Question

In: Accounting

When a company moves from an informal “reaction” style of management to a formal “proactive” style...

When a company moves from an informal “reaction” style of management to a formal “proactive” style of management, it is often a direct effect of implementing:

Solutions

Expert Solution

Sometimes reactive management is important for example in crisis situation. However, this type of management creates a number of problems within the organisation when it becomes a norm. Reactive management occurs when you don't have time to plan. Problems seem to hit from out of the blue forcing you to react as they occur.

On the other hand, a proactive management occurs when management initiate changes from within, and plan ahead to avoid future problems. It involves anticipating how the competitive game might change, adapting to the changing needs of the customers, stay vigilant about external trends and uncertainties.




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