Managing in the Twenty First Century - Principles of Management - ثالث ثانوي

وزارة التعليم 1.3 Managing in the Twenty-First Century Lindi alte www.b LEARNING OBJECTIVES Once you have completed this lesson, you should be able to: 1.3.1 Describe ways. that the workforce and work are changing. 1.3.2 Discuss important factors that influence the management strategy of an organization KEY TERMS Business Competition Management Strategy REALITY CHECK Management is Management? Rashid has been a manager at a successful local independent supermarket for ten years, having worked his way up to the top from a supervisor position He is looking for a new opportunity and has recently seen a manager vacancy advertised with a large inter- national energy company with a branch based in Dammam. "I could do that job easily." Rashid tells his friend, Khalid "I have lots of experience in managing people, and I know how to get the best out of them." "That may be true," says Khalid, "but won't you find it challenging working in a completely different industry? A global energy compa- ny is very different to a local supermarket. How can you be sure that your experience and know-how will be relevant?" "Management is management," replies Rashid. "The same skills and processes can be applied to the role no matter which industry you're working in. What's more, coming from a different sector ac tually gives me an advantage. I can bring other insights to the role." "I think you'll be great for the role," says Khalid, "but don't under- estimate the value of industry-specific knowledge or the differences in companies more generally. I've worked in several management positions, and each situation has been very different" What's Your Reaction? Do you agree most with Rashid or Khalid? Lesson 13 Managing in the Twenty-first Century 37

ارت التعليم 38 LO 1.3.1 Changes and Challenges for Managers If anything characterizes business, it is change While businesses have always faced change, the change facing business today has three char- acteristics. The pace of change is extremely fast. The number of chang- es that must be addressed at one time is challenging. Additionally, the impact of change is often dramatic. An example of this can be seen in the Saudi economy, which is cur- rently undergoing a major transformation as part of its diversification strategy under Saudi Vision 2030. A range of opportunities are aris- ing from the emergence of new industries outside of Saudi Arabia's established presence in the energy sector. Equally, the private sector is growing, with government support designed to stimulate innovation from small and medium sized enterprises. Change affects managers in many ways. The most significant chal- lenges include the changing workforce, the nature of work itself, com- petition, and technology. Workers The makeup of the Saudi workforce is becoming increasingly diverse based on a number of factors, including age, gender, and education. A significant recent development is the increasing number of Saudi women in employment, occupying a diverse array of roles in various sectors, including managerial positions. The Saudi labor market is also comprised of a combination of both Saudi nationals and non-Saudi workers. The Kingdom continues to attract the finest talent, from both inside and outside of Saudi Arabia to support the initiatives of Saudi Vision 2030. Saudi Arabia has a notably young population, with around 40% under the age of 25, according to 2021 government statistics. This youthfulness presents the country with a great opportunity of an emerging generation entering the workforce. By equal token, it also presents a challenge in equipping them with the necessary skills to succeed in business. A wider worldwide trend is that businesses will Chapter 1 Managers and Managing

The increase in international tourism is one example of the recent change in Saudi Arabia Can you think of any other examples?

التعليم 40 employ a workforce that is much more educated. Young people con- tinue to enroll in education beyond high school in greater numbers as they recognize the jobs of the future will require advanced education and training. Work Just as the workforce is changing, so is the way work is accomplished: ■ Fewer jobs today require individuals to work on specialized tasks in isolation from other employees. Instead, work is organized around processes or projects where teams of employees collaborate. Technology is quickly reshaping organizations. More work tasks are performed by automated machines or by workers using technology. While many production and service jobs still require physical labor, more jobs are less physically demanding and more intel- lectually challenging. Jobs require workers to think critically, solve problems, and make decisions. ■ Recent years have witnessed a rise in remote workers, who work from home, accessing company systems online and communicating with team members via video-conferencing software. Increasingly, freelance work is carried out by independent, self-employed professionals who are not permanently em- ployed by one specific company. Freelancers include marketing consultants and creators in the service sectors. In line with the objectives of Saudi Vision 2030, the freelance program has been introduced by the Ministry of Human Resources and Social Development. The program was established to pro- vide flexible employment opportunities and empower Saudi residents to build their skills, contribute to the economy, and ensure financial security through an income (https://freelance. sa/home). ■ Jobs require effective communication and interpersonal skills. Communication often occurs virtually rather than face to face. Chapter 1 Managers and Managing

وزارة التعليم This requires workers and managers to choose the appropriate technology, learn new procedures, and conduct themselves professionally. ■ A small business in Saudi Arabia can partner with businesses in other countries to have an international presence. Managers and employees must be able to work effectively across time zones and country borders. They need to be able to respond to different economic and political systems as well as unique cultural and social needs. Why are many businesses alig competition from mound the globe? Competition Business competition is the rivalry among companies for customers. Two aspects of business competition are changing rapidly. One is the location and number of competitors. The other relates to production efficiency Today, business competition has no borders. Even the smallest busi- nesses serving a local market can face competition from companies thousands of miles away as customers turn to the Internet to make purchases. As with many countries across the globe, E-commerce retail sales in Saudi Arabia are on the rise. Managers need to understand how competition is changing and how these changes affect their business. Lesson 13 Managing in the Twenty-First Century 41

التسليم Technology Telecommunications technologies now allow smartphones to connect to websites and email. This is a great benefit for managers because they can stay in touch with their company at all times. But it can also be a burden because managers may feel the need to always be available, even on weekends or vacation Most companies today cannot compete without a website to promote their businesses, communicate with customers, and sell their products and services. As well as a website, companies are adding social media access and a variety of mobile applications for instant communication and interaction with customers. Companies also use intranets to allow managers and employees to access internal computer systems. Access to all of these technologies makes it possible for employees to communicate with each other and with their managers in a virtual environment. Employees no longer need to work at the same physical location or even in a business environment. Internet technology has given rise to the virtual employee, who may work from home, or the local coffee shop. New technologies also have led to major changes in accessing and using data. Specialized software tracks, analyzes, and reports informa- tion to managers. Managers can access information about all aspects of the business. For example, they might want production schedules, sales figures, customer demographics, competitive analyses, or market data. Managers can also access information about individual employee work activities and performance. Saudi Arabia is investing in innovative technologies to become a world-leader in sectors including green and sustainable energy, robot- ics, and machine learning ? CHECKPOINT What are the changes and challenges for Saudi managers? Chapter ↑ Managers and Managing

وارد الصليم NET KNOWLEDGE Saudi Arabia is one of the leading countries that provides government services online. Whether someone is a citizen, resident, business owner, or visitor, they can access the government services via Saudi Arabia's National Unified Portal for Government Services. Visit https:// www.my.gov.sa and browse the wide range of services. Choose one service and write down how you think this service would be delivered if it wasn't available online. LO 1.3.2 Developing a Management Strategy Effective management cannot happen by chance. Managers cannot just do what they believe is best based on their own instincts and experi- ence. An effective business has a management strategy that is planned, consistent, and understood. A management strategy is a carefully developed overall approach to leading an organization. The Business The Work Type of business • Types of jobs Charlesti experience of DEVELOPING A MANAGEMENT STRATEGY The Management The Business Environment • Charanteng of the gulusy Polluci nu gal environment • Social and cultural lactors Figure 1-4 Major Factors That Determine the Management Strategy All aspects of a business must be considered when developing a management strategy. Lesson 13 Managing in the Twenty-First Century 43

الصليم 44 Determining the best approach to manage an organization can be a complicated procedure. Every business has a unique set of characteris- tics. It can be large or small, offer goods or services, and operate locally or globally. The management strategy must be appropriate for each business. Resources and the environment in which a business operates affect the way a business is managed. Given all of the characteristics and options, each organization must develop its own management strategy. Figure 1-4 shows the major factors a company considers when determining its management strategy. The Business Management will be quite different if the business is small or large, new or old, or operating in one or multiple locations. Managing retail busi- nesses is not the same as managing manufacturing or transportation companies. A service business may need large numbers of personnel, while a computer manufacturer relies more on technology. The Work Managers must be prepared to manage the work and the employees doing the work. Different kinds of work require different kinds of man- agement. Managing routine tasks is different from managing work in a stressful and ever-changing environment. For example, managing an assembly line is different from managing a hospital emergency room. Today's managers usually work with employees who have different backgrounds and different aspirations. They will manage experienced. workers as well as new hires. Some workers are full-time employees, while others are part-time or temporary. Employees in a small company with one location will require different approaches to management than a multinational company with locations in ten countries where employees come from different cultures and speak multiple languages. The Business Environment Some industries are highly regulated. Examples include pharmaceuticals, nuclear power, and airlines. Others have fewer restrictions and can operate more freely. Many companies face intense competition from businesses offering similar products or services. The environment for businesses that Chapter 1 Managers and Managing

موارد التعليم offer unique products and services is much less competitive. An effective management strategy must recognize the nature of competition; be able to effectively respond to any political, legal, and regulatory issues; and demonstrate the level of social responsibility expected by customers and the communities in which the business operates. The Management The fourth factor that affects a business's management strategy involves the characteristics of its management. The management of an organization determines the overall approach and philosophy it will follow. Will it be more traditional, administrative, behavioral, or quali- ty-focused? The levels of management and the numbers of managers in a business affect the approach to management.. If the levels and numbers shift up or down, the strategy may need to change. Finally, the management strategy affects the responsibilities of managers. This includes their relationships with non-management employees and their approach to carrying out the five management functions. Managers perform a wide vanery of activities Wint aspects of mwgement dy you think you would and would not liker Lesson 13 Managing in the Twenty-first Century 45

التعليم Moving into Management At the beginning of the chapter, Ali was trying to decide if he wanted to move into management as a supervisor. He knows he will spend most of his time on management activities-planning, organizing, staffing, directing, and controlling. As a supervisor, he will become a part of the company's management team and will be the link between the employ ees he supervises and upper management. He and the other supervisors and managers will work as a team to plan the future and guide the business. They will be responsible for the wise use of resources, the jobs of employees, and-ultimately-the success or failure of the business. Management is challenging and exciting, but it is also demanding and stressful work. Management is increasingly complex and requires people who are energetic, well prepared, and committed to their company and their career. Regardless of your career goals, you benefit from understanding how businesses manage production, marketing. finance, operations, and other important activities. This is true if you plan to operate a business of your own, move into a top management position in a large company, or work as a valuable and valued employee for a company. A student who plans to be an entrepreneur or a top manager (such as a company executive) will need a complete understanding of all phases of business planning and operations. A supervisor or a top manager must fully grasp how the activmes of all departments are coordinated in a smoothly operating business. This same knowledge will help employ- ees in organizations that empower workers to take responsibility for managing their own work and participating in teams Understanding management principles and practices will help the individual to contrib- ute as an employee or as a manager in any organization ? CHECKPOINT What is a management strategy? 46 Chapter ↑ Managers and Managing

عبارت التعليم 13 Assessment UNDERSTAND MANAGEMENT CONCEPTS Determine the best answer for each of the following questions. 1. Which of the following is not one of the key issues within the business environment that an effective management strategy must be able to effectively respond to? a regulatory su b. foalballes G. Ivoothetical Issues 2. d. letales The rivalry among companies for customers is known as. a. management itategy b. PRICE STRINGY listes ampelition d. sevinment THINK CRITICALLY Answer the following questions as completely as possible, 3. What are several ways that managers jobs will be different as a result of the fast pace of change they will be facing in the future? Why should an organization develop a management strategy rather than allow each manager to do what he or she chooses? Lesson 1.3 Managing in the Twenty-First Century 47