Effects of Societal Forces on Management
In the past, there were many things that need to be changed. Inevitably, these changes were possible in management. In the last century, after the industrial revolution, companies have had significant importance in our lives. Since there has been a necessity to become companies, money owners and investors have gained the idea of good management. Sometimes, investors had believed that they think right things so that they materialize them. However, we said that something we believe that can be changed easily and in a short time. The incident that is happening in management area is the same. Recently, societal forces have an important effect on practice and theory of management and I believe that management techniques go behind to the response of the societal forces.
Nowadays, young new graduated people have needed some desire from companies which they apply for a job. Especially, well educated ones want more interesting and exclusive demands as they have some different abilities from others. These people may be defined as a societal force because of their effect on management of companies. Since company managements want high class employer, they have to be more selective. In brief, a significant social force affecting organizations today is the changing attitudes, values and demands of young highly educated people.
As an example, years ago, in computer sales market, companies have standard computers design such as Pentium I microprocessors and 16 MB RAM. As a result of standard computers people have to buy among these. After a while, computer industry has developed with rapid movements. Today, there are many companies with effective computer sales services so that customers can buy any computer with countless configurations. Briefly, customers’ demands have changed rapidly, theory of management have changed in a way to create a new value and new techniques. Also, in similar way, automobile industry has changed its management according to the customers’ demands. In the past, automobiles come with identified properties and packages. But, now, automobile manufacturers have to design a car according to the customers’ desire.
In addition, societal forces affect management because of the globalization all over the world. With the help of globalization, people are able to buy any product or they will take services of global firms and companies. For example, the shopping places in the Internet such as Amazon.com are available for everyone due to the globalization. Because of this deadly competition, people can choose the best prices, performance and services, and companies have to be more competitive to get up with the customers demands.
Another example is that the change in bank management. In the past, banking procedures were different from these days. Banks were the places where people come, and invest money. But, in these days banks are very different from the past because of societal enforcements. Now, people are welcomed with nice words, and people can discuss the situation of their accounts with the advisor. Also, services have changed so significantly. Sometimes, people wanted to take money from their accounts immediately, to solve this problem, human beings invented cash dispenser to help this problem. In brief, many things solved with the societies’ desires and demands.
All in all, today’s people have information about the management. They know that for the companies, customers’ satisfaction is the most important things; also companies know that profit will come after good products and services. As a result of this mutual agreement, companies are ready to do what customer’s want, especially, for the rich customers.
References
Daniel A. Wren, “Management history: Issues and Ideas for Teaching and research,” Journal of Management 13 (1987)
John A. Byrne, “Management Mecca’s”, Business Week, September 18, 1995
Larry M. Austin and James R. Burns, Management Science (New York: Macmillan, 1985)
Robert C. Martin, “Continuous Care vs. Initial Design”, http://www.objectmentor.com/resources/articles/Continuous_Care.pdf , 13 February 2002
Stephan Thomke and Eric Van Hopel, “Customers as innovators: A new way to create value”, April 2002