's management in terms of effectively managing the
company's multiple information & procedures (Gravari-Barbas, 2018).The most pertinent
concern for administrators in today's global company setting is a lack of transparency and
coordination in the flow of critical information amongst employees. Professionals in a global
company setting speak a variety of native languages, making it harder for them to grasp the
important message. This makes it very difficult for leaders and managers to properly impact
workers in order for them to contribute greatly to the organization. This helps it achieve its
objectives. Management should create necessary actions for interacting with people who speak a
different language as a means of resolving these issues. Change and communication are also
considered as the another contemporary issues that can
Many company incubators try to provide network connections & encourage open
communication, however past research has revealed that knowledge flow between fostered
enterprises is minimal. We investigate if an entrepreneurial approach of causality vs. effectuation
is linked to the inclination for enterprises to exchange ideas &the relative benefits of such
international network services in this article. Entrepreneurs that use a causal strategy focus on a
predetermined objective &then seek for the means to achieve it. An effectuation strategy
suggests that companies concentrate on the resources available to them, which they hope to
convert all into or more undefined goals. It is determined that there are various artefacts like
firms, organisations and also market need to adopt a novel approaches such as Causation &
effectuation so that company can effectively create their venture globally (Lavinas, 2018).

Most of the entrepreneurs are called Causation approach as a “casual strategy” and for
effectuation approach as an “automatic and controlled strategy”. It is analysed that entrepreneurs
that utilise a causal strategy concentrate on a predetermined objective & then seek for the means
to achieve it. So it is analysed that through causation approach, company is become more con
concerned about their goals. Entrepreneurs are more focused about the goals and then analyse the
specific strategies in order to find out the appropriate solution. And for this report, the main
contemporary issues are considered which are mainly related with the transparency,
coordination, change and communication. So manager of the company is mainly concerned
about the predefined goal and then apply the appropriate strategies in order to resolve the issues
(Lombardi, 2019).
In case of the effectuation approach which is an automatic and controlled strategy suggests that
entrepreneurs concentrate on the resources available to them, which company hope to convert
into one or more undefined goals.
In order to solve the contemporary issues, company need to implement various change
models like Kurt Lewis change management model and some appropriate theories and also
follow up on audio and video conferences with written or verbal contact for the proper
communication so that flow of communication and deliver the right information is proceed in the
correct direction. This will aid in increasing staff productivity in an efficient way.
Another challenge that management has in the global business environment is the time it
takes to make successful decisions for business operations in foreign markets. Because the
scheduling differs in different nations, extra time is required to establish meeting schedules in
order to make good decisions for the entire organisation. As a result, leaders and managers find it
challenging to make timely changes in order to get the greatest results &effectively build their
businesses. As an outcome, managers must employ the most effective communication technique
in order to get individuals to attend meetings & address delayed decision-making in a timely way
(O’Cass and Wetzels, 2018).
In today's world, high level of technology and new advancements are taking the wider
place so the main contemporary issue which company is facing related with the “Change”
because people do not want to adopt the change and implement it because they do not want to
come out from their comfort zone.

In order to resolve the issue, company has option to adopt approaches like Causation
approach and Effectuation approach. Company has evolved into a useful tool for individuals to
present in meetings & to comprehend each other's culture, environment and language via actions.
This should assist to raise employee satisfaction but also improve effective teamwork. While
facial landmark conversations provide clarity, they also assist management in making faster
choices &executing them efficiently in order to get the greatest results (Rosenbach, 2018).
Disjointed conflict resolution is also another issue that makes it difficult for managers to
effectively govern corporate operations in the globalized economy of the twenty-first century.
This happens when a government's primary mode of communication is email, making it difficult
to deal with difficult issues & have everyone on the same page. Body general tone play an
important part in communicating, &without them, supervisors would find it impossible to handle
experiences that occur correctly. In context of the Causation approach the main benefit is that
leaders and managers first set the goals and focused about the predetermined goals and then
analysed the strategy in order to solve the issue but in case of the effectuation approach, manager
first concentrate on the strategies to resolve the contemporary issue and then set the goals
(Waddington, 2021).
It is analysed that, effectuation approach is more convenient and helpful to adopt most
appropriate strategies and also useful to decline the impact of these issues. Through effectuation
approach, causes managers to never send difficult information via email since written messages
are readily misconstrued by many others. It is critical for them to talk immediately to other
people in one-on-one conversations since this will make them learn each other &connect well.
It is analysed that effectuation approach is more appropriate in order to maintain the global
business environment and also helpful to maintain the effectiveness of the business. The
Challenge is the organization's are mainly facing which is related with the contradicting
corporate structure while functioning in a worldwide market. The culture of global firms is based
on constant connection & team building amongst employees. This makes it very hard for
management to effectively design, develop, & accomplish overall goals and objectives of the
organization. This necessitates the business's senior executives engaging a consultancy to deliver
effective cultural training to new staff & supervisors in order to prepare them to successfully

manage corporate culture in a business world. This will aid in gaining a better knowledge of
other cultures in order to better manage various scenarios when operating a firm in a business
world (Wilson and Bryant, 2021). Business is focused on multiple case study of start-ups at a
business incubator &discover that entrepreneurs who use an effectuation strategy are more likely
to exchange ideas &value network services. Entrepreneurs, who take a causality perspective, on
the other extreme, are less likely to exchange ideas with those other incubators enterprises,
&they consider such network components to be of poor value. The findings are noteworthy
because so many institutions implicitly or overtly recruit businesses using a causality strategy,
i.e., picking applicants who have a thorough &well-defined marketing strategy. The
ramifications of the findings for incubator recruitment planning & programmes are discussed.
Management styles managerial performance in focusing, evolving, & communicating
effectively in order to achieve organisational goals. In order to follow the Effectuation approach,
there are various theories are need to implement by the managers like network monitoring
theory, relational theory and empirical organisational behaviour which can useful to increasing
productivity. Apart from this another theories also recommended like contingency management
theory, theory X & theory Y, promoting staff engagement, &simplified judgement are some of
the management ideas that assist socially organized corporate operations. These principles also
assist managers in resolving any difficulties that cause them troubles in order to effectively
manage business in the global business climate.
In order to assumed the traditional and existing organisations, it is determined that in
previous time , manager of the organisation mainly utilised traditional approaches and methods
analyse the positive and negative impact of business in an appropriate way. Two famous
approaches like Causation approach and effectuation approach are essential. In context of the
traditional time period, managers were utilised Causation approach because this approach
predetermined the goals and objectives and then apply the specific strategies to solve the
contemporary issues. But now the scenario is totally different and company companies are
moving forward to utilise effectuation approach which is not focused about the predetermined
goals and also concerned about the effective strategies to solve the contemporary issues like
change, transformation and adoption of new technologies and many more for global basis.

Conclusion
According to the above-mentioned article, modern management challenges develop while
managing a firm in the global business climate of the twenty-first century. These difficulties may
sometimes create difficulties; they also give executives with opportunity to improve their
employee's performance in a cost-effective manner. Ambiguity, sluggish competence,
disorganized grievance redressed, & contradicting organizational values are some of the current
management concerns that companies face when operating in a global business environment. As
a result, managers must employ effective tactics in order to resolve these challenges, enhance
their organization's effectiveness, &accomplish their aims.

References
Balkin, R.S. and Lenz, A.S., 2021. Contemporary issues in reporting statistical, practical, and
clinical significance in counseling research. Journal of Counseling &
Development, 99(2), pp.227-237.
Erokhin, V. and Gao, T. eds., 2019. Handbook of research on globalized agricultural trade and
new challenges for food security. IGI Global.
Gravari-Barbas, M., 2018. Tourism as a heritage producing machine. Tourism management
perspectives, 25, pp.173-176.
Lavinas, L., 2018. The collateralization of social policy under financialized
capitalism. Development and change, 49(2), pp.502-517.
Lombardi, R., 2019. Knowledge transfer and organizational performance and business process:
past, present and future researches. Business Process Management Journal.
O’Cass, A. and Wetzels, M., 2018. Contemporary issues and critical challenges on innovation in
services. Journal of Product Innovation Management, 35(5), pp.674-681.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Waddington, D., 2021. Contemporary issues in public disorder: A comparative and historical
approach. Routledge.
Wilson, G.A. and Bryant, R.L., 2021. Environmental management: new directions for the
twenty-first century. Routledge.