Causation, Effectuation, and Dynamics of Contemporary Management

This essay provides a detailed analysis of contemporary management issues, focusing on the concepts of causation and effectuation within the global business environment. It explains causation as a traditional approach where entrepreneurs focus on predefined goals, while effectuation emphasizes leveraging available means to achieve potentially undefined goals. The essay explores how these concepts relate to various business management challenges, including technological impacts, social issues, cultural barriers, and electronic commerce. It further discusses how understanding causation and effectuation can help address issues like performance pressure, poor teamwork, time management, and communication problems in global teams. The essay concludes by emphasizing the importance of solving management issues to foster business growth and achieve predetermined goals through strategic decision-making and proactive actions. Desklib offers a range of resources, including solved assignments and study materials, to support students in understanding and addressing these complex management concepts.

Essay Contemporary
Management Issues

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Contemporary management issues are the issues which are identified in the business
environment (Nacion, Park and et.al., 2018).
Thus, the essay will analyse the causation and effectuation will be explained in detail
with help of their concepts. Further, concept of causation and effectuation will be explained by
understanding dynamic of business management issues in contemporary global business
environment. With the help of this, it will make easier for analysing what are management issues
which are stopping and hindering global business management scales. This will be explained in
essay as to how changes will be made for growth of company.
MAIN BODY
Concept of causation and effectuation and discussing it in the relevance to understanding
dynamic of business management issues in contemporary global business environment
Causation is the approach which implies that entrepreneurs focus on the predefined goals
and how the goals are being reached. It is the perspective which is traditional in nature and
enables the entrepreneurs to analyse and identify that how the goals are achieved at large scale
within the business context.
Effectuation is the approach which implies which helps in focusing on the means of hand
which aim in materializing more goals which are not sometimes predefined (Yu, Tao and et.al.,
2018). The entrepreneurs follow the effectuation approach as it helps in analysing and evaluating
the ideas which are shared within the organization. The entrepreneurs share the ideas which
helps in understanding that the proactive business ideas are being created by the entrepreneurs
effectively and in appropriate manner. Entrepreneurs which follow the causation approach have
limited proactive ideas, and they perceive those resources while networking which have low
value and are contributing less shared ideas.
Concept of causation and effectuation are described as -
Causation — With the help of competent strategies there are markets shares in the existent
markets. The logic behind the causation approach is that it helps in knowing the logic which is
that the future can be predicted and known at large scale and with the help of this, the activities
which are currently taking place in the organization can be controlled for the adverse effects
which can be caused later. There is more exploitation of knowledge in this approach which helps

in knowing that how effectively the ideas can be shared. Choices are driven at large scale which
helps in analysing the characteristics (Arvidsson, Coudounaris and et.al., 2020).
Effectuation — Effectuation is the process which helps in knowing the means and tools which
are given. It helps in considering the human activities and the actions which are being taken in
accordance for the purpose of business at large scale. We can control the future to some extent
but cannot predict it. There are new markets which are being created through alliances and other
cooperative strategies. The effectuation process helps in underlying the affordable loss or
acceptable risk. It helps in focusing on controllable aspects of the future which is unpredictable.
In understanding the dynamics of business management issues in contemporary global
business environment helps in defining the aspects of how the businesses are being affected by
the management issues being faced. The entrepreneurs face the issues which are regarding the
technology at large scale (Hopkinson, Zils and et.al., 2018). The new technologies have impact
on the business as this creates difficulties in operating with the new devices and how they are
being utilized at large scale. The websites and digital advertising are the major impacts which
have on the business and the employees within organization. There are certain social issues
which are being analysed and evaluated for the business. This becomes the threat for the
employees and the business at large scale. There are certain business management issues which
are being explained in detail such as — language barriers, cultural barriers, management of the
global teams, inflation rates which are being considered as important in the business aspects as
the growth and development is being affected.
The major business management issues in the business global environment are -
 Electronic commerce is the major aspect and the business issue which affects the process
of working globally in the business environment.
 There are sustainability issues while surviving in the global business environment.
 Innovation and changes in the management becomes difficult when there are certain
modifications which are being taken into consideration and are worked upon
(Schoemaker, Heaton and et.al., 2018).
 Due to different work ethics of the employees within organization, it becomes for the
business to take advantage of the growth aspects in the business environment.
 Talented manpower when made in the businesses creates difficulties within the business
and this creates the work to be done by the employees more difficult.

 The predefined goals and strategies are made which creates problem in its
accomplishment at large scale within the environment.
 There are certain threats which the business faces sue to external business environmental
factors taking place.
By understanding the concept of causation and effectuation, the dynamics of business
management issues are created and these are analysed and evaluated in context of contemporary
global business environment. Due to low level in achieving the goals, the effectuation process is
being known and analysed at large scale. As there are no predetermined goals in the effectuation
process which is being followed, there are certain aspects which creates difficulties in analysing
and knowing that there are various ways in which the business process at global level and in the
global environment is being hindered (Yun and Liu, 2019). There is always performance
pressure on the employees' as they face many problems in delivering effective performance.
Along with this, the poor teamwork also affects negatively on the global business environment as
there are different teams which are connected globally at large scale. Further, the major business
management issue which the employees around the globe face is the time management which
creates difficulties in the manner as to how the management issues can be resolved effectively
and in significant manner. Also, due to poor communication, the teams which are formed in the
business are impacted largely. Due to diverse cultures there are certain issues which arrives in
the management of the company, this creates more difficulties in dealing with the aspects of how
the business is dealing with the cultural differences at global level and environment.
The global issues and problems are being solved when they are analysed and evaluated at
large scale. It is very important that the business management issues are solved so that the global
business environment helps in framing the goals by following the process of causation for the
entrepreneurs involved in the business (Shams, Vrontis and et.al., 2021). It is very important the
business management issues are being solved such that the performance of the employees within
the business or organization is not affected and the company seeks growth and development in
an effective and efficient manner. The management issues should be solved so that the business
is not affected by the increase in the profits and growth at global scale in the business
environment. The global uncertainty and urgency should be solved which helps in dealing with
the growth and development of the business at large scale. The causation and effectuation
process are being considered for the predetermined goals which are set so that the future does not

become uncertain. The goals and the objectives of the business should be framed in such manner
that the business are more concerned about accomplishing the goals. Also, the decisions and
action should be taken into consideration so that it helps in creating value for the predetermined
goals which are framed under causation and effectuation process.
It is very important to solve the business management issues in the context of global
business environment as it helps in knowing that what are the strategies which are to be framed
such that all predetermined goals are being accomplished (Bogers, Chesbrough and et.al., 2019).
The management issues are to be solved such that the business objectives and goals are being
accomplished at large scale. Also, the manner in which the businesses seek growth and
development is also known such that the problems which are being arising in the business are
solved in easy manner. The causation and effectuation processes or approaches helps in
identifying that how effectively the entrepreneurs and the businesses are taking concern of the
goals which are pre-determined at large scale. The issues of management can be solved in the
context of global business environment which helps in solving the problems and issues which are
being created in the aspect of goals and objectives which are unable to be fulfilled and the other
employee problems which the business is facing at large scale globally.
CONCLUSION
Thus, it is being concluded from the above essay that causation and effectuation was
being explained in detail with the help of their concepts in detail. Further, concept of causation
and effectuation was being explained by understanding dynamic of business management issues
in contemporary global business environment. With the help of this, it made easier for analysing
what are the management issues which are stopping and hindering the global business
management scales. This is explained in the essay as to how the changes and modifications
should be made for the growth of the company.

REFERENCES
Books and Journals
Arvidsson, H.G., Coudounaris, D.N. and et.al., 2020. The shift from causation to effectuation for
international entrepreneurs: Attitudes and attitude change versus social representations.
International Journal of Entrepreneurship. 24(3). pp.1-23.
Bogers, M., Chesbrough, H. and et.al., 2019. Strategic management of open innovation: A
dynamic capabilities perspective. California Management Review. 62(1). pp.77-94.
Hopkinson, P., Zils, M. and et.al., 2018. Managing a complex global circular economy business
model: opportunities and challenges. California Management Review. 60(3). pp.71-94.
Nacion, A.J.D., Park, Y.Y. and et.al., 2018. Contemporary management of locally advanced
rectal cancer: resolving issues, controversies and shifting paradigms. Chinese Journal of
Cancer Research. 30(1). p.131.
Schoemaker, P.J., Heaton, S. and et.al., 2018. Innovation, dynamic capabilities, and leadership.
California Management Review. 61(1). pp.15-42.
Shams, R., Vrontis, D. and et.al., 2021. Strategic agility in international business: A conceptual
framework for “agile” multinationals. Journal of International Management. 27(1).
p.100737.
Yu, X., Tao, Y. and et.al., 2018. Managing uncertainty in emerging economies: The interaction
effects between causation and effectuation on firm performance. Technological
Forecasting and Social Change. 135. pp.121-131.
Yun, J.J. and Liu, Z., 2019. Micro-and macro-dynamics of open innovation with a quadruple-
helix model. Sustainability. 11(12). p.3301.