Question

The rapidly changing world means there is no perfect form of management." Through the use of relevant theory and real-life company examples, explain your argument on the sentence provided.

Answer 1

It is a known fact that the management has to change accordingly to accommodate the rapid changes happening in the world. An inability to do so, could drive the organization to failure. The businesses have to change with the changing times. The old hierarchical models with a slow moving and less complex business environments with only a few people at the top level management for leadership doesn't work anymore. Modern times call for a more dynamic, volatile and decentralized kind of a hierarchy. As new and modern companies enter into the market, they pose a threat to the existing businesses. To eliminate this threat, the businesses must comply with modern times and modify their structures to accomodate change. Only then will they be prevented from becoming obsolete. They have to change accordingly with the technological advancements of modern times. They have to make efforts to evolve with the evolving industries.

Nowadays, organizations have shown greater delegation and decision making at all levels of the hierarchy. Managers have been taking on more responsibilities and the leaders have been focussing on guiding and communicating with the workforce effectively to make sure they reach the pre-set organization's goals within the specified period of time. A rapid change in the world's social, global, and technological aspects has triggered a substantial change in the management of respective organisations as well. The nature of work, strategies, everything has been changing and will continue to change. The availability of the internet has opened doorways for newer types of businesses like the IT sector and Cloud computing. It wasn't even possible to anticipate this change some 50 years ago. The availability of technology has been transforming business landscapes for better or worse.

An example for a company that refused to make the jump to a more digital model is the game rental and home movie services giant 'Blockbuster Video'. It was an iconic company in the video rentals space. In the year 2000, Netflix approached this company with an offer to be sold. But, the then CEO of Blockbuster refused the offer, calling it a very small business. As time eventually passed by, unable to transit into a more digital model, Blockbuster filed for bankruptcy. Another example of a company that refused to make the jump to a digital model was 'Kodak'. Kodak had the opportunity to steer into a digitalized model, but refrained from doing so thinking it would cannibalize its own product lines. It held back from from making digital cameras. The inability of Kodak to keep up with the digital revolution is what doomed it. It subsequently filed for bankruptcy.

From the above argument, it is clearly evident that there is no perfect form of management in the rapidly changing world. It must change accordingly with the changing world.