LSC UoS BA Business Studies - 21st Century Management Issues

This essay explores contemporary management issues in the 21st century, focusing on the concepts of causation and effectuation in business management. It discusses the differences between these approaches and their impact on business performance. Furthermore, the essay addresses the challenges faced by organizations expanding globally, including communication barriers, cultural differences, currency exchange rates, inflation, and foreign policies. It concludes by emphasizing the importance of understanding both causation and effectuation for effective management and the need to navigate global challenges successfully. Desklib provides access to this essay and many other resources for students.

Contemporary
Management Issues in
the 21st century

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business management refers to the procession and capabilities of the business practices,
in the method of maintaining the business, leaders are the main accountable to manage the
operations of the business and the dealings which are carrying out in the company.. The leader
possess the authority which is very essential and crucial to talk about the situations of business
and to create few of the techniques which can be advantageous for the firm if it is implemented
appropriately (Asemokha, and et.al., 2021). In addition to this, managers of the company has the
responsibility to monitor the workers and provide them training in an appropriate manner so that
the worker can properly utilise their skills as well as operate in such a manner which will
increase the performance as and productivity of the company in an effective and efficient
manner.
TASK
At the time when there is the idea of business management there are few of the which are
actually very apparent in order to be evaluated like causation and effectuation. In addition to this,
causation refers to the research of the reason which is moving to be there at the time when there
is few of the methods or other process in the company. For instance, if the organisation is
functioning on the few of new business venture innovating and creativity, so there can be few of
the effects such as expansion as well as growth and these are the effect of causation when there
are some of the method implementing in the business (Chandler, and et.al., 2021). The term
causation can be easily display that the business men are focused with the goals as well as
objectives that are predicted earlier and those businessmen are concentrating on the process by
which they are going to accomplish the objectives as well as goals. In order accomplish this,
management need to choose the obliged and skilful workers who are appropriately understand
the objectives and business plan of the company. Those worker must also understand that the
significance and implementation of the techniques of firm.
The organisation should properly be sure that they posses effective team of HR that
maintain to recruit the top experienced talents with having the top skill which can be
advantageous for the organisation. Moreover to this, author has made few of the aspects of the
difference between effectuation and causation which is very essential to be taken as in the
consideration for understanding the modifications in the business firm and company's decision

making for the recruitment of the worker, in accordance to their level of competence of the
workers and their nature is not known to them. Effectuation is the method of reviewing on the
impact which is active to be there with the operations of management of the business as well as
utilising the resources which can be useful for the enhancement in the performance of the
company.
So this method is utilised by the businessmen in order to create something creative as
well as innovating and implementing few of the methods in accordance to identify the value for
the particular business firm. Moreover to this, it is the method of thinking regarding the future
and to create few of the implementation which makes the organisation to be at the top and earn
more income among all the rivals. Additionally, effectuation contains a lots of need and
importance in the business organisation such as setting of goals, appropriate use of every
possible resource which are there and making appropriate and suitable decisions for the
betterment of the company (Garrido, Iand et.al., 2021). There are some characteristics of the
effectuation that is constructing the business,making the techniques and preparing the market
approach of business. It is dynamic as well as continuous method of creating latest methods and
strategies for the operations of the company. When the businessmen is effective then the person
is capable to better decisions which are known to be the essential source for the organisation and
focused with the problems which are in the hands of the company. People that utilises the
causation approach, possess limited tendency in order to share their opinions as well as creative
ideas and they understand that the resources of network have the low value. Apart from this, the
people that utilises the effectuation approach are focused in sharing the innovative ideas as well
as they understand that these network resources have comparatively possessing higher value.
Predictive control in comparison to the non predictive control, it refers to the goals driven
actions in comparison to means driven action. This difference in these mentioned approaches can
be useful in relating them, if anyone of them leads to the more productivity and performance. At
the time when, these approaches are gained with motivation in activities, it is not considered that
it can even work. Furthermore, effectuation approach have more better outcomes than the other
one and in which time and situation play a element in evaluating the performance (Harms, and
et.al., 2021). At the time when organisation's management is planning to be expand in different
nation then there are few of the issues which can be encountered by the organisation and they
are essential to know for the working of the company as the issues are main in which barrier of

communication because of the difference in language is considered as the issue which is
encountered by the workers. The management of the organisation as there are several territorial
languages which are tough to understand and learn so conveniently then the workers will be at
the situation where they require to understand about the common abilities or skills as well as
authorities of the business.
As there are diverse local languages as they are tough to learn so effectively and then the
worker are at a point where they require to learn about fundamental abilities and local language
of the place where the management is shaping and taking place (Karri, and Goel, 2021). As it is
also essential to understand about the fundamental language that can also deals with such issues
of the management that can send their workers to other nation before shaping globally and then
get to understand about environment of the region and be known with them by which there will
be no issue. Cultural differences termed to the cultures that are diverse in several nation and with
the variations in the culture of the management that also have an impact on their working that
can also deals with the problems of the workers that should learn about their values, customs and
as well as trends by which environment of the management can also be termed to their cultural
difference that involves the variations in timing and shift of an individual. In US working hours
are 9 to 5 P.M, that frequently earlier or later.
In Spain, working hours are generally 9 a.m. to 1:30 p.m. and 4:30 to 8 p.m. On the other
hand, issues of maintaining the workers who are existing working all over the world and they can
face the issues in languages, culture and time zone and to deal with several issues in which the
business can arrange their daily checking by utilising the video calls services. As the currency
exchange and inflation rates another issue about the variations in the currency of the cash and
workers who should have proper knowledge about currency rate of all the region by which they
can maintain the capital investment and as will as cash equivalents of the business (Prashantham,
and et.al., 2019). As it is essential to supervise the inflation rate of such rates that can vary in
each and every region that can have an impact on the labour, product costing and material cost.
At last, there is an issue that is also very basic that all the business that involves policies of
foreign as the business that will be new term and the foreign individuals will generally try to
have an impact and dominate the workers and also try to exploit them in workplace and develop
some sort of false things that can affect the workers effectively.

CONCLUSION
From the following report it can be summarised that a business management requires
consideration of two essential factors. One is causation that relates to the aim of managers when
they concentrate on the goals that are defined prior to the work and then the work is done
according to that so that the plans can be implemented and goals and objectives of the company
can be achieved. Second is effectuation that relates to the resources usage that are already present
in an organisation so that goals of company can be accomplished. The management of business
on the global level is difficult task as it tends to face number of challenges such as language
barriers, their management, cultural differences, and ensuring that the company manages to
obviate the foreign politics.

REFERENCES
Books and Journals
Asemokha, A., and et.al., 2021. Business Model Innovation in the Internationalization of SMEs:
The Role of Causation and Effectuation.
Chandler, G.N., and et.al., 2021. Causation and effectuation processes: A validation
study. Journal of business venturing, 26(3), pp.375-390.
Garrido, I., and et.al., 2021. The moderating role of polycentric institutions in the relationship
between effectuation/causation logics and corporate entrepreneur's decision‐making
processes. Global Strategy Journal, 11(4), pp.740-766.
Harms, R., and et.al., 2021. Effectuation and causation configurations for business model
innovation: Addressing COVID-19 in the gastronomy industry. International Journal of
Hospitality Management, 95, p.102896.
Karri, R. and Goel, S., 2021. Effectuation and over–trust: Response to Sarasvathy and
Dew. Entrepreneurship Theory and Practice, 32(4), pp.739-748.
Prashantham, S., and et.al., 2019. Effectuation, network-building and internationalisation
speed. International Small Business Journal, 37(1), pp.3-21.