Causation, Effectuation, and Business Management in the 21st Century

This essay critically examines the relevance of causation and effectuation in understanding the dynamics of business management issues in the contemporary global business environment. It discusses how start-ups utilize causation (focusing on predetermined goals) and effectuation (making decisions to carry out necessary actions). The essay highlights the importance of these approaches in navigating the complexities and uncertainties of the modern business landscape, emphasizing the need for businesses to adapt to technological advancements, environmental changes, and other external factors. It also addresses challenges faced by human resource managers and the significance of creative and innovative teams for long-term organizational success. The document concludes that a combination of causation and effectuation is vital for effective management and strategic decision-making in the 21st century. Desklib provides various resources and solved assignments for students.

Contemporary
Management issues in
the 21st Century

Table of Contents
INTRODUCTION : ........................................................................................................................3
TASK ..............................................................................................................................................3
Drawing on the concept of causation and effectuation, critically discuss the statement and its
relevance to understanding the dynamic of business management issues in the contemporary
global business environment............................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION :
Business management is synchronising the activities of different departments to achieve
the goal of the organisation. Management of the organisation works towards planning,
organising, directing and controlling the business to attain the objectives of the businesses. They
have the responsibility to look over the businesses and make decisions accordingly. The size of
management is different in various organisation. Management size can be anything from a single
person to thousands of person. Business managers helps the employees to reach the top
productivity level(Bhat and Bharel, 2018). They also train and supervise new employees. The
term management is easy to understand but it is very difficult to define in universally acceptable
ways. This report focuses on the concept of causation and effectuation, explanation on artefacts
that assumed to required novel approach in the venture creation and importance of understanding
management issues in the contemporary world.
TASK
Drawing on the concept of causation and effectuation, critically discuss the
statement and its relevance to understanding the dynamic of business
management issues in the contemporary global business environment.
Business start ups focuses on providing network resources and encourage the sharing of
ideas. But the previous researches shows that restricted knowledge takes place between the start
up firms. This shows that entrepreneur rely upon two aspects which are causation and
effectuation. Causation refers that entrepreneurs focus on the predetermined goals and then aims
to find the means to reach the goal(Corbau and et. al., 2019). Effectuation refers to the approach
for taking decisions in order to carry out necessary actions. It gives the organisation a completely
different approach.
In the traditional ways, the entrepreneurial creation was mainly depended on the traits
and efforts which tends to show the result of success. It is necessary to understand the
entrepreneurship in a better way. Many theorist have created novel methods for this journey
which is effective for analysing facts and data for the business activities. In references to
dynamic global business environment the presented theories, models and plans are become
necessary for every business in order to avoid failures. As the environment is becoming complex

day by day and uncertainties are threatening the environment which might have an impact on
start ups and decision making ability(Gregory, 2019). The global environment is based on
advanced trends, technology and innovation and therefore decisions are need to be taken by
taking all these elements. There are various models discovered to fulfil the needs of the
businesses. It helps the businesses in giving solutions which helps them in garbing opportunities
and seek development. Entrepreneurship is full of uncertainties which demonstrate markets,
people and trends. These factors affect the ideas and decisions of the entrepreneur. If the
business is looking to make an innovation in food products then they should think about its
advantage and disadvantage, staff hiring, training and the resources involved. The term causation
and effectuation have gained much significance in development of entrepreneurship.
In the 21st century issues of management have become more urgent because of transition
of business and world economy. To define problems and obstacles, special emphasis should be
placed on the analysis. In the modern working time of business, flexibility and limited working
approach required which does not effect on the employee retention and manpower. The effect of
causation derives that goal must be pre decided. Businesses with lots of complexities requires
aims and goals which will create systematic path. Now a days businesses could not take
decisions easily and they have to make experiments in order to analyse the business effectively.
The working in modern days is not simpler as compared to traditional days. This leads to derive
every decision and goals needs to be pre-determined so that the all other activities will move in
the prescribed direction(Harvey and Mahard, 2020). Whereas, the approach of effectuation put
focus on decision which which will create insight of doing the set goals. These approaches are
necessary in the global business context where businesses are getting affected with political,
environment, technological and legal issues. It creates minimum chances of failure and business
is running profitably. The approach of effectuation put focus on decisions which will create
insight of doing the set goals. These approaches are necessary in the business context where
businesses are affected by political, environmental, social and legal issues. These external
environmental issues put emphasis on the decision of businesses. Technological factors are the
most important factor in the global business environment. Everything is becoming digital which
is crucial for the economy. Many organisation like amazon, apple have become a best example
of high technology and innovation which comes under the largest companies to grow into
market. Effectuation approach does not work always in the changing environment. There are

some decisions which might not suite with the changing environment. The managers needs to be
adjustable and ready to accept the changes and uncertainties to modify the decisions as per the
situations(Howie and Tauchert, 2019). There is requirement of effectuation model in which the
businesses get into the insight about what decisions will be advantageous in future and what
needs to be eliminated quickly. It is important that decisions must prompt the business objectives
and the management easily adhere to market changes. The contemporary business issues trouble
the management functioning of the business. It needs to be ascertained that there are many
essential areas that needs to be manage effectively. The employees, profitability, and the
productivity are the key areas that every managers needs to look at. The organisation runs on
some rules and regulations(Iost Filho and et. al., 2020). Defining duty and fixation of
responsibility for all the employees in the organisation is essential. Before starting a business,
owner should have a good business plan which consist of organisational goals and objectives that
the owner need to achieve. These goals are the set up that attempts to earn desired profit. Some
goals are based on past experience are pre-determined. Now days human resource managers are
facing many challenges which can be remove with the help of pre-determined goals. They
perform the function of recruiting and selecting, finding a suitable candidate for the position is
the basic problem faced by human resource manager. Company needs to make a proper
recruiting plan to remove the problem in recruiting. After recruiting the desired candidate proper
training and development programs should be organised. The human resource manager should
also maintain healthy relationship with the employees. In absence of communication between
employees it gives a negative impact on the organisation. And if conflict arises between team
members,it can be feel throughout the team. When it is not resolved it affects the productivity
and morale of the organisation and even top performance employee may leave the company.
The training and development programmes develops the skills and knowledge of employees and
helps the organisation in achieving the desired objectives. The challenges faced by human
resource manager includes overseen personal information and securing the privacy of
confidential data. To overcome from all the challenges company needs a proper plan which
consists of all the activities that happens in the organisation. The causation and effectuation
needs to contribute for short term as well as long term business strategies. Once goals are set, it
is the duty of managers to communicate with all the employees. Management is the crucial part
in the businesses and they play a major role in contributing the profitability of the organisation.

Causation and effectuation are required to establish the business goals. Business success and
survival depends on the creative and innovative teams. Long survival of organisation needs
creative ideas which helps the business to do something new. Innovative company leads their
customer happier and employee also become loyal to them(Yeh and Chen, 2020). Now a days
technology is no longer an option for the businesses but it is the necessity for the survival. The
organisation who adopts the advanced technology with time are aiming towards success.
Diversity also become the one of the biggest challenges facing the modern organisation.
CONCLUSION
From the above it has been concluded that business organisation is based on two aspects
that is causation and effectuation. A good plan should be decided in advance before starting a
business. To make proper strategies for the business operations is the responsibility of the owner.
Causation approach is used by organisations to design the goals and the ways to achieve them.
Apart from this effectuation refers to taking decision in order to carry out necessary actions.. The
two approaches plays a vital role in the success of organisation. If the above two approaches are
not applied properly business should not function properly. Applying these approaches define the
challenges that came out.

REFERENCES
Books and Journals
Bhat, I.A. and Bharel, S.K., 2018. Driving performance and retention through employee
engagement. ZENITH International Journal of Multidisciplinary Research. 8(1). pp.10-
20.
Corbau, C. and et. al., 2019. Coupling land use evolution and subsidence in the Po Delta, Italy:
Revising the past occurrence and prospecting the future management
challenges. Science of the Total Environment. 654. pp.1196-1208.
Gregory, V.L., 2019. Collection development and management for 21st century library
collections: an introduction. American Library Association.
Harvey, D.R. and Mahard, M.R., 2020. The preservation management handbook: a 21st-century
guide for libraries, archives, and museums. Rowman & Littlefield Publishers.
Howie, G. and Tauchert, A., 2019. Gender, teaching and research in higher education:
Challenges for the 21st century. Routledge.
Iost Filho, F.H. and et. al., 2020. Drones: innovative technology for use in precision pest
management. Journal of economic entomology. 113(1). pp.1-25.
Yeh, A.G.O. and Chen, Z., 2020. From cities to super mega city regions in China in a new wave
of urbanisation and economic transition: Issues and challenges. Urban Studies. 57(3).
pp.636-654.