Essay: Contemporary Management Issues in the 21st Century - LSC UoS

This essay provides an overview of contemporary management issues in the 21st century, focusing on the concepts of causation and effectuation in business management. Causation involves focusing on predefined goals and implementing plans to achieve company objectives, while effectuation emphasizes utilizing existing resources to accomplish those goals. The essay also addresses the challenges of global business management, including language barriers, cultural differences, managing global teams, currency exchange and inflation rates, and navigating foreign politics. It concludes by highlighting the importance of considering both causation and effectuation for effective business management and the need to address global challenges to ensure successful international operations. Desklib offers a wealth of similar solved assignments and study resources for students.

Contemporary
management issues in
the 21st century

Table of Contents
Introduction .........................................................................................................................................3
Main body.............................................................................................................................................3
Conclusion ...........................................................................................................................................6
References ...........................................................................................................................................7

Introduction
Business management is the relationship that is about the skilfulness and procession of the
business activities, in the process of managing the business the managers are responsible to handle
the business functions and the transactions that are taking place in the organisation. The manager is
the authority that is very crucial and important to discuss about the business conditions and to make
some of the strategies and take some of the steps that can be beneficial for the company and the
manager has the obligation to supervise the employees and train them in a way so that the
employees can make use of their best skills and make some of the dealings that will enhance the
business and the management of the business will be smooth and the organisation will grow rapidly.
Also the management is refereed to altering some of the plans in the organisation, direction of
company, organizing and then controlling the business resources so that the company can obtain its
goal and objectives(Bamunawala and et. al., 2022).
Main body
When there is the study of business management there are some of the words that are very
evident to be examined like causation and effectuation, when study about causation, it is the study
of the the cause that is going to be there when there is some or the other process in the organisation,
for example when the company is working on some of the new venture creativity there can be some
of the consequences like growth and expansion so they are the causation effect when there is some
process going on in the business(Benoliel, 2022). When the business management is there then the
causation is the term that can be explained as the entrepreneurs are concerned with the forecasted
goals and objectives of the company, and they are focussing on how they are going to achieve those
goals and to do this the company have to select the responsible and talented employees who should
be clear with the business plan and should also know that how to implement some of the strategies
of the company. The company should make sure that they have good HR team which manages to
hire the best talents with the best skills that can be beneficial for the company. Sarasvathy made
some of the areas of the difference between causation and effectuation that are very important to be
put under the consideration for knowing the changes in the business organisation and they are
decision making for the selection of employees, considering the competency level of the employees
ad the nature of the unknown(Vijayaraghavan and et. al., 2022). Effectuation is the process of
checking on the effects that are going to be there with the business management function and using
the resources that can be helpful for the increase in the productivity of the organisation, this is the
process which is used by the entrepreneurs to create something new and creative, and making out

some of the ways to find the value for the respective business and it is the way of thinking about the
future and to make some of the execution that makes the business be the best and earn goof
revenues among all the competitors and the effectuation has so much importance in the business
management like goal setting, utilization of all the resources that are available and making suitable
and proper decision for the organisation(Capurso and et. al., 2022). Some of the features of
effectuation are building the business, developing the strategies and planning the business market
approach. Effectuation smooths a dynamic and repetitive process of making new techniques and
methods for the working of the company. When the entrepreneur is effectual then he is able to make
wise and good decisions that are considered as important source for the company and concerned
with the issue that what they can control in the business. Individuals who use the causation
approach, have limited tendency to share their views and the ideas and they perceive such network
resources as having a low value(Steinitz, 2022). And the individual who used the effectuation
approach have the great tendency to share the ideas and they realize that such network resource
have relatively having high value. Non-predictive control versus predictive control, means-driven
versus goal-driven action, affordable loss versus expected return, partnerships versus competitive
analysis, and leveraging versus avoiding contingencies. This distinction in the two approaches can
be helpful in comparing them, whether one of the two leads to better performance(Kirsanov and et.
al., 2022). And while these findings are received with enthusiasm in practice, it’s not sure if they
even work. Does the effectuation approach have better results than the causation approach, and
which circumstances play a factor in determining the performance. There has been little to no
empirical research done in order to test these concepts in practice. When the business management
of the organisation is going to be global then there are some of the challenges that can be faced by
the company and they are important to consider for the functioning of business as the problems are
major and language barrier is critically considered as the problem that is faced by the employees
and the authority of the company as there are different regional languages and they are hard to learn
so easily and then the employees are at a point where they need to learn about the basic skills and
the regional and local language of the place where the business is forming and taking place and it is
also important to know the basic language and also to deal with this problem the company can send
their employees to the country before the formation globally and then get to know the environment
of the region and be familiar with it so that there are no problems(Zhang, Luand Peng, 2022).
Cultural difference refers to the the cultures that are different in various country and with change in
the culture the business is also affecting its working and to deal with the issues the employees must
learn about all the customs, trends and the traditions so that they can be comfortable in the
environment of the business organisation, also the cultural difference includes the change in the
timing and shifts of the people(Mehra, 2022). In the United States, working hours are 9 a.m. to 5

p.m., often extending earlier or later. In Spain, however, working hours are typically 9 a.m. to 1:30
p.m. and 4:30 to 8 p.m. One another problems is of managing the employees who are presently
working all over the world and they can face the problems of language, cultures and time zones and
to cope up with this challenge the company can organise regular check ins by using the video
meetings online(Naudé, 2022). Currency exchange and inflation rate is the problem about the
change in the currency of the cash and employees must have knowledge the the currency rates of all
the regions so that they can manage the capital investment and cash and cash equivalents of the
company, also it is important to monitor the inflation rate as theses rates do vary in every various
region and it can influence the labour, product pricing and material cost. Lastly there is a issue
which is also very common in all the organisations which is politics of foreign as the company will
be new there and the foreign people will obviously try to influence and dominate the employees and
also try to exploit them professionally and make some of the rumours that it can affect the employee
emotionally and does lower the confidence of the employee then the employee will not be able to
work properly and to solve this problem the employees must interact with all the foreign people so
that they get familiar with them and there are less chances of having the politics involved in the
business(Sibson and Morgan, 2022). Also some of the seniors of different region can make some of
the decision that can impact the business and can ruin the working of the organisation.

Conclusion
In this respective report, it has been concluded that the two factors of the business
management are important to be considered are causation which is the aim of the managers when
they focus on the predefined goals and then work accordingly to implement the plans and achieve
the objectives of the company and effectuation is about using the resources which are already
present in the organisation and then they can achieve and accomplish the goals of the company.
Business management globally is difficult as the company faces some of the challenges like
language barriers, cultural differences, management of the global team, keeping a check on the
exchange and inflation rates and making sure that the company manages to avoid the foreign
politics.

References
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Steinitz, M., 2022. The Partnership Mystique: Law Firm Finance and Governance for the 21st
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