Modern business management

Prof  AN Sadhu
A country reeling under extreme demographic pressure is precariously placed in resolving the issue of capital intensive v/s labour intensive technologies or to arrive at an appropriate blend of the two. Recently held elections in Delhi have thrown up new challenges before the Government. Common man is hard pressed and has clearly opted for a new alternative which besides promising corruption free administration, has also promised big concessions such as reduction in electric dues and water charges, curbing price inflation and providing a large number of sophisticated gadgets to monitor women security and similar other things. It will require massive resources which may be hard to become available because of several constraints. Levying more taxes on upper middle class and capitalist class will have its own repercussions which will have to be reviewed in the light of socialist thought on which economic planning was adopted after independence which did not yield the results along the expected lines. This has been sometimes referred to as state capitalism and the present phenomenon is referred to as corporate capitalism. In fact the state capitalismvirtuallydoes not exist now, except in a limited manner. Corporate capitalism is already under fire and has been one of the reasons of BJP’s rout in Delhi elections.What kind of social engineering and economic policy mix will steer the country through the present difficult situation and keep it glued to high growth performance, in order to keep pace with china and other major emerging economies of the world, will be great challenge for the Government. At the home front we need both, the high growth rate as also its trickledown effect among all sections of the society. The programme of inclusive growth will have to be translated from words into deeds to overcome the cynicism, on the one hand, and extreme frustration, on the other. The common man has lost his patience and wants results on the ground.
The issues related to development and environment are being hotly debated all over the world. Environmental degradation and climate change are posing formidable challenges on the development front. Oil and water pollution has become a serious health hazard, particularly, in heavily populated regions of the world. We are faced with alarming decline in forest cover, green patches, water bodies and open spaces for uninterrupted flow of rain and flood waters. Global warming has started melting glaciers and causing serious distortions on climate front. Disposal of industrial waste has become a serious problem. Environmental issues have therefore assumed great importance in economic development of the country. Shrinking agricultural spaces are driving out people from rural areas and burdening the cities with extended slums and allied problems. Water scarcity is posing a serious challenge of water sharing between the regions, both, within the country and across the international borders. Unless, therefore, the environmental issues are properly addressed, the economic development may get seriously hampered.
Most of the countries of the world are witnessing demographic transition. The death rates have fallen considerably all over the globe while on the other hand, in highly populated countries, the birth rates continue to remain high resulting into larger young populations. In fact the world is becoming younger. In our own country about sixty per cent population is below the age of thirty five years. The labour surplus economies have to devise means of transforming this young population into a productive resource, failing which, there will be rising unrest in the youth. Stress will have to be placed on skill formation and raising the competitive levels of the young. The whole issue of prioritising or otherwise of higher education against technical and professional institutions shall have to be revisited very carefully keeping an eye on global job market.
The issue of balanced regional development needs a fresh look. The eastern part of the country, in spite of being rich in natural resources, still lags behind and north-eastern states are also not in a comfortable situation. A vast country with such a large diversity shall have to move forward with an equal attention to all the regions. Even on the global level, this issue is assuming greater importance. Unless all the regions of the world enjoy a level playing field in, in the, emerging economic order, economic issues may become more contentious in the coming years. Ever since the establishment of WTO, sharp difference among the member countries have been coming to the surface in each of its meetings. The developing countries have become more forceful in articulating their concerns and seeking a due share in world trade and commerce besides bilateral and multi-lateral arrangements on more favourable terms.
The good governance and institutional management is key to success. The present government has been given the mandate on that score. The corruption free and the efficient Government carrying out the programmes of inclusive growth, honestly and successfully will steer the country through the difficult times. The efficient monetary and fiscal management is required, on the one hand and on, the other constant endeavour of enhancing the competitive levels to stay in the global market is a challenge to be met.
The subject of management has assumed considerable importance in today’s world. Be it economic planning, be it public administration or be it the corporate world, management plays a crucial role everywhere. Management is more particularly associated with business methodology as initially it is in the corporate sector that it developed. As the economic domains widened within and outside the national boundaries, the necessity of management techniques grew proportionately. Initially the subject of management evolved as a kit of functional tools to facilitate the business processes across the globe more efficiently and profitably. Even though the subject developed as a workable synthesis of economics, commerce, statistics, mathematics and public policy but it has now grown into a full-fledged discipline of specialised knowledge. The fundamentals of management are no longer restricted to business alone; these have become equally useful in economic planning and public administration as well. The emerging management issues and challenges are * Globalisation of business, * Consumer satisfaction, *Ethical corporate culture, * Focus on employee ship and * Innovative management practices.
It is through multinational corporations that the phenomenon of globalisation emerged. Emergence and subsequent multiplication of MNC’s necessitated not only the movement of goods and services but transfer of technology, capital, labour and information across the national boundaries. This initiated the process of global integration. We are now living, virtually, in boundary less world. The primitive concept of self-sufficiency has since given way to the concept of self-reliance which has significantly increased the inter-dependence of nations and which, in turn, has increased the requirement of imports and exports. As a result of globalisation, the competition has increased and in order to survive in modern business world, management practices have to be based on sharper tools, possible only through the transfer of information and technology across the globe. Global business managers are faced with a big challenge of developing cost efficient and quality intensive business practices to stay in international reckoning. More and more business organisations tend to become global, and to manage business in cross cultural environment, business executives have to be trained accordingly. Globalisation, therefore, is not a challenge for economics alone; it is a challenge for management as well.
Consumer sovereignty is supreme. The relative scarcity apart, consumer satisfaction is the determining factor for success in any business.
In the availability of whole range of products, business organisations have to face stiff competition in reaching the consumers and selling their products to them. The consumer satisfaction has become a multiple function of the product content, brand name, packaging and salesmanship; necessitating continuous quality up gradation and competitive edge. Business ethics has also assumed greater importance these days. All the governments have framed laws to check unethical practices and ensure the supply of genuine goods and services to the customers. Business organisations are required to adhere to these ethical and legal norms while operating in the national and global markets. The ethical business norms have to be responsive to social norms, values and attitudes. The business managers have to understand their social responsibilities and base all their decisions on ethical norms. Many a times it so happens that in the race of getting maximum profits, some business organisations resort to unethical business practices and dupe the consumers. The young business managers have to be so trained that they stop these practices and develop more scientific ways of meeting their targets without violating the moral code of business. To fulfil this social responsibility is a big challenge for management. Social responsibility may not deal with consumers alone, it also has to deal with shareholders and other people connected with it.  Quality, price, pollution and creation of employment opportunities are all, the elements of social responsibility.
One of the important aspects of modern business management is the shifting of emphasis to employee ship. In the traditional management practices, the employees would be required to work strictly within the frame of instructions given to them by the boss. This is now undergoing a change and employees are asked to innovate and evolve their own methodology and aim at maximising the returns to the business organisation. This leads to innovative methods and creativity among the young business executive. Innovation and change is very important. The business organisations ignoring it , face every prospect of going out of business because technology is changing fast, new products are entering the market at short intervals and consumer tastes and expectations are constantly changing. The wide exposure through print and electronic media, of new products, is posing formidable challenges to the business managers compelling them to keep pace with fast changing business environment.

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